Debate On A Realtor License

[Kendra J.]

Being as though I live in a Non-Disclosure state and have been unsuccessful at getting a Real Estate Agent to work with me, I have been debating on going for my own Real Estate License. I have read lots of pros and cons to being an Investor with a Realtor license. If I understand correctly, I must work under a Broker in order to gain and keep MLS access? I have an opportunity to further my education with little out of pcket expesne, so I thought it would be good to look into getting my license. What are your thoughts on the RE License issue BP?

[Sandy Blanton]

***SCREAMING*** Ok, Sweet Jesus, I had a Cold Pop.

If you buy one deal a year from the MLS, then YES...get licensed.

I've bought and sold over 100 units personally in the past decade. I find 98% of my deals in the MLS. There's no substitute for the MLS database. Not only can you find deals and earn the agent's portion, you can accurately predict your investment numbers: current value, ARV, your rental values, etc.

Florida, as I'm sure all states do, require that you disclose you're a licensed agent and a principal to a deal. This has no bearing on your negotiations with a seller or buyer. The other party doesn't care if you're an agent, a mortician, a transsexual, etc.

Don't worry about finding a broker that will accept your license due to your investing activity. The average full time agent probably closes six deals a year, it's dismal and it's always been this way (excluding the boom years and maybe the average agent closed a dozen deals a year). As long as you act ethically and within the law, your broker won't care what you do. Just be upfront with your broker before he/she hires you, have a clear understanding so there are no surprises. If you have to interview ten brokers before you find a fit, who cares. If you're lucky you'll get a progressive broker who will teach you about the brokerage business (if you have any interest outside of investing).

Even if you're a wholesaler, I encourage this. There's one agent in our town that makes his living wholesaling. Every listing of his I have ever seen in the MLS has his disclaimer "listing agent has a lease option with the seller and is a principal to this transaction." He's the only agent I've ever seen that's a wholesaler, but he must be doing well as I see his name on more listings than most agents. He's also with one of the largest, well liked brokerages in town.

I can't get more enthusiastic about this advice for the non licensees here. Let me know if any questions.