Thinking about getting my real estate license--thoughts?

Question

Hi All,

I've been having trouble finding an agent who is willing to actually submit all the offers I'd like to put in. Honestly, I don't blame them--I'm putting in offers that will probably get rejected, and they don't want to waste their time.

Instead, what they want to do is call the listing agent and say "would you take [some low number]." And, of course, you'll almost never get a yes to that. But I'm convinced the dynamics are different when they have an offer contract in front of them with a copy of the earnest money check.

So, in an effort to simultaneously respect the time of other agents, and be able to get into the houses I'm interested in, and put in offers, I've been thinking about getting my real estate license. I would then need to "hang my license" with a brokerage, and I haven't gotten to that step yet, although I've heard that Long & Foster may be a good option, because they don't require you to pay any monthly fees if you split commissions with them 50/50. That would be good for me starting out, and if I'm able to start doing more deals, I could opt to pay a monthly fee and get a bigger chunk of the pie.

Also, I like the idea of being an agent. The thought of taking people to see houses, talk about houses, and help them buy houses makes me excited. I love real estate, I love talking about real estate, and I love helping people achieve their real estate goals. So while my initial impetus to get my license is to help me put in more offers, I'm also excited about the possibility of helping others buy homes as well. If I'm able to make enough money on commissions and my investments, I might even be able to quit my day-job and do into real estate full time!

I thought I'd put all that out there and get feedback from the BP community. What do you think?

-Josh

Richard Ball · Answer

If you can't find a real estate agent that specializes in investment properties then you are not talking to enough people. Go to a REIA, find out who other investors are using and who is buying up properties and talk with them. They will help you.

Stephen Hundley · Answer

@Joshua Beall I can't imagine not having my license. With a license, so much time is saved when submitting offers and the ability to submit many offers. As an agent I don't work w investors for this very reason. Waste of time.

Melissa Gittens · Answer

You should definitely get your license it would make you alot easier for you submit your offers as opposed to waiting for an agent to do it.

Richard Ayvazyan · Answer

1. Yes, become a real estate agent is definitely a big plus. You can make all the offers you want without the extra filters. Also, you can eventually keep the commission or at least part of it. This is specially important when you are flipping homes. Instead of paying other realtors to sell your home, you can be your own agent and sell your own house. Think about the amount of money you can save. After all, flipping homes is a number game.

2. In the mean time, if you are not getting results with your current agent. Try going directly to the listing agent. The listing agent will be more enticed to double pop a deal rather working for only the seller.

Richard Kerski · Answer

If you become an agent you get to make all those offers, and put in the time you are saying is wasteful. How about streamlining the process to offer a 1 page letter of intent saying you will go to contract if terms are met? Better yet, make realistic offers. Become a Seller and imagine and experience fielding low price offers.

Michael Lee · Answer

Hello and welcome to BP! Besides the extra learning you get, you will also save some money by always using another agent. The stuff you do with others will be like a side job at best. Just getting something is usually better than getting nothing. Just make sure the broker you join is flexible and will allow you to do whatever you want to. Good luck!

Brad Bartlett · Answer

@Joshua Beall

I’ve also had real estate listing agents refuse to present some of my offers to the sellers. Per Florida law, the sales associate/broker must present ALL offers to the sellers. It’s against the law, but they still refuse. I know some of the offers were low, but the sales associate is not a mind reader and doesn’t know for sure what the seller will say. It’s very frustrating.

If you were thinking about getting your license to learn about investing and make a little money part-time, my advice would probably be not to get your license. One reason is you’ll be required to join the same MLS and board or Realtors as your broker. That and other required expenses can add up fast for a part-time investor.

In your case, you seem to have a broker that will let you hang your license which is one of the biggest hurdles for a part-time real estate associate. You will want to verify Long and Foster will take part-time associates. One advantage of having your license is when you act as the buyer’s agent for yourself as the buyer, you can use your commission as part of your down payment. You love the idea of showing housing, helping people buy houses, and you think you may want to sell real estate full time. I think you should get you license. It appears you want your license for all the right reasons, and if you don’t, you may always wonder what could have been. The worst you have to loose is a little time and money.

Howard Cox · Answer

I started as an investor more than 10 years ago in commercial real estate. The broker who represented me at that time was a good friend. Six + years ago I decided to get my license and have since obtained my brokers license. I was convinced that I could represent myself better than any one else could and I still believe it to be true. I have access and availability to listings on my schedule and at a moments notice. I can represent my tenants when they decide to buy. I have access to hip pocket listings that others don't simply by letting the listing agents of good deals be my broker. In the current red hot market where full price and over offers are the norm, my basis in acquiring new buy-and-hold properties is 3% better than buyers who use an agent.

It's not all good, in Texas, a licensed agent making a purchase for themselves from an unrepresented seller is required to provide the seller with a CMA in an effort to protect sellers from being misled and to protect agents from accusations after the sale. Many agents get greedy and ignore this step and I continue to see corrective actions being taken by TREC every month in\ the newsletter

If your making lots of offers that don't have a chance you should consider setting better and tighter criteria in your search that limit the number of full retail properties you consider. While I do make offers that are not accepted I try to limit offers to properties that the Seller has some motivation to consider mine.

If you think your current agent doesn't want to write up contracts that don't stand a chance in their view wait till your are your own agent. Lots of wasted hours with no results will change your perspective. No experienced agent needs practice. I use a quick email outlining my terms of purchase plus a phone call sometimes to get a feel for the Seller's likelihood of acceptance when dealing with agents whom I know in an effort to build rapport and credibility. When dealing with agents whom I don't know and/or aren't aware of the Seller's motivation, I always take the time to write a contract and deliver it with a note highlighting the benefits of my offer.

On the other hand, when representing a residential Seller I instruct all parties submitting offers to use a contract. . If my listing was in my "farm" and suitable for an investor, I would have already bought it.

Hope this help.

Howard Cox

Donald Cooley · Answer

I have mine in escrow from several years ago and have actually thought the same thing. I've debated reactivating it in order to possibly save time in viewing homes as well as making offers.

Thinking about getting my real estate license--thoughts?

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