Real Estate Agents

18 Replies

I did it to learn more about real estate, laws and stuff like that. Being able to sell some real estate for other people on the side was just a nice added benefit.

It didn't take me long to realize that I liked marketing more than working with clients though.

Christine - You're looking at it. This is one of the most popular websites online for real estate investing! Take a look around. We've got tons of tools, resources, and other great info!

Welcome, and we're glad to have you! :groovy:

The funny thing is..I was coming to this forum to bring up this topic.
What are the disadvantages of becoming a broker?

Despite the time and effort to get licensed I see it as a plus. You don't have to pay 6% commission on your purchases. You have access to the MLS, have access to current real estate forms and you are aware of the laws for your area. You can list your properties, whether rentals or for sale on the MLS, etc.

So exactly what are the disadvantages? I'm sure there are some, but I just don't see them.....

I recently did a 3 part series on this topic:

Into:
Should you get your real estate license? Part 1

Positives:
Should you get your real estate license? Part 2

Negatives:
Should you get your real estate license? Part 3

Your comments are welcome, but bring them back here so as to not get off this board and keep this thread for future people to read.

Ya that's great.

I thought about getting licensed as a Real Estate Sales Agent to have access to the Multiple Listing Service. Then I found out I can see it online for free:

http://realestate.yahoo.com/

- or, locally -

http://www.utahrealestate.com/

And if I wanted to know more (for instance, to see AGENT-ONLY stuff) I could just call one of the other Realtors in town who'd be happy to help me.

Now I've got a great Realtor and after seeing the regulatory pressure he is under (always afraid something creative is going to cause him to lose his license) I definately do not want to become a real estate agent. I am glad he has already wasted the money for me :)

I keep him happy and well-fed. They need to write a book for new investors, "How to Care for Your New Realtor(r)!"

That was very helpful. Thank you for those resources.

It seems like lots of people are becoming realtors these days. I wonder if it could really intensify the competition in the future?

I guess the biggest disadvantage is the time spent becoming one .. all the training and the tests.. and the time spent actually doing it.

I think the competition will definetely intensify in the near future as everyone talks about real estate bubble. . That's one more reason to learn more and become more competitive in real estate. I disagree that it takes a long time. I just finished two courses: Real Estate Practice and Common Interest Developments at studylicense.com School. I was satisfied with quality. There are plenty of online courses, you can find through google you should check it out.

I agree that it doesn't take very long to become a licensed agent in many states--you can do it in less than a week in Massachusetts; it takes about four weeks in Virginia.

But you were right elmo, it does take a long time to BE an agent. I spent my first several months going out almost every night to preview homes, meet with buyers/sellers and renters, develop a network of contractors, talk with my broker and every other agent available, meet mortgage and title folks I could trust, analyze MLS historical data, etc. Realtors put in a lot of hours up front but what you put in is what you get out--if all you want is a license, you can do that. But, a license won't make you any better an investor unless you put time into it.

Thanks guys. I guess I didn't know you could get a realtor license that quickly. Heck, maybe I'll think about it in the future! :)

Originally posted by "takleberry":
I agree that it doesn't take very long to become a licensed agent in many states--you can do it in less than a week in Massachusetts; it takes about four weeks in Virginia.

But you were right elmo, it does take a long time to BE an agent. I spent my first several months going out almost every night to preview homes, meet with buyers/sellers and renters, develop a network of contractors, talk with my broker and every other agent available, meet mortgage and title folks I could trust, analyze MLS historical data, etc. Realtors put in a lot of hours up front but what you put in is what you get out--if all you want is a license, you can do that. But, a license won't make you any better an investor unless you put time into it.

another thing to think about if you are thinking about becoming a realtor and an investor is the leal responsability. If you buy a house worth 400k for 200k you can loose your license or be sued. I know many agents that are droping their license for just that reason.

Well, the law is in place to make sure that people with superior knowledge do not take unfair advantage of others in real estate, so if these real estate agents you know are intentionally misleading, cheating, or curbing the law, then they should get rid of their licenses. If they are not, then they shouldn't have to worry about it.

Here is what I do in order to protect myself: If I'm putting together a deal that has a greater-than-normal risk, i.e. is particularly profitable for me, then I stipulate that the other party must engage the services of a credible real estate attorney and make them seek one out themselves (don't recommend one or you'll probably compound your troubles). I've sold options to elderly couples and I've sold homes at $80k+ over market value to new investors. You might call it overpriced, but I called it solving their problems and I showed them how the numbers would work out for them. I use real numbers and real conclusions--showing someone how they can still make money if they sell to you @ $10,000 less is darn good business. In all cases, I show my numbers to the people on the other side and treat them with honesty. You can do this when you find the compelling reason that they want to buy or sell and explain to them how you will help them get what they want (the home or a lot of money right now) but that you operate based on the criteria you set forth. Then, when faced with a "these are the facts of the case" situation, most people for me have moved forward.

Insisting that they get legal or agent representation actually encourages them that you want them to feel comfortable that they are getting what they want. Of course, I often also talk with those agents and lawyers and I've had more than one deal walk on me. But, I have no fear of being sued and I still maintain relationships with some people I've sold/bought with even though I made out like a bandit b/c I was upfront and explained the terms under which I was interested in making a deal.

It all comes from information assymmetry. If you use that advantage to encourage people to do things directly against their best interest, then you deserve to get sued. If you use that advantage in order to explain to them why this is in their best interest in a way that makes sense, and is ethical, then you're winning. That's fair business and I don't know of any agents (and I'm licensed in two states and active) who have been sued using this criteria.

Welcome to the Group!

I started out in Texas doing flips then later doing mortgages before licenses were required. Initial Mortgage License requirements were'nt difficult. I later obtained a Real Estate Agent then Broker's licenses as a way to access more data bases and increase the ways in which I might be able to become a participant to a transaction.

The yearly cost for the licenses are'nt cheap but, they pay for themselves many times over. And the advantage of accessing MlS is highly under-rated. Those that claim the same information is available online either have a outdated member association or don't know the wealth of information available in the member area report systems.

For example: I never have a shortage of leads. One report that I run generates 90 to 150 different leads per day. It's a real nich'e market not the expired list but live individuals looking for my products and services.

live long and prosper!

agreed.. I like to use zillow, but I would never count on it. I go to appraiserusa.com call up a few appraisers... I can usually get one of them in the area to pull comps free....plus it helps to personally know appraisers. I work as an LO, my brother is a realtor, and my family owns a property management company...it helps to know people.

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