Becoming my own agent

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Becoming my own agent

Rodrigo Bell
Member since 2021 · 2 posts · 2 votes

Hi folks! I've read up and watched the material on BiggerPockets regarding becoming one's own real estate agent for investment purposes, but see if folks that have done this have concrete advise on how to find a brokerage firm that will be willing to work with me since I'm only interested in being an agent for buying and selling my own properties. I'd also love to hear if anyone has more concrete numbers (esp in the Seattle, WA market) around the ongoing costs that I'd be looking at as an agent.

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Scott M.
Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
4y

As I recall last time this was asked here most people said don't waste your money just buy books.  I, like you, started just buying investment property for myself, then friends and family wanted one so I helped them then before I knew it people I had no idea who they were wanted investment property and I had to get my license.  No longer a "want to" but a "have to".  

To me this all comes down to you and how you learn.  I would never be motivated enough to sit down and read books and learn that way.  Having a structured class with times and tests, while I hated all of it, was best for my style of learning. I met a lot of others in class.  I found my broker from someone else in class and at that time I did just want you want.  I didn't want to work there, just hang my license there so I could do what I wanted.  Even the teacher was of great help.

Same thing happened when I went for my builders license and brokers.  Networking was great.  

At the time I had no idea what my real estate career was going to turn into and for me, getting my license opened up a ton of doors and still allowed me to achieve my investment goals.  

But like I said, last time this question was asked I was in the minority.  

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  • Scott M.
    Real Estate Broker · Rochester Hills, MI · Member since 2009 · 2k+ posts · 2k+ votes
    4y

    As I recall last time this was asked here most people said don't waste your money just buy books.  I, like you, started just buying investment property for myself, then friends and family wanted one so I helped them then before I knew it people I had no idea who they were wanted investment property and I had to get my license.  No longer a "want to" but a "have to".  

    To me this all comes down to you and how you learn.  I would never be motivated enough to sit down and read books and learn that way.  Having a structured class with times and tests, while I hated all of it, was best for my style of learning. I met a lot of others in class.  I found my broker from someone else in class and at that time I did just want you want.  I didn't want to work there, just hang my license there so I could do what I wanted.  Even the teacher was of great help.

    Same thing happened when I went for my builders license and brokers.  Networking was great.  

    At the time I had no idea what my real estate career was going to turn into and for me, getting my license opened up a ton of doors and still allowed me to achieve my investment goals.  

    But like I said, last time this question was asked I was in the minority.  

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    Keep in mind, most E&O policies do not cover you when you are a principal to the transaction. Due to this fact, many full time agents have a different agent represent them in transactions instead of representing themselves

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  • Brie Groves
    Realtor · Seattle, WA · Member since 2020 · 36 posts · 19 votes
    4y

    Also keep in mind that it costs $$ to get and keep your license. There are expenses that people don't always think about, if your brokerage requires you to be a member of the NAR, that's about $650/yr, your key fob is $25/mo, MLS dues $250 quarterly, required CE courses to keep your license and renewal every 2 years, brokerage fees, etc.

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  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    I would go to some local meetups and see if there are any investors there who hold a license. They may be able to point you toward a flexible brokerage.

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  • John Barrett
    Rental Property Investor · Everett, WA · Member since 2015 · 457 posts · 386 votes
    4y

    @Rodrigo Bell I think this comes down to whether or not you want to spend the time, effort and money to become good at doing the real estate agent roll.  I took the real estate agent training classes. I found the information really interesting and valuable but never got a license as I don't have the time to dedicate to it. Maybe that will change in the future but not now.

    Instead, I have built relationships with agents and I use them when I find a property that I want to purchase and they know how to smooth out all the crazy things that happen in closing a real estate purchase/sale.  Yes, it costs money to have an agent involved in the transaction but I have always felt their knowledge and expertise have been worth paying for.  Liability is also another factor that can't be ignored.

    In my opinion, I have found using agents worth the costs.  The benefits of these relationships (access to deals, solutions to problems, etc.) make agents an invaluable resource to growing one's portfolio. Just some thoughts while you figure out the highest and best use of your time.

    John

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  • Rodrigo Bell
    OP
    Member since 2021 · 2 posts · 2 votes
    4y

    These are great points in favor of working with a professional real estate agent rather than a diy model. I think I'm slighly swayed toward continuing to work with an agent in the future, but I think part of me will always feel like I wish I could tour houses myself and put together offers independently without having to coordinate/bug my agent. Esp. when I feel like it might not be the best use of their time. And of course, there's something to be said about having the ability to negotiate a deal yourself from start to finish which takes a lot of practice and know-how that I'd like to acquire for real estate and other areas of life. All in all, amazing responses, thanks everyone!

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  • Peter Anderson
    Real Estate Broker · Stamford, CT · Member since 2016 · 66 posts · 33 votes
    4y

    @Rodrigo Bell definitely worth it in our market in CT. If you buy one deal a year, the commission value most often covers the annual license fees. Not to mention the knowledge advantage. I’d suggest finding a small team to work on that is a good personality match and willing to work with you on your split.

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  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y

    I would advise becoming a realtor as long as your in a brokerage that is focused on the investing side of real estate. I recently made this move and am now exposed to the best off market deals in my area and I have first dibs to purchase them and explore. Getting around active local investors and asking them questions and watching the moves they make is also crucial to understanding the game properly. 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Quote from @Rodrigo Bell:

    Hi folks! I've read up and watched the material on BiggerPockets regarding becoming one's own real estate agent for investment purposes, but see if folks that have done this have concrete advise on how to find a brokerage firm that will be willing to work with me since I'm only interested in being an agent for buying and selling my own properties. I'd also love to hear if anyone has more concrete numbers (esp in the Seattle, WA market) around the ongoing costs that I'd be looking at as an agent.

    It may be financially beneficial, even if you only handle your own transactions, but you're exposing yourself to a lot of problems and liability.

    You seem to think a REALTOR is just someone qualified to fill out forms on your behalf, but there's much more than that. They have years (hopefully decades) of knowledge and experience that can protect you during the process. They can negotiate on your behalf. They know the market. They have relationships with inspectors, contractors, etc. They save you time. They understand the law. And more.
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  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    4y

    I did this and I realized that it was more of a hassle and it was best for me to focus my energy on buying deals. 

    Sure, you may save money by representing but at the end of the day, you are still going to pay for other services such as title companies, surveyors, or whoever so just add agent fees to the mix. 

    One of the biggest mistakes I see people make is "in order for me to start REI I should get or not get my real estate license". 

    Absolutely no correlation, as most successful investors don't have a RE license. I'd encourage you to focus all your energy on investing.

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