Real Estate agent as a partner

8 Replies

Greetings, 

  My curiosity, as an investor, is it considered advantageous to partner with a licensed agent? Are there any particular cons? Are there certain deals where this idea is more advantageous than others?

Thanks,

Newbie Investor

@Brenton Tigner Jr Can you define "partner" in this instance?  Do you mean an equity partner in a deal?  Do you mean working with one instead of approaching seller's agents by yourself?  

@Brenton Tigner Jr

I persoanlly am in a partnership and I also am a licensed agent. Our partnership works well and gives us the ability to have all access at all times to look for deals and such. Our partnership is 50/50 and we currently take the monthly cost of my licensing into our expenses as a partnership. 

I can not stress the value having a license and having access to potential deals can add to your business. 

There is no benefit in of itself.  If the agent is a particularly good business partner, you should partner with them because they are a good business partner, NOT because they are licensed.  You could use them as your agent, but I don't see a benefit to that.  I'd find a particularly investor-friendly agent to use as my actual property-hunting agent.  Chances are your potential partner is not (investor-friendly agents are a dime a dozen unfortunately, although most of them will not admit that).

I have a handful of clients that are partnered with licensed agents as business partners in a 50/50 partnership agreement, but none of them use their business partners as their active agent to represent them in the deal.  The agent should not have a financial interest in the transaction, in my opinion.  You don't want one partner making those decisions, you want an independent professional making those decisions and CONFIRMING it's ok with BOTH partners.

Max Gradowitz, Attorney
Sure, I mean as an equity partner in various deals, flips, rental properties...etc Is there any added advantages..
Originally posted by @Andrew Johnson :

@Brenton Tigner Jr Can you define "partner" in this instance?  Do you mean an equity partner in a deal?  Do you mean working with one instead of approaching seller's agents by yourself?  

@Jacob A. That sounds like a great arrangement with a significant competitive advantage.  Thank you for you input it is invaluable.
Originally posted by @Jacob Atkinson:

@Brenton Tigner Jr

I persoanlly am in a partnership and I also am a licensed agent. Our partnership works well and gives us the ability to have all access at all times to look for deals and such. Our partnership is 50/50 and we currently take the monthly cost of my licensing into our expenses as a partnership. 

I can not stress the value having a license and having access to potential deals can add to your business. 

Thanks for your viewpoint, that actually helps to put things in their proper perspective. I definitely agree with finding a sound partner...

Originally posted by @Max Gradowitz :

There is no benefit in of itself.  If the agent is a particularly good business partner, you should partner with them because they are a good business partner, NOT because they are licensed.  You could use them as your agent, but I don't see a benefit to that.  I'd find a particularly investor-friendly agent to use as my actual property-hunting agent.  Chances are your potential partner is not (investor-friendly agents are a dime a dozen unfortunately, although most of them will not admit that).

I have a handful of clients that are partnered with licensed agents as business partners in a 50/50 partnership agreement, but none of them use their business partners as their active agent to represent them in the deal.  The agent should not have a financial interest in the transaction, in my opinion.  You don't want one partner making those decisions, you want an independent professional making those decisions and CONFIRMING it's ok with BOTH partners.

Sounds good.. Really appreciate it.  That makes sense completely...
Originally posted by @Grant Rothenburger :

Nothing wrong with it. But as someone else said, I wouldn't partner with someone just because they have a license. If they make a great business partner and also happen to be an agent then sure.

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