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India Lewis
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Is Being An Agent A Requirement?

India Lewis
Posted May 2 2023, 08:28

Hi! new here to bigger pockets. I have been soaking up some knowledge here as my interest is to become a real estate investor. My questions are:

1) Is being a real estate agent a requirement for real estate investing?

2) If not, can you still gain the knowledge of markets without it?

3) What are some ways to seek out lenders and their requirements for different products in your current area to jumpstart your business?

4) Is it true that banks are less likely to lend to businesses that are structured solely as "Real Estate Investing" being that it is considered a "high risk industry". Are there ways to market your business to avoid this?

I am currently planning to use my first home to BRRRR, but rehab takes time. I am playing with the idea of air bnb arbitrage in the meantime to recycle income for a second rental.

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Carlos Valencia
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Carlos Valencia
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Replied May 2 2023, 09:15

Hi India, 

No need to be a real estate agent to begin investing. It helps to write up your own contract and represent yourself so you can save money on buyers side commission. If you think those are some good perks then I would say go for it. The great thing too of being licensed is that if you end up loving real estate that can be a source of income for you that can possibly help you get to your real estate investment faster as its a high ticket sale with the possibility of earning great compensation. Having a high income will also give you an advantage to get there more quickly. 


As for gaining knowledge your in the right spot reading other peoples forums on Bigger Pockets is a good resource. I would also look into Real estate meetups in your area to meet other like minded people and discuss whats worked for them and maybe you'll find a mentor at those meetups.

When looking for a lender I would suggest to work with a lender who also is an investor themselves as they will be more familiar with the guidelines for investment properties and how to strategize when buying your first deal while also already pre planning your next purchase. Theres different strategies to make sure your set up for success. You dont want to be stuck after your first deal. 

Lastly Banks are more strict and when working with self employed and real estate investors. I highly suggest working with mortgage brokers. 

Good luck with your real estate journey. 

@Albert Bui @Matthew Kwan
   

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Yael Lederman
  • Miami, FL
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Yael Lederman
  • Miami, FL
Replied May 2 2023, 09:26

@India Lewis congrats on taking steps to becoming an investor! 

You don't need a license to get started. In fact, I'd definitely recommend working with a more experienced agent first instead of getting a license and trying to save on commission. You'll probably pay more in mistakes in the long run. Once you have some experience working with agents and you feel comfortable with the process, it might make more sense to get your license. 

You can definitely gain market knowledge without it! I would recommend going to local meetups and networking as much as you can. Bigger pockets is great but in person trumps all. 

I would leverage Bigger Pockets and networking events to find lenders you feel comfortable with.

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India Lewis
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India Lewis
Replied May 2 2023, 11:03

@Carlos Valencia Hello!

I appreciate your insight to what being an agent could provide for me moving forward. Great tip on reaching out to mortgage brokers.

Thank you for the reply.

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India Lewis
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India Lewis
Replied May 2 2023, 11:14

@Yael Lederman Hi!

Thanks for the congratulations. Did you take steps working with an agent at first? Should I present it as an internship? I am obviously just getting started here and am looking for a sound foundation. I am planning on meeting locally this month with some folks!


Thank you for the reply!

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Yael Lederman
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Yael Lederman
  • Miami, FL
Replied May 2 2023, 11:23

@India Lewis Personally I networked with agents and asked them a ton of questions which is where I got my foundation. Most agents will be open to chatting with you since it's such a relationship-based industry. Every conversation will answer lots of questions and lead you to more questions that you can ask the next person. I did a lot of reading but that ended up being less useful. Eventually I got my license, which wasn't difficult just time consuming. 

While it might be beneficial to shadow an agent, I find that talking to different people gets you a broader perspective on the market, how to do business, etc. 

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India Lewis
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India Lewis
Replied May 2 2023, 12:44

@Yael Lederman I love the snowball effect with the questions! Even though reading seemed less useful, do you have any suggestions of reads? 

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Yael Lederman
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Yael Lederman
  • Miami, FL
Replied May 2 2023, 13:52

@India Lewis honestly, reading Bigger Pockets forums will get you further than most books. "The Book on Rental Property Investing" by Brandon Turner is a good beginners book. I would also listen to podcasts – "The Real Estate Guys Radio Show" or "The Real Estate Investing for Cash Flow Podcast" are two I like. Basically, just immersing yourself in the real estate world will help a lot. 

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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
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Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
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Replied May 3 2023, 15:45

Holding your real estate license is not a requirement, but it is helpful. You do not have to depend on a realtor to run comps & make offers on property you are interested in. 

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Jennifer Volek
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Jennifer Volek
  • Real Estate Agent
  • Arlington, TX
Replied May 18 2023, 12:23

Hey! Where are you located?

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