Author Topic: DIY Real estate agent  (Read 1078 times)

coldsteel333

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DIY Real estate agent
« on: March 04, 2019, 07:21:43 PM »
Has anyone here got licensed to do real estate to be able to broker the purschsee and sale of their investment properties. Is it worth it?

dave__

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Re: DIY Real estate agent
« Reply #1 on: March 05, 2019, 09:13:19 AM »
I came across this company in a Hacker News comment: https://savvylane.com/fsbo-flat-fee-mls.html

They appear to offer very low, flat fee services to help out with FSBO if you don't want to pursue a license yourself.

JoJoP

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Re: DIY Real estate agent
« Reply #2 on: March 05, 2019, 09:22:42 AM »
I did, and yes, it was worth it.  Many times over! You'll know the market better and be able to see the inventory in real time, as it gets listed.  You'll still have to pay your broker/office, but if you do even one or two transactions a year, you will come out far ahead.  Search out a brokerage that offers good support, but doesn't charge a high percentage to newcomers. 

Jon Bon

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Re: DIY Real estate agent
« Reply #3 on: March 05, 2019, 11:10:09 AM »
I did, and yes, it was worth it.  Many times over! You'll know the market better and be able to see the inventory in real time, as it gets listed.  You'll still have to pay your broker/office, but if you do even one or two transactions a year, you will come out far ahead.  Search out a brokerage that offers good support, but doesn't charge a high percentage to newcomers.

PTF

Tell us more.

What advantages does it give you that you don't already have if your looking at the MLS daily, and or have an alert set up with a realtor for a particular area/price/etc?


CarolinaGirl

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Re: DIY Real estate agent
« Reply #4 on: March 05, 2019, 01:59:47 PM »
I did.  :) 

6 benefits that quickly come to mind are:

1) You can see a property as soon as it hits the market without having to wait on someone elseís (a realtor) schedule
2) If you submit an offer you know that what is conveyed is exactly what you want conveyed.  Quite a few agents that Iíve run into arenít entirely ethical and let information slip that can take away some of your leverage.  Sometimes its just a slip of the tongue with no malice intended. 
3) Sometimes you walk in to a property and just know you are not interested.  So no guilt in dragging someone else out for a 5-10 minute showing
4) You learn all the inís and outís of the paperwork and legalities of real estate via the training
5) Continuing Ed classes are great places for networking and attaining the pulse of the market from other realtors as well as leads on properties that havenít hit the market yet
6) You get paid to buy a property!  (Buyerís commission)  You save yourself the 3% sellers commission (minus the brokerage split).
« Last Edit: March 05, 2019, 02:01:22 PM by CarolinaGirl »

JoJoP

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Re: DIY Real estate agent
« Reply #5 on: March 05, 2019, 09:41:26 PM »
I did, and yes, it was worth it.  Many times over! You'll know the market better and be able to see the inventory in real time, as it gets listed.  You'll still have to pay your broker/office, but if you do even one or two transactions a year, you will come out far ahead.  Search out a brokerage that offers good support, but doesn't charge a high percentage to newcomers.

PTF

Tell us more.

What advantages does it give you that you don't already have if your looking at the MLS daily, and or have an alert set up with a realtor for a particular area/price/etc?

I agree 100% with CarolinaGirl. 

In short, your knowledge base is higher.  Jon Bon, it seems like you're very involved with real estate as your path to wealth.  You've got nothing to lose by getting your real estate license.  If that's your chosen path, getting your license is a logical next step.     I'd estimate that my RE license has saved us over 100K in commissions alone on properties that we bought or sold for ourselves. 

Then I'd say again: You save yourself the agent's commission portion, for starters.
 You are involved in the industry as a professional and are exposed to more information (office meetings, local caravans, upcoming news, etc). 
You have access to the contracts and forms.  They are written by top real estate lawyers and there is a form for just about anything that anyone has ever thought of.  I use these regularly for my property management, also.  In my state, you can the attorney and ask a question (it usually involves a long wait or call back time frame).  That helps to CYA legally. 
Your office or regional area will usually host scads of educational opportunities.  Many are free (office sponsored, usually) or count for continuing education. 
Don't underestimate the old boy network... you'll have a better chance of getting your offer accepted if you actually know the person you're sending it to.  That mattered more in a hot market, but dealing with people who know and trust you will give you an edge. 

I got my license primarily to buy and sell our own properties. That went well.   I built a RE business along the way, and now I'm winding up that business and may even go inactive.  I'm not buying anything else for us and that was the main goal. 

sammybiker

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Re: DIY Real estate agent
« Reply #6 on: March 06, 2019, 04:51:47 AM »
@JoJoP  Sorry if I missed it but did you pick up quite a bit of side work/buying/selling for friends and family? 

Thanks for the solid info.  I've gone back and forth with pursing this for all of the reasons you mentioned. 

coldsteel333

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Re: DIY Real estate agent
« Reply #7 on: March 06, 2019, 05:18:29 AM »
 I understand that you have to have a Brokeridge sponsor you. If Iím going to be maintaining my 9-to-5 job and only pursuing maybe a few deals per year is that something that the brokerage firm would even entertain?

JoJoP

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Re: DIY Real estate agent
« Reply #8 on: March 06, 2019, 09:13:31 AM »
@sammybiker, yes, I did end up working nearly full time for a couple of years, but the work is very competitive. The paychecks are very large, though, and that keeps the motivation high.  Friends and family tend to be tougher to work than strangers or referrals, but did account for a good portion of my business in the beginning.  Then I put some effort into marketing and developed a client base that way. 

 In my area, many people are semi-retired but still have their license.   It's a nice boost to a retirement income and you can choose to work hard, or not.  I built a retirement around my rentals, so as those got paid off one by one and rents crept up, increasing my return, the need to actually work in the field has dwindled.  FI, at it's best!  I'm far happier working for myself as a property manager, not a real estate sales agent.  I don't need the money, so why do it if I don't want to?

@coldsteel333 , yes an agent must have a broker in my state.  I believe that that's the case nationwide.  But that's a good thing, as they will guide you, train you and CYA if something goes south.  There are brokerages that charge varying percentages and if you're not going to be super active, you'd want to "hang your license" somewhere that doesn't cost you monthly or have required production targets.  Those places are out there, just look, call, go meet with brokers.  I think it's still worth it if you're buying and selling for just yourself or as a part time gig. 

Some, like Exit Realty, Keller Williams, Homesmart, and private brokers have a business model that takes less of split. A google search just told me that Exit takes a 70/30 split.  For a new agent, that would be a great split.  Others, like Coldwell Banker, Remax and Century 21, charge more in general (in my area, anyway) and want an aggressive sales force.  Those are just broad sweep generalizations and your miles may vary.  My split is 90%/10% now.  When I started, it was 50/50.  It does cost $$$ to stay active, you've got to pay dues, pay for MLS access, insurance, etc. 

GreenEggs

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Re: DIY Real estate agent
« Reply #9 on: March 06, 2019, 09:46:57 AM »
I just came here, to the RE forum, looking for FSBO advertising advice and saw this thread.  Maybe I should consider getting a RE license.


I'm more interested in hunting for deals on low-end waterfront lake lots and large acreage mountain timber tracts.  (although I'm not sure were the profit is with timber land.)  They both seem like interesting niche markets. 


I've been on Biggerpockets, but it's a bit overwhelming for me.


Where's the best place to get the education to pass the RE exam?  Is it an online thing now? 

Jon Bon

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Re: DIY Real estate agent
« Reply #10 on: March 06, 2019, 11:10:03 AM »
FINE!

You guys have convinced me, it is something I have been thinking about in the past. Ill check into it at least, it might be on the back burner until I get my kids in school though.

120 hours of training in my state, so substantial amount of class time for something on the side. Probably can classify it as a business expense though. Just had an acquaintance go through the training, maybe I will ask her about it.

Cheers




waltworks

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Re: DIY Real estate agent
« Reply #11 on: March 06, 2019, 12:52:45 PM »
I think if you're a small time buy/hold RE investor, it's probably a waste. You don't need an agent to buy stuff, it's comically easy to write up an offer and go do all your due diligence.

Generally (I've done it a few times) if you're an experienced RE person you also don't need an agent to sell, though you do have to jump through the hoops to get your places listed on the MLS.

If you are flipping, or doing deals for other people, then getting your license is a no-brainer. Otherwise it's a lot of overhead time/work for (IMO) negligible benefits.

-W

sammybiker

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Re: DIY Real estate agent
« Reply #12 on: March 07, 2019, 04:57:07 AM »
Thanks @JoJoP for the response!

JoJoP

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Re: DIY Real estate agent
« Reply #13 on: March 07, 2019, 08:26:54 AM »
You're welcome. 
In my area, you can get free classes or very inexpensive ($99) through Century 21.  They put them on at night or weekends.   Then you take the licensing exam. 

Jon Bon

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Re: DIY Real estate agent
« Reply #14 on: March 07, 2019, 08:34:56 AM »
Ok so I take the classes and pass the exam.

Now what?

I find a brokerage and I have to work for them? I have to pay them to work? I am sure its not a scam or anything but it does feel a little silly to pay someone to work for/with them.

What do they provide for a realtor?
and
What kind of fees are we looking at?

Also there are fees to be connected to the MLS no?

GreenEggs

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Re: DIY Real estate agent
« Reply #15 on: March 07, 2019, 10:32:31 AM »
I had a buddy with a RE license that just wanted to be "in the know" and he had a deal with a broker where he just had to hang out one morning a month at the office, where he'd search for local deals to invest in & chat with whoever came into the office while he was there. 


He found a great turnkey deal on a restaurant.




lexde

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Re: DIY Real estate agent
« Reply #16 on: March 07, 2019, 12:19:36 PM »
I'm interested in this, as well.

Question: Is it worth getting a Realtor's license if you are already an attorney? I can technically do everything myself, except for showing myself the property. I already have an automatic MLS search coming to my inbox as soon as new properties within the parameters are listed.

Bonus: The firm I work for has a title agent. So in theory we could work together and make the firm even more money. I'm sure he has a broker he knows that would sponsor me without having to work there full time (if not, I'd have to figure this out).

waltworks

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Re: DIY Real estate agent
« Reply #17 on: March 07, 2019, 01:36:25 PM »
Guys, guys, guys - you don't have to be a realtor to get a showing of a property. You just call the listing agent and they'll come let you in. You don't need to be a realtor or an attorney to make an offer, either. You can easily handle all of that stuff after 30 minutes of research/downloading a few forms from an FSBO website specific to your state.

You'll want/need to hire a title company (super cheap) to handle the paperwork if your offer gets accepted, but otherwise, none of this stuff requires specialized knowledge.

Getting a RE license is only a good idea if you are planning to do a large $ volume of transactions (that could mean one $2 million house, or a dozen cheap $150k houses) or if you want to be a realtor as a side hustle or career. If you are just going to buy a house to live in and maybe a rental property or two down the road, it's a giant waste of your time and money.

-W