Physical Therapist Assistant · Springfield, MO · Member since 2017 · 131 posts · 28 votes
I am looking to obtain my first investment property sometime within the next 6 months. I've already been through the process of making an offer, but I ended up backing out because the property was in a flood zone and I could not find insurance for a reasonable price.
During that process, and agent went with me to look at a handful of homes. He was friendly, but I always felt like I was a burden to him. Plus, I had to work with his schedule and wait until he could show me a home to look at it.
As such, I've considered getting my real estate license. So a couple questions:
1. Is it worth it for this purpose alone? For being able to show yourself properties?
2. Let's say that I wanted to actually sell a house here and a house there on the side, for supplemental income. Is this a feasible thing to do while also working a separate, full-time job? Or is being a real estate agent it's own full-time job? I would prefer to sell houses purely at my own discretion; maybe only for friends and whatnot. So can I do this? Or, do you have to actually work for an agency to be able to sell? How does this work?
Investor · Norman, OK · Member since 2017 · 101 posts · 34 votes
9y
@Lucas Mills We're in the same boat, as most work-a-holics are. What's the worst thing that will happen if you get your license for all the reasons you described above? You spent a little money, learned a few things, tested the water, and got access to MLS? Doesn't sound too terrible to me.
Real Estate Broker · Bohemia, NY · Member since 2017 · 10 posts · 4 votes
9y
I've been a real estate agent for six years. Now that I'm venturing into real estate investing, I've realized my state's licensing regulations are quite prohibitive for real estate investing. In NY, I'm required to list my professional title AND company I work for on any "buy homes for cash" advertising. I'm an associate broker and assistant office manager for a big franchise and I don't particularly want to involve my company in my personal advertising. My suggestion would be to check with your state reqs on advertising as a licensed sales agent. Most likely you'll need to tweak your advertising in some way so it will depend on what you're comfortable with...
Investor · Hyattsville, MD · Member since 2015 · 42 posts · 26 votes
9y
@Lucas Mills I agree that you are probably best served by a buyer's agent for your first deal. But getting the license could be useful in the future.
And the license doesn't have to be a long term monthly cost because you can always go inactive status with your state licensing agency and keep that status through continuing education requirements if necessary.
Good advice. I think you're right. I think I just need to find an agent who doesn't mind working with a new investor. I also just need to figure out all of the etiquette and nuances of the realtor/investor relationship so that I don't overstep my bounds.
For example, at some point, won't a realtor get tired of showing me houses which end up going nowhere? The one that I have been working with has shown me several, one of which I made an offer on and almost accepted. But, I ended up backing out because of the fact it was in a flood zone and insurance was too high. I felt kind of bad for having him show me these houses, only for it to end that way. Plus, the properties I was looking were not very expensive, so his incentive and potential commission are low.
Should I feel bad about this, or worry about this kind of thing? Is there some arbitrary number of properties that you can ask a realtor to show you before they get tired of an offer never or rarely being made? That has a lot to do with why I was originally interested in pursuing a license; so I could show myself all the properties I want without worrying about putting anyone out. Especially as I'm new and stil learning a lot; visiting properties and getting a feel for what I do and do not want in one is important for me.
You have to find the agent that is right for you as a new investor. For all the reasons you mentioned, some agents might get frustrated or fail to value the relationship and obligation to his/her client. I think that's very shortsighted, but not unusual.
In our market (Nashville, TN/Middle Tennessee) nearly every investment-type property will receive multiple offers, and many buyers will offer on several properties before getting an offer accepted. Even then, due diligence means they may walk away - no skin off my nose, though. I try to learn something from each offer, whether with investors or retail clients. This keeps me from wasting time showing properties that my buyer won't want. (Your agent better be checking flood zone status, for example!)
Should you feel bad? I say talk to your Realtor about your fears and expectation - open up a dialog. It may be that you need to clarify your investing strategy before you start looking at properties with a Realtor . If that's the case, I hope he'll give you that advice. Also, he needs to understand your strategy, situation, and needs as a new investor. Don't feel bad - it's a business decision for both of you. If he isn't keen on providing what you need, find someone who is. If he's willing and able to give you some good guidance as an investor, AND you are willing to listen, then you'll do well with each other.
Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
9y
Hey all, sorry I wanted to ask again (not to be a pest, I'm just having trouble finding the answer...)
If I were to become a realtor and seek out my own deal on MLS, and look to buy the property -- technically I could be the buying realtor/agent, correct? If so, does that mean the seller pays my 3% commission, or is that illegal?
The flip side -- if I own a property and wish to sell it, I am excluded from paying the 3% to the selling agent -- because its me? Or do I essentially note I am paying myself?
I'm sorry if this is a silly question, I've just always wondered and can't seem to find the answer on google...perhaps not asking the right question :)