New Agent - Represent myself on First Deal?

Question

I recently got my California real estate license and hung it with a broker. I can now access the MLS and analyze deals. My goal is to get into a 3-4 unit property somewhere in the IE, LA, OC area. I have been approved for a $950k+ FHA and my strategy is to house hack.

My question is this, should I attempt to act on my own behalf on this deal and reap the benefits of the commission? I’m sure my broker would support be through the process. What are the pros and cons of this?

Sebastian Hernandez · Answer

Absolutely, use your license to do your first ever deal. I have no doubt your broker will hold your hand during the transaction. Not only will you make the commission but you will gain experience!

Scott Allen · Answer

@Usman Gohar Congrats on getting preapproved. Definitely utilize your license to represent yourself. MLS deals show motivation in selling. I would reccomend finding a mentor that is already doing what you want to do and can teach you how to find deals elsewhere as well.

Erik Browning · Answer

Yes you should do it, however it's best to make sure your lender is aware to include your commission to account for associated costs - there are some moving pieces and different scenarios to consider to make sure you're making the most of the purchase. Your commission on an FHA deal can go toward closing costs and rate buy down, however it cannot go toward the down payment unfortunately.

Excellent strategy!

Sergey A. Petrov · Answer

Find an experienced broker in your brokerage, work with them on that first deal and split the commission. That’ll give you some valuable experience and put some dollars in your pocket