Is it a good idea to become a real estate agent when you first start investing?

General Real Estate Investing
21

I say “no” because I have found Realtors difficult to deal with.

Once I bought a house owned by a Realtor. She waited until the last second to quietly mumble “By the way, I’m supposed to disclose I’m an Agent.” She slipped it in moments before signing, after an hour of negotiations.

It made me think:
b she might be hiding other things;
(b) she’s fresh out of school.[/b]

She also seemed to have very little knowledge of Real Estate.

(1) She wanted to continue showing the property, while we had it under contract.
(2) She met with me to discuss a change in the contract: she crossed something out, and wrote the exact same words in pen.
(3) After insisting she have a 7 day attorney review period, she tried to cancel our contract verbally. I assured her that her attorney would need to fax me a letter. It never arrived.
(4) When she found out I would flip the property, she was angry I got a better offer on the house than she got from me. She tried to use this excuse to break the contract.

This may not be the case with all Realtors. But in my experience, the three months training seems to do more harm than good.

22

I am only going off of the state of NEVADA’s rules when I say it is not worth it.

I guess it depends what you wish to do, but let’s say you decide to sell a property you own and say:

“The schools in this district are top rated.”

You just violated a rule. You were telling the truth perhaps, but it is still not allowed. There is all sorts of other things you can’t do that limit you. This is just a simple example, but you get the point. Other states, like Washington, are probably more liberal.

If you plan to mostly buy, why not have an quick track to new properties and a commission to boot.

I plan to apply to UW Law in a couple years. Think I am going to pursue RE Law. Seattle is my favorite place :smiley:

23

“This may not be the case with all Realtors. But in my experience, the three months training seems to do more harm than good.”

Real Estate Agents must take CE and recertify their license every two years…same with Appraisers. That means the longer they’re in business the more education they have. I’ll be going to school & attending seminars for the rest of my life if I want to maintain my licenses. My resume is contained on 3 legal pages, and the section which lists my education is condensed print.

I say “no” because I have found Realtors difficult to deal with.

People who’ve had “bad experiences with Agents”–have had bad experiences with “people.” Everyone of us is different and unique. Agents occasionally have problems with people too…they don’t typically quit the industry because a Buyer or Seller was difficult to work with.

“I am only going off of the state of NEVADA’s rules when I say it is not worth it.”

Nevada State Law for Real Estate Agency (required if you want your license in NV through reciprocity) is available for a nominal fee to anyone online. Google Real Estate Schools NV Law.

“Other states, like Washington, are probably more liberal.”

My friend…the word ‘liberal’ IS NOT a word one wants to hear if they’re investing. ‘Liberal’s’ ARE NOT landlord or investor friendly. A well respected local Investor/Instructor warns against investing in ‘liberal’ King County at all.

“Is it b/c you have to lie and decieve to get good bargains?”

I don’t lie, but thanks for the snide remark. I get good bargains because, of my extensive knowledge & experience. My license doesn’t preclude me from buying, or selling real property…no one’s license prevents them from making a profit.

Finally, if one is seeking advice about entering a certain profession…ask a professional specializing in whatever discipline you’re interested in. I wouldn’t take the advice from a Butcher, Baker, or Candlestick Maker on whether to get my real estate license or not.

-Infowell
MORE THAN “just a salesperson”

24

Infowell,

You seem hell-bent on defending yourself and your training, instead of a debate about the pros and cons. Good luck with that, let me know how it works out for you.

25

“You seem hell-bent on defending yourself and your training, instead of a debate about the pros and cons. Good luck with that, let me know how it works out for you.”

I have debated the pro’s & con’s (there’s mostly pro’s…why do you think I worked so hard & obtained my license?).

I don’t need to defend myself…you’re forgetting…we’re all ANONYMOUS! :icon question: Quite simply…I’ve nothing to gain or lose here…I’m just offering my valuable insights & experience.

I cite my extensive training & background for our friend who’s inquired about getting their real estate license;

That’s accumulative experience of 15 years. Dually licensed as an Associate Broker & Certified Appraiser. Estimated 4,500 valuations to date (from bare land to Multi-Million Dollar Waterfronts in the San Juans). Typical Assignments include; residential, condominiums, multifamily and vacant land for banks, savings and loans, mortgage firms, employee transfer companies, private parties, attorneys, marriage dissolution settlements, and REO Appraisals for FHA & VA foreclosed properties (including cost to cure estimates - “as repaired” & “as is” valuations).

I’m a former Home Inspector/Commercial Pest Control Consultant. I’ve let that license expire as I do not wish to be perpetually going to school to recertify (which I must do for my other two licenses).

Seeing as how you’ve advised our friend NOT to get their real estate license…would you be so kind as to share your qualifications with everyone.

As for “how it’s worked out for me”…15 years says a lot.

-Infowell

26

I don’t have a license. I graduated from college last summer with a degree in Fine Art. Currently I work from home in my underwear. My wife does as well.

I make $20,000 - $150,000 for each property I deal with. I wholesale junkers for fun, but I work mostly in the luxury house market doing sandwich leases, options and sub2.

I close about 3 deals in a bad month.

27

“Currently I work from home in my underwear.”

Thanks for sharing :-X

At least I had the courtesy to put on a pair of gym shorts.

“I don’t have a license.”

I think the question WAS…should they get a Real Estate License.

“I wholesale junkers for fun, but I work mostly in the luxury house market doing sandwich leases, options and sub2.”

IF you had a real estate license (and experience) you could lease op properties for large regional builders.

“If anyone wants to know how to defend themselves…they be well advised to seek out a Martial Arts Master…not someone who’s lost a street fight or two.”

-Infowell

28

Actually, you said this, Infowell:

...would you be so kind as to share your qualifications with everyone.

… which is exactly what I did. Are you trying to confuse everyone with smoke and mirrors?

I have no qualifications, no job, and a lot of business. From what you mention, it sounds like you have at least one job (for 15 years), must re-test each year, and have not disclosed whether or not you actually profit from private deals.

Like I said, let me know how the pissing match works out for you. Remember, don’t pee into the wind.

29

OUCH this thread has taken a nasty turn :-\

Dear original poster – as you can tell this is a topic of great debate. I think we can all agree (but I’m not sure, so I’m prepared for a thrashing LOL), there is invaluable information in the real estate courses, the basic sales associate preparation taught me tons, and it was very interesting. Whether you choose to activate your license is strictly up to you. I chose not to, however, from some of what I’ve read in this thread and in other threads, I may reconsider. I, personally, just love Real Estate and it would be fun for me to work with others in the market.

Realtors do work VERY hard and have to deal with a bozos on occasion, but doesn’t every profession? Not all of them know their job, but as a consumer of a service-oriented business, you have the right to choose who you want to work with. Keep hunting, I know for a fact there are great Realtors out there. I have found two I simply love – they are professional, hardworking and very nice people, I just like to talk to. They look out for me as I use them as a buyer agent.

Even the guru I first learned the foreclosure market from has changed his way of thinking (he is a broker himself and an extremely successful investor). I recently read in his newsletter his new way of thinking, and he suggests investors get their license, if it interests them. I went back into his materials to find out why he originally suggested people not get a license (when I attended his courses) and it was for two reasons: The cost and disclosures. Apparently those are no longer issues to cause him concern.

Lastly, we don’t need to be doing any personal attacks here – I’m pretty sure this isn’t helping any new investors feel warm and fuzzy about their fellow investors. Certainly we all won’t agree with each other all the time, we all have different strategies, etc., but we can do better. I’m thinking this place is almost too hostile lately.

OK let me have it :-*

30

“I think the question WAS…should they get a Real Estate License.”

Actually, you said this, Infowell:

OK…I realize you don’t have a job…but you can apparently read & write.

The topic of the subject is: “Is it a good idea to become a real estate agent when you first start investing.”

“… which is exactly what I did. Are you trying to confuse everyone with smoke and mirrors?”

No…I don’t want to confuse anyone. Since the orignal post was about getting a real estate license I though it relevent to point out some who recommend NOT getting a license ARE NOT and NEVER HAVE BEEN real estate agents themselves. I do appreciate you sharing your background.

“From what you mention, it sounds like you have at least one job (for 15 years), must re-test each year…”

You haven’t paid attention (if you read this entire post before responding you’ll have some of your questions answered) : I don’t re-test each year…I recertify ever two years for two (prized) licenses. I have not had “one job for 15 years.” My accumulative experience (earning a living) in real estate related fields spans 15 years. I originally obtained my real estate license in ‘89’, I started appraising in ‘90’ & received my certification in ‘96.’ I decided to pursue my Broker’s License in ‘03’…I applied for and was granted a waiver by the Director Of The Department Of Licensing to challenge the exam, and passed.

My investment interest began in ‘84.’ I’ve built homes in 4 states & Japan. I worked briefly in Sendai City in ‘95’ as a “Consultant” to an International Construction Company.

My college major was business Admin w/a Computer Accounting minor in the early ‘80’s’.

I’m one of only 4 people in an office of 55 Agents that holds an Associate Broker’s License. I’m one of 4 Agents who actively invests. The others are all millionaires.

“…and have not disclosed whether or not you actually profit from private deals.”

The reasons I’ve included timelines is because your bio states you’re 25? While I will not discuss my net worth online (who would)…I have stated that I invest. I’m 22 years older than yourself, and I’ve been at this since you were…what…4 or 5…draw your own conclusions.

Humor for those unprepared to take it can be a poison.

Now…can we quit talking about running around in your underware & peeing in the wind? Naked times over!

-Infowell

31

The point I am making is, many Realtors go to school for a very short time and learn a very limited amount.

They learn how to:

  • Post on the MLS.
  • Show and sell a house.
  • Fill out the paperwork to close the deal.

They also learn things like:

  • Flipping is bad.
  • Holding to build equity is the only way to make money.
  • Their profit is limited to their commission.

Some posters want to defend Realtors by saying “Every human is different.” Of course - we all know that. I am not attacking Realtors, rather I am saying that my opinion of Realtor training is that it is limited when it comes to the scheme of the entire market.

32

I’ll definitely agree with you here. I think that is why my most favorite Realtors are investors. They know the gig :slight_smile:

33

“The point I am making is, many Realtors go to school for a very short time and learn a very limited amount.”

This is the reason I bother responding to these kinds of posts…you have an opinion about something you admittingly know nothing about.

Agents go to school for a period of training. The have weekly group meetings which often feature guest speakers ranging from home/pest inspectors, lawyers, appraisers, and a variety of other professions and trades.

Moreover, many have weekly classes offering studies covering a wide range of topics.

Some Agents decide to go for designations & everyone must attend CE courses in order to recertify every other year.

If you’d like to bash on newbies agents…then consider this; they have support of every other Agent in the office. If they don’t know something they can draw on the knowledge & experience of others. Often times mentoring takes place over a 6 month period.

Humor can be a poison for those unprepared to take it

There’s a world of difference between having a professional opinion based on experience and knowledge and being opinionated.

-Infowell

34

Funny, I don’t remember saying that I didn’t go through the training.

35

“Funny, I don’t remember saying that I didn’t go through the training.”

Last post on this thread;

Training is only the first step in a journey of a thousand miles Qwai Chang (before your time).

Humor is like a poison for those unprepared to take it.

Confusious say…How can you taste my cup of success if you never got much past twaining?

-Infowell

36

“Twaining”? Is that something like “underware”?

37

[b]"I’m so sorry…I forgot to type the word “don’t” after hang. So let me retype what I really wanted to say.

so, lets say you pass the test, but you don’t hang up your license with a brocker. Do you still need to disclose everything? "[/b]

One thing about this 1 is that you have to associate with a broker within 1 year or you license is placed on the inactive list (you’ll learn about this when you take the classes).

The investor fear of dealing with an agent makes me think to the FSBO motive of not getting an agent when they want to save the commision. But what do you think the buyer thinks when dealing with a FSBO “He is not paying commission so I’m gonna offer him market price - 6%”.

To the person who had a bad experience with the agent I sincerely feel bad about that situation. Like any business there are bad apples.

I’m an agent and last year I sold my townhouse and got a new house. On the closing day the other agent was nowhere to be found. 10 phone calls later she said “I’m at another closing now so you’ll have to wait”. I guess Time is of the essence had no meaning to the other agent. The phrase suit for performance was sounding really good at that time.

As far as disclosing. If you were buying a property would you like it if they were hiding something. As it lays between title searches, house inspections, etc the chance of hiding something is lowered dramatically.

38

I just wanted to say one thing:

Taking a class and learning are two different things. I will defer to the millions of college students who took classes on subjects, passed, and retained about zilch of what was taught :smiley:

As to is it good to be a Real Estate agent if you are an investor, why not go find RE agents in your own area and talk to them in person.

I can tell you that I know one investor who is a RE agent and if he could do it all over again, he said he would not become an Agent. That was here in Nevada.

I guess the real question here is what do you want to do? Being a RE agent certainly does not mean you can’t make money. By being a RE agent, you have the opportunity to list and sell for side money.

I am more of the “do what you want” camp.

Classes are not a fortune so why not take them and see how you like it. If you hate it, don’t do it. Worse case, you spend a few hundred or so on some education, which is cheap. One semester at a University (4 class load) will run you $2,000 on up and you might not even like the classes!

39

Would you say I will learn more about RE if I am an agent then just start investing?

40

Seems to me that the people who think it is a bad idea to become an agent probably dont have a lot of experience in the RE markets.
They may have their own house if that.
Fact of the matter is money talks. People are not going to turn down your offer only because you are an agent. If you offer what they are willing to accept, that is it.
The license is worth it. Here are the “Pros” you are seeking:
Access to the MLS and much better search tools than you find online.
The ability to network with people and get the info on properties before they are listed.
The commission can be applied to your down payment.
In MD, if you buy one property a year, you have more than made up the fees you pay.
If you have one bad experience with a cashier at a store, are you never going to go back thinking all cashiers are bad people?
Same with realtors, there are many different types.
I bought houses through 4 realtors before I found one I liked.
TO THE POSTERS: If you do not have experience and do not know what you are talking about, do not try to argue one way or the other.
Ignorance is obvious.