Becoming an Real Estate Agent for Investing

[Sergio Rodriguez]

Hello BP Forum,

I am very new and exploring options to gain education and experience from within the industry. One option most ponder over is becoming a Real Estate Agent in the desired market area and is even advocated for in the BP Podcast.

The main reason a License is beneficial seems to be due to the ability to be your own buyers agent and save on some closing costs as well as a foundation on which to understand the paperwork and processes of a standard transaction. 

The other reasons a License is beneficial is the obvious access to the MLS and maybe a quicker ability to gain other confidence when starting to network.

I am in the Bay Area of CA.

Are my assumptions of the benefits of a REA License for an investor even applicable? I have heard that the MLS tends to be a desert with ever drying oases of deals.

Is becoming a REA a viable option to getting started?

What, if any, are the stipulations to using your REA License for your own investments?

Can I operate as my own buying and selling agent without a Broker? By "my own," I mean I am my own Client.

Is operating as an REA in the Bay Area an effective way to generate starting capital with which to invest?

If I am not taking certain facts of operating as an REA into consideration please let me know why and how they may effect my investing goals.

These are very green questions, so thank you for your time.

Sergio Rodriguez

[Steve Milford]

@Sergio Rodriguez

My 2 cents.

Go for it!!! I became really interested about 10 years ago, and just read everything I could. At some point, you need to stop just reading/listening, and start doing. It is exactly what I did, and it has been awesome!

As a Realtor, it is a business and I treat it as one. Annually my fixed costs are about $3,000. My variable costs vary depending on how hard I work this business. I also receive income from it - it actually has been very nice for me. My conservative goal was and still is to break even each year. My aggressive goal last year was to have 5 transactions, and I beat it. My aggressive goal this year is to have 30 transactions. Yes I have state regulations to adhere too, and you can find yours at your licensing board. I know in Oregon and Washington, supervision of my activities by a principal broker (whom is also my mentor) is required for at least 2 years. In choosing my brokerage, I chose one w/o lots of training, it is the School of Hard Knocks. My mentor's model, Get Off Your Keister, & Get To Work! Lol. Where do my leads come from? Referrals, post cards, cold calling, and passing out my business card 1 at a time. 

As an investor, I get to look at anything and everything now, and yes because I am a Realtor I have less flexibility in what I can say, etc, but I am OK with being held to a higher standard. I haven't ever had anyone say, oh because you are a Realtor, I don't want your money.

I got my license because I felt a need to practice what I was being preached and to me I was always a "wanna-be" until I pulled the trigger. Personally, I like getting my feet wet and getting in the trenches - that is how I learn the fastest. Have I made mistakes? Of course, but I also have learned some valuable tricks of the trade because I have fewer hours available to fuss with it. i.e. I am not on here very much because although I like to teach and learn yet I still need to make money too, and this avenue, BP, is not a direct means to make money. And I am learning from people that are active in the business, from their listings etc and how they work.

What is the worst thing that can happen? Even if you are only a Realtor for a year? You will learn if this business is "really" for you, and you will learn how to market yourself or how NOT to market yourself. For me it was a gamble to get the licensing, I was getting a divorce and didn't have extra cash - I put everything on a credit card. But my first commission check sold me on it, I paid off that credit card, and it was the easiest money I ever made for the amount of hours that I spent.

Feel free to message me if you want.

Steve