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Working on obtaining real estate license...

Discussion in 'Real Estate & Other Investments' started by Paranoid Android, Oct 3, 2017.



  1. Paranoid Android

    Paranoid Android New Member

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    any tips from the pros out there?
     
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  2. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    The first year is tough and the agency you hang it at might try to rip you off. Get everything in writing. Unless you are fully committed it won't work and would be a waste of money.
     
  3. Paranoid Android

    Paranoid Android New Member

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  4. Mujahideen

    Mujahideen Black Member Midas Member

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  5. southfork

    southfork Mother Lode Found Mother Lode

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    Had one in Jersey, I know some people took the test 2/3 times before they passed, that was back in 70s when i first got licensed, First rule, qualify your buyers, dont waste time running everyone around that wants to look at homes, some do it for a hobby, ask them how long they been looking, if over a few months odds are your wasting your time, a saying in RE is buyers are liars. Most show no loyalty and will call whatever sign they see even though you spent weeks with them, I had a success ratio of around 80% as I was particular who I dealt with and was very selective. Same with people wanting to sell, if they want the house overpriced dont waste your time, they will call up and cry no ones looking, your not advertising it ect. I always asked sellers did they want to sell their house or have it for sale. Other thing center of influence, make sure everyone knows your in the business and pass your cards around, does take around a year to really get yourself out there, I found in niche in companies that offered over average ltv ratios and allowed higher debt limits, standard used to be 28 for housing, 8% for other long term debt, I had mortgage companies would allow 50% total debt, brought me a lot of sales. Good luck.
     
  6. mayhem

    mayhem Silver Member Silver Miner Site Supporter

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    I had a agent friend who worked the HR dept.'s .of a few company's who were always moving people around. Really helped him in the beginning. Just something to add to your thought list.

    We sold a house through him that we owned in CT after renting it through him for 6 yrs. He had a very good relationship with the HR dept at Pratt and Whitney, and he had good houses for rent and sale.

    I tried Insurance (long term care when it first cane out) and only did it part time. Failed, but it was a good learning experience on "qualifying" your clients so you don't waste your time.

    Takes a while to build a "book". The gal we bought a house from 30 years still sends us a card every 4 months. Keeps her name in front of us, and she is quite successful , but works hard.
     
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  7. Garyw

    Garyw The Military gave me Defoliant Exposure Silver Miner

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    People move an average of 7 years keep an eye on houses that closed in 6-9 years ago and target that and also read your local obituary for potential housing coming on the market. Let their children and heirs know who you are and what you can do to help them even by finding someone to liquidate household goods for them. Hold neighborhood sales in that time of year. Be helpful and work your ass off. Nobody works more hours than real estate licensees or insurance salesmen. It takes a long time to create repeat customer base say 7 years.
     
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  8. Paranoid Android

    Paranoid Android New Member

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    Passed muh test today :)
     
  9. southfork

    southfork Mother Lode Found Mother Lode

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    Congratulations
     
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  10. Someone_else

    Someone_else Gold Member Gold Chaser

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    I have been a seller, and I have been a buyer. Either way, I insist that the seller give complete information to the public. When selling, I printed info sheets, put them in ziploc bags, and hung them under my signs. So any buyer could get all the details just by stopping by. Some properties had a clear plastic box with printed sheets in them, and that is great. What is UNACCEPTABLE is when an agent won't provide details and DEMANDS that a buyer contact him or her. That is usually couched in a lack of information, but it is still a demand. NO! I will NOT submit to contacting the agent for details. Give me the information NOW! I think many agents feel the need to CONTROL the contact with buyers, but I say NO. You do NOT and WILL NOT control me. If I do decide on that property, be assured that I will use another agent just to reduce your commission.
     
  11. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    If you don't list, you don't last.

    Buyers are liars.


    That's all you need to know.
     
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  12. Area51

    Area51 Silver Miner Seeker

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    Regardless of whether you're going to do it full time or as a part time side hustle, having your real estate licence is a great thing.

    From my personal experience, do not start off with a brokerage that's going to charge you a big monthly fee with the allure of a 95/5 split.

    I made the mistake of starting with ReMax - - $1100/month in "office fees" - - based on the mistaken assumption that people would be drawn to a big reputable name like ReMax. You're not going to be pulling multiple closings in your first few months, so the split isn't nearly
    as important as keeping your head above water and not drowning in ridiculous "office fees".
    The reality - - nobody cares about the brokerage. They're concerned with the agent. If the agent doesn't know what he's doing it's not going to matter what brokerage he's with, because people aren't going to deal with him.

    Focus on one segment and understand it inside and out. You can't bounce from a condo sale to a new build to vacant farmland to a multiplex. If you've never swung a hammer in your life, don't try to help people find and flip renovation properties.
     
  13. dacrunch

    dacrunch Platinum Bling Platinum Bling

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    I got my RE License in Florida in the 2000's...

    I only showed people houses that they could afford according to their income, imo... They decided to go with realtors who showed them houses worth twice as much with granite counter-tops etc...

    I did not sell ONE house... in 6 months of activity.

    Went back to my old job.

    I bet that if all those I showed places to had bought those places, they'd still own them - instead of getting foreclosed out of the "fancy ones" when the crash came along...

    It doesn't keep me awake at night...
     
  14. JFN111

    JFN111 Silver Member Silver Miner

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    I agree with staying away from big box RE Companies when you first start. I switched to RE/MAX after having my license for 3 years, and a book of clients, and it has been a great move but I wouldn't have done it with no base to work from.
    You might also consider trying to join an established team. They will have the lead generation systems in place and help you get established. 80% of new agents fail because with- Brokerage fees, MLS fees, NAR fees and Continuing Education costs, it can be an expensive hobby.
    Good luck!
     
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  15. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    I found that you sell what people want. Show them what they want to see.

    It’s none of my business to train people in finances or economics.

    They’re adults. They take their chances just like everyone else!

    Knew a guy who bought houses using credit cards for the down payment money!

    I figured he knew how to juggle way better than I did.

    Who am I to tell him otherwise??
     
  16. dacrunch

    dacrunch Platinum Bling Platinum Bling

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    Yeah, Goldhedge, applying my 'code of ethics' to other people's 'stupidity' was my own 'fault'. But I could just 'see' them 'committing suicide', and could not bear to take part.
     
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  17. hoarder

    hoarder Midas Board Mmbr Platinum Bling

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    The world is full of contractors and middlemen who provide their clients all the rope they need to hang themselves. "Who am I?" you say. The middleman gets paid because he is more knowledgeable that the other parties involved. They lean on him for expertise and he places the rope around their tender necks.
     
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  18. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    True, but there is no legal obligation to protect people from doing what they want to do.

    Having a 'fiduciary duty' does not mean you place your financial code of ethics upon them.
    You don't co-mingle funds and you account for all monies tendered. That's it.

    If they want to purchase a dump, or a mansion - what business is it of mine to tell them otherwise?

    Their financials are between the lender and themselves.

    I never wanted to know how much money they had, only how much the lender qualified them for.

    The lender made that determination based on what they shared. It was none of my business.
     
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  19. hoarder

    hoarder Midas Board Mmbr Platinum Bling

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    When you are hired as an expert you have the moral obligation to assist parties involved with your expertise. People have a vague idea of what they want because they don't have any expertise to discern what they should do.
    In my first couple real estate transactions I noticed that agents had the attitude you express, so I decided to learn a lot more and circumvent agents whenever possible and showed them little respect when I had to deal with them.
    Unfortunately most people only engage in two or three RE transactions in their lifetimes and never learn, but many of them have learned to despise agents.
     
  20. EO 11110

    EO 11110 He Hate Me Mother Lode

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    never worked in the biz. but less than impressed in the 10 or so deals that i've done. op, your competition is weak....apparently merit doesnt matter though
     
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  21. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    I disagree.

    First of all, as a new agent you have no expertise. You have a license. Just like a new driver has a license? That doesn't mean you know how to drive. So, right there, how one can be considered an 'expert' is troublesome.

    Most folks don't know squat about a contract, nor the buying process.

    My obligation was, using their information (3b 2b 2c) to help them find a home, set appointments, show the home and guide them through the contract and paperwork. That's the extent of my 'obligation'.


    If they wanted a good lender, I'd open the phone book, or point to the table where lenders put their brochures.
    If they asked about the roof, or the furnace, I always suggested they find an 'expert' to make that determination.
    If they wanted to know about 'crime in the area' I pointed them to the police department, etc.

    I never held myself out as an 'expert' on any subject because that is how one gets sued!!

    The local board of Realtors had many classes that instructed us to do it in this way - so it wasn't an 'attitude' as much as it was good business practice.
     
  22. hoarder

    hoarder Midas Board Mmbr Platinum Bling

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    You have to go through a lot of training to get that license. It's not as though you pay thirty bucks to the real estate commission and go about your business. So, yes, compared to the general population, an agent is an expert.
    Somewhat of a false analogy because a licensed driver is not getting paid BIG BUCKS to transport personnel (unless he's a bus driver or something like that), a person who has a drivers license does have more expertise in driving than someone in a third world country who has never driven or taken a driving test, or a child who has never driven.
     
  23. Area51

    Area51 Silver Miner Seeker

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    That is 100% correct. I can't believe some of the comments I'm reading in this thread.

    Your number one job as a realtor is to be a value add for your client. That's what earns you the commission.

    Very few agents add any value. Most tout themselves as "top negotiators" and that's about it. STFU with that bullshit - - being a good negotiator is basic skill. And that's why the majority of agents disappear as soon as the keys are exchanged. Also why they have very little repeat business.

    And that's exactly the reason I said to focus on one segment of the market to become an expert on it.

    Personally, my business is to make people money through buying properties to renovate and then either cashing out or collecting rent. If someone wants to speculate on pre construction condos, I'm not the right agent for them and I don't get involved. If someone wants to dabble in commercial property, same thing - - I decline their business.

    You bet your ass I'm the person they turn to as an expert to guide them through the process.
    If someone needs a tile setter and their agent just shrugs his shoulders and points to the phone book, WTF good is he?

    Need an electrician? Call this guy. Need a plumber? This is your man. Need drywall if done? Here's the taper to call. Need kitchen cabinets? Here's the place to go.

    You do not need to waste money on a general contractor - - deal with the sub trades directly and I'll tell you who to call.

    I never recommend any sub that I haven't already personally used on one of my own properties to verify their craftsmanship.
     
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  24. <SLV>

    <SLV> Gold Member Gold Chaser Site Supporter

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    Excellent thread. I've been suggesting to my daughters that they might consider a career in real estate. It would offer them flexibility if/when they marry and have kids. They could even do a lot of work from home.

    As a recent RE buyer (who hated his agent) let me tell you what I expect as a client:

    1. Communication. Respond to e-mails, even if you just say, "OK, I'll get back to you on that." I felt like my e-mails were going into a black hole. Return phone calls promptly.
    2. Advice. I signed a buyer's agency expecting that he was my advocate. He's supposed to be the pro with 13 years of experience, so I expect to get professional advice. When I was trying to decide how much to offer he just hemmed and hawed and said, "Offer whatever you feel comfortable offering." Sheesh! I want my agent to give me a winning negotiation strategy. I want to buy the house for as little as possible. This guy would not help out at all.
    3. Action. I told him how much I wanted to offer on Sunday night, and on Thursday he STILL hadn't written up a contract! Ridiculous. When your customer is ready to pull the trigger, go "BANG." Even after we were under contract he didn't show up at the house to put a "Sold" on his sign until the morning that I closed on it! What a loser.
    4. Honesty & Integrity. Always be frank with your clients even if you have to tell them what they don't want to hear. I worked with a different agent earlier who failed to disclose that her domestic partner was the listing agent on several properties she was pushing me toward. I've already steered several people AWAY from her. Remember that one half of your transaction is becoming a new member of the community, and they will tell everyone what kind of person you are. Your reputation is essential.

    There is a local agent in our area who is a real *itch to FSBO listers. She will request an opportunity to walk through the house, then she berates and intimidates them. Needless to say, I've also steered many people away from her. Again, your reputation is essential.

    Be actively involved in staging for sellers. Look for cheap and easy fixes that they might not notice because they've been living with it that way for a long time. I just picked up a beautiful 5/2 house on a prime waterfront location for $45k, and it had been on the market at $69k for eight months without an offer. The biggest drawbacks were the piles of clutter in the house and the landscaping had completely overgrown everything. Now that I've cleared the landscaping and cleaned out the house I could probably list it in the spring and double my money.

    Don't cheap out on listing PHOTOGRAPHY. Unless you are a very accomplished amateur photographer (like me), hire a pro. People will look at pictures online before requesting a showing. Make a good first impression. Find a photographer that understands HDR (high dynamic range), has a good wide angle lenses for interior pictures, uses Adobe Photoshop Lightroom, and if possible, is able to do drone photography for seriously impressive curb appeal photographs.

    Finally, don't drive a piece of junk rusted out hooptie car. You want to look successful (dress sharp, too). I always judge a real estate agent by their transportation. Ideally, have a nice enough car that you can be proud to drive your clients to showings. Impress them with your apparent success so that they will believe you know what you are talking about, and they will think that you are good at getting the deal closed.
     
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  25. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    and when something goes wrong and they sue, they go for where the money went. The "rich" Realtor.

    "So miss Jones how is it you came to rely on this contractor?"

    "My Realtor recommended him." ​


    They (the old timers) always told us you don't want your name on a lawsuit.

    It's like motorcyclists... there are those who haven't fallen, and those that have.

    Eventually, you will get sued.
     
  26. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    Exactly correct sir!! That is what you get.

    Women are particularly good at being an agent. Something about the 'bonding' with women habit they have.

    Women are 'who buy's' the house. "Happy wife Happy life" comes to mind.

    Of course each state has their own laws regarding agency. Mine has Seller's Agent, Buyer's Agent and Transaction Broker.

    The latter comes into play when you find yourself buying from the listing agent.

    A Transaction Broker 'assists' you with the transaction. Doesn't really "represent" either party at this point.
    Can't tell you 'Oh the seller will take $10k less' etc. without seller's permission. Can't disclose what was discussed between the two. They make sure the "T's" are crossed and the "I's" are dotted and walk the transaction through to completion.
     
  27. Silver

    Silver Gold Member Gold Chaser

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    When I'm buying, the RE agent means very little to me - they represent the seller. On my last purchase a couple of years ago, the agent gave me the fliers on the property, one with a purposed new boundary line (we were splitting off from another property). I made a cash offer on the property with the proposed new boundary - turned out the seller wasn't willing to accept the boundary the seller and agent had proposed. I called bullshite and said the boundary they proposed was what I based my offer on and if they weren't going to honor it, I was withdrawing my offer. The agent agreed with me that it was tricky, but he worked for the seller, so, sorry about that. The agent ended up working out a compromise that satisfied both of us and the deal went through - so agents can be helpful to the buyer occasionally.
     
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  28. hoarder

    hoarder Midas Board Mmbr Platinum Bling

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    When you hire a carpenter/builder to put an addition on your house, there are two kinds of contractors you will meet:
    1) The kind who looks at the job (IOW listens to customers request), visualizes what needs to be done to do the job correctly (not assuming the customer is an expert) and tells the customer the correct way to do it and advises the customer accordingly.
    2) The kind who says "yessir, good idea sir" even though he knows it will fall down 5 years later and proceeds to give his customer "what he wants", good and hard.
    What is so different about RE agents? If they are officially in the latter role, I think it's time to pass a law allowing FSBO's to list on the MLS.
     
  29. Area51

    Area51 Silver Miner Seeker

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    Suing someone for a bad recommendation? That's absurd.

    Even the most litigious people wouldn't be dumb enough to bring such a frivolous claim. And if they did, it'd be laughed out of court.

    Their action would be against the person who performed - - or failed to perform - - the work.

    Not against the person who recommended them.
     
  30. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    I originated mortgages and offered great deals. I parked my license at a good place where we never put anybody in a house they could not afford. We also worked close and offered the best inside deals on financing. Then everything blew up in the financial crisis and I went into the garbage business.
     
  31. Area51

    Area51 Silver Miner Seeker

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    Excellent points - - you'd think that would be a basic standard for all realtors. Could be why so many go out of business.

    I have to ask - - what city are you in that has 5/2 waterfront property for $45k?!?

    In Toronto $45k buys a parking space. Literally.
     
  32. <SLV>

    <SLV> Gold Member Gold Chaser Site Supporter

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    Rusk County, WI.
     
  33. hammerhead

    hammerhead Not just a screen name Gold Chaser

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    Can money be made doing this?
     
  34. Area51

    Area51 Silver Miner Seeker

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    Doing what?
     
  35. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

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    May be absurd, but it happens. Remember, each state has their own laws? States rights...

    I've heard horror stories about buying and selling in the State of New York. Lawyers are involved at every turn.
     
  36. Area51

    Area51 Silver Miner Seeker

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    I'd be really interested to see the case law references where people were held liable for a bad recommendation on a home reno.

    Have to call bullshit on this one.
     
  37. hammerhead

    hammerhead Not just a screen name Gold Chaser

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    What?
     
  38. nickndfl

    nickndfl Midas Member Midas Member Site Supporter ++

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    Real estate selling in Wisconsin? I would move to a faster market if you want to make $.
     
  39. Zed

    Zed Size doesn't count! Midas Member

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    Yeah don't do it at the peak of a real estate bubble! Get into it when everybody hates real estate. Less competition more money to be made from the bottom of this coming bust. JMO.
     
  40. Zed

    Zed Size doesn't count! Midas Member

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    Nuclear Technician
    Location:
    Springfield
    As an ex boat broker I will say that if most buyers met most sellers most deals wouldn't happen. Yes you are working for the seller but you are always negotiating both ways and smoothing the path to a successful sale. A seller often needs to be protected from themselves and buyers can't always see what's in their best interests. If you look after both parties in this regard you get repeat business, if you just go for the sale regardless you will have a short career. It's a balancing act, never lie, always follow up and don't be afraid to say I don't know but I will find out and I will get back to you. Yes anyone can try it but being successful is a bit of an art, a lot of subtle skill is involved. You need to be a student of human nature and know what to say and when to say it. Deals can go West on a few badly chosen words.
     
    Last edited: Nov 2, 2017
    searcher, Silver and <SLV> like this.

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