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

General Real Estate Investing
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Ok Guys,

That was more entertaining than anything on the tube tonight.

Some very good points were made and some that were not so good.

I think that you guys have this topic under control.

I pondered the same question years ago myself and decided that I would not get a realtor licenses.

My deciding factor, was that I wanted to concentrate on my own financial picture.

100% of my time and focus needed to be on my own financial picture.

Anything else would be a distraction and distractions were not allowed.

This allowed me time to study my market and write 100’s of offers.

Which in turn left me doing all of the things that I was looking to learn.

I would repeat those things that worked well
and try not to repeat the rest
and I haven’t stopped.

Along the way my financial statement and ability to obtain financing kept improving.
This allowed me to buy better properties and more of them.

After awhile I had built a relationship with a lot of realtors and bankers and
it did not seem like an effort any more.

I would say that for me a more important decision was to stop buying distressed properties and start looking for distressed sellers.

The time spent rehabbing was taking my focus off of my financial statement and not allowing me to make as many offers and locate more financing.

Which turned out to be all that I needed:

• Integrity
• Focus
• A passion of researching properties
• Time to make a lot of offers
• Time to find financing that fit where I was at different times in my life.
• A firm belief that I made my profit when I bought.
• An ability to hold firm with my offers.
• A lack of needing to be a consumer of depreciating items.
• I was a good money manager, and this was the most important.

I say if you want to go to school while you should be writing offers you should
*take a financial or banking class as it relates to what you want to do.
*Learn how to keep your books current.

And keep making offers.

You’ll have a least a couple of years before you have to decide between boxers or briefs around the office.

I chose boxers with pockets, but I think I could have also done well in briefs.

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[quote author=Moneytalks Ok Guys,

That was more entertaining than anything on the tube tonight.

Some very good points were made and some that were not so good…

Which turned out to be all that I needed:

• Integrity
• Focus
• A passion of researching properties
• Time to make a lot of offers
• Time to find financing that fit where I was at different times in my life.
• A firm belief that I made my profit when I bought.
• An ability to hold firm with my offers.
• A lack of needing to be a consumer of depreciating items.
• I was a good money manager, and this was the most important.

I say if you want to go to school while you should be writing offers you should
*take a financial or banking class as it relates to what you want to do.
*Learn how to keep your books current.

And keep making offers.

You’ll have a least a couple of years before you have to decide between boxers or briefs around the office.

I chose boxers with pockets, but I think I could have also done well in briefs.

GREAT post, moneytalks, especially your ‘rules’…ie: intergrity, focus, etc.

Finally, though, it DOES boil down to EDUCATION.
Your slant on it is to concentrate and acquire Banking and Finanacial awareness.
Well, MY slant on it is that ALL aspects of the business are important, including law, finance AND how agents work.
I too am mulling over whether or not to secure a license.
For sure, in the meantime I am going forward with my original plan- to invest and make $$.
We have our first closing(s) next week. A triplex we will use for immediate cash flow and a lot of land we can sell for an immediate 30% profit AND a lovely MH that we were planning to lease/option, but we just found out that we have an intersted buyer. ( Our LOWER bid was submiited and accepted before his)
I personally devote a minimum of 2 -3 hours daily devoted to learning more and more and more.
EACH day should, in some way be a learning experience.
Good luck and fortune to all… NO MORE NAME CALLING !
lol

63

NAWKAW,

That whole finance class thing is only for those that will be dealing with money. Not you.

There are a lot of aspects of education that make a good investor.

My point was to get started, which is where a lot of people fail. They do not get started.

After reading your past posts, I am reminded that some people need a lot of education before they start investing.

I did read your post before responding and believe that one of us is being baited in to a situation.

Yes, either you have chosen to create controversy by picking an experienced investor / money manager and throw a lot of illogical first moves at him.

OR

You have a realtor in Tenn. that has gotten you hooked on the moonshine.

Man gets settlement:
*buys his first investment 700 miles away, in what sounds like a rural area
*property sounds like it needs a lot of work
*before closing and learning anything, buys more property/ same area/ probably same realtor
*No leases / trashed units
*Immediate cash flow yet the only tenant is moving
*A promise that the land can be sold for a profit
*A promise that a qualified buyer is waiting for the MH
*A promise that it will be efficiently managed for % and hourly

Can it work? Sure!
I admit that I was skeptical about that whole moon landing thing, but it worked.

This is a good example of distressed seller, selling distressed property.
Finding a distressed seller is not enough, they have to have something that can work for you.

I really do not like to dampen another mans dreams, but really NAWKAW
Why didn’t you start in a market closer to home, where you could be involved.
In a market that you knew, in a place where people live and work, in a area of demand?

Can it work, maybe, but without knowing all the facts, my guess would be as follows,

Man gets settlement, buys Tenn. property through failing realtor.

Realtor and what was a distressed seller moves to Florida.

The distressed sellers cousin becomes your property manager and
his ½ son will do the maintenance by the hour.

After he gets them all cleaned out and rehabbed . (9 months x hourly rate)

Cousin buys MH on land contract and never pays.
Son moves into one of the triplex units and never pays.
They move hookers into the second unit and they never pay. (You)
The third is used to sell the moonshine which is being made in that nice shed.
Yes, the view is great up on this mountain and we can see the Fed. coming from miles away.
You refinance your house in Fl. in one year to help get this matter under control.
In two years you sell the Florida house and move to Tenn. to take over.

Moonshiner, 1/2 son and 4 hookers move to Florida and file a homestead to protect their assts.

Provided that you are not hanged, this will be your new home until someone
else gets a settlement and is mesmerized by the mountain view and nice shed.
At this time you get to sell and move to Florida.

I don’t know, sounds like it ends well and you will get the education that you were looking for.
You’ll really be ready for investing when you get back to Florida.

Better hug the wife and your money, they are not going to be around for long.

You have made me a believer in education, thanks.

As you can see folks the demand for Florida property will grow for years to come.

And anybody looking for a great sellers realtor in Florida should call NAWKAW.

MONEYTALKS

64

ROFLMAO…
In spite of your doubts and in appreciation for your clever prose, I did do a considerable amount of due dilliegence. My wife ( who was also amused by yor post) and I began reseraching the Cumberland Plateau area over a year ago, including demographics, industry, socio’-economic data and growth statisitics. No, they were not all inspiring and glowing, but encouraging enough to continue looking. We made our first trip there early May to look at land for future building and/or sale. TONS of Floridians are indeed investing and /or building there, as we will.
From there, we looked further, and contacted 3 different RE agents before feeling comfortable with our current agent. ( Sequatchie Valley) He and his ( realtor)wife had recently moved from SoCal with 3 kids after they too had visited to buy land for future prospects. They, as did we, fell in love with the area, new schools, growth , cost of living and quality of life. They too invested in a multi family home via a 1031 . What a nice home they built! We’ve visited 3 times since, touring the area, seeing the towns and homes and land; meeting some local folks.
We looked at several different props, made offers on 3 before deciding on the triplex. I will be very involved in the screening process, and yes, there is a certain amount of trust involved, no doubt. All final approval, at least initially will be ours. Of the three tenants, I spoke with one before she left ( spotless), met the other who is pregant w/ her second child and is moving to a larger apartment, who was also rather neat and cringed when we did the walk through of the last apartment. Total slob, and even though she has paid promptly every month , we are anxious to get her out. We have at least two tenants seeking to move in, and there several calls seeking rentals.( while we were there.)
Rural area yes, but growing and many many ( quality)homes are already built and /or under construction.
We have followed the land purchaes and indeed were ’ shut out’ of our first 3 choices; they sold that quickly. I began getting price sheets in June. 04; there have been 3 since, with higher prices . As to why we didn’t follow conventional wisdom and invest closer to home? We WANT to leave, but family considerations will keep us here for now. We WILL move; even though we love our home here , we’ll REALLY love the selling price!
Again, I take your comments constructively and hope they were not delivered with rancor.
Yes, I have ‘shopped’ lenders, appraisers , home inspectors and insurance agents.
I KNOW I’ve much to learn, but you gotta swing the bat to get a hit, no?
Will I strike out? Well, maybe , a few foul tips may occur before getting a solid hit .Our reserach was fairly throrough and i’ve got a good eye, am patient and may even hit a home run the first time up.
Sure, there is ALWAYS more to learn- THAT’s the fun part, too.
Thanks for your input and sorry about the length.
I’ll keep you up to date- good or bad.

65

NAWKAW and HIS WIFE

I always wish everyone the best of luck and looks like you will do fine.

As I said, I did not have all of the facts and your last posts were brief.

I also did not mean to insult anyone in Tenn.

I like mountains.

I think getting started is most peoples biggest hurdle and I do encourage people to study their market and start making offers.

I also know that not everyone is street smart and not everyone has common sense and not everyone should be buying real estate investments or driving or living close to other people and some that shouldn’t even be living at all.

I have known people that would buy into the scenario that I had painted, once they got their settlement.

Congratulations, you have gotten started, you have studied a market, you have made offers, you have been awarded contracts and you have scheduled closings.

You are already farther along than most will ever make it.

I think that you will make it to Tenn. and live happily on top of a mountain listening to John Denver.

Please keep us informed of the moonshine market, I have been hearing news of a possible moonshine bubble.

Your family and friends can order house warming gifts at the attached site.

http://www.johndenver.com/

Let’s not forget that it is your successful Florida investment that is making this move possible.

I do have one question. Are you seeing yourself as a realtor at this Tenn. location?

Moneytalks

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Let’s not forget that it is your successful Florida investment that is making this move possible.

I do have one question. Are you seeing yourself as a realtor at this Tenn. location?

Moneytalks
Once again, we derived pleasure from your post; yours’ IS a clever, entertining, yet informative writing style.
In addition to following your advice to always continue learning, I would incorportate some of your witticisms in my long dormant aspirations to finally complerte my manuscript. Mrs. NAWKAW has completed hers, so I’m next.
As to whether or not I’ll become a realtor in Tn? Well, I will certainly seek to obtain the KNOWLEDGE that a realtor hass, and upon completion of same, decide if it will hamper or enhance my real focus - to invest.
As a ‘newbie’, I’ll not restrict myself to one type of investing. Already, different scenarios have unfolded.
The triplex? Yes, for sure we will seek the cash flow and equity appreciation. The value is there; I negotiated a price well below market and all 3 units are less than 5 years old and have brand new (sic) stoves and fridges.
We will dress it up a little, install ceiling fans and mini blinds, perhaps plant a few modest shrubs along the driveway. Our positive cash flow figures to be + - appx. 275 a month.
The parcel of land was bought EXACTLY on the day the new price sheets were issued; I got it at the old price and demand is high for this subdevelopement and inventory is quite low. We could turn a very nice profit and apply it to debt service on the triplex, increasing our cash flow or simply keep it on the sidelines for the next oppurtunity. For sure I could hold it longer for more profit, but why incur carrying costs on a non income producing property? The MH is also ‘newer’ (‘99 and built and occupied by the original owners, who recently moved --to FLORIDA…lol) It’s a 3 bedr/ 2 bath, 1460 sq. ft on .34 acres with several upgrades and a beautiful view.
We’d envisioned renting it out till we sold our home here, then taking residence for 2 years (before selling) while building our ‘dream’ home ( and thus avoiding the capital gains twice). Let’s see what the offer to buy looks like there; we’ve a potential renter lined , though.
We certainly have to explore our options ; a quick profit may make sense if I have another deal lined up.
Should one become a real estate agent BEFORE investing? Should one become an agent at all?
Personal goals and preferneces trly are the answer here; what is indisputable is that AWARENESS, KNOWLEDGE, EDUCATION are all mandatory in order to enhance your chances and levels of success.
Good luck and fortune to all.
Finally, we prefer a good pinot noir ( from Oregon) these days with some dinners and Johnnie Walker Black is our preferred ’ moonshine’ LOL
John Denver, btw, was of the Rocky Mountain High fame; we’ll stick to ‘cool jazz’, thank you!

67

Keeps us informed

68

I really am satisfied to see how this post turned out! Three things that to keep in mind that I think everyone will agree on

  1. Do whatever is right for you and only you! Nobody else has to look in the mirror the next day and say what have I done. I only have had to do that once in my like after getting an original tatoo that says “Dear Embalmer, Please try C.P.R. one last time!” Even that though I like about me that will show you that I enjoy life and don’t really want to go anywhere yet!

  2. If you do what you have done it will get you where you got! If it works run with it! if it does not change it!

  3. We all make something in this world Some make good, some make bad, and others make excuses!

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[b]Moneytalk,

What is focusing on financial statement means to you? Why is it so important to you? What is the difference between “distressed properties and distressed sellers”? How was the time spent rehabing prevent you from focusing on your financial statement, make offers, and locate more financing? What do you mean by “a lack of needing to be a consumer of depreciating items”? What to you is a good money manager?

[/b]

70

I think that if you head down to your local bookstore you can pretty much learn all you need to. BUT, you really have to have good people. My llc partner and I lost about 10k in our first 1031 because of poor customer support. But, have learned through risk and trial and error.

You can take the courses, no one says you have to take the test.

71

Unique26, has asked me to write a book, are you a publisher?

http://www.theofficialjohncarpenter.com/data/movies/sounds/inscnoth.wav

72

Moneytalk,

I was not one the last time I checked, but I could be one since it will be a short book consisting of six straight forward questions. I am ready whenever you are.

73

What questions?

74

May I ask who were you address this question to?

75

You.

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Unique,

What Money was trying to say in his own personal way is that whole books and courses have been written on those questions that you have posed. Manga, I guess he’s just dazed and confused at this point :slight_smile:

I can attempt to give you some brief answers to most.

What is focusing on financial statement means to you?
Making more money!

What is the difference between “distressed properties and distressed sellers”?
‘distressed properties’ = properties that are in need of repair. In most cases, major repair.
‘distressed seller’ = a seller that has a strong motivation to sell fast. Examples: pending foreclosure, job transfer, divorce, new, but lower paying job, etc.

How was the time spent rehabing prevent you from focusing on your financial statement, make offers, and locate more financing?
If you’re swinging a hammer (fixing up a property), then you can’t be out looking for more deals.

What do you mean by “a lack of needing to be a consumer of depreciating items”?
‘depreciating items’ = cars, tv’s, stereos, etc. Anything that doesn’t appreciate in value or general consumer goods. In short, he doesn’t feel the need to “keep up with the Joneses,” and thus, has more money available to use to increase his appreciating assets (real estate).

What to you is a good money manager?

If at the end of the month, you have more money in your account than the month before, you’re probably a pretty good manager of money.

Hope it helps,

Raj

77

Thanks raj,

I could not have said it better and surely not in such a condensed fashion.

I guess I can stop writing this book now.

Thanks again.

Moneytalks

78

Don’t know if it’s the right forum, but we closed our first deal today, and already stand to make ( hopefully) over 30% profit on the parcel. It REALLY is a beautiful lot in the developement and almost seems a shame to sell, but we are not ready to build yet and VERY ready to begin making MOOLA !
We close on the triplex tomorrow, and the modular home the following week. There is an intersted buyer for the modular, but we would only make 2 or 3 thosand.So, we will consider it, but will keep the two as rentalse for cash flow and resale within 3 years. We found another sfh we will check out in the morning and after confimring some details will
MAKE AN OFFER!!
Then back home to find some more!!
Good fortune to all… and peace

79

Congratulations NAWKAW!

You should be an inspiration to many.

Winning stories should be allowed in any forum.

Moneytalks

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Congratulations NAWKAW!

you are on your way!