Real Estate Investor · Poughkeepsie, NY · Member since 2008 · 69 posts · 4 votes
I got my NY state salesperson's license in 2004, and unfortunately found myself in an office with a broker who monopolized all of the action. I spent over $1000 just to get my real estate license and join the multiple listing service, never made a dime, then was told I had to shell out another $500 to join the local association of realtors. So I gave up.
But lately, I am inclined to get my salesperson's license again, and pursue my goals as an investor/future broker more aggressively. There are some amazing deals out there, if you're connected in the real estate community. And I'm going to find them!
Has any one else here become a salesperson in the hopes of being an insider in the real estate community?
If all you want is access to the MLS there are plenty of RE agents that for a couple of $$ or for free will let you come in the office and search the MLS with them.
The education you get just getting your license is invaluable. However, you will have to follow a tighter code of ethics, disclosure is big.
In my state there's a time/transaction requirement before getting a broker license which is required before opening a property management company, so being a salesperson was key.
Access to the MLS is only one part, education is another. I'd suggest talking to other brokers in your area and see if they think it's worth it.
I say go for it.
I thought about it but I wondered if it was worth it just to access the MLS going through all the trouble and money just to get your RE license.
When I was a member of the local MLS, it was very enlightening to have access to all the information and search tools on there. However, it now costs $500 per year to be a member of the MLS, which is a pretty steep price to pay- especially if there is no return on your investment. And with the Association of Realtors fee of about $350, it gets very expensive. Where I live, they make you join both, or they take your salesperson's license away. It felt kind of like being mugged, before you even make a cent. And that amount doesn't even include the amount you spend on the real estate course (about $450-500 or more), and all the time it took to take the course (time off from work,etc.). Thankfully, now they have the courses online.
moneypenny
I found that decent networking abilities works just as well as having your licence. I have access to all the MLS listings, what houses have sold for in the area etc etc.
Im still debating getting my licence, I guess ill see how things play out
I live in PA and took my real estate licensing classes online and took the tests at the Real Estate Institute. I think it cost about $600. I hold my license with a local company and pay a small amount for office fee's. I my license basically for the MLS and to look at houses with lock boxes instead of contacting my agent and dragging them out.
I live in PA and took my real estate licensing classes online and took the tests at the Real Estate Institute. I think it cost about $600. I hold my license with a local company and pay a small amount for office fee's. I my license basically for the MLS and to look at houses with lock boxes instead of contacting my agent and dragging them out.
Yes, that was my reasoning as well. Why not have every possible tool at your disposal to find the deals when they come on the market? And the networking opportunities are far greater for a real estate agent than just your average Joe. And who needs the phony nonsense you have to go through when you call an agent to go see a property? In addition, isn't it nice to earn yourself a commission? :D
Does PA have less initial outlay for real estate agents? I know the cost of real estate in some areas of PA is dirt cheap.
The drawback with having a license is you HAVE to disclose to ALL buyers and sellers. AND your prevented from making a deal less than actual value for property.
SOOOOOO 5 years from now some screw ball decides to clean you out because you made a nickel somewhere and they think you SCREWED them without a kiss!!
IMHO,,better off being an investor without a license,,,
The drawback with having a license is you HAVE to disclose to ALL buyers and sellers. AND your prevented from making a deal less than actual value for property.
SOOOOOO 5 years from now some screw ball decides to clean you out because you made a nickel somewhere and they think you SCREWED them without a kiss!!
Really??? I thought once you disclose your role, if the seller accepts your price, the deal is done?
The drawback with having a license is you HAVE to disclose to ALL buyers and sellers. AND your prevented from making a deal less than actual value for property.
SOOOOOO 5 years from now some screw ball decides to clean you out because you made a nickel somewhere and they think you SCREWED them without a kiss!!
Really??? I thought once you disclose your role, if the seller accepts your price, the deal is done?
If it's all done legally, why would they be able to sue? And if they agree to sell the property at a certain price and it's all in a contract (that was not signed under duress) how would they have a legal leg to stand on? Besides, if you have a corporation for your real estate investments, and form sub s corporations for each property, there's not much they can sue you for- especially if everything is mortgaged. Whatever, I not going to let some nay sayer burst my bubble. That's why we have lawyers.
Isnt the actual value of the property what you can sell it for?
Yes, exactly. An item is only worth what someone is willing to pay for it. Unless it has sentimental or historic value, but even then, its value is debatable.
Investor/Buyer Agent Specialist!
The major advantage of having a RE.lic. is not only do you have access to information you used to pay for but you can generate many streams of income. I offer my Investor clients a turnkey network of resources you will never have access to online. If you run an honest win-win business you shouldn't have any problems with disclosures.
Mathews Associates
RE Investment Services
Buyer Agent Specialist
Once upon a time , 100 years ago, I was a licensed broker in CO and CA. I determined I was wasting too much time evaluating projects for my agents, that I was making less than if I canned them all and just did my thing.
There are tremendous disclosure problems that any a__hole attorney can make an argument out of, if he thinks you have deep pockets.. Only receiving commissions on your own stuff was beneficial , imo. You can find buddys other ways.
BTW, I decided I AM going to get my real estate license again. Why? Because Real Estate is one of my favorite fields of endeavor, it's what I want to be successful in, and it's what makes me happy! It's how I roll !!!!
I gave up my RE agent license because it was a detriment to working notices of default or pre-foreclosures. Later a broker friend talked me into getting another one & working for him whiIe continuing my investing. Again I found it was not good to have a license while trying to invest so I gave it up again.
A little while later I became an appraiser which was more compatible. After 20 years of that I got a mortgage brokers license which was also better for investing.
Long story short don't get your license unless you like sitting open houses, sitting in the office answering phones and making sure everyone you talk to about a deal knows you're an agent. Its not a good way to be an investor as far as I'm concerned. Especially not right now, much better as an investor.
Good luck.
donrock
[REMOVED]
Again I found it was not good to have a license while trying to invest so I gave it up again.
A little while later I became an appraiser which was more compatible.
I wonder if all investors have this thought at some point. From what I have gathered (at least in Michigan) is that if you are going to be a Realtor and an investor, you have to be VERY careful about the deal....I don't want to raise any eyebrows and I am WAY to open about where I think people SHOULD and SHOULD NOT invest in this county (which I don't think realtors are allowed to do).
I have a friend who is also an investor who just got his license, I have thought about getting my license as an appraiser. I too thought that maybe it would be more beneficial for my situation.
6 months ago I would have told you no dont get it...but as an investor and now licensed agent for a year, I have to say looking back it was a good decision. Once you learn to tread that careful line of investor/agent legally, and learn to deal with disclosure, it does give you advantages you wouldnt have otherwise.
I like having total control of my real estate dealings. I have very, very little trust in other Realtors. So, it was a natural fit for me to obtain my license. I find it very nice being able to find a great deal (yes, they can still be had on the MLS), do my own negotiations, schedule my own closings with the title company of my choice, AND earn a commission on top of it. Plus, it's really helpful when you're working a shortsale as the buyer and have the BPO prepared for the agent when he comes to the property!
Furthermore, just by being an agent in the office gets you one step closer to the small talk in the office. Overhearing things is great - most of the agents in my office love bashing properties which they feel are overpriced, but in a nice neighborhood. Those are the ones I make a priority to check out!
Furthermore, being an agent is a requirement to becoming a broker. I'll have my broker license by the end of the year and can do property management or own a sales office.
I'm also an appraiser. I find the appraiser license to be the bigger waste of the two. As a matter of fact, I'll likely let it lapse next year when it's time to renew. With things slowing down so much in MI there's an over abundance of us.
I say get licensed. I don't see a disadvantage at all. Sure you have to disclose. Big deal. I even disclose that I am an investor buying a home under market value.