Real Estate investor vs Agent(Realtor)

[wallbay1]

I'm interested in becoming a real estate investor. I live in South Florida. I don't know how to start. I need some advise.
Mostly do I need to pass a real estate license to become a real estate investor?
I read No money down they don't mention anything about passing a license to start investing in real estate, but most people that I saw in real estate are agent or realtor.
what is the difference I am confused

[REOCITYcom]

First of all no you do not need to have a real estate license to be an investor.
Though the training you would receive would be helpful for understanding laws, processes etc., this is no reason to stop you from investing if a great deal was to become available, first of all if want no money down, you need to find out if you have good credit or not. With all these financial institutions running out of money, they are not handing out money if you are breathing and have a pulse, like they use to. If you don't have at least 680 or higher you are going to need down payment. I would call several real estate brokers in your area to help you move forward, for if they are any good they will know a mortgage broker who can help you determine what your next move should be.
:cool:

[johnnuzzo]

A great way to start is to lease with option.
This ties up less moiney than buying.
It also allows you to "kick the tires" before buying.
The tenants actually help you buy.Go to a good lease with option web site and learn how to do it. There are several good ones out there.
Good luck

[TJ2007]

I think the general consensus among investors is that it is better NOT to have a real estate license. As if you are licensed you are obligated to many more laws and ethics standards and are open to all kinds of legal action.

Are there benefits to be lic. too, yes, but I think the bad out weighs the good.

Better just to start making contacts in the industry real esate agents and mortgage brokers that you can work with.

[johnnuzzo]

When purchasing a commercial property, you can get all or part of the commission. This could be 5-10%. That's enough to make or break a deal. Couple that with rent deposits, partial rents (if a mid month closing) and the mortgage payment the following month )while you collect rents for same month), and you have the makings mof a NO DOWN deal.
That is a big advantage.

[TJ2007]

Yes you are obviously right that being able to keep commission is the reason that most people go and get their lic.

However with so many realtors offering to give rebates back to buyers from their commission I would think it makes more sense to let an experienced realtor do the work, keep yourself out of the liability and still save money on the commission....?

[Malok]

However with so many realtors offering to give rebates back to buyers from their commission

As soon as I see an agent doing that, I immediately think of them as being weak.


Why would you let someone represent & negotiate a deal for you - when they are unable to successfully negotiate for their own behalf without giving a big handful of money away.


None of the successful/competent real estate agents in our area that come to my mind give any sort of rebate.

[johnnuzzo]

A rebate may be against the law in some states. But the concept of taking less than the standard fee in an area is nothing new. You see it all the time with the "Discount Brokers", "Help You Sell" type companies and a host of other concepts. When there is an abundabce of listings not selling and an abundanced of Realtors, something has to give. Realtors aren't any different from other businesses and/or retailers. When it is a Buyers' market, an over supply of product, a tough economic climate, etc., you have to do something. It is not "weak" nor "unsuccessful" . It is the MARKET and it is SURVIVAL.

[beer234]

I know that Zip Realty will rebate a buyer 20% of the comission received by the buyer agent. Is that legal?

[johnnuzzo]

I know that Zip Realty will rebate a buyer 20% of the comission received by the buyer agent. Is that legal?

Rebating to the Client is never a good idea and may be illegal in some states. But it is not wrong to cut the rate of commission, although probably stupid in the long run. Kick backs sound dirty and revolting but cutting the rate from 6% to 4 or 5% sounds aggressive but not quite dirty.
In any event, the best policy is to have everyone charge the same rate so these problems, questions and accusations do not crop up. Rather than worrying about the discount Brokers, worry about selling houses.

[InRealEstateSolutions.com]

I'm interested in becoming a real estate investor. I live in South Florida. I don't know how to start. I need some advise.
Mostly do I need to pass a real estate license to become a real estate investor?
I read No money down they don't mention anything about passing a license to start investing in real estate, but most people that I saw in real estate are agent or realtor.
what is the difference I am confused

You don't need to be licensed to be an investor. Many investors are so they can fully access the MLS and they can make commissions on some of their deals too.

There are many different ways to purchase properties without any money down, but some are drying up. You used to be able to 100% financing from banks, but that's drying up. However, you can take over existing mortgages, get private money, seller financing, lease-options, etc.

If you don't know where to start, find your local REIA. Where in S FL are you? I know of a few real estate investor groups in the Miame-Dade/Fort Lauderdale area. If you're in SW FL (like me) there's a few good groups from Naples up to the Tampa area that I can refer you to. At these groups you can meet people, get some education and find some properties.

There are plenty of books and tapes out there that you can get that will teach you some basic information. They will teach you stuff, but be careful of spending too much money for what you get.

[Floridadeals]

If you are working foreclosures its better not to be an agent, in my opinion, for liablity and disclosure reasons. What does work well is to work closely with a Realtor who understands the investor side of the business. These Realtors can be hard to find and far between and when you find one hold on to them. I'm from south east florida and if you're still looking I can introduce you to some very experienced real estate mentors and teachers in the area and let you know about what network/reia meetings are going on. As far as no money down that is a hard proposition in south florida because you usually would need a seller that owns the property out right. But, $10 or $100 dollar down deals are very realistic especially with all the motivated sellers in this market.
Regards,

[johnnuzzo]

You need motivated SELLERS!

[floridamike]

I was told I had to be a real estate agent - so I bought a $400 online course and after having my eye bleed for 2 days - another realtor told me I didn't need to be a realtor to be an investor. Was very confusing in the beginning. I was watching Donald Trump The Apprentice one night and googled Donald's name and found this investorman guy. (googel investorman) I hired him to show me what to do. I did a complete 180 in my business. After workign with him first week I quickly realized I was doing everythign wrong. Problem with clubs & meetings is the real guys making money don't go to those things. I went to a few meetings here locally and seemed more like an AA meeting or something.

[GetSmart]

Couple that with rent deposits,I always hated the idea of using rent deposits as personal cash. if caught commingling you can be hit with a stiff fine. so don't think deposits are something you can put into your personal bank account. always set up a different account for deposits to steer clear of the law.

[RehabEd]

If the rent deposit is considered a security/damage deposit, it should be kept in a separate, interest baring account. Each year, you could pay out the accrued interest to the tenant or let it continue accruing until the tenant moves out.

If it's considered the tenant's last months rent in advance, I would assume that you could just as well put it into your own account, as income derived from rents. You'd be taxed accordingly though, so in that respect, it's better to keep it in a separate account for the tenant and wait until they actually give you their last months notice, then apply it as rental income for that year.

I never required any deposits of my renters and am only using common sense for this post. If I were to take deposits, I'd surely seek out the proper and legal way to go about it.

Any thoughts???????