Investors who are also Realtors

but seems that most investors may agree that it could be a hindrance. It really is a personal choice though, as it can be an asset. Most of the time, you are held to higher standards and of course have to disclose that you are a realtor. I know that one of my friends is an investor and also a realtor and he recommends his students get a liscense, but this is because of the investment strategy he uses of cooperative lease options. In this scenario one has to be careful as they can be seen as brokering without a liscence if they show their own property, or say they can find a buyer or seller. So it really depends on what you want and what you want to do.

It is kind of like a double edged sword from what I experienced. As a Realtor, you really need to market yourself to get your name and face out there. You do the same thing as an investor. I know that you have to be very careful buying FSBO's or even wholesaling because your Broker could accuse you of stealing business from the office if you can't prove where you procured that seller.

Ironically back in 2002 I first decided to get my real estate license because I was tired of dealing with lazy and incompetent Realtors. I had just lost out on 3 deals because my Realtors (3 different ones) either weren't aggressive enough or just didn't care. I figured that I could get the inside track on new listings and broker my own deals. I would make a commission that I could put towards closing costs. Throughout the next 4 years, the housing bubble blew up and I was making money hand over fist. When things slowed down, I was looking to get back to investing and as I mentioned above, I had a few hurdles.

Thanks for your input. I hope I can get the opinion of some Realtors or former Realtors here. The next pre-licensing class starts January 5th and I need to make a decision whether I am going to sign up or not.

In that as a realtor you have to be careful not to step on other realtors or brokers toes as to where you got your deals. Makes it seem hard to me, if you are also actively working as a realtor. I know there used to be a few active realtors on here, but haven't seen them for a while. Best wishes. Maybe ask around at the rei meetings if you have time, or other realtors if they know who is a realtor and investor.

I just thought of another point. What happens if a seller gets upset thinking that they were taken advantage of because they were desperate to sell? For example, six months later they hear that a similar house in their neighborhood sold for full market price. Once the pressure is off and time has passed, they may think to themselves that they could have made more money if only they waited. What happens if they file a grievance with the local Board of Realtors stating that the Realtor was being unethical because he/she knew the market value of the property and "low-balled" the seller? We all know that a contract is legal and binding when two parties of legal age and sound mind agree to terms. However, since we live in such a litigious society, I'm sure there would be a lawyer somewhere that would argue that the Realtor used his professional capacity to take advantage of the seller. Unlike our judicial system which assumes innocent until proven guilty, when it comes to ethics violations, I have seen the opposite. I have seen friends and co-workers have to prove that all parties were treated fairly for things as frivolous as having to leave a bedroom set in the house at settlement after it was clearly stated in the contract or because they thought they thought when they listed the property they heard the Realtor say they they could sell the house for $5,000 more than they actually got an offer for. None of this is pushing me away from investing or potentially getting my RE License. I just was really hoping to hear from someone who has experienced these things or someone to debunk my concerns.

Good point! Someone may be able to debunk, but really like you said with lawyers at every turn, one could always be sued.

Walter, I'm sure that Donna Doo is an agent in Washington state. Although she has helped coworkers and friends get properties bought and sold, I believe she has her license so that she can run a property management company, as required by state law. Although you were very successful as an agent, you also saw first hand some of the problems associated with being licensed and acting on your own behalf. You also were able to experience the ups and downs of the market first hand. Personally, I would not have a real estate agent license for many of reasons you have already mentioned.

There was a training video many months ago in which Dean was interviewing Matt and Dean made a comment that Matt had made money as the market went up and also on the way down. Two comments about that. First is the fact that all real estate is local. You're probably very aware of this. We need to pay attention to the trends that are happening in our local market. Second, from your posts, it seems you are very aware of the different approaches that one takes when being an agent or being an investor. Because of your experience with both, I'm looking forward to seeing you posting your successes here on this forum.

Patrick

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Be Your very best always-Judy Williamson

Walter, I'm sure that Donna Doo is an agent in Washington state. Although she has helped coworkers and friends get properties bought and sold, I believe she has her license so that she can run a property management company, as required by state law. Although you were very successful as an agent, you also saw first hand some of the problems associated with being licensed and acting on your own behalf. You also were able to experience the ups and downs of the market first hand. Personally, I would not have a real estate agent license for many of reasons you have already mentioned.

There was a training video many months ago in which Dean was interviewing Matt and Dean made a comment that Matt had made money as the market went up and also on the way down. Two comments about that. First is the fact that all real estate is local. You're probably very aware of this. We need to pay attention to the trends that are happening in our local market. Second, from your posts, it seems you are very aware of the different approaches that one takes when being an agent or being an investor. Because of your experience with both, I'm looking forward to seeing you posting your successes here on this forum.

Patrick

_________________

Be Your very best always-Judy Williamson

Walter, I'm sure that Donna Doo is an agent in Washington state. Although she has helped coworkers and friends get properties bought and sold, I believe she has her license so that she can run a property management company, as required by state law. Although you were very successful as an agent, you also saw first hand some of the problems associated with being licensed and acting on your own behalf. You also were able to experience the ups and downs of the market first hand. Personally, I would not have a real estate agent license for many of reasons you have already mentioned.

There was a training video many months ago in which Dean was interviewing Matt and Dean made a comment that Matt had made money as the market went up and also on the way down. Two comments about that. First is the fact that all real estate is local. You're probably very aware of this. We need to pay attention to the trends that are happening in our local market. Second, from your posts, it seems you are very aware of the different approaches that one takes when being an agent or being an investor. Because of your experience with both, I'm looking forward to seeing you posting your successes here on this forum.

Patrick

_________________

Be Your very best always-Judy Williamson

Walter, I'm sure that Donna Doo is an agent in Washington state. Although she has helped coworkers and friends get properties bought and sold, I believe she has her license so that she can run a property management company, as required by state law. Although you were very successful as an agent, you also saw first hand some of the problems associated with being licensed and acting on your own behalf. You also were able to experience the ups and downs of the market first hand. Personally, I would not have a real estate agent license for many of reasons you have already mentioned.

There was a training video many months ago in which Dean was interviewing Matt and Dean made a comment that Matt had made money as the market went up and also on the way down. Two comments about that. First is the fact that all real estate is local. You're probably very aware of this. We need to pay attention to the trends that are happening in our local market. Second, from your posts, it seems you are very aware of the different approaches that one takes when being an agent or being an investor. Because of your experience with both, I'm looking forward to seeing you posting your successes here on this forum.

Patrick

_________________

Be Your very best always-Judy Williamson

Thank you, Thank you. Thank you and Thank you for your 4 posts. LOL I do know the pros and cons and have experienced the ups and down of having a real estate license in the market in which you are investing. I will see if I can touch base with Donna Doo and get her opinion. In the mean while, if there are any other licensed Realtors who are investing, please give me your feedback.

Hi Walt,
there are draw backs to being a licensed realtor for sure and someone could, as you said sue you. But that could happen anyway as an investor...

For me what is working best is that I have a PA (personal assistant) and she runs all my comps, she writes ans submits all my offers and other thing of coarse. I know what is back on the market, price decrease and new to the market. I can find out so much stuff! And I have my husband that really works the fsbo more than I do.
But locally I do not have to find a realtor. Now most of the local realtor are not crazy about me because I make such low offers.
You are right about the disclosure. you have too disclose that you are licensed and building a good, friendly relationship is key. Dan and I usually go meet the folks together, disclosing right then, that I am a realtor. And I let him handle it from there. I bring comps with me for their review.
All things you mention earlier things that you can not do ,as you mentioned, but overall I find it very useful. I hope this helps