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?
I'm licensed. I work almost exclusively with unlicensed investors.
How many investors do you work with? Local or out-of-state?
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.
mostly out of state.
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.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing