If you could easily and cheaply acquire a tool to turbo blast your real estate investing career, wouldn’t you do it?
I started investing in real estate about 10 years ago. I found an agent who was willing to comb the MLS listings everyday, set up showings for me to view properties, and work for very little commissions from my low-ball offers. And I thought that worked out all right.
But I soon came to realize that I was depending on someone else to be on the look out to scoop up the good deals as soon as they hit the market. Now my agent was good, but why was I depending on someone else in my quest for real estate wealth?
Good question. And besides, a smart agent would probably keep the best deals to herself–I would! So, I decided to get a license myself. It is fairly easy, relatively cheap, and requires very little time. I did four weekends a month, while I was still working my full-time job, or “trading my precious hours for dollars” as I call it.
Doctors need at least 10 or 12 years of education and training and usually start their practices owing hundreds of thousands in student loans. Lawyers must go to school at least 7 years.
But you, a real estate investor, can get a real estate license in a little more than a month with about a $1,000 investment. Now you may not make what a doctor or lawyers makes. Then again, maybe you can. But the initial investment is a whole lot more enticing!
With a real estate license, I was able to unearth some very good creative financing deals that netted me at least $500 per month in cash flow. I also got a property management contract from an investor in California.
I had made an offer to lease option their apartment complex. They did not accept, but in the course of the conversation they expressed that they were very dissatisfied with their local property manager. Ding, ding, ding, I am a property manager.
I had never managed anyone else’s property, but I had managed my own, and that qualified me as a property manager. I told her, “Hey, I do that, too.” So we got a lucrative contract managing their properties.
We also made money rehabbing their properties, and we made more money (real estate commission) when I sold them another property, which of course, I will make more money at managing their new property. See how it all fits so beautifully together. But the license was the key, that started the whole thing.
What does a real estate license do for you? Most importantly, it gives you access to the MLS. Not only can you find out what is currently available, you can find out information about properties listed in the past, the expireds, the withdrawns, and the solds. This gives you the permanent parcel number, important when you are doing research on potential deals.
The active listings are really the easiest way to find investment deals and the most prolific. You may think that the MLS lists only the “nice” and “pretty” properties. Not so. The repos, fixer-uppers, estate sales, short sales, and the plain, old junkers are almost always listed on the MLS.
And part of the property information contained in the MLS listing is the method of purchase, such as cash, conventional, FHA, and VA.
However, now more than ever, due to the crisis in the housing industry, (always the best time to buy investments) many listings are being offered on land contract, lease option, or some other form of creative financing. Made to order for the serious investor. Is that you?
OK, now you have access to the MLS. What else can a license do for you? Well how about legitimizing yourself? You have put yourself out there as an expert. The premise of Real Estate Investing 101 is the market value of a property–the “comps.” Hey, you have access to the “comps.” Kind of gives you an advantage doesn’t it?
As a real estate agent, you are out there moving around in the circles that will naturally spawn more opportunities for the smart investor. You are a “Player.”
You will be surprised at all the paths of opportunity that open up for you when you have that valuable tool, a real estate license. That license will take you places you never even thought of. It will change your future, it changed mine. Please email me at firstname.lastname@example.org. I will be glad to answer any questions.