I’ve had my Florida Real Estate License since 1998, which is the same year Dan and I started in the real estate wholesaling business. I was so hungry to learn everything about the business. I that I thought having a license would benefit me. Not knowing which road to travel, I just knew that real estate was fascinating.
The Florida Pre-Licensing course is 63 Classroom hours of Principles, Practices and Law. It can be done online, which is pretty cool. Once you pass the Pre-licensing and Pass the State exam, you’re in! You must then find a Broker to hang your license with (i.e. practice under). (I didn’t realize that Realtors were not very creative thinkers and that they lived inside a tiny little square box. This came when I started co-mingling with the other agents in my office).
There are tons of micro niches in this business, and strategies that you can focus on that it’s crazy! If I think about it, it’s really weird how I got into real estate wholesaling. I didn’t even know there were other options.
I can’t say that I regret my decision. In fact, if I had to do it all over again, I’d do the same thing. I still have my license today. I’m a broker and I have my own brokerage firm. I don’t practice traditional real estate, but I do use the license to my advantage. The longer I’m licensed, the more I realize the Pros and Cons of being a Realtor Investor. As with anything we deal with in our life, it’s not all peaches and cream. You have to weigh the differences and make a decision based on your tolerance for the negatives.
If you want to learn how to become a real estate wholesaler, check out the Bad Ass Real Estate Wholesaling Training Program. It’s pretty kick ass and will get you where you need to be with the education.
Top 6 Reasons to NOT have a real estate license as a real estate investor:
(In no particular order)
- #6 – The Annual Fees – probably the biggest complaint I hear, but it’s really the one that matters the least.
- #5 – Disclosing the fact that you’re licensed
- #4 – Continuing Education
- #3 – Brokers that require “caravan” and “floor duty”
- #2 – All of The Political and Bureaucratic Bullshit that comes with it.
- #1 – Idiot Realtors.
Top 7 Reasons you SHOULD have a real estate license as a real estate investor:
(In no particular order)
- #7 – Access to the MLS for Comps and Market Data
- #6 – Ability to Find your Own Deals (REO‘s, motivated sellers, etc)
- #5 – Ability to List Your Own Deals (contracts, rehabs)
- #4 – You won’t be ignorant to the laws of your state.
- #3- You can fill income gaps with Realtor activity income
- #2 – You can refer leads for a referral fee
- #1 – Eventually become a broker and open your own office (for the ambitious only).
So there you have it. Of course, these are only my opinion. You may hear different things from different people, but I think this is an excellent display of the top reasons to have or not have a license if you’re a real estate investor. Being a Realtor Investor does allow you to offer multiple solutions for your sellers. Just be sure to fully disclose your intent. Never confuse the sellers. That will get you into trouble.
Video Below Recorded by Actual Realtor Investor
Traditional Realtors Don’t Always “GET IT”
Here’s a question I received that I wanted to share with you.
Hi Tracy, I came across your site and became a mobster. I was watching your Youtube videos and saw you have an app for estimated repairs. Is that something you can share with me? I’ve live in St Pete Fl and am starting my own real estate wholesaling business. I’ve run into issues with realtors. Either they don’t listen to what criteria I need, or they don’t respond at all, or they proceed to tell me how to run my business. This is after asking them if they are familiar with an assignment of contract. When they find out I want to buy houses around 50,000 60,000 they’re not really interested anymore. Please any advice on how to get an investor friendly Realtor to work with. I know you’re a broker yourself, can you help me out? Thanks,Anne
My response: I’m ashamed to admit that I’m a Realtor sometimes. They act like the biggest fucking retards that ever walked the planet. I mean, it seems like if you’re licensed by your state as a Real Estate Professional, then you should be educated and well rounded on all of the techniques that are used to buy and sell houses. But that isnt the case. All they teach you about in the pre-licensing classes are the laws. Nothing about creativity, marketing, or negotiating. And that’s REALLY where all of the money is made. So sadly enough, Realtors are trapped in their unconventional way of thinking and can not escape. It’s a very tiny percentage of us that actually understand and value the creative side of this business. It’s very hard to find a Realtor to join your team, but it IS possible. It’s a numbers game. Just keep talking to them until you find one that knows his ass from a hole in the ground. It’s USUALLY the ones that DON’T work for the big name Franchise Brokers (Century 21, ReMax, Prudential, etc). Explain to them right up front that you are a wholesaler and that you want to assign your contracts. If they respond like a deer in headlights, don’t waste another breath. Trust me on this. They HAVE to know the game to be able to play. Good Luck. Let me know what happens! 🙂
Can a Realtor Steal my Buyers?
I know it’s a concern of some people, so I had to address it. Do you have a cash buyer, or more than one cash buyer, but are afraid of a Realtor stealing your buyer?
In Case You Ever Need to Educate a Realtor about Assignments
I’m a licensed Realtor. I’ve been licensed since 1998. Every 2 years, I have to do 14 hours of continuing education to maintain my license. My time is up. My license is to be renewed by March 31, 2013, so I’m getting in my last 4 hours of Continuing Education. This time, I chose to take the “Real Estate Investors and Your Business” online course. It’s reviewing how to be a good Realtor for investors. HAHA.
Anyway, I’m about halfway through it, and lo and behold, there’s a tiny little excerpt on assigning contracts. I couldn’t believe it. 99% of Realtors will tell you this shit is illegal. But here’s the photo to prove it!!! ( I LOVE it)