What benefits or downsides would there be to having your Realtors License as an Investor?
I am a newbie trying to make a decision. I have heard reasons for having and not having a license, and would like some opinons from some other investors.
Thanks for the help
Hmm, I have been debating whether or not to get mine, too. I’ve decided “no - for now” for the following reasons:
-The cost(license, brokerage fees, start-up expenses)
-The time (I have small children and my “day job” is Stay-at-home mom)
-If you run deals as an agent (which I believe you have to when you are an agent) the broker takes a cut
The biggest thing is that I just feel my time can be better spent working on/looking for deals on my own. If you are a beginning agent you have to do phone duty and put in a specified number of hours with any agency I’ve heard of.
Do agents get first crack at some deals? Sure. But I think there’s plenty to be had.
I LOVE my realtor. We do enough business with her that she throws stuff our way before telling others about it and before listing it. She’s a well established, top agent in our city, so at this time I feel she can satisfy any needs that I would be trying to satisfy by becoming an agent myself.
What are your reasons for and against?
Karla in Amarillo
Wendy Patton says its a good idea to get a RE license.
I’m in a good position where my current employer will let me go to RE school due to a upcoming Sale and unemployement for me.
I wanted to learn the business via school and a RE license.
I understand that the Real World and “Creative Real Estate Investing” don’t always go together. But I feel I can seperate the two.
The next question is which Home Study course do I buy for home use?
I listened in on Lou Castillo last night. He hit the nail on the head, “All the courses tell you what you need to do, but don’t tell you “HOW” to do it!”
He says he shows you how with a step by step course. Also everyone has a “NICHE” that they do. He says he does what ever deal presents itself based on the seller. Which to me makes the most sense. I might buy it against the wife’s protests!
The problem is that right now until midnight it costs $797.
Tomorrow it’s $997!
I know it might be small potatoes down the road, but it’s alot of money right now not knowing if this is the right course for me.
I also listened in on the call last night and picked up some awesome tips from Lou.
My DH and I decided against the purchase at this time. I have no doubt it would be a great jump start, but I’m struggling time-wise to work on real estate related stuff and don’t feel that I’d have the time to fully review the materials.
Do you belong to one or more local RE investing groups? I just joined one here and I am already receiving leads, tips, advice ,etc from some of the more seasoned investors in the group. One of the best things about the group is people (I’ve encountered) are very willing to let you learn from your mistakes. That’s not to say you won’t still make some of your own, but I’ll bet you still would even using course materials like Lou’s. We’ve been investing in rental properties for years, and despite the many transactions we’ve participated in I continued to be amazed at what I DON’T know!
As far as getting started in real estate…one of the best ways to get started is to closely align yourself with a very established, high-producing realtor. Let them mentor you. Be their whipping boy or girl. They will throw customers your way that are too “small potatos” for them to mess with and you’ll begin to build your business. I’ve had MANY realtors tell me that this is the best way to break into the business.
And (again, at the advice of realtors) when first trying to get established in the Realtor World be mindful and gentle when it comes to presenting yourself as an “INVESTOR”. Personally I think the two seem to have silly prejudices against each other, but they do exist, so you’ll get farther by toning down the INVESTOR stuff initially until your fellow realtors get to know you and realize that you’re a NICE land baron! 
That’s the info I’ve gathered so far in addition to my personal opinion.
Karla in Amarillo
I’m really struggling with the thought of spending $800 on a guy I never heard of, just met:online, isn’t a top GURU in the industry per se, just split up his company with his other 2 partners and on and on it goes.
On the other hand I don’t have 8-10 hours a day to sit here and sift through endless pages of possibly incorrect/inaccurate information written by an anonnymous poster either.
I’m on the fence with making the purchase.
I feel I need to learn more, and what’s out there?
Just these kits for 6,7,8,900 bucks???
The internet is full of RE Experts!!!
It sounds to me like you need to get into some local groups before you do much more. I don’t know standard rates - our club is $15 per time, or $100 per year. There are people there at all levels and aspects of RE Investing. Properties are offered for sale/traded/flipped/wholesaled. People network and hand out their business cards, etc. Finance people show up. People from title companies show up. It’s just a great info-gatherin forum…at least ours is - I’m sure most of them are.
Have you done this?
Karla in Amarillo
No, to answer your question. I’m only two weeks into my journey right now.
I know nothing about RE, I do have residential contracting/handyman skills and Sales skills from 20 years in the Lumber/Millwork/Windows/Doors world.
I did see that in the Philly area that DIG is the local RE Club. SO I guess I’ll go to the next meeting.
My needs are in the creative world that we strive to succeed in.
I just faxed my application over to go to RE school for a 2 week session. I just thought this could only help with clients that might question my skills or experience.
Lou Castillo claims to have a program that holds your hand while you get established.
This is what I need. I’m not unitelligent, just uninformed as this time! I need to get information, digest it and enact it ASAP.
I would love to read all the archives but have limited time to make this work before I have to get a job in the boring Real World!
while its good to get a few courses to kickstart your investing, spending upwards of 500 can become expensive very quickly. i’d find 2-4 friends and split the cost of the courses.
never pay more than 200/course that way. thats what i did initially. and once you’ve outgrown a course, don’t forget to sell it on ebay!
“What are your reasons for and against?
Karla in Amarillo”
- Ahhh, free time. Sorry for the late response.
I would be against for the reason of not being able to fully explore all the different techniques of the creative side, Short Sales, Whole Sale, Lease/Purchase, without having to share fees. Or, not even be eligible, Professionally, to take part in such deals.
Is it a Must to hang you RE Lic at a brokerage? Or can you operate solo?
I like the Bird Dogging idea, but am sure there would not be to much biz from investors, since another cut of the pie. But could that work in the Bird Dog’s favor??
Still learning all the aspects of the industry as a whole. What I have enjoyed so far is the willingness to share information in this industry. The ones not charging an Arm and a Leg…ha ha ha
This may vary state-to-state, I do not know, but wherever I’ve lived you cannot operate solo. Each transaction has to be run through a brokerage, and to be a broker you have to be a realtor for a certain period of time first. Now I really can’t tell you WHAT it is that makes that so…I don’t know if it’s a law or what.
I have helped friends sell houses themselves w/out using a realtor and they’ve paid me a consulting fee of sorts, but my atty advised me to be careful about that kind of stuff. There are, of course, all kinds of ways around breaking any official rules, but what he was warning against was a realtor catching wind of what I was doing and getting their nose out of joint and somehow turning me in.
Sadly, I’ve found with this real estate investing stuff that for some reason it’s especially prone to people being jealous and weird about what we’re doing. When people get wind of what we do and that we’re successful and making money at it they get weird. I’ve had people purposely list a property with a realtor that I would have looked at buying, just weird stuff like that. But that’s a whole other topic that what you originally asked about.
Good Luck!
Karla in Amarillo
Yep, the kinda stuff I want to avoid having to deal with. Sounds like a better deal to move forward without a RE Lic. Will for sure give me more latitude while learning this industry. Until I find my niche.
Thanks