Hi BP Family ! it's been a while, I hope everything is going well for everyone . I was just curious how having your real estate license influenced you're investing. Is the trade off between liability and access worth it?. Have you found that being able to submit offers on your own and not have to wait on an agent advantageous? Has being an agent enabled you to take advantage of more opportunities increase your net worthas opposed to just being an investor? As you can see im considering getting in the business but want to get some insight from someone who has been able to take full advantage of both sides of the coin. Thanks! Talk to you soon.
@Ramon Moreno , for about 10 years I invested without a license, always thinking that I didn't have time to take the class and it would be a bigger liability to deal with paperwork when I could be doing more deals.
Fast forward to 2017, and now that I have a license I regret not getting it sooner. If you're a flipper, the sheer savings of buying and selling far out weigh any extra hassle you go through. As a wholesaler, it makes the argument that you're brokering a deal without a license a mute point. The ability to run comps whenever you want is really sweet. I'd go with an investor focused realty to hold your license as opposed to the big name companies. This allows you to keep your costs down and keep more of your commissions.
Not to mention the extra income stream of helping friends and family with listing their houses for sale. Selling is easy - take pictures, throw it up on the MLS and let the other agents bring you buyers.
@Neil Goradia could you explain a little bit more what is an investor focused firm? I just pass my real estate test and I'm interviewing with firms in the area
If you plan on doing more than two or three deals a year you should absolutely get your license. Since getting my license I have been introduced to opportunities that I never knew existed.
@Patricia Vildozo , here in Indy the big names are FC Tucker, Century 21, Berkshire Hathaway, etc. They usually have a commission split as follows: 50% of your income goes back to them until you hit a magic number, sometimes over $1 Million in sales. There are many variations to this, but regardless it takes a while to achieve real income.
Conversely, smaller/investor friendly firms can be started by anyone after a few years being a normal agent. There are many to choose from in your local area, all of which offer better commission splits. Usually you make 80% of your commission and only have to pay back 20% to them. Plus their clientele are investors meaning while working there you get to meet a lot of potential clients and learn a lot on the investing side, which will help your business.
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