Should I become a Real Estate Agent?

I am in Florida,would like to know if you would have an advantage if your family member got a real estate license? or going with experienced agent better for all involved?

I don't think it will hurt you to have a license. There is alot of agent/ investors on this site. Having a good agent is just like having your license. In my opinion, I think we as a DG Investor have a better opportnity. Sometimes a new agent can be more eager to work with you verses a more experienced agent. We have access to foreclosure info on foreclosure.com. I like the thought that I am working for 100% comission for me. I think at this point were the real estate market is right now. I would invest the time that it takes to get your license into research on investing with DEAN's new book. Believe that this is a time we may never see again in our lifetime again. This market crash took years to get to. Take full advantage of this new life changing experience. A license can always be done down the road. It's kind of like when you see something great, and you think to yourself, I'll get it tomorrow. And you go back expecting it to be there and it's gone! Hope this helps......Continued success!
Sincereley,
Lubertha

You just need to graduate high school, take a test and 60 hours of classes.

Thanks everyone for your input.
Its been something I have been considering to give me an edge. I will look into the requirements in Ohio.
Does anyone know if there would be any conflict of interest issues by doing this?

I know if you have a license, when you are trying to sell a property you must disclose certain info on the house that you might not want to disclose otherwise if you didn't have license. It is the law. But on the other hand you have access to MLS and would have info on all the props you wanted.

Thank you Lubertha for your reply, you are so right in just concentrating on Deans books for now. My daughter is the one that wants to do real estate but I think she should wait also at least until we do our first five deals so we can afford to send her. thanks again Diane and Brian

It is required that a seller disclose any known issues that might effect the sale of the property. An agent can loose his license and get sued for failure to disclose pertinet information. A seller can also get sued for failing to disclose pertinet information.

Glad to help. I hope I didn't sound to harsh on my comment. But from what I hear from my former real estate co-worker. She has sold only one home this year. This is by far the greatest way to get off to a better start to in the real estate industry. I feel like Supergirl ready to fly, But Dean's got the cape! Studying the material and staying up to date on forum will give us the ability to go higher places financially. See you there! Continued success.......Lubertha

Getting the RE license isn't that expensive. Check your state's RE commission website to find out the requirements for licensing. Keep in mind though after she pass State test and acquire her license; she will have to pay MLS fees to have access to local MLS, Smart key to access properties and any fees and/or other dues to which ever RE firm she joins. No one should be hiding information (about a property) that should otherwise be disclose! Good advise alchristmann it can come back to bite you in the form of a lawsuit plus attorneys fees by the other party (if they win).

Hey everybody,
I wanted to come back to this topic again. I came across some information last night that got me thinking about an RE license again. I live in OH and was looking at RE requirements and came across the following: (I will leave out many of the details, since it is a very long document, but will include enough to ask my question)

-------------------------------
Civil Penalties for Unlicensed
Practice of Real Estate
As of March 2007

Respondent was found to have accepted phone call inquiries about the subject property and directed or assisted in procuring prospects for the purchase of the subject property. She also held her self out as engaged in the practice of real estate by means of yard signs, newspaper advertising, and flyers without being licensed.

The Respondent was found to have assisted in the procuring of a prospect and negotiation calculated to result in the sale of property and wrote a sales contract for the parties without being licensed.

Respondent took actions to list, negotiate to sale of, and sell the subject property and attempted to collect a commission for the sale without being licensed.
---------------------------

Just a note, all of these resulted in civil penalties.
I know the simple answer is to get an RE on board, but I would love to hear opinions if anyone thinks these could be related to bird dogging or building buyers lists?

My thought now is that having an RE license would avoid any such concerns.

I hope that the answer is that I am way off base in what I am reading. I do have the entire document if anyone wants it.

Thanks
David

I think that sounds like a good idea because I know alot of Agents get access to these home sites that no one else can!

be careful not to use terminology "commission" when conducting your business. Different states have different laws (rules) has to what concludes as operating without a RE license. For instance, in FL a homeowner selling their own home doesn't have to met the requirement of being license to sell their own property or properties. I like to know what her signage and/or advertisements said; that tip off the authorities about her practicing Real Estate. Always involve RE attorney in the handling of your transactions so that you got yourself covered from all angles.

I am an Agent/Investor and Newbie on DG's site.
My area of investing are Wholesales and Lease Opt purchase and then rent-to-own with end buyer.
What form would I use to tell I'm an agent doing and Investment deal? I don't want to include my broker and have them get paid from my "hard work".

Please post or PM me if you have a disclosure you use or an agent you may know who does.

Something that says, I'm a real estate agent but I work for and own "xyz Investing Co" and I'm doing this deal as an Investor only and not an agent."

Love to hear back from all of you.

Mr. Godfrey
Spanaway, WA

Hi, I was thinking about taking a Mortgage/Loan officer class here in Ohio. Does anyone think that would be of any help in this business or not? Thanks for your thoughts on this matter.

I know for a fact that obtaining a license in real estate can be a double edged sword. Yes, you have access to many tools and the most powerful is the MLS. That gives you information that you can't put a price tag on. But if you are going to be a real estate investor that is where the trouble can start.

Lets say you want to be a successful realtor, you have clients and they are wanting to purchase investment homes. They find out that you are also an investor - automatically they start to wonder why if this is such a great deal why aren't you buying it? It is hard to sell to this type of buyer - but you as a realtor can sell to any type of buyer but that issue does come up with repeat buyers. The second issue comes on listing appointments. If these people know that you are an investor they will automatically think that you are trying to lowball their house so that you can buy it!

Being a real estate agent is great, and you can make a lot of money but I would want you to take these points into consideration.

Anything that you can learn about the mortgage industry is very valuable. This is definately something that you will use with the Real Estate Industry. You can assist retail buyers and wholesale buyers in helping them understand which loan will best fit their needs. You might check to see in your state what you would have to do to be a mortgage loan originator so you can make money doing this. In many instances the pay is pretty good!

Contact your local mortgage broker to find out if they are trying to fill spots for a loan originator ASAP!

Did you find out how to get around this? I am thinking about the same thing, but I going to make offers through another agent. I will be wholesaling these transactions. I will do simultaneous closings for some because some homes will be listed.Let me know if you got some ways to deal with this.

You know I had the same thought, I want to build my team and was thinking of sending my cousin to real estate school which here in Arizona is only $500 and 6 weeks of classes. This way commissions will come back to the family and not a stranger handeling our business as an agent. Also if my cousin did do it, she will know what we are looking for and automatically send us the listings and keep a constant eye out on properties. If we got our LLC going, we could have her as one of our members. But what is everyones thought on this? Of course there are advantages and dis-advanteges to everything we do, but i would completely know and trust my cousin to be our exclusive agent.

I say go for it

It definitely has its advantages as people tend to be more comfortable around someone who tells you "I do this for a living" and can tell you facts instead of what they heard.

Plus, be an agent gets you access to direct sellers and investors with lots of unlisted properties they are looking to unload. My last 5 homebuyers have been from direct investors so i've been able to keep my entire commission, which is always a good thing.

Not saying its a must but it helps

Hey everyone,

I think you need to distinguish, too, between being an investor who has a real estate license and being a real estate agent. If you're focusing 100% of your energy on your own deals in your family, which I'm doing, then there's not a conflict of interest. The only reason I have my license is to help my family's business. The question that has to be weighed is if you feel the added money coming back to you on a commission is worth the disclosure you have to make about your relationship with the buyer.

Vincent

Vincent I completly agree but if you be open and honest with your client it shouldn't be too much of an issue; at that point they either do or don't want the property and if they don't, then you find the home they do want.

I'm very open with my clients and let them know everything ahead of time;

Its from private investor/mls listing

This is what is wrong with it

This is what he wants/He's very flexible/he's not flexible with price

It will/will not be delivered vacant

It will be sold as is/sold fully renovated/ x type of warranty

For me having my license opens me up to so many more opportunties than if I didn't so i'm very happy with my decision.

I just passed my license test and then joined Dean's Academy. Understanding the obligations of full disclosure I am still a little concerned about any conflicts of interest....does anyone have any experience or input with this in the state of CA?

Elix,

I am, too. Like Dean said, it's a matter of being honest and showing an interest in the *person*!

Vincent

cschwenker,

Just always let people know that you have a real estate license.

Vincent

I'm a Realtor and investor. I am always thinking from an investment standpoing so it naturally makes sense for me to work with other investors. I live in the Twin Cities in MN so its a large area with so many deals I dont ever run short. So for me it really isnt a conflict of interest to be representing people. They like that I think like them. I'm honest and talk openly with my clients about my REI likes and wants and properties. I'm only looking for cash flow properties in a very specific area. I represent multiple flippers who like different areas and jobs. ie: one like small cosmetic jobs another likes big rehabs of historic homes. I also represent other landlord investors who I even partner with on some deals. Its also a nice closing line to say something like "if you dont put an offer in on it today I will." I dont have the time or money to do all the deals so I think its great that I make a few thousand just for handling the paperwork for someone else on a deal I couldnt do anyway. It funds my more traditional RE investments.

I personally choose not to. It is not a big deal either way. One of the main issues I want to avoid is that if you're dealing with a for sale by owner, they have a hard time dealing with agents. You have to disclose you're an agent. Even if you're buying the home for your own account, they still look at it like you want to list it for them. That's why a lot of FSBO ads say "no agents". I prefer to keep it simple. I can usually find any info I need from my realtor friends, so I don't feel the need to be licensed to access that info.