Thread: Real Estate investor vs Agent(Realtor)

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

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.

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

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.

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.

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....?

Originally Posted by TJ2007

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.

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.

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

Originally Posted by beer234

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.