Realtor/ Real Estate Agent and Investor

13 Replies

So, I've been getting mixed reviews from people. I was interested in getting my real estate salesperson license / becoming a realtor. However, many people have told me that I shouldn't as an investor because of the need to disclose. 

On the contrary, brokers and realtors that I have spoken to have not seemed to really have an issue. (Most of them seem to have a spouse that's also an investor and isn't an agent) What do you all think about this, should I get my Texas Real Estate Salesperson license?

if you like to make extra income (as an agent) plus an  3% extra buying and selling your deals and advanced knowledge of listings hitting the markets then it is for you Disclosure is not a problem it is just letting them know you are an agent with an interest in the bid 

@Sayo Owoseni

It's a personal decision that only you can make. 

I am both a broker and investor and I would not have it any other way. I have the ability to access the data needed to research properties at a moment's notice and don't have to depend on another agent/broker.  For me, the benefits far outweigh the negatives.

I have a real estate license.  It is nice to be able to do everything myself without having to go through another person.

To me, putting a note on the contract is no big deal and not a reason to avoid getting a license.

im investor Realtor too. Disclosure is not an issue.

I love having access and automatic networking with other investors as Realtor.

Biggest issue is the company u hang license with. Make absolute sure you and them are on same page.

I just moved bc my boxoffice wasnt as investor friendly as I thought. Now I'm in a company that allows me to grow my investor side along with Realtor side.

I am highly leaning towards getting the license at this moment, I just need to know what these cons are from the realtor side, because most of the negatives I've heard are from people who don't have one. 

It is really all pros for me.

But with my other company I felt like I had a super-strict-know-it-all parent.. That has a say in everything I do. Granted I was "young".

Their answer is always "no, liability, why can't u sell $500k homes", or " Here comes my problem child"

My new company is: how can we help grow your business. Yes is the answer as long as its legit;) not like I'm going to do anything illegal.

Yes, I'm in $500k-$1M market but I hang out with investors short sale and foreclosure crowd. ($1-100k) Parent not happy lol. No $$$ and too many headache.  That's was makes me I'm INVESTOR friendly.

@Jennifer Lee  I seriously appreciate that information, it looks like I should have just started my real estate school weeks ago like I had been thinking. 

to be specific.

When I came in, I said I'm investor. (X-boss said Oh boy! Just kidding, should have been red flag)

I'm coming with listing. And I get 2 100% free commission a yr. Which is fine bc I do 1-2 a year. Its 2 transactions.

So I come in with my flip... Oops sorry its your investors project. (My in-law, I did all the work).... Sorry can't. 50-50%

I buy a multi after we flip, sorry. OK understandable. Not legally mine.

I bought duolex for me under my LLC. I solely own.... Sorry not personal name!!!!

I left and she said. I could have given that commission to u!

Too late

Updated over 3 years ago

Sorry didn't realizes it posted. Wasn't edited

I don't really understand what you mean.


Originally posted by @Jennifer Lee :

to be specific.

When I came in, I said I'm investor. (X-boss said Oh boy! Just kidding, should have been red flag)

I'm coming with listing. And I get 2 100% free commission a yr. Which is fine bc I do 1-2 a year. Its 2 transactions.

So I come in with my flip... Oops sorry its your investors project. (My in-law, I did all the work).... Sorry can't. 50-50%

I buy a multi after we flip, sorry. OK understandable. Not legally mine.

I bought duolex for me under my LLC. I solely own.... Sorry not personal name!!!!

I left and she said. I could have given that commission to u!

Too late

Sayo, 

Like the majority posting, I am also a licensed Broker/Investor (in IL).  The only con I can think of is that you can't pay (in IL) non-licensed people for referals.  So, prior to getting my license, I would pay people a fee for referring possible property buys to me.  As a licensed Broker, I can no longer do that unless it's another licensed Broker/Agent that refers that to me.   Good luck!

@Sayo Owoseni  sorry I didn't realize I posted it ;) I was in the middle of showing, had to stop typing. Was going to save it for later ;)

-----

When I was looking at which company to hang my license. I originally wanted to go into the company I'm in today. My new one.

But my previous company's boss was a good salesperson and that company has strong presence so I went in with them instead for 2 yrs.

When I went in, I told her I was an investor, meaning i will eventually buy sell my own stuff.

She said that all agents get 2 transaction a yr where they get to keep 100% of our  commission split if they buy/sell their own stuff. Otherwise its my split (50-50%)

Ex. I buy a $100,000 unit, I get 3% or $3,000 vs $1,500 (norm 50%) if its my own stuff. 

So I came into the company with a listing. My flip. However, it was under my investors name (my in-law), so I can't get 100%. Which I understand. Not mine. So 50-50 split.

Then my in-law bought a 5 unit through LLC (still not mine, split 50-50%)

- I'm OK with this bc I get commission vs when not Realtor ;) there is saving.

----

However this year I bought a duplex that is deeded separately under MY LLC. That I own solely.

My previous company said sorry, not you personally. So not 100%, but split 50-50. I was not happy, bc my margin was calc with the commission savings. Why else will I been a Realtor ;)

I went to the new company to interview after talking on BP and my peers. They also give 2 a yr as long as its me or my LLC. (Lots of investor Realtor in the company) so I switched. Among other things.

When my old boss heard I left she was upset, and told me that if it was about the 100% commission, we could have worked it out..

Its not just that. I need to be an investor more than a Realtor and I couldnt under their guidelines. 

What is great is after I moved all my investor clients are happy that I'm with investor friendlier company. My phone hasn't stopped ringing. And I can say YES I can do that, instead of sorry I can't. Or let me check. 

Updated over 3 years ago

There were a couple transaction that they weren't comfortable with, bc it was company policy to not do them. And I had to walk away from the transactions. I was fine bc of price point. Not worth my time.

How do you all separate your listing locations from your prospective wholesale?

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.