If you were in my shoes, where would you go next?

Question

Hello everyone on B.P. and good day! Things have been pretty crazy lately. Long story really but ill try to make things as short as possible.

So lets cut to the chase, I currently work as a contractor for a cable company driving around my own vehicle picking up cable boxes on suspended accounts in Detroit MI (...yes i know). Back in September '14, I posted a craigslist ad titled "Looking for a career change into RE" trying to get my foot in the door to begin meeting people and learning markets. After 3 weeks of spam jobs i get a call from an agent who works for Keller Williams (KW), and he needs someone to drive around REO properties, take photos and upload them via internet each week. At the time they only had about 40 REO's a week at $5 a property. I've never been to any of these cities before and all were within 40mins from where i lived and gas prices were HIGH!

Despite all the red flags i took the position because i could still use the extra income and learn at the same time while working my current job. Couldn't have made a better decision because it turns out i really enjoy doing it. Because of this job I've learned so many cites i can practically not use my GPS anymore. Meet agents, investors and contractors involved in all sorts of repairs from roofs to concrete and see the full process start to finish. Watch properties come, go and stay in inventory so i feel i have a good grasp on what a "good" vs "bad" property is. Inventory has grown to 60+properties a week now and i can do them all in 1 day cutting cost down to have an income of $1,250/mth for only 8hrs a week all from 1 craigslist ad!

Now I'm trying to figure out my next actionable step so here are my questions:

1.) I know if i have more than triple the amount of properties each week i could hire someone to do it for me, quit my other job and focus more on doing my first deal (wholesale or rehab) but is there a need for this service? if so how would i begin to market to find those individuals?

2.) Is it possible for me to find a buyer for our properties before they are listed and still get a commission on them? I keep being told i have to be realtor to do that but i feel it is still possible somehow.

3.) I just finished my classes to get my realtor license and next up is to take the exam, But i have enough saved to begin my initial marketing plan to sellers and start marketing. Should i wait till I'm with a broker for credentials or begin marketing now and already be generating leads?

Sorry in advance if it seems confusing, SO many avenues to take i feel stuck and gotta move. Maybe I'm just not asking the right questions so, if you were in my shoes, where would you go from here? What would you ask yourself? I appreciate any advice you give in advance and thank you for your time.

Jeff Rabinowitz · Answer

Lately, I have been attending meetings less regularly than I had been. @Tom A. , in the post above, hosts a monthly meeting which rotates among various locations. The Renegade Detroit Investors meet on the 1st Tuesday of the month. I am most likely to attend those two. We are fortunate to have a lot of choices here. Michigan RE Investors meets 2nd or 3rd Thursday (can't remember) in Novi. There is an Oakland REIA, Macomb REIA... several others. A web search should lead you to most of them.

Christopher Tabb · Answer

Thanks for the advice Jeff Rabinowitz! I'm not trying to do anything illegally or cause bad relationships whatsoever and since the RE classes I've been pretty aware of what to do and not to do. What meeting do you attend? I'm sure if you have the beard still ill spot ya and introduce away!

@Tom A. a quick education indeed! an investor on one of the podcasts said he started out doing small jobs and learned a lot from there so i gave it a shot. well worth it too! A very good tip btw i will be sure to implement that right after i pass the exam!

Tom A. · Answer

You've gained a quick education while getting paid, way to go!

I think Jeff answered questions 2 and 3 well. For question 1, regarding finding others who could use your services, when you get MLS access you can search for REO listings, export the listing data with listing agent names to a spreadsheet, sort to determine the highest-volume REO listing agents, and contact them to offer your services.

Melissa W. · Answer

Hi Christopher,

It sounds like your on your way to success.  All the properties I have bought over the years have been creatively financed, and I am not a realtor. I have been told the same thing, and like you I knew there was another way.  I live in an area where realtors are a dime a dozen.  I also have several friends who are realtors. as well as real estate investors.  I found that investment realtors are not afraid to make a low ball offer on a property of I ask them to.  The only thing that can happen is the owner says, "No."  In my experience, all the low ball offers I made, paid off.

Good luck.

Melissa

Jeff Rabinowitz · Answer

@Christopher Tabb, welcome to BP. It sounds like you are becoming very knowledgeable of our area. You cannot legally receive a commission before you are licensed. In fact, no licensed real estate salesperson in  Michigan receives a commission directly. The commission is paid to the broker and the broker splits the commission with the salesperson practicing under their license according to the agreement between the broker and salesperson. You are close to getting your license. Don't risk your ability to practice later by jumping in a couple weeks early.Technically, you could enter into a contract with the owner of the property, the bank, and then get an assignment fee when you find a buyer. If you go that route, you will probably alienate both the bank and the Realtor who hired you. This is a smaller community than it seems. Active investors and agents know who the bad actors are. It will not be good for your career if you end up on that list.Best wishes. If you see me at a REIA meeting (I am not that hard to pick out of a crowd of investors) I hope you will introduce yourself.

If you were in my shoes, where would you go next?

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