Question about becoming an agent for investing purposes

[James Phillips]

Hello all,

Ive decided to undergo the process for getting my real estate license for investing purposes. The problem is that I really don't want to use it for just merely selling houses, I want access to the MLS and to just be overall more professional in my investing career. Can someone please walk me through how this might play out after I get my license? I know that I have to work under a principle broker for a length of time but if I'm only buying and selling houses for my own personal investments is he going to be getting part of my profits? Im not really sure what else I need to know... Any and all advice on this is welcome and appreciated. Thank you

[Zach Kidd]

Hi James!

Kudos for taking the first steps. I'm on that path myself.

Full disclosure, I'm a licensed Real Estate Agent / Realtor in Florida. Our license covers all aspects of real estate - residential, commercial, industrial, agricultural, investment, etc.

Here, you need to be active for 2 years before becoming a broker, plus education / tests,  etc. Yes, I plan on getting my broker's license.

Your path may vary slightly in your state.

My plan (feel free to pirate it!) is to perform the normal functions of an agent, and slowly transition to investor. 

Get your license, join a brokerage, join the local Board of Realtors (that's how you get MLS access).

As an agent, I help connect buyers and sellers of retail real estate.

This gets me familiar with the processes and paperwork. I get to build my network as I go. I meet all sorts of vendors and collect those that I love working with.

And best of all, when those sales hit, I get paid to learn. And honestly, you can make a really good living as just an agent. But it's still working for a paycheck, and we want to do more.

The transition to investor is subtle, and you have to clear it with your brokerage, negotiate the terms, etc. I prefer a smaller, more flexible brokerage - corporate places won't work with your goals. Move brokerages if you need to. Or get your broker's license and open your own brokerage.

The shift is easy, though. As an investor (wholesale specifically), I help connect buyers and sellers of discounted real estate.

The rest of the functions remain very similar. Marketing, driving for dollars, deal execution, etc.  There will be twists (wholesale double-close), but it should be rather seamless.

When you move to flips, you're doing much of the same stuff. Buying discounted properties, forcing appreciation (which you'll need a team for - all those awesome vendors), selling at retail.  

I get to do property management now. Guess what? Yep, I can "outsource" that in-house too.

When I want to shift up to include commercial, or any other opportunities, I'll have that lined up as well.

I might even invest in an orange grove, so my money really can grow on trees. 

If you really want to learn to sail, you need time on the tiller.  May as well get paid for it too.