Becoming a Realtor – Real Estate Agent
Becoming a real estate agent or Realtor is a great selection for most real estate investors.
I became a licensed real estate agent in 1986. Why? I had started to invest in real estate and realized that I had to rely on a Realtor to get me in to see some of the properties I was interested in purchasing, and then I had to wait for them for the comparables. Comparables (aka Comps) can best be found on the MLS (Multiple Listing Service). Only Realtors have access to the MLS in most parts of the country. There are other websites and systems that have comparables in some parts of the country, but nothing is like the MLS. That is where the true sales information lies. After I purchased my first several homes, I decided that I did not want to wait for or rely on a Realtor to buy and sell my own properties. I decided becoming a real estate agent was going to be the key to my success as a real estate investor.
Becoming a real estate agent or Realtor, as a real estate investor, will give you many advantages.
There are no disadvantages that I know of for becoming a real estate agent. Investors tend to be adamant one way or the other about being a licensed Realtor or becoming a real estate agent. I am definitely on the side of becoming a real estate agent. Being licensed has been one of the best tools that I have as an investor. Being licensed allows access to your database of ‘comps’ or "comparables." This is the data you need to buy and sell real estate – with good information. If you have a great Realtor, or you can get access to the MLS (Multiple Listing Service) without being licensed, great, but I still think it is better to be licensed than not. I personally like to do my own comparables (maybe that is the controlling part of me).
- Some investors say becoming a real estate agent gives them more liability. I have two answers to that:
- What are they doing to create liability? (becoming a real estate agent does not affect this)
- Don’t they think a judge is going to consider them as an ‘expert’ when they find that you buy and sell real estate for investment purposes? (becoming a real estate agent doesn't increase your expertise; your real estate experience does that)
Some investors say that sellers won’t sell to you if you are licensed. I find the opposite is true. Becoming a real estate agent got me MORE deals. Most sellers are happy that I am licensed and “know what I am doing”. If you are licensed you will also get commission on each deal you buy or sell (if it is listed on the MLS). Every office is different on how they split the commissions received by the office.
My recommendation is to GET LICENSED!!! Becoming a real estate agent made a huge difference, and still does, towards my success as an investor.
When becoming a real estate agent or Realtor you must work directly under a licensed real estate broker.
To become a real estate broker, each state has their own requirements. I have been a broker since 1997. When you are a broker you can have other Realtors work underneath you, but becoming a broker should not be the “be all end all”, unless you really choose to own a real estate company. There are many expenses when you own your own office.
As I travel all over the country, I am asked frequently about becoming a real estate agent and how to locate a good broker. This is always an important part of becoming a real estate agent. You will want to work in an office environment that encourages creativity, investing and entrepreneurship. You will also want an office that provides exceptional real estate training. The company that I have found to be the best overall, in all states, is Keller Williams. I personally owned 4 real estate offices prior to joining Keller Williams. I am now an associate broker in a Keller Williams (Keller Williams) office, as well. Why? For the above reasons. Keller Williams has a fantastic training program along with several other key ingredients. Keller Williams is open and focused on real estate investing and entrepreneurship. The founder of Keller Williams, Gary Keller, along with Jay Papasan and Dave Jenks, co-authored several books on real estate investing. I was featured in their book, “The Millionaire Real Estate Investor”. Gary Keller also endorsed my books “Investing in Real Estate with Lease Options and Subject Tos”, "Rent to Buy" and "Rent to Sell". Much of my investing strategies and techniques have personally been focused around working with Realtors. Being part of an office will give you access to listings and relationships with other Realtors.
Keller Williams used to host a radio show on Mondays called “Millionaire Mondays” - these are now archived on their site. I have been on that show many times now. Keller Williams is the fastest growing real estate company in the U.S. and they are currently the 3rd largest, with well over 600 offices. Gary Keller invented a system that no one else has been able to reproduce.
Some of the best advantages to becoming a real estate agent or Realtor are:
- The training that comes with becoming a Realtor – especially in Keller Williams
- Access to the MLS – to get comps
- Part of the commission on each purchase or sale you make
- A network of Realtors (many opportunities might come to you before anyone else even knows about them)
- Health insurance for self-employed at huge discounts
I recommend you become licensed and consider Keller Williams as an office for you. I will gladly sponsor you and also assist you in working as a Realtor. I can help you get started in the right direction. I have been licensed over 25 years. Let the Keller Williams office you go to know I am your sponsor and we can work together to help you as an investor and the best ways to use your real estate license. Wendy@WendyPatton.com or call me at 248-394-0767 ext 113 and I will assist you in making a great choice for your future. Becoming a real estate agent and Realtor is a great choice!
By: Wendy Patton
© 2012 Wendy Patton - All rights reserved.
January 1st, 2011 at 8:34 pm
Wendy,
I'm in Florida, and considereing getting licensed to help my investing business. You stated that if I was licensed, you could sponsor me with Keller Williams. Can you sponsor someone in FL? In what ways would it be an advantage of letting you be my sponsor vs someone local?
Thanks,
Lynn Henley
January 1st, 2011 at 11:02 pm
Lynn - Your sponsor is not your "local coach" that is your broker at the office. Your sponsor is who introduced to you to KW or who really influenced you to go there. I also help all the people I sponsor with real estate questions - the creative stuff that many brokers are not too knowledgeable on. Call my office if you want to chat about it 248-394-0767 and I will gladly hook you up.
January 8th, 2011 at 11:03 pm
HEY MRS WENDY IF IM INTERESTED IN LEARNING COOPERATIVE LEASE OPTIONS WILL IT BE BENIFICIAL FOR ME TO GET LICENSED AS A REALTOR, BECAUSE VERY PRAYERFULLY MY JOB WILL BE MARKETING FOR BUYERS WHO CANT GET A LOAN AND MARKETING FOR SELLERS WHO CANT SELL.
January 9th, 2011 at 12:34 pm
Carlos GREAT = do check out the Cooperative Lease Option Course and the webinar series.
June 4th, 2011 at 10:45 am
Hi Wendy,
I have been to some very good national Lease Option classes.Unfortunately I found your course after spending the money. I am reading your e-book. I have not found many investors here(Virginia) that are up on LO and certainly no Realtors.
I have come up against the same frustration with realtors re: getting a good CMA (almost got burned with a BAD CMA) and also getting access to a good property quickly.
Wendy, if I become a realtor do I have to show properties and work as a realtor for Keller Williams?
Should I just call you to ask my questions? Would that be easier? My biggest concern is having to hustle to earn money for another company.
Thanks
Jane
Stafford VA
June 11th, 2011 at 12:25 pm
Jane,
Just because you are a Realtor for any company doesn't mean you need to hustle for them. You need to hustle for you. Some companies don't want you to invest for yourself. Keller Williams is usually very good about that even though each office is independently owned and operated. YES, if you or anyone is interested in getting your real estate license and you are serious about investing - call my office 248-394-0767 ext 113 and let me know. I will see what i can do to help you with your real estate investing career.
Wendy
June 11th, 2011 at 12:31 pm
Lynn,
Did you call me on this? 248-394-0767 ext 113 if you want to chat on this still.
Wendy
June 13th, 2011 at 1:52 pm
Wendy,
I got my Real Estate License with much encouragement from you. The RE company I work for is good but I feel like I am "lost in the sauce." I am a single mom and have a FT job by the time I get home I am exhausted! However, my heart is in the business...Real Estate Investing! I see the potential to make money BUT do not have the capital or credit at this time. My market is similiar to Detroit BUT I still see the VISION! I NEED HELP! I NEED A MENTOR! Thank you in advance.
June 16th, 2011 at 8:14 pm
In the event that an individual would like to try to make income by investing , you should be certain to obtain a great deal of investor information before you making any purchase or investment decision. Many people are very successful at investing, but there are also many who fail with their first attempt because they didn't search for the proper investor information before they dove in.
June 27th, 2011 at 4:52 pm
Chandra,
248-394-0767 ask for Michael or Bev.
Call my office if you are looking to have me coach you
July 18th, 2011 at 1:06 pm
Hi Wendy,
I was a licensed real estate agent but I let my license expire when the market went south. I wasn't as educated on real estate investing as I am now. However, how does one complete "Subject To" transactions as a real estate agent? Isn't this a conflict of interest?
July 18th, 2011 at 5:08 pm
Hey Wendy, Can you Wholesale a short sale?
July 19th, 2011 at 2:00 pm
YES many people do! BUT it is easiest when you create an LLC to use for it and the sell the LLC to another investor....hard to wholesale to an end buyer due to the seasoning typically required by FHA guidelines.
July 19th, 2011 at 2:06 pm
Why a conflict? Only if you are trying to do this with a "client" whose home you have listed - which I wouldn't consider buying for anything (which is why I rarely list anyone's home)
November 15th, 2011 at 2:52 am
Hi Wendy,
I am wanting to become a realtor.Right now I am living in Alaska due to my husband being stationed up here.We have decided lowered on choices to 15 states on where we want to live so the next thing I am doing is going to see which states are better for certain things for careers and my family's education.I want to become a realtor but would like to go ahead and start now so that by the time we move somewhere within the next year and a half maybe next few months, I will be able to have a job when we get to our final location! Also, I would like to start selling before we move so I have some experience in. Anyhow, my question is does Keller Williams have any online courses or how else could I go get my license?
Thank you!
November 15th, 2011 at 10:41 pm
I do agree with all the ideas you've presented for your post. They're very convincing and can definitely work. Nonetheless, the posts are too brief for newbies. May just you please lengthen them a little from subsequent time? Thank you for the post.
November 16th, 2011 at 6:48 pm
Hello Wendy I am a single mother of two. I was told by my realtor that this would be a good career for me with having two kids. That I can work from home as well a lot of the time. Is this true?
November 18th, 2011 at 3:36 pm
No problem I will try to answer in more detail, but always feel free to ask when I do not clarify something in particular.
November 18th, 2011 at 3:45 pm
I was a single mother of 2 also - I love doing real estate, because when they were little I could take them with me or do it with them at home. Real Estate investing is a flexible business.
November 18th, 2011 at 3:48 pm
If you are not sure where you will live yet, I would not get your license. Each state is different and has different laws and rules for being an agent. Some states are reciprocal, but until you know where you will live you don't know which state to consider (and even this it is still expensive to become licensed in 2 states) Becoming a licensed Realtor is great! How long will you be in Alaska? There are some good Keller Williams offices there and yes they will know which classes you need for Alaska. If you want details on any Keller Wililams office, feel free to email me wendy@wendypatton.com and I will get you hooked up with a good office and set up a meeting.