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Is a real estate license worth getting?

chrisbiz4444

Bronze Contributor
Read Fastlane!
Aug 9, 2013
323
163
RI
Do you think its a wise choice to get into real estate as an agent before investing?

Do you think its a smart to choice to learn while you earn?

My idea: I was thinking about getting a real estate licence so I could learn about real estate and make some money while doing so. Then I would take the money I have earned from selling homes and invest in my own real estate property's, building a passive income stream. Or I could even start flipping homes.

Is there money to be made as a real estate agent?. I do not have many bills and I am wondering if the money is good enough to dive into it. Has anyone started this way here?
 
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AmyQ

Bronze Contributor
Speedway Pass
Jun 5, 2013
133
313
I went to real estate school for investment purposes, but decided not to get the license because:
1. I am not a salesperson and have a business that takes up too much of my time to become a RE agent.
2. You have to disclose that you are a licensed agent in your personal dealings, even if you use another agent to represent you. This can put you at a disadvantage in negotiations.
3. If something goes wrong with a deal, you are more likely to be held responsible by the courts since you hold a license and have expertise.

Going to the classes helped me understand how property can be held and protected in my state. It was a good investment of time and money for me. We spent a lot of time studying RE law and taxes.

One of my best friends attended RE school with me, also for investment purposes. Since she is a salesperson, she decided to get a license and has been making about 10k a month. Getting started took an investment of about 3k. She had to pay for professional pictures, business cards, a website, etc... Her broker takes a big chunk of her money, but she is still doing well for herself.

I would check to see the requirements to become a broker in your state. That is where the real money is. If it is a path you could see yourself heading down, it might be worth pursuing.

Also, if you aren't good at sales, it can be a good way to learn.
 

Stef

New Contributor
Jun 19, 2013
17
3
South Florida
Just a word of advice from an agent: it is HARD work to get started making money being an agent. I have been an agent for a year and I was in for a big surprise. It is not easy money in the least. Well, I take that back. Once you have established clients, it is little actual work for a big reward. The key is you need to establish those clients. This can be really frustrating, hence why so many agents quit before their first year is up. It might just be a local issue, down here in South Florida there are over 22,000 agents and it is very competitive.

AmyQ made a good point, you are more liable for things that go wrong when you carry a license than you are without a license. You do get some knowledge, but just for investment purposes it might not be worth your time.
 
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codo3500

Silver Contributor
Read Fastlane!
Speedway Pass
Jun 6, 2013
347
843
35
I'm a real estate agent, but in Australia. It's hard work, long hours, and it's a tough market to break into post-GFC. In saying that, I've been in the game about 9 months now, and have learned an unbelievable amount. When I end up investing in Real Estate I'll be in a MUCH stronger position than most investors, knowledge is power, and a lot can be learned from being on the inside of this industry.
 

21elnegocio

WholeFlips Wholesaling Houses Virtually
Summit Attendee
Feb 28, 2012
556
306
Downtown Phoenix, AZ
Why does everyone complain about R.E. being so hard, nothing is hard in life right ? Why even make excuses is what we are making. There are harder jobs out there, for example construction !!! The people who build these homes, NOW THATS TOUGH WORK !! Common guys no excuses, no pain no gain right ?
 

EvanOkanagan

Gold Contributor
Summit Attendee
Speedway Pass
Aug 2, 2013
546
2,093
As far as getting your license for Real Estate Income:

Get with a GREAT brokerage. The brokerage I'm with, the average Realtor NETS 100k in the first year of Real Estate, one of my partners is on his 2nd year and has already surpassed that a little over halfway through the year (on course to making 150-180k this year)

As far as getting your license for Real Estate Investing:

In my opinion, this is the best move I've ever made for the investment side of things. Again, get with a GREAT brokerage. One that has a few successful Real Estate investors that you can learn from and be mentored by. I wanted to start investing in Real Estate 5 years ago... I bought books, went to seminars, but I never got my feet wet. Actually becoming an agent and being close by those with investments and knowledge HUGELY accelerated this and helped me take action. If you're serious about Real Estate investing I think this is a very wise move to get your license. I've also made about $13,000 in commissions for the purchases of my OWN investments.

My short story:

I just got my license at the end of February this year. When I started at the brokerage I had no investments and no cashflow. Just shy of 6 months later I have 3 rental properties worth over 1.3 million and I have a positive cashflow of $2,000/month and growing.

Get your feet wet!
 

JackTackett

Contributor
Read Fastlane!
May 28, 2013
19
25
Cary, NC
I agree with Amy's post it's exactly what I did and for the same reasons. Your hands are really tied if you're a licensed agent and an investor. The knowledge you gain from the class however is worth the cost of money and time.
Best of luck.
Jack
 

chrisbiz4444

Bronze Contributor
Read Fastlane!
Aug 9, 2013
323
163
RI
Wow the short story is truly amazing and inspirational! How did you purchase the 1.3 million worth of real estate with only 13,000 in commission?

It also sounds like getting into the right brokerage plays a big part in getting the right start.
 
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EvanOkanagan

Gold Contributor
Summit Attendee
Speedway Pass
Aug 2, 2013
546
2,093
Wow the short story is truly amazing and inspirational! How did you purchase the 1.3 million worth of real estate with only 13,000 in commission?

It also sounds like getting into the right brokerage plays a big part in getting the right start.

I was only the Realtor in one of these transactions. Even with no commission on these investments it would be worth it, so I just consider the commission as an added bonus. On my first purchase, a house I converted into a college rental house, the purchase price was $375k and I made about $8k commission.

The other two were rent-to-own investments. In one instance, it was done through my brokerage and I received $5000 (partial commission) and many of the fees involved were discounted. The 2nd rent-to-own was out of province so I didn't receive anything.

Getting into the right brokerage IMO is KEY if you're in it for the investments. I joined a small, independent brokerage that only had 4 Realtors when I came onboard, 3 of them investors, and we work as a team. All three transactions were analyzed by the 3 investor/Realtors giving a lot of assurance and great advice. It's like having a MASTERMIND group of likeminded people you work with every day at your disposal. You can get FIRST dibs on any great investment finds that come through, and can even partner with other investors for leverage. Make yourself known as an investor in a brokerage and any smokin deals that come through they'll most likely come to you first, I was practically handed my last investment.
 

Operation_OPM

Contributor
Jul 16, 2008
95
42
Hyper Hustle Zone, Quadrant I-4
[video=youtube;XNRf2LIQQFg]https://www.youtube.com/watch?v=XNRf2LIQQFg[/video]

This is how I operated from jump. Don't get caught up in office politics and what AVERAGE people are doing. They will have 3-10 deals in a year and live off of that. You need to buy 3-10 units in a month in addition to basic agent/broker duties. Nobody will tell you that but ALL of the millionaire producer's INVEST primarily.
 

EvanOkanagan

Gold Contributor
Summit Attendee
Speedway Pass
Aug 2, 2013
546
2,093
This is how I operated from jump. Don't get caught up in office politics and what AVERAGE people are doing. They will have 3-10 deals in a year and live off of that. You need to buy 3-10 units in a month in addition to basic agent/broker duties. Nobody will tell you that but ALL of the millionaire producer's INVEST primarily.

Great video, that was exactly my train of thought getting into real estate.

I think you meant "you need to buy 3-10 units in a year?"...no? Telling someone they need to buy 40-120 units in a single year as a beginner RE investor is a bit unreasonable.
 
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Operation_OPM

Contributor
Jul 16, 2008
95
42
Hyper Hustle Zone, Quadrant I-4
Can you back up your advice though? Did you buy 3-10 units your first month and then the next months afterwards, and still doing the same today?

Use it as a benchmark. You can buy 1 unit a year and still be successful over time. Hell, buy 1 unit every two years if you like...every 5 years. Everyone has different time and goal parameter's.

Fastlane real estate investor thinks 3 units = 1 triplex= 1deal=1 closing, on to the next..........not 3 Single family homes = 3 separate deals = 3 separate closings and destruction of time.

I rarely use the word "property". Unit is more fastlane. Think duplex's, triplex's, 16-plex's, 30 plexes ect.ect. That's the lane I drive in. Just a slight change in thinking/operating that will set you apart from the herd.:driving:

My first month/deal was in wholesaling..I was dead broke for 8 months. Month 9 all my marketing paid off to the tune of 8 deals and money in the bank. Month 13 my first acquisition was a 40k 16-plex, desperate seller, all cash or 1 deal, 1 month, 16 units.

In wholesaling, all we do is put properties under contract...BUY. Most still flip for the fast cash. Some of these properties make fro great investments. My philosophy and mindstate was altered for success from the start. Most agents cant fathom this, they are uber slow...sidewalking..sheeple...avoid them at the office.

Let your effort's compound. I still wholesale, I still rep buyer's/sellers but I've been buying CHEAP 3-10 units a month ever since I started. Nothing fancy.
 

21elnegocio

WholeFlips Wholesaling Houses Virtually
Summit Attendee
Feb 28, 2012
556
306
Downtown Phoenix, AZ
Use it as a benchmark. You can buy 1 unit a year and still be successful over time. Hell, buy 1 unit every two years if you like...every 5 years. Everyone has different time and goal parameter's.

Fastlane real estate investor thinks 3 units = 1 triplex= 1deal=1 closing, on to the next..........not 3 Single family homes = 3 separate deals = 3 separate closings and destruction of time.

I rarely use the word "property". Unit is more fastlane. Think duplex's, triplex's, 16-plex's, 30 plexes ect.ect. That's the lane I drive in. Just a slight change in thinking/operating that will set you apart from the herd.:driving:

My first month/deal was in wholesaling..I was dead broke for 8 months. Month 9 all my marketing paid off to the tune of 8 deals and money in the bank. Month 13 my first acquisition was a 40k 16-plex, desperate seller, all cash or 1 deal, 1 month, 16 units.

In wholesaling, all we do is put properties under contract...BUY. Most still flip for the fast cash. Some of these properties make fro great investments. My philosophy and mindstate was altered for success from the start. Most agents cant fathom this, they are uber slow...sidewalking..sheeple...avoid them at the office.

Let your effort's compound. I still wholesale, I still rep buyer's/sellers but I've been buying CHEAP 3-10 units a month ever since I started. Nothing fancy.

Thanks for teh great info man good inspiration for those who are in the field of RE. Ok hope this questions doesnt reapeat, what would you suggest for someone new who will get into the R.E. field ? Someone who wants to get in the fastlane like us ? Like what mistakes not to do ? What to do if you dont have much capital since that was your case ? Lets hear the tutorial if possible. Hope these questions dont bother you. Stay safe mate!
 

21elnegocio

WholeFlips Wholesaling Houses Virtually
Summit Attendee
Feb 28, 2012
556
306
Downtown Phoenix, AZ
Thanks for teh great info man good inspiration for those who are in the field of RE. Ok hope this questions doesnt reapeat, what would you suggest for someone new who will get into the R.E. field ? Someone who wants to get in the fastlane like us ? Like what mistakes not to do ? What to do if you dont have much capital since that was your case ? Lets hear the tutorial if possible. Hope these questions dont bother you. Stay safe mate!

No answer ?
 
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Pete799p

Bronze Contributor
Read Fastlane!
Speedway Pass
Aug 18, 2011
514
282
Use it as a benchmark. You can buy 1 unit a year and still be successful over time. Hell, buy 1 unit every two years if you like...every 5 years. Everyone has different time and goal parameter's.

Fastlane real estate investor thinks 3 units = 1 triplex= 1deal=1 closing, on to the next..........not 3 Single family homes = 3 separate deals = 3 separate closings and destruction of time.

I rarely use the word "property". Unit is more fastlane. Think duplex's, triplex's, 16-plex's, 30 plexes ect.ect. That's the lane I drive in. Just a slight change in thinking/operating that will set you apart from the herd.

My first month/deal was in wholesaling..I was dead broke for 8 months. Month 9 all my marketing paid off to the tune of 8 deals and money in the bank. Month 13 my first acquisition was a 40k 16-plex, desperate seller, all cash or 1 deal, 1 month, 16 units.

In wholesaling, all we do is put properties under contract...BUY. Most still flip for the fast cash. Some of these properties make fro great investments. My philosophy and mindstate was altered for success from the start. Most agents cant fathom this, they are uber slow...sidewalking..sheeple...avoid them at the office.

Let your effort's compound. I still wholesale, I still rep buyer's/sellers but I've been buying CHEAP 3-10 units a month ever since I started. Nothing fancy.

Congrats on your success so far but these blanket real estate statements are not really accurate. I personally like to look at financial metrics like return on equity, cash on cash, roi, irr, npv, etc. The reason being that number of units does not really dictate anything about scale, wealth, size, profitability etc. as well as scalability. It doesn't matter if you are buying 3 houses or 1 three flat as long as the numbers work out and the inventory is there to scale. Yes in theory their are less transactions and therefore less work but this is not always the case.

This is an important thing to think about, I read another thread talking about a 45unit building that was dirt cheap. It seems like a great deal because you get so many units but one unit renting for $10k a month or 20 units renting for $500/mo still gives you the same cash-flow but those all those cheap units will often require more time/ management expense, but again you just dont know. I have worked with 3 flats that will run you over $2mil and 48 unit buildings that run six figures.

I think the best way to minimize the acquisition work is to have a laser focus on your product, price, returns, demographics etc. The guys I know crushing know these like the back of their hands. When they look at a deal they know right away whether they want to play ball and if so exactly what it is worth to them, they can wade through hundreds of deals in the time it take your average newb to figure out the CAP rate.
 

Pete799p

Bronze Contributor
Read Fastlane!
Speedway Pass
Aug 18, 2011
514
282
Use it as a benchmark. You can buy 1 unit a year and still be successful over time. Hell, buy 1 unit every two years if you like...every 5 years. Everyone has different time and goal parameter's.

Fastlane real estate investor thinks 3 units = 1 triplex= 1deal=1 closing, on to the next..........not 3 Single family homes = 3 separate deals = 3 separate closings and destruction of time.

I rarely use the word "property". Unit is more fastlane. Think duplex's, triplex's, 16-plex's, 30 plexes ect.ect. That's the lane I drive in. Just a slight change in thinking/operating that will set you apart from the herd.

My first month/deal was in wholesaling..I was dead broke for 8 months. Month 9 all my marketing paid off to the tune of 8 deals and money in the bank. Month 13 my first acquisition was a 40k 16-plex, desperate seller, all cash or 1 deal, 1 month, 16 units.

In wholesaling, all we do is put properties under contract...BUY. Most still flip for the fast cash. Some of these properties make fro great investments. My philosophy and mindstate was altered for success from the start. Most agents cant fathom this, they are uber slow...sidewalking..sheeple...avoid them at the office.

Let your effort's compound. I still wholesale, I still rep buyer's/sellers but I've been buying CHEAP 3-10 units a month ever since I started. Nothing fancy.

Congrats on your success so far but these blanket real estate statements are not really accurate. I personally like to look at financial metrics like return on equity, cash on cash, roi, irr, npv, etc. The reason being that number of units does not really dictate anything about scale, wealth, size, profitability etc. as well as scalability. It doesn't matter if you are buying 3 houses or 1 three flat as long as the numbers work out and the inventory is there to scale. Yes in theory their are less transactions and therefore less work but this is not always the case.

This is an important thing to think about, I read another thread talking about a 45unit building that was dirt cheap. It seems like a great deal because you get so many units but one unit renting for $10k a month or 20 units renting for $500/mo still gives you the same cash-flow but those all those cheap units will often require more time/ management expense, but again you just dont know. I have worked with 3 flats that will run you over $2mil and 48 unit buildings that run six figures.

I think the best way to minimize the acquisition work is to have a laser focus on your product, price, returns, demographics etc. The guys I know crushing know these like the back of their hands. When they look at a deal they know right away whether they want to play ball and if so exactly what it is worth to them, they can wade through hundreds of deals in the time it take your average newb to figure out the CAP rate.
 

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