All Forum Posts by: Michael Scipione

Disclaimer: I’m NOT a real estate professional, and this is NOT professional advice. But could a potential approach look something like this?

1. Seller states that the outlets meet current code.

2. Buyer is encouraged to conduct inspections to confirm the property, including the electrical system, meets their expectations.

3. If an inspector finds the outlets aren’t up to code, the parties might negotiate a credit from the seller to address the issue, with any further repairs being the buyer’s responsibility.

Sobering...

Disclaimer: This post reflects my personal experience and opinions and should not be considered legal or professional advice.

Past or present Real Estate Agents: Tell me your story or observations practicing as a Real Estate Agent in California versus Arizona starting out.

Get a pot of coffee—this is going to be a long rant/question. I know, the trolls will have a field day, so I’ll grab my shield.

In 2017, I took and passed my California real estate pre-license classroom training in:

- Real Estate Principles

- Real Estate Practice

- Real Estate Finance

However, I didn’t take the state test to get licensed. IMHO, I missed the best opportunity to get in at the right time. Why didn’t I follow through? Fear of going broke trying to get into the business. Instead, I found a J.O.B. to help pay bills. The real estate agent failure rate is around 87%.

The need to build income quickly is on my mind. Recently, I viewed Ken's video links below. Is getting your real estate license and going into property management still a quick path to income? I need to budget carefully. When I searched for property management jobs, my six years as HOA president—running around, talking to homeowners, finding vendors, negotiating bids, supervising repairs, liaising with local politicians, managing maintenance budgets, handling vandalism, writing letters, posting notices, calling meetings, walking the property, and speaking three languages—didn't seem to matter.

Even a real estate license isn’t often required for property management jobs. Instead, I’ve noticed requirements like:

- LIHTC

- Certified Apartment Manager

- Fair Housing Certification

- 5+ years of leasing experience

- Certified Community Manager

I know that fair housing is covered in the classroom portion. But is Ken right when he says you can get into property management with a real estate license? I’ve heard mixed information about the requirements and would love insight from those with firsthand experience. Here’s the video.

When I attended a few REI club meetings, I spoke with agents directly and asked why they seemed stressed out. They told me deals often fall apart, and since agents only earn a commission if they close a deal, this uncertainty creates pressure. The goal is to bring the seller a buyer who can perform, and in many cases, investors seemed to be the best—sometimes the only—option when other buyers couldn't meet the terms.

California’s New Laws in 2024

SB 1495 requires California real estate schools to update their Practice course to include:

1. A component on implicit bias

2. A component on federal and state fair housing laws

If your California school does not include these updates, you won’t qualify to take the real estate state exam.

After speaking with my former real estate instructor, I’ll need to start over from scratch to get licensed. That may happen in either California or Arizona.

I’m a California native but have visited Arizona during both the cooler and hotter months. Arizona gets extremely hot, and daily routines tend to shift. Errands are usually run early to avoid the heat, and I assume the same applies to showings. With the new buyer agreement ruling, virtual showings might become more common. When I visited Arizona in 2015, I noticed significant construction projects, which have continued almost ten years later.

Past or present Real Estate Agents: Tell me your story or observations practicing as a Real Estate Agent in California versus Arizona starting out.

Thanks for hearing me rant. Chime in with your thoughts and experiences.

Don, great post. Given where we are in the market, whats your opinion of newbies micro investing into REIT's or companies like Groundfloor? There seems to be this focus on low hanging fruit, motivated sellers, flips and rentals. However certain seasoned investors later in life prefer to outsource the work and reap the rewards. Experience is a great teacher, but is there a safer path?

 Loan to own.