My point was that if one develops a good relationship with an agent, then you would have just as much access as anyone else. Just as you said yourself, very few Realtors can figure out what a good deal reall is.
If you were working with me, and bought a property without even saying a word to me, suffice it to say that would be the end of our relationship. Communication would be just a little better way to do it. Just let me know, not go behind my back.
Either way, it really doesn’t matter. If it works for me, that’s what counts. We are each aloud to see it our own ways.
I hope that someone can answer a few questions for me.
I read on this board a few months back that one should
not become a Real Estate Agent if you are going to purchase
real estate as an investment. Being an agent would have a negative impact on being able to purchase property.
To me this would seem like a great way to get to know the in’s and out’s of the business not to mention the MLS.(can’t find it online in my area.)
1.) what would the negatives be in purchasing SFH,
multi-units if I work for a broker as an agent?
2.) what are the negatives with being an agent with FSBO,
besides having to tell them that I am an agent looking
for my own investment.
3.) what are the positives in being an agent when purchasing
real estate as a personal investment.
Being an agent would be my main source of income while I purchase RE.
Posted by Bill (OH) on March 25, 2000 at 05:05:26:
I’m a realtor and generally I find it to be a good experience. My broker is one of the wise old men who trained most of the agents and brokers in the area. I’ve learned so much from this guy in the last four years regarding real estate and running a business that it’s worth the hassles.
One of the biggest hassles is dealing with some of the realtors out there. There are some *&^%# who just won’t do what they are legally obligated to do, or for some reason are ticked off at your company. I’ve got one offer now that I can’t get a straight answer on from a realtor like this. It’s too bad as he has listed a number of REO’s I like the looks of.
The upside is that I know where lots of other deals are, and I know who the little offices are that get in REO’s and distressed properties and don’t put them on the MLS. That’s where I picked up my last multi-family.
I haven’t found disclosure to be a problem—mostly because I’m dealing with other investors and/or banks. As far as most realtors knowing the business? ROFL! Most are on the level of car salesman and know only how to do a tiny portion of the deals in the marketplace. You can learn lots more from a good REIA club…
I speak as a RE broker. When you are simply an agent working for a broker, it probably isn’t it worth it. I went broker so I could be the decision maker.
Pros:
Direct access to MLS database. I can look up new properties the day they hit the market. My computer is pre-programmed to scan for specific property categories. Very easy.
Commission splits. Everytime I buy, I get 1/2 the commission back as a rebate. Everytime I sell, I only pay 1/2 a commission. Sometimes if the other party is also a REALTOR I don’t pay anything for the MLS use.
I can walk-through a zillion houses for sale without making an offer on any of them, without having an agent meet me there, etc. I have a lockbox key. This includes HUD and VA houses as well since I am registered with both of them. Try calling up some agent and walk-through 10 or 15 houses with them but not make an offer. They will stop returning your calls.
Access to the Realtor’s store. All the forms, disclosures, sales signs, and other tools are available to me. At least around here, they don’t sell this stuff to the general public.
Access to the legal hotline. I can call real estate attorneys and get free advice on real estate situations.
Group benefits for insurance and retirement plans through NAR and my local association.
Cons:
Disclosure. Everybody seems to make such a big deal about this. I have a detailed addendum on all my contracts to purchase. Every time I make an offer I attach this addendum. One of the many things it states is that I have a broker’s license. As for selling, I put it in the MLS: Owner is licensed broker. Don’t mention it verbally, just put it in writing. Everyone makes a big deal about this, but I stopped having problems with this when I stopped talking about it and put it in writing. The only time I mention this verbally is when I am landlording. Then I tell them that I am a broker and know how the law and real estate works so don’t try any funny business.
Treated as a professional by the courts. Hey, if you go to court you are already in trouble. Do anything you can to avoid going to court in the first place. Even when you win you really lose because of the time and money wasted.
REALTOR and MLS dues. About $900 a year for me. One deal pays for the whole year and then some.
Education requirements. 14 hours every 2 years of continuing education. Big deal. It cost me $25 for the correspondence course. They do make you take classes and tests both pre- and post-license, but after that the rest is a breeze.
I would agree and disagree with Tim, but very respectfully. He isn’t wrong, I just see it differently.
I became a Realtor several years ago, for the exact reason you talk about. I thought “gee, I want to learn about re, who knows better than Realtors?”
WRONG. My 2nd grade teacher, for one. My grandmother. Heck, my 10 year old cousin, probably.
Find out how many Realtor’s actually own real estate. That would be a good indication about what they know about investing. I knew guys that routinely closed $3 million commercial deals and didn’t own a single property. Point is, Realtors are glorified used car salesmen. Their job is simply to get the best price for a seller.
Tim is very correct when is says disclosure can be a pain. It is, and can put sellers on edge.
As far as access goes, if you develop a good relationship with one or more Realtors you will have the same access. Prove to them you are (or will be) a player, and they’ll go digging for you. The key is how you approach it, and how you present yourself.
Posted by Tim Conde on March 22, 2000 at 17:25:58:
IMHO, “BE” is slightly better.
I’m an investor who started with Sheets and it got out of hand. I became a broker a few years back and believe it was a wise decision. I do believe that I get slightly better access to deals, since I know about a deal before anyone else outside of the seller. I know for a fact that other realtors would rather deal with me (and I them), than go out to the general public to find a buyer for a property. Plus we get to charge the commission and keep it. That’s the upside. The downside is that we must disclose that we are realtors dealing for our own account. That is a big one. If you buy a property for $50K and sell it for $100K the next day, good for you. If I do it, I could get sued. The seller could (rightfully) say that since I am a real estate professional, I should have known the true value of the property and directed the seller to get the best price possible. I’m guilty until I prove otherwise. Also, if I go out to buy property, I’m considered an “insider”, a sharpie who could take advantage of a situation. I could never plead that I didn’t know something, I’m expected to be a professional.
For me,what it boiled down to was the access question. Most of my “broker” dealings now are in vacant land for building, and it works out great for that. I still buy existing houses but I have to be very careful.
Re: That would be the question - Posted by Tim Conde
Posted by Tim Conde on March 23, 2000 at 15:10:16:
I agree that most Realtors are just salesmen. They might do big deals but know little or nothing about investing. When I started doing a lot of deals, I had Realtors asking me how I was doing, what I looked at to see if a deal made sense, etc. The vast majority of Realtors are not investors, and know next to nothing about the goldmine they are siting on.
But I disagree that a member of the general public has equal access. I got my brokers license strictly to get around the access issue. If I’m looking for a property for you, and I discover a true diamond in the rough that I can pick up for a song, what am I going to do; get it for you and make a 3% commission, or buy it myself, fix it up and unload it for a $50K profit PLUS a commission.
The only other reason I would recommend someone to get a license is that they can learn to “sell” an offer to a seller. Most people can’t do that, and many “in-house” agent programs offered through big firms teach that. When you learn to address a sellers concerns, how to present a contract, and how to make the sale you are well on your way to doing the same thing for yourself.