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I wanted to discuss with you some of the things that are going on in the market. A lot of investors aren’t sure what to do when it comes to either needing a real estate license or not? I’ll tell you right off the bat I’m not a real estate agent, haven’t been. I did think about it at one time. I went through the classes. I passed the initial class. Next step was to go, and take the test and get my license, and then have my license held at a brokerage. I didn’t do it. I don’t know why but I just decided not to do it. In this particular video, I’m going to discuss with you getting the license or not. It’s really your decision. I’m not here to make the decision for you, but I will give you the pros and cons of really having the license versus not having the license.
First off, I jotted down some notes because I wanted to make sure on this particular video that I’m crafting and creating when it comes to talking about this that I make sure that I give you all the information that you need to make the decision that’s totally going to be best for your business. Let’s talk about not having a license. If you don’t have a license, first of all, the thing that you’re not going to have to disclose is that you’re a licensed professional. There is no license for being a real estate investor so you don’t have to disclose that.
The other thing, too, is you could still get MLS access by being a non-licensed sales person. You could be an assistant to that person. It’s an assistant non-licensed sales person. You’d still have access to the MLS. The only thing is you have limitations on what you can do. You can’t make HUD offers. You can’t go and take a look at properties without the actual agent. You can’t sell and collect commissions. That’s one of the things that you can’t get on having that. You could be that individual.
The other thing, too, is if you want to become an assistant non-licensed sales person with MLS access, finding some sort of a mom n’ pop type brokerage, the type that’s not like a CENTURY 21, Keller Williams, RE/MAX, or any type of the big brokerage companies out there because more than likely they’re not going to be okay with this even though it’s up to the agent, it’s up to the broker maybe on their team. A lot of agencies have more than one broker. You obviously have a managing broker of the office. There’s different brokers that do different things in their offices. I would recommend going to a local mom n’ pop place just because they’re more friendly when it comes to investors, and they get what we’re trying to do. You can definitely do that.
A place where you could find those types of individuals is Investor Friendly Title Companies. If you’re looking for an Investor Friendly Title Company, I would recommend that you talk to other wholesalers. You could call the we buy houses signs. You can contact individuals on Craigslist. Off there, there’s the we buy houses people all throughout Craigslist. You can go to your own real estate investor association meetings. You could find out who the agents are. You could find out who the title companies are and you could start really networking from there to get in contact with somebody that you could potentially do this with. That’s what I would recommend from not having a license. You could still do some cool things. You could still comp out properties by being that assistant, that non-licensed sales person.
Now, let’s talk about having a license. You could have a license. The cool thing is once you become an agent, you can now start submitting your own HUD offers within the state that you have your license in which is cool. You could get your license in several different states if you wanted to. I know some people that come in, they take the three days or five days, whatever it’s going to be to absorb the information for test taking purposes. They have to pass a certain amount of hours before they could go and take the test. It’s different from state to state. The cool thing is you can do that in several states. Well, let’s just talk about one state at a time.
You could start submitting HUD offers. You just have to make sure the brokerage that you’re with has what’s called an NAID (Name Address Identification Number). Once you have that NAID, you could then start submitting HUD offers on your own being a licensed sales person. That’s pretty cool. You don’t have to worry about agents submitting those on your behalf. I’m not saying that’s wrong but a lot of agents get extremely busy, and they don’t have time to monitor all the HUD offers we’re going to be submitting. For me, I submit quite a bit. They can’t monitor all of those deals. Plus, it doesn’t really pay off for them monitoring your 40 offers on 40 HUD offers when more than likely you’ll maybe close on anywhere between one to five out of 40. It may not make sense for them to pay attention to that. There’s agents out there that are really cool with it and will make those offers for you. If you’re having trouble finding deals, maybe a solution to your obstacle is getting a license so you could start submitting HUD offers for your own properties.
The cool thing about that that I want to talk to you about is you could earn commissions on your HUD offers. If you’re submitting a HUD offer, most of the time HUD is going to pay you anywhere between five and six percent commission. You take your half and the listing agent takes their half. You could take that half. You get paid right at closing that, and you could apply that towards your net profits. You could either collect the commission or you could zero it out. It doesn’t matter either way. You could get paid a commission if you wanted to because you are now a licensed sales person.
The other thing is since we didn’t have to disclose when we weren’t a licensed sales person, you do have to disclose on all of your paperwork. You could verify this with an attorney since I am not an attorney about disclosing that you’re a licensed sales professional because if you are a professional, and you don’t put that in there and somebody feels like they were taken advantage of, and they found out that you are a licensed person, they could come back and bite you in the rear pretty bad. Definitely make sure that is being disclosed. The more the disclosure, the better. That’s how I’ve always been.
The other thing, too, is this is a cool key benefit. Me being the individual that I am, I hardly ever look at properties. Normally I have somebody on the team go and look at properties, or I have an agent look at the properties and let me know if it’s GO or not. If you’re in that range where you have not closed that first deal yet or if you’re closing anywhere between one to two deals or you’re ramping up, you’re closing four to five deals, this will probably be something that you want to do if you’re trying to scale the business up. You can go and visit the properties. A lot of times now, you do have to have that special realtors card that you just have to put in like what you do with your credit card with the chip reader. You put that card in. You can look at the property. It pops out the key. You don’t have to call, schedule with your agent.
You, obviously, do have to call if it’s an owner-occupant property. You could obviously take a look at any vacated properties. If the property is being occupied, you obviously have to go through a scheduling company to make sure that you’re good to go on that front.
I thought that was cool. You can absolutely just go and take a look at properties whenever you want. You don’t have to worry about anyone else. That is really cool. I talked about earning commissions. Again, you could earn commissions on other deals as well. If you are unable to close on a deal but there’s not enough profit in the deal for you to make money, you could still be that agent that sells the deal to a buyer and you could earn a commission. There shouldn’t be any deals that you can’t make any money on. You could absolutely make money on all deals.
At the end of the day, let me just break it down to you like this. If you are having a difficult time getting deals, if you’re having a difficult time connecting with agents to see if you can become that assistant, that non-licensed sales person, I highly, highly recommend that you become an agent. Get your license and start doing the stuff that you want to do in your own business. Just because you get a license, that doesn’t mean you have to go and do retail transactions. You could focus on your own business. Just get your license held with a mom n’ pop brokerage. Tell them exactly what you’re wanting to do so they don’t have huge expectations for you or, “Hey, you’ve got to do 15 listings this month,” or whatever type of goals they may do for you. Just let them know, “Hey, this is what I’m trying to do. I’m trying to build and scale my business. This is why I have my license. Can I hold it here?” Most of the time, if you’re talking to a mom n’ pop investor friendly brokerage, they’re going to be 100% fine with it.
Again, if you’re having the difficulties of finding deals, finding agents that will allow you to gain access the right way, the ethical way of getting access to the MLS, then become an assistant on that matter. I will tell you this. If you start sharing login credentials with another agent, that agent could get them in trouble. Next thing you know they’re not going to be wanting to work with you. Do it the right way. If you’re going to do this, either become an agent or get the assistant access as a non-licensed sales person.
That’s all I have for you on this topic. Leave me a comment below. If you have any questions, I do respond to you guys. I want to make sure that you guys feel confident, and comfortable moving forward. I want to make sure you don’t have any obstacles standing in your way. I just want to make sure that you guys are moving forward, getting deals under your belt, closing transactions, making money and just really living life on your own terms and being financially free. If you do have questions, just leave me a comment below. I’ll be more than happy to respond to you. Have a great day.
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