Get a Realtors License? - Posted by Stacie


#1

Posted by Theotherside on August 24, 2006 at 14:56:37:

That should do it. Disclose it upfront.


#2

Get a Realtors License? - Posted by Stacie

Posted by Stacie on August 23, 2006 at 24:48:43:

I have been told in the past that because of my knowledge in Real
Estate along with my investing, that I should get a Realtors License to
help save $ on buying and selling of properties for my own investing
and that it would help me get in contact with some properties that
might be of interest to me, that may otherwise get taken up by other
realtors for their personal investing or for rehabs before they hit the
market. This all stated by a non investor. I would like the opinions of
other investors and Realtor/investors if this helps or not, and why.

I see the advantages, but I don’t know If I can spare the time to become
a Realtor for the Job aspect of it and isn’t the market flooded with
them? I would like access to the MLS though. Can a person list
property on the MLS without a realtor?

Any education on this matter would be great.
Thanks!


#3

Re: Get a Realtors License? - Posted by John

Posted by John on August 24, 2006 at 11:31:11:

There is always a great divide on this issue. It seems that people are either very oppossed to it or say it has been great. But, it certainly seems that the people with the license seem to think it is worthwhile, and not just for selling other peoples houses. There are real advantages to having it that have been addressed many times on here. The only disadvantage that keeps poppong up is that you have to disclose it. That hasn’t slowed down some of the largest investors that I know. If the seller is motivated you can spin having the license in a favorable way so that it is a non-factor. And it sure didn’t seem to hurt Richard Davis.

And most of those issues, such as not wanting to change a contract because it is practicing law, apply to us all. Some just don’t know it. Just because you do not have a license at risk, don’t think those same rules and laws don’t apply to you as well. Though many Realtors are a little overly cautious on that one issue.


#4

Re: Get a Realtors License?- Why? - Posted by Jack

Posted by Jack on August 23, 2006 at 17:26:54:

To me it is a simple decision. If you want to sell other peoples’ property get a RE license. If you don’t do not waste your time. It offers no advantages for a full time investor that cannot be obtained without it. As an investor you don’t need the stigma. put your time and effort where it most counts in improving your skills in investing.


#5

Re: Get a Realtors License? - Posted by JF

Posted by JF on August 23, 2006 at 11:59:41:

Just about every agent I’ve met is also an investor. In fact, it seems “everybody” today is an investor. Being successful at investing is not dependent on being an agent. You don’t need to be an agent to find good deals. The good deals almost never hit the MLS anyway and when they do, are snatched up immediately. If you have the time to do agent activities on top of your investment activities on top of your regular job and you would enjoy it, then it might be for you.

If you wish to list a property on the MLS and not pay the commission due to the listing broker/listing agent but you are willing to pay the commission due to the selling broker/sales agent you can do so inexpensively by using a flat fee listing service such as http://www.brokerdirectmls.com/?location=Google


#6

Re: Get a Realtors License? - Posted by Don (VA)

Posted by Don (VA) on August 23, 2006 at 11:12:38:

I second what Bob and Spencer say. Spencer’s particularly on-target. I’ve just gone through the study course and passed the exam to become an agent. I found the information very useful…learned more about certain aspects of real estate (not deal-making…I think our instructor spent 10 minutes on investing out of a 60 hour course) in the 60 hour course than I’d learned in years of real estate investing. Legal and quasi-legal issues.

I also learned a lot about a real estate agent’s mindset and perspective. One example: Investors have no problem modifying or adapting contracts and agreements with sellers; it’s part of the whole process. Cross out this, add that, put in this clause, etc. Agents, on the other hand, are told not to draft contracts or make substantive changes to them: “Leave that to the lawyers.” Very helpful.

And, look, if you can’t spend the time to become a Realtor, then you don’t have the time to be an investor. No, I’m not saying all investors should be Realtors. What I’m saying is that it takes (in Virginia) 60 hours of classroom study and instruction (and of course some study time outside of class). I did it over the course of a month–Monday, Tuesday, and Thursday 6-10 pm, and Saturday 9 am-5 pm. I work full-time during the day, so this filled up most of the rest of my time. Of course, I also made time for some of my real estate investing…plus found time to visit my mother in an assisted living facility a couple times a week and take her out for dinner on Saturday (after my class had ended)…pick up my son from grappling practice on Thursday (after class)…take my son to a day-long wrestling match on Sunday (odd that it was on Sunday, but worked great for me)…periodically update a Web site for a volunteer health-related group I’m involved with…do some grocery shopping for the family…and a few other things. Yeah, it was a pretty brutal month. But it’s do-able. If I could do it, you could, too. Oh, and by the way, I’ve been out of school (and thus out of practice studying and taking tests) for over 30 years. (And I’m not trying to boast. Most of the other people in the class also had full-time jobs and as many or more obligations than I did.) Yeah, if you’ve decided that it would be to your advantage to become a Realtor, you can spare the time.


#7

Re: Get a Realtors License? - Posted by Bob The Builder

Posted by Bob The Builder on August 23, 2006 at 07:28:51:

I have my license and it has helped finding RE. It costs about $1000/yr and you have to work for a broker for a year before applying for a broker’s license. The Goal is to get the broker’s license so you can go it on your own and not HAVE TO split the commission on sales. If the broker is generous, you may be able to sell your RE without a hefty split. Access to the MLS and RE Forms makes it worth while to me.


#8

Re: Get a Realtors License? - Posted by Spencer

Posted by Spencer on August 23, 2006 at 03:08:59:

I got my license recently when I relized how much I could supplement my part-time flipping and full time job income…actually, I quit my job soon afterwards.
Many people without a license will say you don’t need one. It’s probably true but, I haven’t noticed any disadvantage from having one for REI and it’s an easy 10k-20k a year between what you save and what you make thru aquaintances. With just a little effort, it put my salary to shame.
Don’t worry about the competition of realtors, just focus on finding deals. You’ll create your own market. As far as I Know, you can’t list without using a broker. Fortunately there is so many agents that will list for next to nothing that saving money on the listing commission isn’t worth getting into the business. Don’t let that be your motivating factor. If you find deals on the MLS (very difficult) then get your license for the money you save/or make on the buyer’s commission.

sorry if this is rambling, hope it helps

Spencer


#9

Re: Get a Realtors License? - Posted by Natalie-VA

Posted by Natalie-VA on August 24, 2006 at 11:50:36:

John,

You can change contracts for yourself all day long. Unauthorized practice of law only comes into play when you’re doing it for someone else.

At least that’s that way I understand it.

–Natalie


#10

Re: Get a Realtors License? - Posted by Natalie-VA

Posted by Natalie-VA on August 23, 2006 at 17:29:43:

Don,

I agree that agents don’t have much of an open mind about changing contract terms, etc., but it some cases, it’s for a reason.

They are really not allowed to draft contracts or make substantive changes. They can’t do much more than fill in the blanks. Anything else might be considered unauthorized practice of law.

–Natalie


#11

Re: Get a Realtors License? - Posted by John

Posted by John on August 24, 2006 at 12:17:10:

That is the way I understand it as well. Let me give you an example of what I meant. An investor gets an option on a house. They assign the deal and help the seller and buyer fill out their p&s agreement and rewrite what needs to be. They are now in danger of practicing law, and close to brokering without a license. My point is that it does not matter if you have the license or not, the laws are the same. The Realtor needs to be cautious about rewriting a contract between a buyer and seller, but that is clearly not a valid reason to avoid becomming a licensed agent. My point is that the law is the law regardless if you are an agent or not. And as long as an agent discloses they are an agent, their is very little actual difference in what one can do.