Confessions of a Florida Real Estate Agent. To the newbies.

General Real Estate Investing
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Hello this is my first post here on REI and I’m going to message other Real Estate Investing Boards as well. I’m a Licensed Florida Real Estate Agent, (Current) and I would like to speak to the newbie Real Estate Investors. Many Agents don’t like working with Investors When I ask the question: “Do you work with Investors” at many Agent meetings that I have attended someone would come forward and say how they got burned but the honest truth is they don’t know what investors do. Anything outside of the norm of selling a pretty house to an end buyer most agents don’t have a clue.

Wholesaling is a topic we in fact did learn in Real Estate school but it’s called assignment of contract. Remember, (Here in Florida), you are NOT Wholesaling houses but you are assigning contracts to an end buyer and that is a big difference.

I also noticed that some Investors on this site said if you get your Real Estate License you are more likely to get sued, That is not true in my experience. Here in Florida anyone can sue anybody for anything. Also what the investor didn’t mention is the DBPR goes after unlicensed people here in Florida all the time. Learn the laws in your state FIRST by going to the states legislative site or pick up a Real Estate law book, you don’t have to be an AGENT but you SHOULD know your states RE laws. Take the time to learn the laws first which could save you thousands. You also want to be honest and up front with the people you are working with as well, that will lower your litigation risk.

Also you CAN make money here in Florida without any money, (Yes, I’m saying this as an agent) Go around your city and look for vacant properties, (Many newspapers, phone books, flyers at the front door…etc) and see if you can find the owners of the property. Get the property under contract and then find and sell to and end buyer. That is how I first got started before I got my license.

Let me know if you have any questions!

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Can I be prosecuted for wholesaling without a license?

I’m in Orlando.

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FloridaREAgent you are so right. Just like Daniel Patrick Moynihan said about all politics is local. All real estate is local. Learn what works where you want to invest. It is not one size fits all.

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Housewives cum real estate agents are the most notorious for not understanding real estate investors, and claiming to have been burned by investors. Of course they were burned. They don’t ask the right questions, and the investors often don’t know the right answers to give in the first place. It’s like the blind leading the stupid.

I personally have left a string of burned agents in my wake, because of their ignorance, and my stupidity. I ran them through the ringer, because they let me. Never mind I was just practicing. The seminar guru said to ‘find agents to help you find deals.’ It’s win/win. They win with a repeat customer, and you win, because they give you first crack at the steal deals." Sure. And Unicorns are real.

Meantime, agents are taught to be ‘ethical.’ That’s the oh, so big deal with their training. Gotta be ethical. Never mind not being able to differentiate between an investment quality deal, and a retail deal.

Well, some agent-investors “DO” get it, and know how to negotiate investment quality deals with motivated sellers, if not work them over like Chinese sex slaves, and come out with the results that only professional negotiators would. Meantime, they list these pocket listing deals on the MLS, to meet the contract requirements, and all the investor amateurs start biting on the hook, and then can’t figure out why the houses are sold already. It’s only been on the MLS for fifteen seconds…

Just for giggles:

Then there’s the not-so-professional agent that proceeds to equity strip Grandma Moses, like a Chinese sex slave, and then Uncle Henry finds out that grandma sold the agent the family mansion for 60¢ on the dollar. He sues to unwind the deal under ‘elder abuse,’ and guess who loses? The professional, who ‘obviously’ knows better. This happens to sloppy unlicensed investors, too.

Now, as a professional, unlicensed investor, I can work grandma over over the exact same way the professional agent would, except that I don’t have a license to protect. And once the deal’s done, it’s done. Uncle Henry can scream bloody murder and try to take my license, if not unwind the deal, but I didn’t just fall off the turnip truck, and I’ll show him exactly how the deal went down, and that I gave grandma the opportunity to walk, but she insisted I buy the house at land value, less the permits for demoing Uncle Henry’s inheritance. The judge asks, ‘Whose got the deed now?’ I say, ‘I do.’ Judge says, case closed.

My wholesaler friend in San Diego, got his RE license in order to better relate with the agents that he routinely milks pocket listings from. Never mind he’s sending out 10’s of thousands of mailers every month directly to prospective sellers, in four counties, and has a team of trained ‘negotiators’ that open escrow on a half dozen wholesale deals a week.

The point, of course, is that finding, negotiating, and closing on investment quality deals means that both the investor and the agent need to know what they’re doing, before they join forces. Otherwise, someone’s gonna be the Chinese sex slave in the relationship.

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The short answer to it is yes. You can also be sued if you have a license as well. The laws in Florida state that anybody can sue you for anything in the state of Florida. I focus on the laws and the market here and it changes every year. I can’t speak for any place else. I need to sleep well at night so if you are like me you will be ethical and do the right thing for the buyer and seller. Here in Florida if you “burn” someone they will tell the Real Estate organization that they are apart of and then they will tell other organizations in Florida that will cover the entire state, (PRO, GTAR…etc). Negative reviews travel faster then positive. Most people that do the wrong thing won’t be in business very long.

IF you want to continue to make money in Real Estate, always be upfront, honest and have everything in writing. Buyers and sellers can, (And WILL) be dishonest from time to time but as long as you are doing the right thing in the long run you will be just fine.

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Hi,

Equitable interest IE selling a lawful contract for monetary gain is lawful under Federal law! Remember Federal laws trump state laws.

In fact equitable interest has been upheld by the US supreme court.

Contracts are sold daily on Soy Beans, Oil, Gas, Gold, Silver, Copper, Cotton, Coal, Iron, Rice, Corn, Lumber, etc.

As long as a contract has been outlined, signed by both parties and a deposit (Earnest Money) has been placed against the contract it is a legal contract. Jurisprudence outlines support of equitable interest under both Federal and State Laws.

It is the same laws which enable mortgages, car loans, credit cards, student loans, etc. to be bought and sold!

               GR
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I was told today at the real estate meeting that wholesaling without a license is legal, but co-wholesaling without a license is illegal.

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You were told nothing, but BS at this real estate meeting. Nobody who’s serious about making money is going to give a second thought to the illegality of ‘co-wholesaling.’ I’m sure having unprotected sex with a 13-year old Haitian prostitute is also illegal, but that doesn’t mean you’re anywhere close to doing that. Am I right?

You already know all you need to know, so go take action, and stop mentally masturbating at ‘real estate meetings’ and fantasizing over more ways you can’t do this business.

Am I being too harsh? Too bad.

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Unless I read that wrong, you’re a proponent of underage prostitution.

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That’s your ‘take away’ from my post? LOL :beer

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He is kind of preoccupied with prostitutes isn’t he. :shocked

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I haven’t figured out a better way to get Redstain’s attention. I’m open to suggestions. Maybe drug addicts? How about pedophiles? ??? Just asking.

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I honestly don’t know what’s so hard about wholesaling. In my opinion, it’s one of the easiest ways to make quick cash. In my experience there is very little negotiation, as the seller is usually aware they aren’t getting anywhere near market value to begin with. Unless my experiences are abnormal.

Come on Red, if I can do this anybody can. I’ve got two deals closing next week. One small $3K wholesale that a bird dog brought me, and a giant sub 2 deal.

What happened to those $8 signs you bought?

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I’ve received FMV calls. That’s it out of 15. Hopefully if I hang in there, I’ll get one.

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Question for the OP

How many years have you been a full time Realtor in Florida?

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May 13th will be 22 years

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I heard there is tons of building going on in Fla. How do you envision Florida real estate in 10 more years? And in 20 more years?

Has the difficulty of entry into being a Realtor changed much over the past 22 years? I heard newbies used to get started easier then today as far as having a nice chunk of change goes.

Here in Georgia I got my real estate license thinking that credential would help me get started as a Realtor or investor, but I lacked money to get started. I found out it was expensive to bcome a realtor After I already passed the exam. Then I was lost with zero direction I was side tracked and unsure what to do, and was discouraged after interviewing with brokers telling me I needed a cool 20K to seriously get started. Sound familiar?

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That is inaccurate. You just need to find a good Brokerage company. They can give you leads and direction but it will cost you when you make a deal. Some are expensive but you can start pretty much if you put the effort into it.

Real Estate and easy shouldn’t be in the paragraph…lol especially when just starting out.

There is growth here in Florida and some of the major areas will be crowded. The smaller areas like Riverview, Brandon and Apollo Beach are expanding and developers are out there filling the demand. If you want something bad enough you can get it. Top Realtors down here make good money, (7 figures yearly) but they work and work hard. I work hard as well but not as much. I have too many other outside interest.

Anything you want, you can have as long as you are willing to work hard for it!