TO BE (an agent) or, NOT TO BE ! - Posted by d.moren

Real Estate Investing
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Posted by Chenel Moore on January 29, 2000 at 10:51:41:

I took that bait and got my license in MD. Here is how it works for me, I have to disclose that I am an agent to everyone. It is a pain and arouses negative feelings and suspicion.
BUT, it also gives me some negotiating leverage. When I pose new techniques and creative ideas, sellers are less apt to question my expertise.

Other problem, dealing with those other “traditional” agents. Well, it sucks. Let me tell you why, they don’t believe that you are a true agent and they try to undermine my credibility with other agents and their own clients. So if you are spineless and just want the listings, I recommend finding someone like myself to work with.

The time and money I invested to get my license was torture. Everything that I learned in my class, I already knew from my home study courses. Even the Carleton Sheets course has a lot of information that most agents don’t know. Then I had to pay fees to take my licensing exam, fees to get my license (which you never even see, the broker holds it) fees to join 2 or 3 boards, fees to pay for your lockbox key. Yes it is all tax deductibile, but what a pain. Oh by the way, your tax status changes when you become an agent. You have to file your own taxes quarterly. I hate that part also.

Now for the benefits. I save time by acting on behalf of myself. I know what I am looking for, I negotiate to get it and that’s that. Plus, I can always get a commission off whatever I buy for a nice no-money downer. I also get exposed to good sources that I need for my business, like attorneys, title companies, mortgage brokers, accountants, etc. who are basically itching to do business with me just because I am an agent. Many are willing to do services for me for free. Banks are more willing to share their REO listings. Everytime a family member or friend needs to purchase a home and I am not available, no problem, I refer them to another trusty agent who is more than willing to help them and collect a 50% referral fee for doing nothing. I never go into my office. I just sit home and look over listings every day from my own computer. I find good deals that other investors are probably missing, and I can list any property that I purchase, sell it faster by listing it, and still make commission. I can also find tenants very easily and run a great background check on them through my company’s system. It checks to see if they were ever late paying rent through the state’s records.

So, there are pro’s and con’s to getting your license. Hope that helps you to make your decision.

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TO BE (an agent) or, NOT TO BE ! - Posted by d.moren

Posted by d.moren on January 24, 2000 at 18:40:20:

I sense a certain amount of animosity towards Realtor?s here abouts !
O.K I understand that within the frame work of what we are all trying to do, most things can be done with out a Real Estate License. But are there any advantages or actual disadvantages to having one .
Honestly though, if you are lisenced, are you held to certain ways of doing (and disclosing) things. I am on the edge of doing this full time (spooky/exciting ) and I want to be prepared . I would really like some input on this.

Thanks mucho, dm

P.S. I know, I know, quit asking so many questions and go out and make a deal!

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Re: TO BE (an agent) or, NOT TO BE ! - Posted by Tom Jent

Posted by Tom Jent on January 25, 2000 at 21:47:24:

The pros and cons re realtors in SCooks post are well taken. I would definitely not shun agents. Good ones are knowledgeable about certain geographic areas and very good at spotting bargains such as potentially profitible fixers. This is their day job and their days are spent looking up listings. Best of all, a buyer’s agent is free since the seller pays the commission. So what harm is their in developing a rapport with a good agent or two so they can notify you if they spot what you’re looking for. Not to take advantage of their experience, knowledge and actual legwork in the field might be foolish. I have found a couple good fixers using them.

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Realtors-Bad Rap… Investors-Worse Rap - Posted by SCook85

Posted by SCook85 on January 25, 2000 at 06:12:31:

I would have to back Corey on this one. Realtors get a bad wrap for all the wrong reasons. The reason so many people in the field of real estate investing bash realtors is because realtors are not necessarily good at doing the creative deals that the investor wants to do.

Most realtors are very good at doing what they were trained to do, and that is to sell pretty homes, to people with good credit, through traditional means, at full market value. Now an investor comes walking in the door and wants to “experiment” with a new technique they just learned and expect the Realtor to know how to do what the Investor has never done themself. It is usually the investor who can not perform, it is usually the investor who gives the Realtor no reason to believe that these creative methods are not a waste of the Realtors time. I would feel very comfortable in saying that you would find many more cases in which an investor has wasted the time of a Realtor then you would find cases of a Realtor wasting the time of an investor. As a result, Investors get a much worse rap in a Realtors office then what Realtors get on this site.

If we are going to BASH realtors for their lack of knowledge of Creative Real Estate investing, we are going to have to BASH attorneys and title companies, banks, insurance agents, etc… Most of them have no idea what we are doing either, and need to be trained just as you would train a realtor to work for you.

Now to answer your question of whether or not you should become a realtor. I debate whether or not I should do it myslef, it does have it’s advantages as far as accessibility to MLS listings and comps, but it has its disadvantages as well relating to disclosure, and liability. I would probably recommend not becoming a realtor up front, if you decide that you want to become one, you can always do it later.

Happy Investing!

Steve

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Agents shouldn’t always get a bad rap! - Posted by Corey

Posted by Corey on January 24, 2000 at 22:48:30:

I am an avid reader here on this board. I am always disturbed by the negative comments made towards Realtors.

It is a shame that a few bad apples will give the rest of us a bad name. I am sure as with any profession this is true (INVESTORS, bankers, landlords,etc…).

So in the future please don’t automatically assume all agents are crooks, idiots, or don’t care. I got into real estate to “earn as I learned”.

Don’t want to sound like a preacher but lets take it easy on the Realtors :slight_smile:

As far as your question goes D. I wouldn’t actually get your license, but attend all of the courses that they give for it. There should be a real estate school near you. May cost you some $ but it would help you understand the mechanics of real estate.

Good luck in your ventures!!

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thanks for the ideas, at this point… - Posted by d.moren

Posted by d.moren on January 25, 2000 at 22:52:53:

I think I’ll see what happens for awhile without the license. I can always get it later. As far as using realtors you’re right on the money in terms of the help they can give. Good info(and good help)is valuable and who care’s where it comes from. 'mucho dm