Investor/Realtor Update-1.5 yrs later and My Dilemma

[Jennifer Lee]

Hi BP

I have been meaning to come back to update you on my journey as investor/Realtor.

First off, thank you being the catalyst and helping me through this process. It was the best decision ever.

I grew up with RE investors, have a finance major, and have entrepreneurs for parents. I spend my weekend managing properties and listening to strategies growing up. 

I started in 2001 and did my first MADE-ALL-MY MISTAKE FLIP in 2003. Went on to buy/sell 3 commercial buildings, and flip 2+ Residential and managing buy/hold properties.

As an INVESTOR, I do my own extensive due diligence, and once I find a deal, I call a Realtor to "get" it, and we basically just CLOSE.  

As an INVESTOR, when I sell a property, it's in it's highest and best use and I have exit plans lined up. So my property sells pretty fast.

So when I found myself in the position to be able to buy 1 property a year or more. I decided that I needed to get my license!  And the fact that my REALTOR doesn't know  how to deal with me... she can't find me stuff! It was super frustrating.  

So I got my LICENSE! Sign up for course, took test.

I called all the brokerages and picked my firm.  I came into this WITH A FLIP TO SELL. So I went with the firm with the most MARKET PRESENCE and when I realized I have been using their site since 2001 in 3 different states..... no brainer right.

I sold my listing in 1 day! 

MY MAIN GOAL AS REALTOR: Find my own stuff, meanwhile, help other ppl find home.  

In my 1.5 yrs, I am now certified SFR (foreclosure) agent, and Commercial Agent.

My deal exposure has shot up exponentially.

PRO:

*As an investor, it wasn't difficult to meet other investors for client

*I am a good investor friendly realtor because like minds, you don't need to teach me

*Investor client buys multiple times.

*I get to see how other investor thinks and analysis without taking my own risks.

*I got FREE education on how to inspect a home, what to look for.

*I LOVE WHAT I DO...

CON:

*my commission SUX. I work with investor and here it means under 100K homes.

*60% of my deal fall through, and my SFR require a lot of attention and time.

*investor for clients, I have narrowed my clients to like minds.  There are low ballers just offering to get a hit.. and there are investors like me that did research not shoot in the dark.

DILEMMA: Why I write this blog..

I am have just opened yet another LLC for myself to do REI. And finding myself wanting to FSBO everything...

 PLEASE ADVISE: Other investor/realtor in my shoe, who has license and buy own stuff... when do you use your brokerage and when do you fsbo?  My firm is not 100% commission on "my own deals"

It is 100% only if I buy in my name and only 2x a year. I buy via LLC.

 I have not issues with disclosure, surprisingly well received as investor/realtor or landlord/agent.

My issue is like all investor, I want to cut out the middle man, but in this case...me!

Thanks 

[Bryan L.]

I am a combination investor/Realtor. And there have been times when I have gladly paid a commission to another Realtor to co-list a rehab/flip that I have completed. You need to be able to focus on what you do best, what you enjoy doing the most, and what brings you the most profit per hour. If that means that you keep your Realtor license for the MLS access for buying great deals, but you actually use another Realtor to list your properties after you have rehabbed them, then so be it. I have a deal going on right now where I "sold" one of my houses 3 years ago with owner-financing. Now, I want that tenant-buyer to get a bank loan and complete the sale and cash me out. I am gladly paying another Realtor 3% to work with this buyer to get it done, and I am focusing my time on other things.