All Forum Posts by: Duane Smith

From an agents perspective, the hit rate is very low and you usually make contact the day of the listing expiration. By that time 4-5 reps may have called them already. Their mood can be sully due to the fact that their hopes and plans of moving have went down the drain, and simply out of bitterness won't want to deal with the house at all for a few months. Not to mention, they usually can't sell because their price is out of wack, and the previous agent may have even tried enticing them to lower it.

Best option is to call right away, have a very good script prepared to lead the conversation, then put them in your file if you're turned down, and callback within 2mos down the road, then keep repeating as long as the house is still unsold.

Now don't let that discourage you, it works, they're still people you know are willing to sell, but it just takes you hitting them with a great first contact, and being consistent. Furthermore, because they've suffered (potentially due to an overpriced listing) they know the value of getting it sold quickly. So I'd assume as an investor that would be a great negotiation tactic for your coming in. :)

Duane

Hi Natalie!

Welcome to the area, I heard you moved here recently with your husband and you already own a rental property in Cali!

That's super exciting and I wish you the best of luck with your additional rentals in the near future here.

In regards to your question, it is possible to sign a non-exclusive representation contract with an agent, and it's to be expected in MN when an agent is dealing with investors. I'd almost interview a bunch of agents and pick one who works closely in an area you like and is willing to give you market info in a relatively prompt manner.

Also, try going to a MNREIA meeting! They have tons of other investors from all backgrounds there and agents (myself included) love to moonlight there and talk about opportunities and give pro bono info on local market conditions!

Hope that helps!

Duane

Hi Paul,

Great question and one that I asked myself. From my standpoint, getting my real estate license was a decision based on getting into a better career rather than helping with my personal investing.

To have a license, there are a lot of fees, education requirements, and liabilities associated with it. Furthermore, I have experience with a lot of investors in my local area, and all the serious ones are very much on the pulse of the market in terms which markets are working. When you get going, there's not much difference in what you know versus what a strongly competent agent would know.

So I suggest if you do pursue your license, do it with the first intent of getting sales and earning money so you can afford those investments you wish to make! :)

I hope that helps!

Duane

Hey Adam,

A few people are talking about the general contractor route on here which could be great depending on your goals going forward.

I don't have much experience but there's a guy out of Wisconsin that exclusively works as a GC for his rehabs and he has a fun Youtube series documenting his interactions with his sub-contractors and employees.

His name is Nick Ruiz, and he has an awesome book called "Starting From Scratch". He works out of the Wisconsin area.

Here's the link to his channel!

http://www.youtube.com/channel/UCrG53uJIhSAJ4OACLE...

Duane

Wow Luke that's awesome, you have the right kind of problems my man!

As far as getting help, I suggest our MNREIA if you're not already a member. A ton of big players from across the state attend the meetings and I know you'll get some great ideas from some good people in person!

Here's the website:

http://www.mnreia.com/default.aspx

Hope that's another resource for you!

Duane

Go with what your money guys say. An agent can only assist in facilitating the sale. They shouldn't try to bother you in terms of financing. If the seller is happy, and the bank gives you better terms with one loan, as opposed to two, then the agent should be completely on board.

You should not have to do two different closings if it's not completely necessary.

Do you know any REI groups in the area? That's where I find is the best place to start. I've met a healthy network of real investors doing real deals at my MN Real Estate Investors group over the years.

If you burn out here, I'd suggest you go there. Plus I've found very them welcoming to newbies!

Hi Todd,

You asked a great question and one I was pondering myself. To give some transparency, I'm going full-time into being a real estate agent in February. My decision came about because I too was interested in the investment aspect first, then got the idea that the agent license could only benefit me.

However, I've spoken with a lot of investors over the past two years and many of them have licenses. They've told me that, to them, their license wasn't that big a factor in their personal investment ventures. They tend to keep the same networks as most unlicensed investors and I've learned the investor/agent community is very close. There won't be much more that they know that a serious investor wouldn't.

So I suggest if you get your license, do so as a way to get yourself into a business operation that you run and control. Use it to create your income to invest on your own. The upside is unlimited and if you have the right attitude it can be the most rewarding career you've ever had.

That's why I got my license, because I wanted to be my own boss and I had a keen interest in real estate. Otherwise, the expenses and liability (as your uncle mentioned) can make the whole thing very unrewarding.

I hoped that helped!!

Duane

Wow these are all great reply's! Thank you all!!

I do believe I can make it, I love the idea of running my own business and investing my own time and money to earn income, rather than just as a W-2  employee.

To save for 6mos, I might need to keep working until April or so (and that's if  I'm really working OT at my 9-5 and saving). Otherwise, if I try to balance my time between work and real estate, it could take me a year or so. 

I'm dedicated to this, so I'm not quitting, but I do want to make as few mistakes as possible. Whether that's starting too fast, or too slow..

Hi All!

I've posted about getting my real estate license, and now that I'm taking the plunge I've spoken with an agent and a few friends. My question is if it's worth it to simply leave my 9-5 and jump into real estate sales full-time.

I probably have 2 mos living expenses saved up, so I would need to be productive right away. However, with what I want to do with real estate (replace my income, build a real business, become an investor), I feel it's nearly impossible to do it on a part-time basis.

What should I do? Take the plunge (pulling 70 hrs a week starting from the ground up hussling) or should I keep my comfortable job and be patient for the real estate side to pick up slowly overtime as I transition.

I want to say thanks in advance for your responses!