Should I get my Realtor License?

Hello All,

I have been contemplating taking the courses and tests to become a real estate agent. I feel the courses will help me to better understand the real estate industry as a whole as well as lend me more credibility with sellers. I would also be able to list my own properties and have access to the MLS. All in all, it could be another income stream for me. What are your thoughts on being a realtor and an investor? What are the pros and cons? I have heard that you cannot flip properties when you are a realtor. Is this true? Your help with this matter is greatly appreciated.

Marcus Siefert
FENIX Properties
713-443-2977
webuyanyhouse@earthlink.net

Marcus,

There are a lot of folks in this forum that have their license, so I’m sure you’re going to get great advice.

Every state is different and DISCLOSURE is everything! If you have a license and don’t disclose that you’re a licensed PROFESSIONAL, buy a property at a discount price and then sell high, knowing the true value, it could spell HUGE trouble for you. If on the other hand, you buy a property listed by another agent, properly disclose according to the laws in your state, there is probably no big issue.

Like I say, I’m sure others will chime in here…I know Nancy Chadwick and others are licensed and know WAYYYYY more about this than I…

My two cents, though…

Keith

i don’t think licensing and investing are the same.

there are tons of investors who aren’t licensed and make good money.
and are also a lot of agents who don’t do investing and yet make
good money. i think it depends on what you want to do.

if you do get your license,in every offer you personally make, you must disclose it, along with a line that says you expect to make obscene profits from the deal.

“…along with a line that says you expect to make obscene profits from the deal.”

Most Agents don’t make it in the business w/the majority who attempt it washing out. If you are going to get your license and expect to make a living at it…be prepared (have plenty of reserves).

In another thread it was stated that the “average agent” made in the neighborhood of $36k a year. That’s hardly an obscene profit in this day and age. Some areas of the country…that’s a good living in others it’ll barely pay the rent on an apartment.

In ‘03’ 14% of all homes sold were sold by owner. They sold on median @ 15.4% less than agent assisted sales. What that tells me is this; those seeking to cut Agents out of a sale (because they resent their “obscene” commissions) are actually costing themselves more than double than if they’d used the services of an Agent.

If you get your license you will have to disclose your qualifications, and while I’ve heard that this is a hinderance…I’ve never found that to be the case.

If you make it…you’ll have a better understanding of the marketplace than most and you’ll be dealing in much higher volume, thereby, seeing more “deals” come your way.

Best of luck,

Infowell
Associate Broker
Certified Appraiser

Infowell,

Your posts are really getting pointless. The last few have been nothing more than following niravmd around trying play off his reponses in a negative way. That’s disappointing. I thought that you would have more integrity than that. Please, whatever the problem is there, just get over it.

Most Agents don’t make it in the business w/the majority who attempt it washing out
This is correct. If you are planning on becoming an agent, be prepared to work hard for your money. It only gets “easy” when you’ve become successful.

In another thread …“average agent”…$36k a year…That’s hardly an obscene profit
That’s true. However, it has little to do with the question, or the response. Niravmd “obscene profit” comes from when, as an investor, you buy at a steep discount and resale. If you are an agent and don’t fully disclose this fact to the seller, there will be serious legal repercussions. Heck, in NC, even if you DO fully disclose it and make an “obscene profit” in the eyes of the Board, you could have problems, if the board fills that you did not act in the best interest of the seller.

In ‘03’ 14% of all homes sold were sold by owner. They sold on median @ 15.4% less than agent assisted sales. What that tells me is this; those seeking to cut Agents out of a sale (because they resent their “obscene” commissions) are actually costing themselves more than double than if they’d used the services of an Agent.

Well, there are a number of problems with the above statement. First, data without corroboration is merely opinion (in other words, where did you get your figures). Second, data without ALL the facts is merely useless opinion. Why were the FSBO selling without an agent? Was it because they were trying to cut out the commission, or was it because they didn’t have enough equity to pay a commission? Did they sale to a family member for a discounted price (my Dad sold a lot to my brother for $1. Sales like that might skew data). Was it a distressed sale (did they sale to one of us nasty investors that “stole” their property from them)? I could go on, but I think you get the idea. BTW, no one said anything about an agent’s commission being “obscene,” so why bring it up?

If you get your license you will have to disclose your qualifications, and while I’ve heard that this is a hinderance…I’ve never found that to be the case.
This, of course, is an opinion. The fact is whether it’s a hinderance or not will greatly depend on what exactly you will be doing, and even to some extent, the particular laws in your state. If you are planning on buying REOs and MLS listed property, fixing up and reselling, then having a license probably won’t be a problem. If you are planning on dealing with homeowners selling directly, then it probably will negatively affect your investing. Example: In NC, by default, an agent represents the seller. IF you are the only agent in a transaction, by default, you are a DUAL agent. Now, does anyone see a problem with you representing both yourself as the buyer and the seller? It’s difficult (but not impossible) to convince someone to take $70K for a property that you just told them as a FMV of $100K.

If you make it…you’ll have a better understanding of the marketplace than most and you’ll be dealing in much higher volume, thereby, seeing more “deals” come your way.

If you make it as an investor you’ll have a better understanding of the marketplace than most and you’ll be dealing in much higher volume, thereby seeing more “deal” come your way. That’s just the nature of any business. The successful people generally know more about it than the unsuccessful people.

Raj

…besides what Roger has noted, the profits to which niravmd aluded to are from flipping or wholesaling real estate, not necessarily from being an agent…follow along in the thread!

Keith

“Please, whatever the problem is there, just get over it.”

The “problem is” Raj-

There’s an enormous amount of anti Agent sentiment on this site. Some are consistant antagonists.

I’ve reread niravmd’s posts and acknowledge that I jumped to a conclusion. The reason…past history.

Rather than address your queries & comments on a point by point basis (which would quickly digress into ANOTHER long disagreement w/those who dislike Agents), I’ll just say this to mrsiefert;

There are many ways to invest, and a successful (key) Agent will see more deals than they’ve time or money for.

-Infowell

Thanks everyone for the great replies. If I do decide to get my licesne it will be in Texas. My plan is to use it to assist me in my wholesaling properties business. I will not be actively pursuing listings or buyers but will use the license to search the MLS for comps, other realtors to work with, and deals deals deals. My contracts will state clearly and specifically that I am not acting as an agent in deals and that I am acting as a principal buyer in the transaction and that I am not representing either the seller or the buyer in any dealings with the property. I understand that I will also need to disclose the amount of profit I will make but how will I do that when I don’t even know what I will sell it for in the end? At best it will be a guess. Should I just disclose the difference between my contract price with the seller and the ARV? Even with these disclosures how could this pose legal problems for me? If you are an agent and you want to buy a house can’t you remove your self from your license to purchase property as a principal in the transaction and not merely a representative to the transaction?

Thanks for the help thus far!

“[…] will use the license to search the MLS for comps […]”

Which leads me to the following question … What hoops does one have to jump through after getting their license to get access to the MLS? I think you have to work through a broker, and even then, must pay some monthly/annual fee for MLS access. Is this correct?

I am thinking of getting my RE license, too, since Texas now allows courses online, but have some reservations about it’s cost-effectiveness.

woohoo!! i think that counts as an apology.
drink on me everyone!!! [thanks for the clarification Raj]

infowell, as an agent you’re right, you will never make obscene profits.
i glad we finally agree on something :-*

“…drink on me everyone!!!”

It’s only Monday…may I have a raincheck till Friday?

“infowell, as an agent you’re right, you will never make obscene profits.”

The most successful Agents I know are diversified…with an impressive portfolio of their own.

No Money Down has a good point…the expense may not be worth getting your license if you will not be actively pursuing listings or buyers. You’ll have to do the math…I’m speculating–desk fees, MLS fees, etc.

What about Realtor.com…could that be an option for you?

I set clients up on an automatic search of the MLS. Not all Real Estate Companies have this capability…so you’ll want to check. I enter their parameters into our system–which sweeps MLS daily, and then sends any listings matching their criterion directly to their email. This is how I found my latest investment.

“If you are an agent and you want to buy a house can’t you remove your self from your license to purchase property as a principal in the transaction and not merely a representative to the transaction?”

You can never remove yourself from your license; simply state that you’re an Agent acting in their own interest & not representing the seller (presumably the seller will all ready have an agent if they’re in the MLS anyway). Subtract any commissions from the asking price.

-Infowell

I just finished a 2 week course in NJ. I live in Pa so the local school was in NJ on the Delaware river. They primarily teach a NJ course and give you an exit kit on PA law to study before your state test.

My NJ State test is on June 3rd, no worries, I scored 6 wrong out of 110 questions!

I might work for a Broker that is in both NJ & Pa. for the spring & summer while I look for investment properties on the side.

I’ll see if I can work part time and invest part time or just work full time and keep an eye out for an opportunity.

I figured I’ll learn the RE business paperside through school & a job and eventually just do investments.

WHO KNOWS! haha