All Forum Posts by: Derek Guyer

I'm a strong believer that the market works in cycles. These cycles are in different stages in different areas of the country and so in some locations, it's perfect to be flipping properties because the market is still strong and values are not falling apart like they are on the coasts. But, other areas are never going to be big boom areas and their prices will remain relatively low. As a result, cash flow will be key for investors who purchase there. Some cities will have great elements of both and so there will be great advantages for both types of buyers.

I'm no expert in the sub-prime scandals and will leave those questions to be answered by someone with a better feel for it.

Despite being a Realtor, I would highly suggest going to the seller themself. I find that most realtors are not as well educated as they should be and can many times interfere with the deal at pivotal moments.

This is especially true because if there's a realtor involved, the property is likely to be listed and available to anyone. In this situation, there's a good chance you'll be circumvented and lose the deal. I don't want to rip on my own kind, but this frequently is the truth.

If you're not direct to the seller, they're all likely to be going around you. Being direct to many sellers, I find buyers going around wholesalers all day long.

As for using a realtor, a lot of the advantages to using them depend on their knowledge and understanding of investment real estate. Most of us will tell you we know, but most of us definitely do not. Learn to ask key questions that will expose their lack of knowledge quickly.

If they look like a duck and sound like one, they're likely to crap like one too...pick someone who knows what in the heck they're talking about and can prove it through good solid information.

Good luck!

ianternet,

Give us some more details on your short and long term goals. I think this will help us to know what to share with you or where to start in telling you other options. There are tons of possibilities with notes, options, rentals, flipping, development, etc, but a lot of those options are dependent on your abilities, your interests, and your current financial position.

I'm specifically focused on the side of investment real estate that it seems you're steering away from, so I'm just trying to get more information about you and your goals to help some of those who work outside of those areas to help you get some answers to your questions.

Tell us what you're looking for and what you don't like about the two you mentioned.

Welcome, Kenneth. I'd have to agree with JW in that this site has been great for networking and I've made some pretty good contacts. Good luck and again, welcome to Biggerpockets.

MAD, welcome to the forum. I hear there are some great deal down in your area of the country these days. I look forward to seeing you around and hope you can do some good networking.

Welcome to Biggerpockets!

The problem is that as a birddog, you are the procuring cause of the sale. That's the specific job of a licensed agent and if you don't have one, you're in a dangerous position. As a licensed agent, I can sell real estate or birddog it, as well as do everything you can do as an investor, but I have the protection when selling a property as a birddog does.

I fought getting my license and didn't for over a year and now couldn't imagine not having one for some of the aspects of what I do and how I do it. It provides me with protection I wouldn't have otherwise.

Welcome to biggerpockets! This isn't the place to share your properties, but this is:

http://forums.biggerpockets.com/viewtopic.php?t=3626

Make sure you read the rules first and get involved before you post. This is a great place to network and share your deals with people, but make sure you get involved first.

Again, welcome to the forum!

You have to get a salespersons license and hold it for one year in Indiana, and I believe every other state, before you can get a brokers license. If you're going to birddog properties, as they were suggesting, and if your attorney advises you to go in this direction, then it's a necessary step in the direction of getting your brokers license.

According to what I've read in the law and my attorneys have told me, it's essential to have your RE license if you're going to birddog and stay out of trouble. This doesn't mean you're going to get into trouble if you don't have one, but you're taking a risk that is unnecessary.

I'm not sure what you mean with your question, but every property that you locate and sell runs through your broker and you are paid by him, because you are protected by him.

This doesn't mean that you can't purchase properties on your own, but the brokers license & insurance cover them and the agents who work for them when deals go down. If you're selling a home, it must be run through your broker. But, if you're buying it yourself, renting it out, wholesaling or anything else, then you shouldn't have to run your deals through them. Check with your local state laws on this, as I'm not an attorney, but that's my understanding of Indiana's state laws.

I'll repeat that I did not want to get my license at first and was irritated about having to do so. But, now I'm glad I went ahead and finished it up now after meeting with several attorneys.

You must become a licensed salesperson before you can become a broker. As a licensed salesperson, you work under a broker and their license. That is your protection.

If you're working with an agent and do not have a license, you'll have a little more cover for yourself to make it look less illegal, but, you're still doing the same thing as a broker, and would be better off getting the license and covering your butt. There's no point in taking a risk when you can cover yourself and your customers by getting your license.

I would highly suggest talking with a real estate attorney to ensure you cover yourself and avoid the problems that could come in working without one.