"Double-Dipping" in Real Estate Professions?

"Double-Dipping" in Real Estate Professions?

Appraiser · Denver, CO · Member since 2018 · 40 posts · 58 votes

Hello all! 

I am currently preparing myself to purchase my first multifamily property in Minnesota, and will proceed after I've solidified my financial position a bit more (I already have a lender and an agent I'll be using, if that's pertinent to anyone out there). 

However... I am perusing the idea of widening my breadth of knowledge in real estate, and hopefully I'll set myself up with multiple streams of income before I start receiving passive income from my future investments.

I currently work in a commercial real estate valuation firm as an analyst after years of working in residential real estate (on the appraising end of things). Eventually, I will be getting my Certified General Appraiser license, which will allow me to get an MAI and be able to take on commercial work independently, if I desire. 

As for right now, I'm in a bit of a transitionary period (injury) and have a few months to sit around and work on my computer. So I am planning on getting my real estate agent's license and representing buyers/sellers. I have several friends that will be investing soon, so it should pay off this year, even if I don't pursue it further than that. This benefits me in the sense that I will be able to save some money as I buy and sell my own investments in the future, although I will be using a very experienced agent for the first couple properties so I can get a handle on things. 

I'm also debating on getting my home inspector's license. I have some background in construction, but not nearly enough to make this a profession. So it'd be purely for my own knowledge and benefit as I invest going forward. Being able to tell the difference between a cosmetic blemish and a full-blown, $25,000 problem is a valuable skill, in my opinion! 

Thoughts? Would a broker see any potential conflicts of interest or issues with me working as an appraiser (commercial) and attempting to become an agent? I've never heard of an appraiser that also works as a realtor, but many have their realtor's license for a variety of reasons. So I know it's done regularly, I just don't know anyone that has developed it into a full-on side hustle like I intend to do. 

Is a home inspector's license worth it, if it's just for the benefit of the knowledge of it? Or would it be better to take some classes at a local community college in the field of home inspections or code inspections, disregarding the "license" aspect of it? 

Any other ideas that may be beneficial to someone in my position? I'm just interested in being diversified with my education in real estate, keeping in mind that it's virtually all going to be used to invest in real estate... And I am very non-discriminatory about what I'll invest in. Whether it's a posh, 110 unit apartment complex, a strip mall, a mobile home park, or a standard SFR; I am open to it all.

Thanks in advance! 

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Tim SwierczekPro Member
Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
7y

@Tyler Erickson  I'd say that getting your inspection license is a waist if your not trying to make money doing it.  You may benefit from takings some classes but I feel that you would be better served by working in construction as that will likely give you more of the type of knowlege you seek that getting an in spection license.  

That being said I work with 3 Realtor/Appraisers.  Most are appraisers first but all work with buyers and sellers too.  All 3 work for small brokers but I don't think that matters they just don't see the benefit in the big name.

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  • Scott JensenPro Member
    Financial Advisor · Blaine, MN · Member since 2014 · 478 posts · 387 votes
    7y

    That all sounds awesome; I love your attitude towards investing and learning!

    I have had one rental for few years and how I am in the middle of my first rehab for a BRRRR and I am learning a TON! Building codes, permits, contractors, plumbing, water heaters, etc. Getting out there and DOING it is awesome experience. So you could spend your downtime getting one of those set up.

    That being said, the other ideas you have about becoming a Realtor, Certified Inspector, etc are great. Keep us in the loop with what you decide to do.

  • Tim SwierczekPro Member
    Lender · White Bear Township, MN · Member since 2016 · 1k+ posts · 1k+ votes
    7y

    @Tyler Erickson  I'd say that getting your inspection license is a waist if your not trying to make money doing it.  You may benefit from takings some classes but I feel that you would be better served by working in construction as that will likely give you more of the type of knowlege you seek that getting an in spection license.  

    That being said I work with 3 Realtor/Appraisers.  Most are appraisers first but all work with buyers and sellers too.  All 3 work for small brokers but I don't think that matters they just don't see the benefit in the big name.

  • Appraiser · Denver, CO · Member since 2018 · 40 posts · 58 votes
    7y

    @Scott Jensen Must appreciated! I love all aspects of real estate and it genuinely excites me. I wake up, spend all day, and go to bed thinking about it. 

    I expect to utilize the BRRRR method, once I am able to get financing. I'm just starting on this journey and it takes a little time to build the foundation. But I'm close and can't wait to get started. You're right, though. The best way to learn is to get thrown into the middle of it (that's a little dramatic, but you get my point I'm sure). Are you doing a full rehab? Or is it more cosmetic? Add-on value is what I'm all about... Are you utilizing any strategies regarding that aspect of it, as well?

    @Tim Swierczek It's always good to hear from you! After looking into it a little bit, I agree with your assertion that it might be a waste to get my inspector's license... It's a bit unnecessary and like Scott alluded to above, most of what I will learn regarding the "physical" aspect of real estate investing will be learned while I'm rehabbing a property. It's an interesting though, however, to think about getting into construction... I have experience with residential construction, but it was when I was younger and I didn't learn many of the more technical aspects of it. Still, the exposure was great. Unfortunately, I'm not sure if I'll have the time to work in construction to get that experience. Still, it's a thought worth processing. 

    And that's great to hear that you're aware of some appraiser/realtors. It seems that it won't be a major issue, as long as I'm transparent and remain ethical, but I just wanted to run it by the BP community. 

    Thank you both for your input! 

  • Scott JensenPro Member
    Financial Advisor · Blaine, MN · Member since 2014 · 478 posts · 387 votes
    7y

    It's mostly cosmetic. The non-cosmetic issues I'm dealing with are: a driveway and sidewalk sloping towards the house, a foundation issue, replacing the water lines inside the house, and removing a wall between the kitchen and living room to make the space seem bigger.

    Other than that I'm putting in new trim and doors, finishing hardwood floors, redoing the ceilings, painting the cabinets, etc...

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