Newbie investor/licensed agent needs ENCOURAGING & POSITIVE advice

[Renae Bliss]

Been licensed since March 2011, been reading book after book on real estate investing & gone to 3 different seminars (including the REI Summit in Orlando 3/09). I'm trying to get my start in the area of Real Estate in general; sales AND investing. I have no car, but have internet & laptop @ home. I am trying to figure out the smoothest "route" as far as investing goes to where I can make some money to buy a car, and be successful in general!??

[Joshua Dorkin]

Renae - I want to remain positive here, as I am aware of your situation, but it seems like having a car is a prerequisite for being an effective real estate agent. I just don't see any way to manage clients without vehicular transportation.

Typically, my advice to a potential investor in your situation is to get a job and start building up cash reserves so you have enough to get things moving. Like any business, you need the tools to make things happen, and in the real estate business, if you don't have cash or car, I just see little opportunity.

While it is certainly possible to get things off the ground when you have few resources, there are serious roadblocks.

Again, I do want to be positive, but I think it is far more important to be realistic.

I'm curious as to what others think here.

[James Vermillion]

I have to agree with Josh. Renea, you created a similar thread where you explained your situation and I will express similar thoughts in this one. While there are certainly things you can be doing right now, I think the most important factor is figuring out how you can make your personal life fit in with you business goals. If you can save some money up, boost your credit, acquire a mode of transportation, etc, you will be better equipped to start acting as a realtor/investor. In the previous thread I felt there were a lot of blind optimism, people telling you can do it, but offering little else. I believe you can do it, but you may need to take a detour to reach your end destination.

Like Josh said, positive thinking is very important, but taking a realistic look at your situation and finding ways to overcome obstacles is much more important. You need to figure out how to get from point A to point B, and it may not be a perfectly direct route.

[Jon Holdman]

Please limit replies to the question at hand - "ENCOURAGING & POSITIVE advice". Job offers are advertising and are not allowed in this thread.

Actually doing a RE agent job pretty much requires a car, unless you're in a palace like NYC that has reasonable public transport. That's going to limit your ability to show properties or meet with potential sellers. Once you get signed up with the brokerage after the first of the year and have MLS access, you could start helping investors with evaluating deals. Discuss this with your broker and see how you could be compensated. If this is acceptable, try to locate some investors in your area. A REIA meeting would be a good idea. Talk with people. I suspect there is someone out there who could use the assistance of a new and hungry agent and would be willing to compensate you.

Evaluate your skills and see if there is some way to leverage those as a "virtual assistant". Perhaps its something that has nothing to do with real estate.

For that matter, give your skills and background a hard look w.r.t. employment opportunities that are available. People are hiring, but the jobs are not necessarily a good match for many people's skills. I've listened to several NPR stories about the mismatch between jobs and skills, including one just a couple of days ago. That story was point out that many "middle skilled" kinds of jobs have been automated or outsourced away. What's left are either low skilled jobs like flipping burgers or (as one of the people they interviewed had done) changing tires and giving cars jump starts or they jobs require specific, advanced skills. The guy who had been doing the roadside assistance was going back to a training program for high-tech machining. Jobs are out there, but they often require specific skills. Examine yourself and see what you could do.

You may have to move past the "what do I want to do" and look at the "what will someone pay me to do." You've gone to agent school and gotten your license. Great. But that truly is a job that requires a car. Without being able to show houses or meet with sellers, you're very limited. So, that's not a great fit for you. So, look around, evaluate yourself and figure out what is a fit.

[Buck Tadlock]

What about extracting leads from bandit signs - wholesale the "motivated" sellers homes and list the others? Of course I'm sure you would need to disclose the fact that you are an agent to stay on the up and up.
Perhaps do CMA's for investors and they will list with you in return (on their rehabs).
Obviously you would need $ for the signs and a ride to plant them.
The free online classifieds (Craigs List etc.) is a place you could scout from your laptop.

[Braden C.]

Renae,

We hired someone one time because they were very upbeat and had a great attitude. After about 3 weeks on the job this person mentioned that their barrowed car was no longer an option. We never thought to ask someone getting into real estate if they had reliable transportation. I asked this person two questions, "how are you going to look at properties without a car and how are you going to sell property without a car." He answered he couldn't to both questions and we asked him to return to work once he got his own car. He has since returned and is doing just fine.

You sound like you have potential to do fine but you need reliable transportation.

[Jeff S.]

Renae,

Have you thought about getting a job as a school bus driver? Know an agent that did both for years and was pretty good. With summers off, the hot market time, you can have some stability and the upside of commission sales.

Have seen part-time (agents with other jobs) that were better than many full-timers. Multiple jobs is a good thing.

I would lay off the seminars and books. Start canvassing anywhere you can. Do things that result in actual leads and listings and sales.

Best wishes.

[Jamie Cox]

Renae,

I have to disagree with a few people here. If you're savvy with the internet you can absolutely build a real estate business without a car.
I'll admit investing would be a little more difficult but as an agent it's completely possible. If you're reading any books on being a successful agent you probably already know you must "list to exist." My team and I do a lot of business most of which is generated online. I have listed and sold many homes that started as an internet lead. We listed the property over the phone and closed it without every meeting the seller in person. Granted working with buyers would be difficult but what's to stop you from finding a buyers agent to handle your buyer leads and working out a split with them. You generate the lead, convert it, and set the appointment then you pass it off to your buyers agent they show houses, write the contracts, and close the deal. You both get paid. I go to my office every day in shorts, a t shirt, and flip flops. I rarely meet with a buyer or seller personally. My job is to generate the business and allow the appropriate member of my team to take care of it. You've been licensed almost a year. Get off the fence and go make it happen!

[Lynn McGeein]

Renae, Have you thought of getting a property management job with a large apartment complex? Your real estate license might make you more attractive than those without one, you could probably find one near a bus stop so you'd have set hours and transportation fixed until you could save up for a car, and as a bonus, you'd learn all kinds of things about screening tenants and problems managing property on someone else's dime.

[Joshua Dorkin]

That's a great idea, Lynn M.!

[Lynn McGeein]

Thanks, Joshua! But not really my idea -- read it in a book somewhere along the way, and just seemed to apply in her situation.

[Renae Bliss]

I since have been able to start as an agent at Coldwell Banker. So now, I'm just trying to network!!

[Brian P.]

Renae

Your in the same situation as one of the top agents in California for years found herself. She was a new agent, had owned a successful business but unknown to her her partner stole everything and she found herself and her family living on the beach, with no car or much of anything.

There are many activities you can do to earn a living and in some cases you can enlist the services of a fellow agent with some kind of arrangement to do some things. Don't hesitate to look for work of anyking, the nickels and dimes you get from a job will lead to the dollars in real estate.

[Renae Bliss]

Originally posted by Brian P:

There are many activities you can do to earn a living and in some cases you can enlist the services of a fellow agent with some kind of arrangement to do some things. Don't hesitate to look for work of anyking, the nickels and dimes you get from a job will lead to the dollars in real estate.

About a month ago, I sent out a message to agents in my company looking for opportunities such as this... real estate photography, posting photos on MLS, helping with contracts, showings, etc. Out of about 20 agents I contacted, I got 2 responses BOTH saying they're too busy...

I always thought that part of the "path to success" was to reach out & help others reach THEIR path to success. I mean, we work for the same company. They were all newer agents like me at one time or another... did they forget that??

Any suggestions on alternate routes? I've considered contacting agnets from other companies...

[Joel Owens]

I have one for you but you need a car.

You can do "broker price opinions" for mills.Mills are companies that take large orders from government institutions and banks.

The FDIC might be doing a sampling of a bank it took over.A bank might be selling a pool of loans to another bank.There might be batches of orders for refi's,loans,and or PMI drops (where the owner has requested mortgage insurance be dropped from the loan as they feel the mortgage balance is less than 75% of the current market value.

You can do either an interior bpo or an exterior bpo.Exterior you take pictures usually 1 mailbox,1 street,1 front,sometimes a side shot and fill out a report online and note external damage.

Interior you do the same as exterior but take interior shots as well and note any damage on the inside.

Interiors pay more but can be a pain for access and take more of your time.Pay used to be really good at over 100 per order when I did them years ago.Now fees are real low say 45 for an exterior and 70 for an interior if your lucky.

I know some agents that make 5,000 to 10,000 a month doing these but they eat,breathe,and sleep them.I stopped doing them years ago as it's more productive to do my real estate investments and my sales for my commercial clients.

If you want to find out more go to www.agentsonline.net and go down to the REO/BPO section.Dig through the posts and you will find a list of companies that pay on time versus the slow to no pay companies that take advantage of the newbies.Make sure your Independant Contractor agreement with your broker covers this activity with their E and O carrier.I am sure you have agents in your office doing them they are just not telling you about it.

[Brandon Mackey]

Keep your head up and things will have to get better! I am in a similar situation as a "newbie" and it does suck, truly! But I have to look for the things I CAN DO to make my business succesful and to get started rather than focusing on what I don't have. I rented a car to get my first few deals....and even though it was expensive, it was a life saver and my family, who are my BIGGEST FANS AND SUPPORTERS believed in me and took care of the expense so I could focus on my business and schooling, too. I am a multitask lover so I need a lot of projects going to feel satisfied.......but I totally understand your feelings and the anxiety and feelings of hopelessness that often want to intrude on your otherwise happy amibitions. I hope you have found some solutions by the time you read this :-) I have had to be creative in all areas of my life to make things happen....for some of us things seem to come with an extra burden or hardship....but I truly believe my day is coming and I will be victorious and the best investor I CAN BE.....

[Lynn McGeein]

Originally posted by Renae Bliss:

I always thought that part of the "path to success" was to reach out & help others reach THEIR path to success. I mean, we work for the same company. They were all newer agents like me at one time or another... did they forget that??

Any suggestions on alternate routes? I've considered contacting agnets from other companies...

Renae, I tried the real estate agent route a while ago, like 15 years past, so not sure this is still the way it's done, but have you spoken regularly with your broker? Being new, I joined a large firm just so I could get help as generating new business is hard with no experience. My broker had access to potential listings and buyers, referrals from out-of-state, listings from agents who left the business or transferred and couldn't take the listing with them, etc. While the good ones always seemed to go to the experienced agents, my first 2 or 3 sales were off the bottom of the barrel of her referral pile.

[Lynn McGeein]

Renea, Tried to send a message to you, but think it didn't work. Wondered if you have access to BPOs? Been reading a lot about short sales lately and says they ask realtors for BPOs at $35 to $75 per, so wondering if you could ask your broker if you could do them as many say they send out other people just to take pictures and evaluate for them, so even if it's the broker that's doing it, they may work with you to get you started. Just a thought.

[Michael Quarles]

Cold call from home for frigging listings. Split the deals with the agent who goes out to write it up.

If you set "real" listing appointments it will be easy to find someone to sign the seller up.

The only person who is going to help you is you. The brokerage business is cut throat what have you done for me lately and will suck the life out of you if you're not an 800 pound gorilla.

[Renae Bliss]

Originally posted by Lynn M.:

Originally posted by Renae Bliss:

I always thought that part of the "path to success" was to reach out & help others reach THEIR path to success. I mean, we work for the same company. They were all newer agents like me at one time or another... did they forget that??

Any suggestions on alternate routes? I've considered contacting agnets from other companies...

Renae, I tried the real estate agent route a while ago, like 15 years past, so not sure this is still the way it's done, but have you spoken regularly with your broker? Being new, I joined a large firm just so I could get help as generating new business is hard with no experience. My broker had access to potential listings and buyers, referrals from out-of-state, listings from agents who left the business or transferred and couldn't take the listing with them, etc. While the good ones always seemed to go to the experienced agents, my first 2 or 3 sales were off the bottom of the barrel of her referral pile.

Unforunately, I'm finding that even though I work in an office of an international company, it seems everyone is too buys with their own success!! There is tons of online webinars & videos, but I don't learn well with those; partly because of my ADD-my brain doesn't absorb as much as if I'm coached/guided through learning. I have offered to do property photography, post photos on MLS listings for agents, write up the contracts to save them time, and more just to gain experience AND make some money!!

[Renae Bliss]

Originally posted by Lynn M.:

Renea, Tried to send a message to you, but think it didn't work. Wondered if you have access to BPOs? Been reading a lot about short sales lately and says they ask realtors for BPOs at $35 to $75 per, so wondering if you could ask your broker if you could do them as many say they send out other people just to take pictures and evaluate for them, so even if it's the broker that's doing it, they may work with you to get you started. Just a thought.

Out of our office, in order to do BPOs you have to take this class through the state that costs like $300 or so before we can add this "designation"....

[David Wedemire]

Don't be concerned that any question you ask may appear dumb.

[Richard N]

I dunno if this helps with your investing situation.... but as far as your realtor career, if you don't have a car it's a big disadvantage in driving to properties and potential clients.

One suggestion is to find homes that are very close to your area that you can walk to. When I started in the mortgage business I was broke, and the only way to make myself known was to visit nearby properties that I could walk to and try to enter open houses with the intent of getting to know realtors and earning their business. Luckily I found a realtor that was new and starting out in my building complex (we always have an open house, it's about 100 units so there's always something going on) so I didn't have to travel.

I was able to establish a relationship with a landlord who owned a 20 unit building by responding to an ad he had for a tenant. I honestly told him I was in the mortgage business and wanted to know if I can help since he was looking to sell off some of his units. Unfortunately the renters he sent my way did not qualify but I did earn a few leads just by getting out there. I actually ended up with a bank manager as a referral which was kinda funny considering they have some pull at their bank.

If you're in a suburban area why not work with a cluster of homes in a 1 mile radius and just "stumble" in like you're on a walk or jogging? Some realtors don't care to sit in on open houses and prefer to outsource that out to many new realtors. The new realtors can establish clients who might not be looking for that particular home, but want guidance from the realtor at that particular open house.

Hope that helps. In the beginning your work to clients ratio is very low but over time it'll grow. I asked my supervisors for old leads (2+ years) and found some gems but it does take time and a lot of telemarketing. Good luck.