​Which is better: Double Close or Become a Realtor?

​Which is better: Double Close or Become a Realtor?

Brentwood, MD · Member since 2016 · 115 posts · 12 votes

I’ve been convinced that I may have to start out in Real Estate by Wholesaling properties. However I’m very paranoid about following the law to the “T”, especially knowing full well I have Attention Deficit Disorder (ADD) which makes me mess-up the finer details when filing paperwork. This is not to say I’m incompetent, this is just me acknowledging a weakness that will either bite me in the bum or make me spend three times longer than the average person is to complete such a task just to get it correct (for example, if my mom wasn't doing my taxes for me I'd just pay someone to do it for me because spending three times longer than the average person or risk messing up is just not appealing to me). For this reason I’m having doubts about “assigning the contract” in the State of Maryland or DC. Thus, my other two options would be to Double Close or get licensed.

These are the Pros and Cons of each I can fathom at this time.

Pros on obtaining my license as a Realtor:

  1. I can Wholesale with less worries
  2. I can do more than just Wholesaling, I can actually be a Realtor for home buyers and investors
  3. I’ll be employed at an actual job which means I can start repairing my own credit (aka paying off my Student Loan)

Cons on obtaining my license as a Realtor:

  1. If I do any Wholesaling, it maybe legal but it will not be ethical under the guidelines of what it means to be a Realtor.
  2. It will cost me around $3K per year to upkeep my Realtor license and business status in a very competitive market for Realtors (I know it's competitive because my boyfriend and I just bailed out a Realtor friend of ours by donating to him as well as setting up a GoFundMe donation page to prevent him from hitting absolute rock bottom), and may cost me $3K to $5K to get started.
  3. It may take me longer than 3 months just to learn and memorize enough to pass a test, as I am very knowledgeable in real world activities but lack in test taking skills due to my Attention Deficit Disorder (ADD).

Pros on Double Closing:

  1. I get to take away however much I think I can literally get away with in mark-up value assuming the market can bear it.
  2. I can gain experience in closing deals so I can start moving up to house flipping.
  3. It’s an easy way to avoid getting a license.

Cons on Double Closing:

  1. It’s risky, because if I can’t close the deal I may end up having to buy the property and/or lose my earnest money I put down.
  2. It takes more upfront funding to get started, as I will have to pay for closing costs twice.
  3. Legally speaking, Double Closing is a liability because it is more like selling the property which means you are held responsible for that property, rather than selling the contract (to my understanding, I could be wrong about this interpretation).

These are the Pros and Cons I could think of, please chime-in with your own as well as give me any advice. Thanks!

1Reply
200 views

Most Popular Reply

Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
10y

I am of the opinion that a licensed agent/realtor should NOT participate in wholesaling, at least in Maryland & DC.

See this reply in the discussion

62 Replies

Jump to latestLatest
  • Real Estate Agent · Houston, TX · Member since 2016 · 53 posts · 19 votes
    10y

    Botlh - you can double close while being a realtor.  Buy as an investor and sell retail, or wholesale.  Whichever is more profitable.

  • Long Beach, CA · Member since 2016 · 19 posts · 2 votes
    10y

    @Wendell De Guzman exactly you have to start somewhere 

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    10y
    Originally posted by @Wendell De Guzman:
    Originally posted by @Amiris Brown:

    @Bill Gulley, wow where to begin replying you have so much knowledge ~ thank you for sharing it along side your experienced opinions.

    Real quick, I only mentioned my ADD here I have never mentioned it with business transactions nor when I use to service Website clients. I've disclosed it upon gaining my education, and I see my interactions here as another form of education. Sure I might turn off potential leads this way that I could cash-in on later when I get rolling in the business part of RE, but frankly that's their loss not mine in the long run (it will only hurt temporarily lol as I expand my network).

    Anyways, yes I have misconceptions which is why I knew I had to post this discussion. I never take anything at face value, I like researching and that sometimes involves gaining the insight from others through the act of crowdsourcing. I became apprehensive about the test when I heard that the Realtor we bailed out of a bind barely passed his first go around, and he claimed most people fail the test one before they pass. It sounded to me that it was as bad as trying to pass for a Microsoft Certification test, which is why I ended up studying Linux distributions instead haha and just got a degree rather than pay for a test certification like my A+ computer repair certification. I ended up running a successful local computer repair business without any certs and long before me and my partner at that time finished our IT degrees. The only reason why I don't have money now is, I ended up walking away from the business. I learned from my foolishness, as I should have at least gotten a stake in the profits as a co-founder ~ lesson learned. Anyways, so like I said when our Realtor mentioned how difficult it was to pass I had flashbacks of worrying wether or nor to pass my IT certs or not and in the end I got my A.S. degrees and had a business prior to even graduating with my first A.S. degree lol.

    In that career path that was legal.

    It sounds like in the world of Real Estate, to be perfectly safe in legalities I should suck up my fear and try testing for my Realtor license.

    Considering the side business (RE related though) I'm about to start with so far just a $13 investment in start-up funds, it may serve that venture if I became a Realtor. Hmmmm ... I'm really considering this now. Funny how everyone drags out the get a better job phrase (you didn't say it though) and save up, when I looked at the job postings for my area on BP there were none haha. It just reminded me I need to stay focused on starting my own business and also at the same time work to get into Real Estate investing. I don't need a job when I'm about to create my own job for myself, with hours and pay that I choose. I like it that way better anyways, so @Jay Hinrichs should be made aware of this.

    Thanks again Bill for all your wisdom!!!! :D This meant a lot to me. I really needed to know what you know lol.

     Amiris,

    Most people who start out as real estate agents FAIL. According to the post below, 87% of beginning real estate agents FAIL in the first 5 years.

    87% of real estate agents FAIL

    The article points out that these agents don't even make any money.

    So the experience of your BROKE real estate agent friend is not unique.

    Can the same be said of wholesalers? Probably.

    What about rehabbers? Maybe.

    Developers - yes there are many failures among them too.

    Landlords? I'm not sure but I know there are landlords who fail miserably - I end up buying and then wholesaling some of their properties.

    So...as you can see...in real estate, there are many people who fail.

    BUT if I were you, I will not worry about all these people who fail. Instead, I will associate with SUCCESSFUL real estate people (agents, wholesalers, landlords, rehabbers, developers, etc) and find out why and how they succeeded.

    Bottomline: success is not dependent on your specialty (it does not matter if you're an agent, a whoelsaler, landlord, developer, etc).

    Success is not based on personality. I've seen extroverts or outgoing people succeed and I've seen them fail in real estate. I've seen introverts become extremely wealthy and I've seen a lot of them fail miserably. One introvert I know have done 600 deals. I trained him and he did more deals than I did (although I do bigger deals than him).

    Success is based on developing HABITS that will lead you to success. For example, worrying too much is a BAD habit that will lead you nowhere. Hustling and willingness to network offline and online is a good habit that will lead you to success. Continually learning, and asking questions is another good habit.

    So there...just pick one and just DO IT.

     Just doing things, getting the wrong adviser, not understanding real estate and common practices in your area is how people get in trouble, lose money and fail! 

    How many deals someone has done is no indication of their compliance with laws or ethical dealings. It can mean someone has gotten away with doing something and just hasn't gotten caught yet (and they may never get caught). 

    Failure is easy, success and being so honorably, is difficult. :)    

  • Rental Property Investor · Fairfax, VA · Member since 2014 · 328 posts · 101 votes
    10y

    @Amiris Brown I didnt read the entire thread, but I'll give my 2 cents... As a REALTOR you will not be an employee, so if that is one of your major pros you may want to reconsider the value. A REALTOR in almost all cases is an independent contractor, and therefore not given a salary, benefits, or required office hours. Yes, you can generate the income you need to pay off your student loans, but it won't be from being employed.  

     I have met REALTORs that wholesale as well, it can be done, and you seem to understand the ethical obligations so I have no doubt you will act ethically.

    It comes down to your goals. What are you looking to accomplish in real estate? How far do you want to take this? I came to the realization that for my own goals and plans, getting my real estate license was the best choice for me. What is right for you?

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    Thank you @Carson Sweezy for your advice and humility, in that you were honest about not having read the entire thread yet still contributed.

    I will not be an employee, but an independent contractor? This is very good to know. I was a bit confused as I notice many Realtors work with firms. Though my own Realtor had us sign a contract before viewing potential rentals (my fiancé and I aren't ready to buy just yet for ourselves here in the DMV area) and it stated he was an independent contractor. So I assumed some were contractors and some were actually employees, guess my assumption was wrong. I'm new to Real Estate, but while I know some things I can tell you right now I know zero about Wholesaling or about Realtors.

    As for my student loan issues, I only need to pay it off along the way so not to have all my Real Estate efforts sabotaged by forced garnishing just as I get started in success. I'm not going into Real Estate to pay off my student loans, I just mentioned it as it is currently wrecking my credit and maybe an obstacle once I start getting substantial money as my bank balance. So it is a concern as I am just starting out, but I think I have a plan.

    I have no doubt I can act ethically when fully informed about how exactly to go about Wholesaling. Again, this concept of Wholesaling is a brand new concept and until I see the technicalities of it and the contracts done by those doing it legally and ethically I will remain very wary about going on such a path. I'm especially concerned about any Maryland Law technicalities pertaining to Wholesaling.

    My goal was never to Wholesale, but this question came up when 3 Real Estate professionals suggested I start out in Real Estate by Wholesaling. Even the BP video on what to do with $30,000 in cash suggests to still start by Wholesaling. Now I'm not 100% convinced that I have to take this route, but I would like to be fully aware of all my options. My original intent was to somehow obtain more than one property so that my boyfriend and I could have a place of our own to live at a cheaper rate than rent here as well as gain one investment property. However, it maybe better for me to start out Wholesaling, or becoming a Realtor, or flipping, rather than buying and holding from the start. The end goal is to have cash flow, and to acquire as many properties as humanly possible in order to build up a Real Estate empire. For now though, getting a Real Estate license maybe best for me not due so much to Wholesaling but due to the business I am starting that is related to Real Estate along side my aspirations as a Real Estate investor.

    Thank you again for your insight. :-)

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    @Account Closed, thank you for that wise observation. I am highly considering this as an option.

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    @Bill Gulley, which is exactly why I'm seeking mentorship. LOL!

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    If this person Brie and who is founder of Turnkey-Reviews can excel with a templated website like that, then I really do have no worries as an award winning Graphic Designer and web developer. No offense, @Jay Hinrichs. Their website is ok, but needs work (this is not an invite to involve me, as I'm working on my own online start-up that will start giving me residual income so I can make bigger plays in the Real Estate industry).

    I think I'm going to eventually pursue this license sooner rather than later. Thanks for all the advice and in slaying my worries.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Amiris Brown  thanks for your feedback both Brie and I did turn key reviews for 2 years it has been free to all to use.. and many people as simple as the website is.. have used it to great effect in their search for a turn key provider .. Plus Brie's podcast are fantastic they interview turn key buyers the real man or women on the street who has purchased these.. however with all the web folks out there finding someone to upgrade the site is no big deal or significant cost.. TK reviews was never intended to be a revenue source for Brie or Myself it was a give back to the community that has treated us so well over these last 20 years..

    In fact we are monetizing the site.. starting this month and 100% of the revenue will be put back into buy SEO and whatever other social media deals that need to be done to cast a wider net for those that want to show their wares off on the site and for those that want to make revues etc etc. Its the only site on the web were you can go to one site and see 50 providers.. WITHOUT getting asked or forced into a squeeze page.. The free book I wrote on what to watch out for in out of state or country investing.. Along with other vendors that are critical for success.. so for the buyer of the turn key homes its a hugely valuable FREE tool....

    Brie success is not TK reviews she like me is giving back to the community as stated above.. Brie owns 80 plus doors... And is knocking them dead as a retain real estate agent specializing in small plex's in North side of Chicago.. and if you ever met her you would understand why.. Smart, Punctual, out going, and a great Agent to have on your team.. SHE KNOWS the business..

    Not every one can have the qualities it takes to be a great agent. In every town there is a number one.. and they don't get to being number one with out a lot of hard work determination and SALES SKILLS......

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    @Jay Hinrichs how did she start then if Turnkey came later as a gesture of good will? 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Amiris Brown  No it was my idea.. and she ran with it.. so for someone who is a busy realtor and not a website designer I think she did a great job.. but as you state its ready for version 2.0  and as we get some cash flow that will happen.. its a great give back tool for Brie and myself.

    you may also look at the Post that was last December were I personally gave away a duplex to a BP member to allow them to chronicle how rehab works.. and then donate a large % of rent to charity in their name..

    So its not all about making money.. I will probably give another home away this December as well because it was well received and I like helping out young entrepreneurs, The BP audicance, and charity all In one fell swoop. 

  • Brentwood, MD · Member since 2016 · 115 posts · 12 votes
    10y

    @Jay Hinrichs, I hope to one day accomplish the same after I succeed within the Real Estate industry. :-)

Join the conversationCreate a free account to reply, vote on answers and follow this thread.