Fiduciary responsibility of real estate agent/investor

[Tariq Sabbah]

Researching pros and cons of becoming a real estate agent to boost your investing potential. Fiduciary responsiblity keeps coming up. Could someone explain details of how this could impeded your investing? Thanks!

[Marcus Auerbach]

@Tariq Sabbah your fidiciary duties are not your issue - disclosure of your status is. When you are licensed the law assumes you know more than the average homeowner and so you have to disclose you licenses and make sure you are not taking advantage of anyone.

"Seller understands that Buyer is licensed real estate agent in the state of x and is buying the property as an investment and will potentially make a large profit." - this is what you want to be able to point out when a seller comes back and wants more money later when they see what you are selling the place for.

The bigger issue is that you are choosing to hire a absolute rookie for the job of an agent - yourself. I have been an investor much longer than an agent and while I enjoy greatly what I do; it did not make me a better investor. You'll need about 3 deals a year to break even and about 20 deals a year before you know what you are doing.