I was told that the first thing i should do is get my realtors license so I can pull the listings myself. I really want to get out there and start making money, and certainly not SPEND money to get a realtors license, but I guess it would be good to have it, and not have to wait on realtors to get me the info I need. What does everyone think about this?
Thanks,
RG
Hey RG…
Having a realtor’s license is good for one thing and one thing only… access to the MLS. From the MLS you can run comps, find assessed values, etc. Downside? You have to follow a certain guideline which includes disclosure issues. You have to let everyone that you deal with know that you are licensed which can be a big turnoff to alot of people. You can still to REI with a license, so it’s up to you.
if you’re just starting out, it may be best if you find a realtor to help you find listings, get comps, make offers. Its a lot easier than getting license and doing it all yourself ( never enough time in a day). You will eventually need a realtor anyway if you find a home listed in the mls, and you will build a good business relationship with the realtor if you get them a commision on a deal they bring to you or assist you with finding and buying. You will get more deals in the long run and you will get the benefit of their contacts. You don’t have to do it all your self if you build a good team. Everyone benefits.
We are working with two realtors now and they run the comps and do the leg work for us. One sends me daily listings of properties that fall into our criteria. I let them do all the leg work and we pick and choose the deal.
thanks for the replies. I like the idea of letting them do the work, since I have so much to learn as it is. Do they charge a typical 6%, or is thee some monthly fee you pay them for thier service?
I would like to know what are some of the down sides to working with a realtor when looking for distressed properties or just good deals.
The seller pays the commission, so if you are buying a property listed in the MLS using an agent, you won’t pay the commission. As far as what is typical, each brokerage/agent is different and commissions are negotiable.
ok, I think I understand. I pick a realtor, and use them to pull info for me, and when I am ready to buy, i use the realtor to buy the home as well. If they get 4% or 6%, it doesnt matter because the seller will pay for it. Am I correct?
No need for a realtors license. There is plenty of great info out there, and shop for a good realtor to provide MLS listings or just look or Realtor.com. The disclosures and distrust that comes with an investor w/ a Real Estate License may not be worth the ease of MLS access (which you pay for, not get for free w/ the license). More often than not your best deals will be ones you dig up that aren’t listed on MLS anyway.
Not to start a huge argument that already went on for way too long on another thread, but FYI - don’t believe for a second you don’t pay commission as the buyer. The seller technically “pays” the commission, but it is figured in to the price you are able to buy at.
However, in the end, it doesn’t matter- if a good realtor finds you a good and profitable deal, it’s well worth what you pay.
Thanks. I have decided to just use a realtor for now. I have used a local realtor twice for my own home buys and sells, so I might start with her, and see if she is good with the investing side of things. If not, maybe she can turn me onto someone who is.
I have been investing for years, I got my REL last year & the best thing for me has been that I don’t have to relay on my realtor to make the move for me & I get the listing on the HOT LIST as soon as they come out. It has made me lot more money, but on the other hand they are a lots of rules & regulation that I have obay by