Richmond, TX · Member since 2016 · 18 posts · 3 votes
Hello,
My name is Sue, and I'm a real estateaholic. Just kidding. I'm planning to flip residential properties in my area; I hope to purchase my first with the purpose of flipping soon. I will also be obtaining my real estate license very soon; I just need to get my insurance set up and finish the broker's paperwork. I'm curious if there are many real estate investors who do flips who are agents as well. I can see positives and negatives to both sides.
I'm an addict too as a confession! Welcome to BP. My wife just got her lisence recently and we're almost finished planning our real estate business. We will be doing buy rehab and hold to start though.
I definetely can see advantages being an agent as you have great networking opportunities for leads to keep as your first and also have an income in the same industry. Just having HAR realtor access alone is great for research and comps. What could be the negatives?
I'm really interested in Ft. Bend County as well though I live near City Center and not as familiar. What are your thoughts on that market for rentals? What do you think of Rosenburg for rentals?
Some of the negatives for being an agent as well as investor are the costs involved in being an agent, and your hands are very tied by the regulations for a licensee. All the deals have to go through your broker, you have to pay broker fees, extra insurance, etc. You are not allowed to say a lot of things (it could be construed as legal advice), so you have to be very careful what you say. There are a lot of regulations constraining licensees. I feel somewhat bogged down in constraints and fees.
I think Fort Bend is a great area for rentals, including Rosenburg. I think this is a great time to purchase properties in the county for rental. Rosenburg makes sense, because many of the houses are cheaper to buy than in Sugar Land and Richmond; so, you could probably generate cash flow from rentals with less of an investment.
I have one rental in Richmond, and getting ready to close on another within next three months. I live in Sugar Land and personally feel that Richmond has better growth potential. There are many developments along the Grand Parkway where you can get good deals and the entire area is exploding with new growth. It is also still cheaper and newer compared to Sugar Land and Katy. I would stick with Richmond over Rosenberg anytime, just my 2c.
Thanks for the input @Sue Orr and @Rafiq Merchant! Sue, would it be possible for you to connect with other agents who are investors to see how they navigate all the restrictions? I know Sharon Tzib is well known on BP for Houston.
My wife is an agent and we live in Sugar Land. We began building a portfolio of buy & holds beginning in 2012. We have focused solely on Ft. Bend, thus far. I would agree with Rafiq that 99 has a lot of growth potential, but I wouldn't turn my back entirely on Rosenberg. Economically, they have a number of business developments in the pipeline that would appear to lend themselves to renters. Richmond has been good for us. We have also tried Stafford and Sugar Land (the only city we've experienced that permits rentals). Our first in Rosenberg was 1 year old when acquired, but we leased in under 30 days. Pick the right location & tenants and alot of the "concerns" about Rosenberg can be allayed. Best of luck to you and can't wait to hear about your experiences.
For me, the benefits have far outweighed any potential negatives - "You have to be careful what you say" If you feel that you are on the verge of saying things that may be viewed as legal advice, you may be talking too much - Realistically, how often will a situation like this come up in a fix and flip scenario? You may be constrained a bit if you are trying to market directly to sellers but frankly, these constraints are not that restrictive - you just need to be upfront and honest about your license to prospective sellers - as for your broker fees, wouldn't you pay substantially more to buy and sell property if you are also paying an agent's commission? If you are concerned about the licensing fees, (a few thousand dollars) are you really ready to buy and rehab property? The rehab alone typically costs $20,000 +
I'm not an agent yet! and i say yet because I do plan on going for my license next year.
however i do work with an agent who is also an investor as a matter of fact i just wholesaled a property to him last week that he will be rehabbing, and this week he helped me with paperwork on 2 Properties that we (my partner and I) just closed on yesterday. and from talking to him and being around him the pro's hugely outweigh the con's.
I work in the SugarLand town center, let me know if you would like to meet up for lunch or after work one of these days and we can chat a bit more. or if you have any questions.
That is good to hear! It makes me feel better about my decision. Congratulations on your 2 closings yesterday. Awesome!
Yes, let's meet in the Sugar Land Town Center when it works with our schedules. I go there frequently; in fact, I was just there yesterday evening. I will send you a private message so we can work on scheduling a meeting. Thank you for your post!