Should I get my real estate license after yesterday

The benefit is having first hand access to MLS comps, easy of access to properties, becoming a HUD Broker and having the ability to submit your own offers to HUD, gaining a commission on your own deals, and much more.

Downside is that you must disclose you are an agent/broker (at least in NY) in person, print, etc. Although that hasn't posed a problem for me, some buyers and sellers can be a little suspicious of your because you are in the industry.

Kate, I am a licensed RE Agent in Arizona. There are consideable costs involved in getting and maintaining a license. I believe most states require that you attend an approved school. There is a charge to take the exam. There is a fee to maintain the license with the state. There is a fee for renewal classes every two years. To be a member of MLS, you need to be a member of a local chapter of the Board of Realtors, also the state chapter and the national chapter, each with an annual fee. There is an annual fee for your lock box key. You must also work under a broker who will probably charge you a monthly fee, or take a portion of your commission, or both. You will also need E&O insurance(Errors and Omissions). My annual cost is about $1500 per year. I have never talked to a broker who would not allow an agent to be an investor. There are many advantages to having a license. You can add your commission to your profit line. You have access to the MLS. You can view properties at YOUR convieniance. You do not need to wholesale, you can find properties for your buyers and collect a commission instead of a fee, without needing to tie up the property in your name(no proof of funds, in your name, required).There are probably some other things I am forgetting, but I hope this helps.

Al

Thank you for your responses.

Would you say the extra benefits would outweigh the costs even if I intended to mostly use it to "show" others deals that I am not interested in for myself and are not easy to assign?

Plus, I suppose I could get a few listings here and there.

I was a little surprised at the E&O cost but maybe it is less in Ohio. Any Ohio Realtors on here?

Thanks again!

I called my local MLS and asked them if there was anyway I could have access to the MLS. they sent me all the paperwork to fill out. It will cost me $500 to get started them I will have to pay the monthly fee for my MLS access which is around $25.00 a month.

Check with your local MLS and get the paperwork sent to you so you can gain access to the MLS.

They siad the only thing I cannot look at is exclusive listings. All most investors want look at anyway if comps and a history on the propertys.

Thanks for the suggestion!

Is the MLS different than what I would view on realtor.com or any other of the brokers web pages. It seems like you can gather most of the information from those pages, combined with the local countties webpage for tax values, and zillow for comps. Comps/recent sale are not always easy to find that are up to date.

I guess my biggest issue is being able to make some money on these bank owned properties that I don't want. I am finding such steals but how can I profit by turning others onto them? I guess that is what bird dogging is, right?

Thanks for the help!

E&O insurance is only about $300 per year. My total expences for a year are about $1500. Sorry for the misunderstanding. For me, I think the benifits are worth it. The best benifit is being able to look at property whenever you want without having to coordinate with an agent. Adding your commission to the bottom line is pretty nice also. Let me know what you decide.

Al

Assigning contracts is not difficult at all. I have done several of them in the last 2 months. The only reason some people think they are hard to do is because the information out there on how to do them is completely wrong. I have cleared up most of the confusion on how to do them easily on this website. I just helped a young kid from california who makes less than $21,000 per year and had less than perfect credit assign a deal in less than one week after I showed him how to do it!

Don't give up. It is easier than you think.

Thanks CBR and I'm sure I read your post on that but just to clarify you are including REO's in with that?

well from the sounds of it, having your license has pros and cons but I think if it is under a few thousand dollars a year, then it could totally be worth it. Especially for wholesaling. If I had the MLS right there in front of me every day, I would do a heck of a lot more deals (at least put out more offers) than I would dealing with another realtor. And also being able to write up your own offers for Bank Owned properties, would be awesome. I just gotta get out there and see how it all works out for myself!!!!

Kai

I am a Realtor in TN and armed with information between what Dean has given in his book and what I already know. I moved here from MD and TN is a sleeper state. The market hasn't hit this area quite as hard as some of the others. If you had the financing you could be swimming in money within a year. You can get property here for little or nothing. But the HUD listings if marketed to the write people could also be great but again there are pro's and Con's to everything.

I agree with the fees. My yearly cost comes to about the same. The other plus side is when you attend REI meetings and the ones I have been to tend to lean towards the realtors for finding them deals. Pretty much like what Lovebargains wrote.

I am still struggling with this decision.

If my goal is to essentially work for others investors or just regular home buyers/sellers (since after I close on this next deal, I do not want to personally hold any more real estate), it just seems logical that if the cost of the license is not an issue, the additional resources I would have becoming a realtor would make it a little easier.

The biggest dissadvantge I see is that in many instances one could make a lot more money wholesaling (assigning or double closing) since there is no limit on the percentage one can charge whereas a RE agent typically gets 3-6% and then they have to split it with their broker. What else?

I would to hear from some heavy hitters on this.

I realize most realtors are not of the investing mindset like we are but it seems like a realtor with an investor mind would be very well equipped.

Has anyone (wholesaling) ever lost an end buyer to a Realtor? I just don't understand why more investors would not just use realtors if it would save them big chunks except that like I just said..most realtors don't have the investor mindset..UGH!! Please share your opinions..

You can still wholesale deals as a Realtor. I do not pay my Broker anything if I do not use the Brokerage in the deal. As a licensed Agent, I must disclose to everyone involved, in any Real Estate deal, that I am licensed. Many sellers are more comfortable dealing with a licensed buyer, or a buyer represented by a licensed Agent. Just one or two deals with a commission would cover the cost of being licensed. Cutting your seller commission in half (when you sell your own proiperties)is also a nice benifit. Listing signs, with your name on them, generate buyer calls. Sold signs with your name attract sellers. Get the word out that you work with investors, and you open a window to a lot of buisness.

Al

hi I'm also licensed in NYS and I wanted to know if I have to pay my broker from my deals that I originate from my marketing and deals that I do with fsbo's. I hear alot of stuff from different agents/brokers but today me broker told me that I was supposed let her know what I'm doing with my investing and she's supposed to be compensated on the deals that I do including any deals outside of NYS!
I'd appreciate your input so I can better understand and go about my businesses the right way
thanks
Mike

I don't know what the laws are in NY, but in Arizona, I don't have to compensate my Broker for any deal that does not go thru the brokerage. I have purchased property at auctions, and through Agents in other states, that my Broker had no part of. When I represent myself as an agent, my Broker gets his cut, but I also get my commission. Whenever I do any Real Estate transaction, I must notify all parties of the transaction that I am a licensed Real Estate Agent.

Al