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Updated about 9 years ago on . Most recent reply

Account Closed
  • Investor
  • Sykesville, MD
5
Votes |
21
Posts

Real Estate License MD?

Account Closed
  • Investor
  • Sykesville, MD
Posted

I have listened to mostly all of the BP podcasts, and one thing keeps continually being brought up, "Get you real estate license". So I was thinking, why not, it can't hurt. However after investigating a little, it looks like to get a license in MD you have to be somehow associated with a agency. Unless I am mistaken. Has anyone here from Maryland gotten their license without being "associated"?

Most Popular Reply

Account Closed#1 BiggerPockets Exclusive PRO Area Contributor
  • Professional Auctioneer
  • Baltimore, MD
1,468
Votes |
1,857
Posts
Account Closed#1 BiggerPockets Exclusive PRO Area Contributor
  • Professional Auctioneer
  • Baltimore, MD
Replied

As an investor you should become an agent; you need to understand the culture of the general agency business. 

Some folks become agents because they are bored, they want to get out of the house, they want to meet people, they want to earn some extra money. *And some like me (about 40 years ago) became an agent to learn how to invest (that didn't work, I had to take outside courses (lots of them) to learn how to invest properly and ethically.

  •  Real estate agents for the most part are not investors, they don't understand what it takes to invest, they haven't taken the time to educate themselves (they are too busy with agency stuff, they do not understand alternative financing, many agents don't l like to work with investors (they see them as time wasters).  They are too busy serving clients and customers and trying to 1. protect themselves and their broker from being sued,  2.  trying to earn their next commission 3. busy taking continuing educations (required), attending office meetings, socializing in the office, playing office politics, sitting on floor duty.  Don't get me wrong, I am a broker and own a real estate and auction company.  I respect real estate agents and you should also. (having more fun as an investor with more free time and cash).
  • Agents work long and hard for small fees (the commission is split too many times) Investors make way more than agents more often.
  • Agents can be your best asset, make friends, be the first to look at their listings. Let them know that you will make offers on their properties.
  • Be kind to agents and generous, carry $50.00 bills with you, give an agent a fifty for his time, for all the expired listings he is sending you, buy lunch. These little things go a long way to cementing relationships.
  • Suggest you associate with a small real estate office, get to know the system, listen to the chatter of other agents, understand their goals (usually listing and selling and anger of other agents). 
  • Don't educate, don't show off your investing knowledge (you spent time and money educating yourself).  Agent sometimes will mistrust you if you chatter too much about your success and how smart you are when it comes to making money. Talk less and listen more.
  • You can act as a referring agent and receive a fee if you don't want to act as a full time agent.
  • Don't get involved into agency stuff (listing, selling, open houses, floor duty) this will only sap your time and energy from your real goal; making offers, making money, building your real estate empire and creating a giant net worth.
  • Understand their contracts, they are usually about 30 pages. Read and understand every clause and what that statement will do to harm your client or benefit your client and know what to include and exclude in the Realtor's contract of sale.
  • Agents often say, "I've got to write a contract". False!  Unless you are a lawyer or representing yourself, agents do not write contracts....... they fill in the blanks.
  • Study the business, get really personal with the MLS, search for Expired Listings, set up system where you follow certain listings, keep a journal of commercial listings, make it a habit to preview properties, learn your market, values and why an agent listed the property too high. If you are on a listing appointment NEVER tell your seller, "Let's list it higher, we can always come down!" No, list it at a price that will sell the listings. By listing too high, agents miss prospects who would have made an offer if the property were listed at the right price, at the price the seller wants. Don't miss that initial bounce when it comes on the market, list it right.
  • When reading a listing, don't miss the following, DOM (days on the market) this will give you a hint of potential motivation of the seller, look at how many times the price has changed (more motivation) always read the remarks, they will give you an indication of seller's motivation, look for key words; seller anxious, needs some work, owner financing, sold in as is condition, will consider buy like rent, option, agent bonus, low down payment....etc.

Real estate is a wonderful business, investing working with clients, marketing and making deals......... in my opinion being in real estate is a lot better than working for a living.

Charles Parrish

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