Do you work with licensed brokers?

Question

Hey all!  I am wondering if the investors who are not licensed brokers prefer to work with one or on their own?  What has been your previous experience or do you have any feedback?

Jay Hinrichs · Answer

@Holli Phillips

the majority of investors are not licensed. especially out of state investors and if they are its in their home state... there is a lot of debate if being licensed in the state your investing in is a hinderance.. IE because of disclosure laws.. Having a much higher fiduciary in the transactions etc etc.  Examples.

As an agent you would have to disclose your an agent in any of your direct marketing this goes both ways some are in the camp that sellers will think they make more money dealing direct than through a broker and much direct advertising that folks due points this out IE no fees to sell.. Although the sellers being unrepresented many times will sell for far less than what a good broker could have gotten them for the house.

As an agent you open your self up to challenges if buy a property too far under market and the idea is that you took advantage as a professional of the poor seller ..

As a private investor you don't have those Ethics issues and agency and fiduciary issue. And its a fine line if you think about and read enough on BP  your a hero on BP if you got some poor seller to sell to you so far under market that you make a killing... Others would think you took advantage of the situation and fleeced the poor seller out of their equity.

James Wise · Answer

mostly out of state.

Kerry Edwards · Answer

We don't have a preference just what ever gets the deal done. But if we have a rehab that hasn't been pre-sold we will shop it to our buyers list and brokers that might have pocket buyers before we list it. That way we save fee's on our side but we are always willing to pay buyer agent fees.

Holli Phillips · Answer

How many investors do you work with?  Local or out-of-state?

James Wise · Answer

I'm licensed. I work almost exclusively with unlicensed investors.