Will Becoming A Real Estate Investor Increase My Business As A Real Estate AGENT?

Will Becoming A Real Estate Investor Increase My Business As A Real Estate AGENT?

Hey it’s Joe. This next one is from Mike Dowell.
Mike says, “Since I’m pursuing a real estate license,
how will this help me as one of your students? Could I use my future license with any potential
California investors in conjunction with your program who may require real estate assistance?”
Yes, that’s the beauty of the Automarketer for agents. You’ve already got a lot of options
using all of the structures that I teach but if you can also list a property for a seller,
now you’ve got that other option that you can give them.
One of the big target markets that real estate agents go after when they’re trying to get
a listing and if you’re an agent you know that you list or you die – you list properties
and that’s how you keep a consistent business – listing properties, not selling properties
– listing them. If you list a property, they’ll sell and you’ll make a great living and you’ll
create a lot of inventory and you’ll make a lot of money so you want to focus on listings.
But you have to find a way to get to those people. One of the best target markets to
go after is people that are for sale by owners. Eventually, 85 to 95% of for sale by owners
either take their property off the market or they list it with a real estate agent.
So if you’re the first agent that they talk to and build a relationship with, you’re going
to be better off. So a lot of real estate agents go after for
sale by owners and say, Hey, I’ll give you a free market analysis of your home’. Which
is fine but most for sale by owners aren’t that excited about talking to real estate
agents – they don’t want to pay a real estate agent – that’s why they’re doing for sale
by owner if they’re capable of listing. Some of them aren’t capable of listing and
that’s why they’re doing a for sale by owner and they just can’t hire an agent. The ones
that can hire an agent that have a little bit of equity and can afford it are trying
to hold onto their equity and they don’t want to talk to an agent, so if you approach them
as an agent they don’t want to talk to you but if you approach them as a buyer, it changes
the game – its everything. It’s different – now they want to talk to
you – if you say, ‘I’d like to buy your property rent to buy. Would you consider that?’ – now
there’s a possibility that they would do that with you, and then when you’re having that
discussion with them, what you’re going to do is lay out their options. You’re going
to show them the different ways they can do this.
If you’ve got the Automarketer by the way, and you go into any of the lead sheets, there’s
a link to the left side on the lead sheet that says ‘seller options’ and it breaks down
all the seller options that are available. There’s 8 or 10 seller options that every
deal has, and you can look at the options that that particular person has for that particular
property and you can explain it to them, and then if you’re an agent, you can also say,
‘Well, you could also list it with me. Here’s what it would cost to do that.’
And by then, you’ve already started to develop a relationship with these people. You may
be the first agent they’ve talked to or you may be the most competent agent. Plus, you’ve
given them an option that, ‘if you don’t sell it as a listing or you don’t get your _x_
amount of dollars and let’s say we list it for a month or two months and it’s not sold
and you want to get rid of it right away, we’ll do the lease option and we’ll get rid
of it in 30 days, and you’ll be fine and you can move into the next property and I’ll even
help you find that next property.’ So you can offer so many more things to them
if you have a license. It also gets rid of any question that you’re practicing real estate
without a license if you have a license, so there’s some real advantages to having a real
estate license. I’ve had mine for 20 some years. I just finished
my continuing education to continue to keep my broker’s license. I now have a principle
broker’s license, which again, I’ve had for many years.
But with that said, I should also say that if you don’t have a license and you haven’t
started that process that you don’t have to start it. That can be very distracting, it
can be very expensive and it can be very time consuming whereas you could just go out there
and make some money, get some deals going. Once you get some deals going, doing it the
way I teach which is legal, then maybe later on you can get a license after that and get
your process going after that. All over the country, the requirements for
getting a license are going up. It’s getting more and more difficult. It’s becoming more
and more, an old boys club, and you have to be a member to work in their city. And I understand
that they want people to be more educated. They want people to do this more reliably,
more honestly and more ethically, but I’ve been in this business a very long time and
I can tell you that 99% of the agents that I’ve worked with over the years have been
good, ethical, honorable people that are just trying to do the right thing.
They want to make a living but they’re also trying to serve their clients. I’ve run into
a few that are some real doozies but most of the agents out there are doing a good job,
and if you do that as an investor, then you probably won’t have the problems that some
of the people that rub people the wrong way will have.
So my suggestion is don’t get a license unless you’re already on that path and you already
want to do that. If you have a license, hold onto it and keep it because it can be really
valuable to you. Eventually as you do this, six months or a year or two years from now,
as you’re making money and as you’re building a business, it probably does make sense for
you to get a license. We’re working in multiple states, so if you
try to get a license in every state that you work in, it’s going to be difficult to do
that. It’s going to be hard to keep up with all of the continuing education because most
of the states are not reciprocal with other states and that’s going to be more difficult
for you to maintain licenses in all of those different states. Instead, in a worst case
scenario, hire somebody in that state who can do that stuff for you if you need an agent
in that particular state or feel that you do. Alright, I hope that makes sense.

2 thoughts on “Will Becoming A Real Estate Investor Increase My Business As A Real Estate AGENT?

  1. Okay, I plan to get my license, but instead of being a listing agent I want to be a buyers agent focusing on end-buyers & investors. Since you said being an agent comes down to "List Or Die", What are you thoughts about being a buyers agent?

  2. I'm just starting in real estate investing. So you recommend not getting a license?

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