All Forum Posts by: Account Closed

Hi everyone, I'm a licensed agent in my state but I see a house in another state that I am interested in buying. One appeal to investing as a licensed agent is the opportunity to leave the commission within the transaction as either part of the DP or placed toward closing costs. However this seems to only work if you're buying in the state you're licensed in. In this line of thinking the only way to make this work is getting additional licenses by reciprocity in states you want to invest in which is a lot of extra work and hassle (and money). But, for buying out of state as an agent....what about working with the seller's agent to arrange a referral for finding a buyer (ie, myself) and setting the referral of comparable amount to the buyer agent commission (3%). Is there a way this could still be left in the transaction? Would it get the job done? I'd value any thoughts on whether this is plausible. Thanks!

The skills requisite for a successful career in real estate are largely acquired outside the classroom:  People skills. Value discernment. Sound judgment. Etc.

There is a growing awareness that MBA degrees are not worth the cost, hence why a lot of business schools in the US are scrambling to change the way they market them (see the recent Washington Post article on this). An MBA program is a scaled up version of an undergrad business program...just way more expensive and time consuming.

Sure, you could do it and even land a job at a place like Marcus & Millichap (which is no means to successful investing), but during your years of working on pointless accounting projects and working with groups of non-English speaking peers who will frustrate the mess out of you, you’ll see investors pass on by acquiring properties and building wealth while developing and expanding their professional networks.

I wouldn’t invest in an expensive program like an MBA any more than I wouldn't invest in a $60-80k course that promised to teach no money down investing.  Maybe instead, you could get a real estate license and develop a unique niche (I got mine and serve as a referral agent on the side of my main w-2 job - good money for a fraction of the work). There are so many creative ways to make a path for yourself. The MBA is not one of them (IMO) - it was simply designed to be a cash cow for colleges and universities.

Thanks Russell. That's wild about the mayor, though I'm not surprised.

I'm licensed as a Virginia agent and I'd like to get my DC license via reciprocity. Anyone know the most effective ways to prep for the required DC real estate law exam? I'm not seeing any helpful materials online or highly rated books available. - Thanks!

You may accumulate a stockpile of cash the next two years, but there's a cost to waiting (this isn't often addressed). If you wait for the next dip you're risking putting yourself in a situation where you'll be seeking leverage while banks are clamming up. You'll also have inflation exposure. Plus, if you're a buy and hold person, what difference will it make if you buy in order to hold for 20-30 years - 30 years from now it will be totally irrelevant whether you bought in 2018 or 2020. The major cost I'd be more worried about involves the missed opportunity to build wealth and secure a well performing asset with fixed financing.

Any reason for the focus on California? That $100k can work much better for you elsewhere in the country and be at less risk in the event of a market correction.

Agree with @Jeff Filali. There’s no reason to pay so much when it’s out there for free. With the amount you’d pay for one of these seminars, you could already have bought a house and begun your investing career.

I went to a Than Merrill intro seminar once just to see what it’s like. The setup is very suspect. They design the layout so that once you’re in it is very hard to exit. Several layers of people block you from leaving and they lay their pitch out hard.

The man speaking wasn’t Than, but some old salesy guy who look like he made some bad decisions in life. It was sad seeing people respond to his classic marketing calls to action....people would sensationally jump up with a handful of cash (probably all they had).

Between the plethora of podcasts, blogs, books, etc, there’s no reason to ever sign up for one of these. Way better to build your portfolio and then think about how to join a reputable mastermind group who can challenge you to expand your potential. 

Thanks all. The concern on my end is the heavily tenant friendly ethos of DC. I’ve heard people not offering cash and there is then a refusal to leave followed by months of litigation. If I proceed with the acquisition, I’d like to avoid a lengthy dispute with a disgruntled tenant who has the city on their side. 

What about hiring a couple of big dudes to toss out their belongings if they refuse to leave? Just kidding... (sort of).

Not yet - this is for a potential deal. 4-plex.  Current tenants living in units that are currently getting ~2500 a month on month to month lease that haven’t been updated in years. The current approved rent for each units is $5500. Lots of incentive for them to move out asap

God to know - I had thought some work via cell signal and not a WiFi signal. That changes things. Thanks for sharing