Hello BP!
I have to say, it has definitely been an interesting, but productive month. I can definitely realized that I must work on asking better questions. I found myself, too often, not asking questions correctly the first time and either getting answers I am not looking for, or confusing the person I am asking. This is definitely an important skill and is vital to my networking experience. So without further delay, here is my October update.
If you checked my previous post (which if your reading this I am sure you did) I pasted my RE exam on 10/9 and received my 45 day sponsor card. I took the time to research sponsoring brokers in my area, both commercial and independent and scheduled interviews with each. I order to narrow down my search, I took the following steps.
- 1.Go to realtor.com
- 2.Select Find Realtors at the top of the page
- 3.Enter your City and Select Advanced Search, and select Companies
- 4.Select companies and google them, or call and ask questions
- Note. You can also select Advanced on the left side toolbar and select “With Profile Photo”.
- This helped me narrow down my search a bit. Hope this helps!
On 10/12, I interviewed with the sponsoring broker (Broker 1) where my 2 Saturday RE classes took place. I was very honest with what I wanted to do with my RE license, and made it very clear that I have no interest in being a full-time agent. I explained to him that I may only do one or two deals a year, and will probably help a friend or family member find or sell a home from time to time. He understood and we had a great conversation. He even took the time to show my a few things on the MLS. We also discussed his time as an investor and he really showed an interest in what I am trying to accomplish.
On 10/13, I interviewed broker 2. This was a short exchange. I filled out the online application, and short received an Email asking me to; Bring my resume, write a brief paragraph as to why I am interested in selling properties, and also fill out a list with 100 people who may be interested in buying property. (Yeah… No…) I immediately replied to the email. I asked if they had part-time agents on staff, and briefly explained what I was looking to do with my license. The gentleman replied back letting me know that they are only interested in Full-time agents, and I thanked him for his time and consideration.
On 10/14, I did a phone interview with broker 3. Like broker 2, I was bombarded with a 15min introduction as to why I would be a great salesman if I joined. After my 5 min explanation of what I am using my license for, the nice lady kindly told me that they are only looking for full-time salesman at this time.
On 10/15, I interviewed with Broker 4 and later Broker 5. The interesting thing about broker 4 was the approach. The conversation didn’t start with a pitch, the recruiting manager simply asked, “How can we help you in your business?” Interested at this point, I explained why I am interested in real estate, and why I took the step to get my license in the first place. He listened and recommended me to a website that he said would be perfect for a new investor like me. That site was, BiggerPockets.com (Say what!?!). I explained to him that I currently use the site and BP is the reason why I made it this far. He told me that he is also a member, and also the owner/sponsoring broker is a member of BP and an active investor who has a goal of closing a deal every quarter! (Pinch me, I’m dreaming) I had a brief, but great conversation with the sponsoring broker who gave me some great advice, and welcomed me to contact him to talk RE.
Unfortunately broker 5 had a tough act to follow. I sat down with the sponsoring broker and things started off great. She asked what I am trying to accomplish as a licensed agent, and I explained to her what I am trying to accomplish. I am only looking to close deals for myself primarily. I am interested in using the MLS to find, negotiate, and close my own purchases to hold and rent for cash flow. I am not interested in quitting my full-time job I currently have, as when I do leave, it will be to live off of my cash flow and spend my time and travel with my wife and future kids. I do not have an interest in becoming a full time agent. She understood and thought it was a great idea for me to be interested in investing and she stated that she had quite a few "flippers" on her roster. (Wait, what?) She told me that now is a great time to buy low and sell high, and I should also look into spec building. She then went into explain how I should build a team of assistants to bring me leads, and sell my properties, etc. Somehow the conversation turned into a pitch/pep talk to become a full-time agent. I checked out after she made if painfully clear that she did not listen to a word I said.
Before making my final decision, I cold called an agent with broker 4 to see how their current experience was with them. I did it off of impulse, and was pleasantly surprised that I did not get hung up on. (Still embarrassed about this) In fact, he was very nice and gave me, what seemed to be, his honest opinion.
My mind was made up. I collected all of the materials needed by IDFPR and on 10/20 joined broker 4. Broker 4 is a 100% commission, independent brokerage. The charge 49.00 per month, 150.00 per year for EMO and 299.00 or 10% (whichever is lower than the commission) on every closed transaction. This works out better for me as there are no other fees besides joining the Realtors Association (1600.00 1st year fee due all upfront. Then 1000.00 per year than can be broken down) I signed all the papers and received access to ZIllow's rental MLS. I have not paid to join the MLS yet, as I need a few weeks to have the funds, but that will change soon.
On 10/21, I attended the Chicago Meet up, Hosted by Brie Schmidt and I was great. I got the chance to briefly speak with Wendell De Guzman, as well as some other great experienced investors in the Chicago area. I also spoke with Brie and received some great advice and ideas. I always come away from this meet up with something positive, and if you have not yet attended one, you have no idea what your missing!
On 10/23, I paid a visit to the two credit unions that I am apart of to inquire about getting a HELOC on the home my wife and I purchased last year in august from a short sale. If everything goes well, I will have access to 30-50k (depending on the appraisal) to help fund my first purchase. I will keep everyone posted on the progress.
I spent 10/24 to 10/28 (today) looking for a property management company that will manage my rent ready properties, and sort of guide me in the right direction when it comes to farm areas. On 10/27 during my 2nd play through of the BP podcast, I came across show 72, and later realized that I should reach out to Mr. Mark Ainley. Without a second thought, I did and he responded quicker than I expected, it was great! We met this morning 10/28 and had an awesome hour long conversation. I am happy to say that I may not have walked away with a PM Service, but I left with something far more valuable. I have potentially gained a mentor, and a good friend, and I am extremely happy I took the step to reach out. Thank you @Joshua Dorkin and @Brandon Turner and everyone on BP!
Thanks a lot for sticking with me through yet another long boring newbie post. Either way, other new investors will have motivation as to "what to do", or "what not to do". I will continue to post monthly updates leading up to my first deal. My next step is to continue looking for potential PM's, closing on my HELOC, and getting searching more areas for good deals.
Special thanks to, @Brie Schmidt @Mark Ainley @Wendell De Guzman, @Ramon Jenkins and everyone who gave me advice and guidance thus far!
