Agent experience useful as an investor?

[Logan Cox]

I'm working on getting my real estate license, but my long-term plan is to be an investor, and I'm worried that not much of my realtor experience will carry over. Is it worth being an agent for a few years before beginning to invest, or are there better ways to get into investing?

[Drew Sygit]

Just jump into investing!

A license shouldn't hinder you. Yes, it's nice to access the MLS, but just find a good investor agent.

Regarding paying yourself a commission, that's absurd! The commission is part of the sales price, so your actually creating a taxable event on the income instea of just negotiating a lower price.

Also, a license may handcuff you as an investor. Most states attach a fidiciary responsibility/liability to agent licenses. Meaning if you are an agent, you MUST disclose to a seller the true value of their property that you want to lowball them on. We know two agents in Michigan that had to settle out of court on such transactions where they did NOT disclose the actual value before buying from a seller.