Real Estate License Helpful Or Hurtful In This Business?
I recently obtained a real estate license in FL ( it is inactive/not listed with a broker). Will this be helpful to me in investing in real estate (other than obviously learning/studying). I do not want to become a real estate agent. I just wanted it for the MLS listings...was this wise in this business/any areas will the license will help me/ or hurt me? ( in Real Estate investing business)-----just starting out or rather wanting to...... 
Being a Licensed Real Estate Agent does not make you a "Realtor" . "Realtors" are members of the National Assoc. of Realtors. You may have a license and not be a realtor. You may collect commish and not be a realtor. You may join an MLS and not need a license (associate member).
The Realtor code of ethics would not allow me to pass through broken boards in a boarded up house (just checking for injured puppies, I swear).
You have the ticket, use it when you need it, only. -MakoShark
I would highly recommend using the licenses. That is the exact same reasons why I have my florida licenses, another tool that I can greatly benefit from whenever I want. I don't have to call a realtor or two to help me look for properties, I have a HUD key and mls keys to look at whatever I want, on my time.
I hang my license with a broker here who basically operates a virtual office, most of the 100+ agents work at home or rent their own office space, I work from home mostly, althought I do drop in the office every now and then to drop in and get a check lol.
I look at it like this, I can buy property off the mls and get paid 3% for doing it, I can sale my own properties on the mls for 3% instead of 6%, 3+3 = 6% more profit.
Plus, it's great to have a few irons in the fire with other investors, you can bring good deals to them you can't buy, but they can. I made an additonal 30 grand last year by doing this...
My questioni is, why wouldn't you use it?
Good Luck,
I think
[addsig]
My thought is, now that you have it, it is a little late. I do not want it, because I do not want to have to disclose to everyone that I am realtor - and that I may know more than the next person. Not that I have anything to hide, but I feel that it is just that much easier when I talk to people going through foreclosure...
Good luck investing!
I agree with previous post. The mere fact you have a license active or not could be used against you by the mere fact you have more knowledge then the seller. I am sure you have learned alot by going through the licensing requirements, put it to good use.
I have a license. I've had no problem talking to people in preforeclosure.
Solving their problems is what their concerned about not if your a realtor or not.
Hi Thanks for the info...to the person who says having a real estate liscence can be a negative because you have to disclose the info...this doesn't apply if you are inactive, right? Because think of all the people (like lawyers) who just sit for the exam and have a license but it is not active....????
This subject has been beat to death here!
I personally think it is a good think for the reasons listed by the agent that made the extra 30k from it.
I personally at this time am interested in rehabbing and retailing. A license puts money in my pocket at close and often gives $ to do the rehab with if it is an REO property.
I don;t mind tying up a lot of cash for a big payoff and want to get all my $$ at closing.
I think that the "I hate to disclose I am a realtor because it might work against me" bit is a little tired. I have never heard if it detracting from a single sale of someone who actually was doing it. Mostly comments from the peanut gallery.
All I know is that out of the 15 houses I did last year the realtor got the commision on 80% of them.
If each of these were my properties and I listed them only and median value was 100k that equates to 50-70k depending on my split with the broker.
Stock's right about one thing. This topic is overflowing on the forums. Do a forum search and find out what others have said about it.
I disagree with the 'peanut gallery' comment. Most of the people that post that having your RE license is a hinderance have been real estate agents. Hey Stock, since you're not an agent yet, would that classify you as a peanut gallery member?
Having it or not having it probably would depend more on what type of investing you'll be doing or property you'll be buying.
If you're going to be dealing directly with the sellers, either thru FSBO or pre-foreclosures, it will most likely be a hinderance. The main reasons are FSBO's general reluctance to work with an agent (especially if you try to tack on a 3% commission), and the legal requirements of being a professional real estate agent.
If you will be buying REO's or MLS listed properties, then being an agent would probably be beneficial. However, don't count on a commission for buying. Alot of banks now will not pay a commission if the agent is also the buyer.
Your question about the legalities of being active/inactive would be best addressed by a real estate broker from your own area.
Roger
I agree with Stock. Been a Broker for 29 years. Never wrote a contract for myself or public without disclosing. Has never been a problem. Very seldom buy without a commission to me. If the deal is right, I will do it with no commission.
The perks are great, MLS is like a mail order catalogue (what shall I buy today?), classes hosted by local title Co. or Association of Realtors. Get to know who in your community is really a DOer.
By the way, not all RE bkrs & agents are REALTORS. Obvious from the posting to this site, most people don't know the difference.
Quote:
On 2003-07-23 14:48, pmatheson1 wrote:
By the way, not all RE bkrs & agents are REALTORS. Obvious from the posting to this site, most people don't know the difference.
So what is the difference?
The state licenses Real Estate Brokers & Real Estate Salesmen.
Only if they join the Association of Realtors (and agree to be bound by their Code of Ethics) can they use the REALTOR logo.
pmatheson1,
I am about to go get my license. Do you find it helpful to be a REALTOR? I never really thought about it, I just assumed it was something I should do.
rotzilla
Some Benefits=
Most Residential Brokers belong, will not take on a Salesman who isn't.
Usually reduced price on Events hosted by Board of Realtors.
Reduced price on Supplies (Signs, Contracts, forms, etc.
They do enforce the Code of Ethics..If you or a member of the public have a complaint about another member, it will be looked into.
Get to associate with lots of people of varying backgrounds, education and morals with somewhat the same direction.
Detriments=
Costs money, varies with locality.
They do enforce the Code of Ethics... not much fun to be brought in front of the Board! Could be fined or worse!
I recently got my license for one main reason. Comps. Where I live, there are no services (or any good ones). I've tried working with realtors to get comps, but when I am reviewing several deals a day or a week, I cannot get the info quickly enough from others. (Besides, a business relationship will wear thin after awhile if I take up a lot of their time).
or a bump (like having to disclose to owners), but accurate/fast comps are essential.
Seems to me that all of the other info: newspapers, tax assessors, some data services...do not offer enough info.
I find that the comps need to be really accurate (style of house, very close proximity, age of house....).
Now that I have the MLS right on my desk, it is AMAZING. I can analze deals right away, research various areas to farm, etc.
Seems to me that the commissions are just lagniappe (Louisiana for "gravy"
Ying and Yang
the best way is a trusted partnership with a licensed agent.
I was a broker in Colorado for 8 years.
if you are licensed and you name is on the contract you open you self up to legal problems on those great deals.
If you buy a property under market value even disclosing that you are an agent the seller can can come back saying that you took "unfair advantage" of them you being a professional and all.
I would not have a license and have my name on the contract as buyer or seller on that sweet deal
Not in Colorado anyway.
Don't try to save pennies when there are dollars at stake.
Don't let the newbie fool you I am new here not new to real estate [ Edited by bob1082 on Date 07/27/2003 ]
It's fine to have your license, but you do have to notify anyone you are trying to do creative REI with that you are a realtor AND an investor. Then, simply tell them that you are not sure how you will be able to help them, as an investor or a realtor, and leave it open until you know how you will proceed.
Check with a lawyer in your state, but in MA, this procedure is fine.
I had similar thoughts and that is why I did not get licensed. My friend is a REALTOR and he has his buyers sign a statement that they are buying it AS IS. A non-disclosure, if you will. I personally stay away from mls listed properties, most agents don't think outside of the box and believe investors are a nuissance. Negotiations and contracts and closings seem to go smoother when 2 agents are not "earning" their 3%.
Quote:
On 2003-07-22 00:49, scsod wrote:
I recently obtained a real estate license in FL ( it is inactive/not listed with a broker). Will this be helpful to me in investing in real estate (other than obviously learning/studying). I do not want to become a real estate agent. I just wanted it for the MLS listings...was this wise in this business/any areas will the license will help me/ or hurt me? ( in Real Estate investing business)-----just starting out or rather wanting to...... <IMG SRC="images/forum/smilies/icon_frown.gif">
I gave up my license because I found myself legally bound to tell a seller what his property was worth, while wanting to take advantage of him.
On the other hand I see many Florida agents who are guilty of criminal activity. They sit behind a desk and get calls from people wanting to sell. They go and look at a seller's property and then ask the seller what he would like to get out of the property. The truth is that the seller called to get the agent's opinion of the value.
If the seller gives the agent a low enough quote, the agent says that he might be interested at something near that number. He then signs a contract with the seller and now sells the property to another caller. On closing day, the agent buys the property in the AM and sells it in the PM or the next day. Or maybe he just flips it at the closing table.
I see many times where the agent pockets 20 to 30% in the deal. The agent has just stolen that money from the seller because he knew that the property was worth more than what he agreed to buy it for.
I'm sure that if he told the sell that he could get him 20 to 30% more money if the seller could wait till later that day, the seller would say, "Of course."
I don't see any way that an agent can be an investor and not break the law somewhere along the line. And that is exactly why I allowed my license to expire. :evil: [ Edited by GeneralSnafu on Date 07/07/2004 ]
in Pennsylvania, even if your license is in escrow you must disclose to buyers or sellers that you are a licensed realtor.
Quote:
On 2003-07-22 01:26, webuyproperties wrote:
My thought is, now that you have it, it is a little late. I do not want it, because I do not want to have to disclose to everyone that I am realtor - and that I may know more than the next person. Not that I have anything to hide, but I feel that it is just that much easier when I talk to people going through foreclosure...
Good luck investing!
Do you really think if you got tied up in a lawsuit that the judge would look at Mr. Investor who has bought and sold umm say 100 properties any differently than Mr. Realtor?
Hey Mike T.
I'm confused on the 3% savings you are getting when using the MLS. Don't you have to split that with your broker?
ItzMe