"To Be, Or NOT To Be? ....That is the Question" ~ Licensed REsalesPerson, that is.

Thanks for your messages so far.

Let's put it this way, if you were a DG Investor/Realtor I would be the first one calling you to get you on my team.

To me someone who understands 'our' side of investing, coupled with professional knowledge, contacts, information etc. would be a valuable partner to have.

I know there are pros and cons with anything so I am looking forward to other input here too!

Angela

Don't wait for that phone call by the way, if you decide to get your license, I will be your first client! Done Deal.

If you have the opportunity to get a license do it

I have mine and I think its an advantage because I get investors and realtors coming to me directly to let me know firsthand when they have a property to list or that they'll have a property and will give me first dibs to find a buyer before they make it public, etc. To me its a point of trust and fellow investors know i'm the real deal and not a novice or someone who claims to be an investor and doesn't know what they're doing(no diss to anyone on here)

I say get it; it comes in handy

Many investors think that having a license is a downfall because you have to disclose that you're an agent or broker. Most homeowners do not care if you approach the subject from the angle of "Look, yes I have my license, but I am not active with a real estate company. I mostly maintain my license because I don't want to take the tests again and it allows me to look at comparable sales when I am thinking of adding some real estate to my portfolio." Or, you can be very savvy and you have the license, your spouse, friend, brother, sister, etc. owns the LLC and then you don't have to disclose at all. You can put in offers for the LLC and have access to all the local re agent stuff including MLS, but not have to go through all the headaches of representing clients except the LLC.

KimmyJ
Press On...
www.tagteampropertiesllc.com

Never had an issue with having my license; actually found that it gave me some more credibility with investors, clients and money lenders.

It even helps when I do out of state deals as at least they know I know what i'm doing when I speak with them and get things done faster and have access to more options

Like others have said, having the licence can add credibility with others that are in a position to help you and such. I took the classes to go for mine in 06 but decided to hold off and focus on the "DG way" of doing things. It's up to you if you feel it be of gain to you in what you're doing and want to do, if so then go for it but if you feel you could live without it and still close deals then thats fine as well.

At one time, I would have said, Yes, Do It. I now think that you need to think through how you intend to use your license. Some Brokers do not want their Agents doing some forms of investing. The costs to maintaining a license, are not small, if you subscribe to all the tools. If all you are going to do is use the tools and information for your own investing, I would not advise getting the license. If you would like to work as an Agent, help buyers, sellers and other investors, as well as doing some investing yourself, then by all means, Do It. You can find an Agent to assist you with your investing needs, without having to deal with continuing education, membership costs, Agency costs, insurance costs, liability, disclosure, and other things that I am forgetting to mention. You need to decide how you want to use your license, before making the commitment.

Al

Does a real estate license holder who is not active and is not associated with a real estate company need to disclose? And if yes, how do you disclose. Verbally or is there a special form?

I started to go this route and obtain my RE license. However, I would rather spend my time doing what I do best. I'm building a business that I want to place on auto pilot, later, as well as help as many people as I can.

RE agents do what they love to do. My #1 rule is, let the professionals do what they do best, and I'll do what I do best.

Follow my adventures on "Homeless_in_MD" journal and "BRAIN FARTS" journal.

Best of Luck! Success be yours in 2010!!!

Yes, if you hold a real estate license, whether it is active or not, you must disclose that you are licensed to all parties involved in the transaction. This disclosure must be in writing.

I'm still not understanding what difference it makes if yu disclose or not if you're attached to the deal.

I own several properties in NYC and have disclosed it and no one cares other than can the deal get done and when.

I also own several businesses and I do what I love with my RE license.

Never got the reason behind this anti-RE license sentiment on this site.

Thanks for the replies.

How is that done in writing. Is there a standard state RE form or just a simple disclosure letter?

I don't see that disclosure is a negitive thing. In my experiance, parties involved in a transaction, like the idea that a professional is involved in the deal.

Al,

Great responses/info. I submitted this Post to create dialog and to get DG_family members thinking along this line. THANX for your participation.

As a reminder to the voyers....

"The whole point is that action and mistakes always outweigh analysis and paralysis." ~ D.G. YOUR TOWN Your Real Estate PROFITS! (page 67)

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SoCalREI,

First and foremost, it would depend on which state the Salesperson/Broker is in. Every state is different, some quite so and others are very similar, so it's best to check with the laws (and governing state/fed. agencies) of the particular state.

As far as, "Does a real estate license holder who is not active and is not associated with a real estate company need to disclose??"
Generically referred to (as you have done here) a "License holder" can be a Broker (RE Broker) or a Salesperson (RE Sales Person) they are both Licensed (and therefore regulated) here in CT.
A Broker will always Disclose, if they wish to continue to remain professional, continue to work in the industry and if they have an aversion to heavy fines and/or jail time.
A Sales Person (subordinate to a Broker) as you refer to "not active" would probably be someone that has a license and just isn't doing anything with it, if I understand you; once again I can only speak about here, in CT; a licensed Sales Person MUST BE ASSOCIATED WITH A BROKER, commonly referred to as the Sponsoring Broker. If the sales person severs their relationship/Sponsorship with their Sponsoring Broker they can not practice RE as a licensed sales person; should they desire at some time in the future to become active once again they would need to obtain Sponsorship once again and there will probably be additional training/testing and reActivation of License, possibly more before reengaging activities as a Licensed RE Sales Person, mostly contingent on how long one has been "inactive" and what the circumstances were when they became inactive.

While I'm on a slight roll here....It probably wouldn't hurt for anyone here to at least take the Licensed RE Sales Person training, if you have the curiosity/desire, motivation, and resources (time & $$$) to do so. My opinion of these people as "professionals" has certainly changed (due to having very recently completed the training myself) and besides, you will be more "enlightened" in your endeavors as a Professional Real Estate Business Person. A little more edumacation won't hurt and you'll have one more tool in your REI arsenal.

A quote from our Head Coach/Mentor:

"The whole point is that action and mistakes always outweigh analysis and paralysis." ~ D.G. YOUR TOWN Your Real Estate PROFITS! (page67)

John

To one-and-all,

THANK YOU all so very much for your participation in this thread. We are all on this journey together, and we will all make it together; the one guarantee ~ DON'T QUIT!!!

I got my license in 06 as part of a family business (my sister in law's dad owns an auction service). I do real estate by auction. We do most of our business in Northern Ill or Southern WI, which I have mynlicense in Illinois as a "sales" person for the reason we don't have a lot of people in the business. I basically sign people up for auction, as part of a exclusive right to sell.
The downfall: I don't have access to the MLS in the Chicago Area - reason - the cost is over $5000/year. The business does not want to put up that money for such little benefit. I don't think overall people care who is buying only they just want their money.
I struggle with keeping my license... I know the education I got and the re-certification education is worth a lot.. I just don't know if I will get myself in a trick bag if I start to try bird dogging or calling banks for REO's.
Anyone have any suggestions for me?

Hello Julie,

Thank you for your comment, "I know the education I got and the re-certification education is worth a lot." My original post was intended to solicit feedback, both PRO and CON.

Go HELP People and while you're at it GET FILTHY STINKING RICH!

Please keep in touch.

John

Hey Al,

Thank you for your response, "In my experiance, parties involved in a transaction, like the idea that a professional is involved in the deal." I agree!

Have a wonderful day.

John

You don't need MLS

I hardly EVER use any site for homes; I get my homes from netowrking and investors, developers and other agents who have homes I reach out to.

And since I get lots of referral business and have clients who can actually buy their homes, people tend to want to work quickly with me

Network, network,...........network

You're not going to die if you don't have MLS, but it sure makes life a lot easier. You can comp houses, put in your own offers, etc. If getting your re license seems like a lot of work, see if you can establish a relationship with an agent where they will give you access to the MLS. Most agents can have an assistant and give them MLS access. Realquest.com is a great alternative to the MLS. It costs about the same per month as the MLS. You get all the same information as the realtors.

KimmyJ
Press on...
www.tagteampropertiesllc.com

I have been struggling with that question myself.. I am a licensed real estate agent in NJ and the hardest part for me is the fact that as an agent I'm suppose to always look out for my client's best interest first so I can't help but feel that I'm cheating them if I buy at a lower price and then turn around and sell it for a profit. I know that the reason I even got my license is because I wanted to pursue investing and now the opportunity is here. I thought about resigning but then I would lose my access to MLS and ability to look at properties whenever I wanted.
I have thought about it and came to the conlcusion that as a real estate agent I can be a great help... if they have time to sell, I can list it and if not and they must sell immediately, I can buy it or wholesale. As long as they know my position and intentions, I guess it will be fine. Disclosure is key.
What do you guys think?

Alena

You already have the answer: "Disclosure is key."

I think you have a unique perspective and opportunity, don't let it go to waste!

Angela

Angela,

Thank you for your response. You have an awesome day!

John

Thank you for the encouragement.. I'm sure it will all fall into place.

Alena

I have my license. I don't see a problem with disclosure. That is the first thing I say to potential clientsis that I am a licensed agent but I am not practicing as 1 with you, is that ok with you? They always say that is fine with me. If you are buying I dont care. I got a house under contract last night. The homeowner didn't care I was licensed. She is goint to foreclosure the end of this month and am hoping to help stop it by whoesaling this house. Remember the maintentance of having your license is a business expense, so it is a write off.Disclsoure is key, you spew it directly and they respect it and move on with the show, and all they want to know is how can you help them and their problem.

I got mine for the reason of investing, here in MAss you have to affiliate with a broker to be able to represent yourself or any client. Disclosure is also required. To make it more fun for me to send low offers to bank or other seller, I created a Trust and be one of the Trustee. That way I send offfer representing the Trust. I also help other people to sale or buy even with rental. In my opinion it is a good thing to have it, if you can afford it, while waiting to get your business rolling.