Trying to become an "Unliscenced Assistant" for MLS access?

Question

Hey, everyone!

As I have stated in almost all my other forum posts, I am heading into college in the fall. Right now, I'm taking time to educate myself about REI, and I'm planning on trying out wholesaling, and possibly even a property purchase, while I am in school.

After researching, it is clear that the best and most effective way to find properties and have reliable information is to utilize the MLS. However, only Realtors and Unliscenced Assistants to Realtors have access to this extremely powerful tool.

Does anyone have any tips as to how I can become a register UA? My brother has a good friend that is a Realtor, and I was going to chat with him about the possibility of this position. Obviously, any deals that I wholesale through the MLS would be done through my partner, and that would be his/her benefit of having me listed as his/her UA.

As always, thank you. BiggerPockets has been a tremendous tool for me, and I hope to one day be a successful investor so that I, too, can give back to the community just as you have all done for me!

Greg H. · Answer

I see threads like these come up from occasionally and as a Broker I cannot understand why a Broker/Agent would consider this ?  When I sign someone on as an "assistant"  I take total responsibility for their actions involving Real Estate transactions go.  A good Real Estate Attorney question would be.....would our Errors and Omissions even cover any lawsuits after an investigation turned up a "phony" assistant relationship ?

Blake C. · Answer

@Jeffrey Lester You reasoning for getting on MLS is great. I feel that when I am new to any market, I have to look at 100 or so houses to really get a feel for the market. Yes you can do off comps, but personally, i don't have the confidence to pull the trigger without significant exposure. With the internet what it is, you don't have to have realtor access to get info, but Im sure it would be easier. You will have solid access not just to listings but to sold comps. This will help. Relationships are huge. So if you get the relationship going with this realtor, the relationship might prove more beneficial than the MLS info.

As for the wholesales... you are right. A few deals a year would help as a college student. The problem is that wholesaling takes lots of knowledge (finding great deal, knowing comps, knowing rehab prices, knowing what really needs to be rehabbed and what doesn't, ect). Im still not THAT experienced and I don't wholesale for these reasons. However I have a very trusted wholesaler that I can birddog for. If I find a deal I can't do or don't want to do, I can pitch it to him for 1000-1500k. Of course, he doesn't pay for MLS leads... only off market stuff. I take him to the house let him evaluate it. this is risky if you don't trust the person, because they can just steal the deal. I trust this guy enough Im not afraid of that. I haven't successfully completed this yet because the two I have sent him, we didn't get our contracts accepted, but I know this strategy will work.

The only MLS deal I have done is a foreclosure a few years back when the market was flooded. At that, you had to be fast. Fast required confident in your numbers. This is hard when you are just gaining experience.

Thats why i told you on a post a while back to look for a HUD foreclosure at hudhomestore.com. if you live in it yourself, there are properties on there that are only available to be bought by owner occupants. This will limit the number of people chasing the house, thus making it easier for a newbie that likely needs some time to make a deal come together. Otherwise you are likely going to be fighting the sharks.

The other strategies you talked about work... but for me, I know at your stage, I would have needed a mentor to guide me through doing that. As hungry as you are, you will figure this out if you dont get discouraged. Keep fighting and putting yourself around people that are smarter than you... and really, smarter than me. If they aren't doing what you want to do, dont listen to them. If they are, copy them.

Blake C. · Answer

@Jeffrey Lester Im not sure how exactly to become an unliscenced agent, but you are on the right track by trying to leverage the connection that you have. My suggestion is you offer to buy this realtor lunch and let him know what you are trying to do. Ask if there is something you can do for this realtor to help him win. Just being around the right people, will gain you valuable experience and exposure to the info you need.

All markets are local, but in most places I have been, its hard to find deals on MLS once markets start to get hotter. A few years back, in the bottom of the markets, the market was so flooded with deals that investors were finding deals on MLS. In the last year and a half, I haven't actually bought a deal off MLS. There are so many investors that they get snatched up before I can get an offer in or there are so many offers, the price gets to high for what it is. I still mine MLS everyday, but I'm not getting deals from their despite trying. Someone is, but not me. I dont say this to discourage you, but to encourage you to hunt in many areas.

What I have been able to do is leverage a few personal friendships with realtors to get connected with seller before the house even hits MLS. This happens when a seller with a beat up house approaches a realtor to sell (both of mine were estate sales). The realtor explains that on MLS, it won't sell as is to a retail buyer. The realtor suggests showing a few investors the house first (Thats me). I offer and as is price thats fair and the deal gets done in a week. Everyone wins.

I didn't get to this position overnight. It took developing a relationship with many people. Once people know you are looking, they might start brining you deals... especially when you have a real relationship with them.

Stay hungry and keep hunting. You are going to get a groove at some point. It might take a year to find the 1st deal... or heck 2 years. But each deal after will come fast and fast because you will get better and better at this.

With all that said, you are on the right in trying to build connections.

Tom Reynolds · Answer

Jeffery,

You are truly a motivated young man and I'm sure if there's a crack in that wall you're going to find it.

Are you waiting for success to arrive, or are you going out to find where it is hiding?

The poet John Milton’s words, “They also serve who only stand and wait,” may be both profound and genuine, but the true riches of life are far more likely to accrue to those who actively go out and seek them. Seldom does success come marching in accompanied by a brass band in full regalia. More often, it’s achieved by those who labor long and hard. Take the initiative, and you will create your own opportunities. There is no substitute for action backed up by a well-thought-out plan.   "Napoleon Hill"

Account Closed · Answer

Not sure about your state but in TX, all you need to do is find broker to sponsor you as "assistant" and fillout online app and pay like $90 every 6 months to the realtor board.  You can find investor friendly brokers/agents willing to help you through local investor meetups and networking events.

James Wise · Answer

I see this come up a lot in the forums. Are there any brokers/agents on here that have signed someone up as an unlicensed assistant in this manor? If so please explain why. I like Greg  H. cannot see any reason why a licensed person would entertain this idea.

Connie Covert · Answer

Hey Jeff,

Yes, the MLS is excellent to have. But, to find wholesale deals, there aren't that many on it. I'm a licensed Realtor in MO. I find more wholesale deals on websites, such as BP, goggle RE Investors for your state. Also, get on linkedin & find some wholesalers there.

Hope this helps you.

Blake C. · Answer

@Jeffrey Lester Im not sure where your spiritual beliefs stand, but my feeling is that whatever you need to accomplish the plans the Lord has for you, he will give you. This doesn't mean you don't have to work, but he will make the things you cant control happen in the right time. Most of the real estate connections I have made have been through church (2 Realtors, a wholesaler, two peer investors, a partner, and private money lender). Whats good is that this makes the trust bond greater and our desire to help see the other success strong.

Jeffrey Lester · Answer

@Blake C. Thank you for the in-depth response! I agree whole-heartily with what you have said. I will be seeking out mentorships while in Missoula for college, that would be the most valuable thing.

I'm sure I'll have more questions to ask you in the future. I really wish all the guys on BP were local! Finding a mentor is going to be tough.

Jeffrey Lester · Answer

@Blake C. Thanks for the reply! I have definitely heard that finding good deals on the MLS is extremely difficult, which is a shame. However, the main reason I want access is to simply get good at evaluating properties and trying to assess how much they're worth. If I can say, "hey, that's a pretty good deal, if I had money, I would consider buying it", or, "that's an awful deal, the want a kajillion dollars above market value", I would be ahead of the game. That's the main reason!

But, of course, if I could pull off 1-2 wholesale deals per year while I am in college, I would be simply ecstatic. Even if I'm making just $1500/deal, it would be an amazing feeling to actually be doing deals in real estate. Trust me, unless I find out I'm a mastermind at wholesaling properties, I won't be starting a wholesaling business anytime soon! This is mostly for experience and possibly a few bucks. :-)!

Quick question - when you did buy a deal off the MLS, what strategy did you use? I'm planning on (1) target potential, newly-listed leads (2) compare to similar properties (similar square footage, same number of bedrooms and baths, and in the same neighborhood)  that sold within the last 6 months (3) go physically inspect homes that seem to be listed below market value (4) if I see nothing wrong with the home, put it under contract and present it to my investors list

Am I on the right track?

Trying to become an "Unliscenced Assistant" for MLS access?

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