Complete newbie to investing looking for some insight
Member since 2023 · 7 posts · 6 votes
Hello all Cody Flicek here! Last name is pronounced flea check, but to get to the question at hand, would it be valuable to go ahead and get an RE license so I can look on the MLS myself? I'm almost 20 and have little to no money at the moment so I can't hire someone to find deals for me. I'm mainly looking to get into multi family and possibly start out by getting an FHA loan on a quad and renting out the other rooms, so any advice there would be much appreciated as well.
Thank you for your help!
Cody
Being a Real Estate agent can provide valuable insights and advantages that can help you learn the business and kick-start your real estate investing journey. This is especially true if you are going to start investing locally. Below are the top 4 ways I believe being an agent can help the process:
1. Market Knowledge: As an agent, you gain in-depth knowledge of local RE markets, including trends, property values, and rental rates. Because you can work with investors, you will be able to pick up where they like to invest and how they underwrite. This market expertise allows you to identify potentially lucrative investment opportunities and make well-informed decisions based on what you are seeing in the market.
2. Access to Deals: RE Agent you will often have access to a wide range of properties, including off-market deals and distressed properties. This access can provide you as an investor with a competitive edge, as you can explore a broader range of investment options that might not be easily available to the general public.
3. Networking Opportunities: Being a RE agent enables you to build a strong network of other industry professionals, including agents, brokers, partners, or mentors, and gain insights from experienced investors, helping navigate the complexities that real estate can have. These relationships can lead to not only access to off-market deals but also collaborative opportunities and overall professional growth.
4. Transaction Experience: As a RE agent, you can gain practical experience in transactions, from negotiating deals to managing contracts and handling paperwork. This experience can be highly beneficial when it comes to purchasing investment properties, as you become familiar with the entire process and can apply your knowledge to your own investments. Seeing and working a large volume of deals being an agent can be equivalent to years of experience you would get only being an investor. Imagine as an investor you were able to buy one property every year over 5 years, you have gained 5 transactions worth of experience. Now imagine if you were able to close 1 deal every 4 months as an agent, you would have 15 transactions of experience over that same time period.
I’m always an advocate for getting your real estate license not to get access to listings, but to learn the business.
While you learn you can rip some commissions and make real estate your profession and lifestyle, if you like it that much.
Help 10 others find investments and when you are around the transactions you will learn everything you need to know.
Being a Real Estate agent can provide valuable insights and advantages that can help you learn the business and kick-start your real estate investing journey. This is especially true if you are going to start investing locally. Below are the top 4 ways I believe being an agent can help the process:
1. Market Knowledge: As an agent, you gain in-depth knowledge of local RE markets, including trends, property values, and rental rates. Because you can work with investors, you will be able to pick up where they like to invest and how they underwrite. This market expertise allows you to identify potentially lucrative investment opportunities and make well-informed decisions based on what you are seeing in the market.
2. Access to Deals: RE Agent you will often have access to a wide range of properties, including off-market deals and distressed properties. This access can provide you as an investor with a competitive edge, as you can explore a broader range of investment options that might not be easily available to the general public.
3. Networking Opportunities: Being a RE agent enables you to build a strong network of other industry professionals, including agents, brokers, partners, or mentors, and gain insights from experienced investors, helping navigate the complexities that real estate can have. These relationships can lead to not only access to off-market deals but also collaborative opportunities and overall professional growth.
4. Transaction Experience: As a RE agent, you can gain practical experience in transactions, from negotiating deals to managing contracts and handling paperwork. This experience can be highly beneficial when it comes to purchasing investment properties, as you become familiar with the entire process and can apply your knowledge to your own investments. Seeing and working a large volume of deals being an agent can be equivalent to years of experience you would get only being an investor. Imagine as an investor you were able to buy one property every year over 5 years, you have gained 5 transactions worth of experience. Now imagine if you were able to close 1 deal every 4 months as an agent, you would have 15 transactions of experience over that same time period.
Hi Cody, getting licensed will have some benefits, but there are costs and time commitments to becoming an agent. If your main goal is simply access to listings, linking up with a good realtor is your best bet. A good agent will be able to help you with access to everything on the market, and sometimes off-market deals as well. Generally, there should be no cost for their service as they are paid a commission on your purchase from the seller's side.
If you're looking to buy a multifamily and occupy one unit, you'll need about 5% of the purchase price saved for a down payment. My suggestion would be to target saving a bit for your purchase and then finding an agent who works in the multifamily arena.
If you have any financing questions, I can help you get preapproved for your purchase when you're ready.
@Jeff Schemmel do you have any agents in Cody's area who know multifamily? Would love to see him get linked up with someone in that market.
I would definitely suggest doing as much networking as possible and if you do choose to go get your license, I strongly suggest adding value to an established real estate agent who could show you the ropes and possibly provide some income along the way. Busy agents can use the help so it's really a win win with someone who has the time and looking to learn all they can.
As far as the house hack, with little cash, I would keep your mind open to creative financing deals. Networking will open opportunities for those. Best of luck Cody!
@Cody Flicek, it depends on what you want to DO with your license.
The act of getting your license will teach you all about the fair housing act and how many sq ft are in an acre. Who owns the water rights and how far into a body of water for water front homes. It will not teach you how to underwrite a deal. How to market a property for rent, screening tenants or any real landlord laws. It will teach you the bare minimums of financing with mortgages.
Additionally, you can look at the MLS yourself very easily. You can't see the agent notes, but I have yet to find a deal on the MLS that the agent notes would have changed any of my assessment.
Basically, I don't see value in getting your license. I had my license and the only benefit I really saw was being able to waive my own commission on my transactions. They cost money for the course work, for the test, many brokers have some amount of monthly fee, and continuing education out of you pocket to maintain it. So you are out time and money that could be better used elsewhere. Like networking with investors (which you can do with or without a license).
I would recommend attending REIA groups and various investor meetups. Many are happy to talk shop and explain how they got started and their general outlooks.
And when looking for your own deal, being an agent won't help you, beyond waiving a commission. being an agent doesn't get your any more access to off-market deals or on-market deals. You can see everything on the MLS today, and off-market are just that: you need to knock on doors and track down owners to find these.
@Cody Flicek
Your first order of business should be to fully understand how a deal works and how to underwrite its performance.
Any transaction begins and ends with its viability and your ability to determine its value.
Feel free to let me know if I can help you.