I am thinking of becoming a realtor to help facilitate my flip business.
Has anyone seen a benefit of in their business becoming a realtor? After I get licensed, am I right in thinking I will have to hang my license with a brokerage to get MLS access, enter properties etc?
How do I find a brokerage willing to do that?
Hi @Rigo V. , Depending on what your plans are, yes there are definitely benefits in getting a real estate license. With the access to mls, you can run your own comps, easy access to properties, and list your own flips.
However, there are some cons, such as what you are or are not allowed to say to sellers.
And yes you will have to hang your license with a brokerage to get MLS. Depending on if you will do any real estate transactions, any ole brokerage will do.
Hope that helps!
Hi. If you just get a referral real estate license, will you have access to the MLS. I am trying to find this out. Because becoming a full blown sales person means the broker is going to want some production out of you.
Just backing up with what Michael said.
In this market it's almost ideal that you get your license just for the simple fact that you are in front of the properties before any other non-licensed investor. You wouldn't have to wait for a response from an agent and you wouldn't need to work with one to buy/sell, get additional information on a property and get into properties. You'll be in the know when something is new to the market, when a price changes, when a property comes back to on the market from the deal falling through, etc. That in itself is a huge advantage over your competition.
Not to mention you will be in contact with other agents and it is easier to build up relationships with them as you would see them face to face. You can mention to them that you are an investor that is looking to buy such and such kind of property and they would tell you about the deals that they are working on and the new listings that they just got.
You have to account for the expenses in getting and holding your license. Also it's crucial for you to start asking brokers if they allow you represent yourself on your own personal transactions. My brokerage for example only allows their agents to represent themselves twice a year and that's only to buy and/or sell their own personal residence. Again, this is just an example. There are brokers that are more lenient as to their agents representing themselves.
@Gregory Ritch No, you cannot get MLS access if you are a referral agent; you have to be an active agent and pay local, state and NAR dues. Referral agents are restricted to simply passing along leads to their broker of record, not just any licensed agent. I have a friend who is a referral agent and he is affiliated with a broker who has a stable of RA's (in addition to regular agents) - he can't just pass leads along to me. And @Rigo V. Michael is correct in that you need to ask the question of any broker you're interviewing regarding how they would handle you selling your own investment property and the subsequent commissions.
I didn't become a Realtor specifically because I was interested in investing in real estate, but the ability to access anything that comes on the MLS immediately is certainly a benefit. I would not do it simply to help with my investing. As noted, most brokers would expect some production, I would think, and as those of us who are realtors know, especially early on, it is a very time- and labor-intensive business.
Thank you Dan
I am a realtor in Central NJ. There are many benefits to being a realtor when flipping houses but keep in mind that being a realtor comes with its own code of ethics that make you have to handle business in a way that follows its guidelines. Plus factor in the cost of having access to every area that you do business (if you are doing flips in multiple areas that is) and usually having to keep up with trainings on a bi-yearly basis.
@Rigo V. You're correct in your assumptions. There are more and more investor friendly agencies popping up now days, just be honest about your intentions and how you run your business when you sit with a broker this way you wont run afoul of any of their business practices.