Thursday, January 8, 2015

MythBusters: Getting Your Real Estate License



When my husband, Dan, came to me about nine years ago and suggested I get my real estate license I felt a little horrified! Immediately, I had the image of myself wearing a gold coat and pearls, on the side of the road putting in an Open House sign while trying to keep my skirt from flying up in the wind. Now, eight years later I am the Broker of a growing Real Estate firm and I wouldn't change a thing.

I talk to a lot of investors about getting a real estate license and I hear a lot of myths and misconceptions about why they think it is a bad idea.  I also talk to a lot of investors with their real estate license and most of them think their license is one of their most valuable investment tools. The trick is to get past all those fears and misconceptions to truly see the advantage of a real estate license. So, let's talk about some of those myths.

If I get my real estate license I'll have to spend my time showing houses to buyers, giving listing presentations, doing desk duty at the real estate office, and I'll have a broker bugging me about my sale stats. 

While these things might be true for some brokerages who are stuck in the old, traditional way of selling real estate that is not the case at StepStone Realty! We believe that our time is best spent not in the office perfecting our listing presentations and preparing our yearly calendar magnets, but instead out of the office, on the road, meeting with sellers, networking with investors and beating the pavement. Some Brokers only see your value by the number of listings you have but I have a different point of view. As an investor myself, I understand that there is much more that can be accomplished than simply representing sellers and buyers.  My agents are individuals, self-driven professionals who are taking a very active role in the real estate market. We don't have sales meetings, phone duty, or any of the other mundane requirements you might envision.  We give you the freedom and support to make more money doing what you are good at... investing in real estate.

If I get my real estate license I won't be able to buy property for myself, I won't be able to buy properties Sub To, I won't be able to wholesale properties, I won't be able to....

Aside from the fear of getting stuck a traditional real estate role is the fear of getting stuck in traditional real estate deals. This is a very valid concern for investors.  After all, if you can't do creative real estate you may as well become a traditional real estate agent. While there are brokerages who will not allow their salespeople to practice creative real estate that is not the case at StepStone Realty. Because I'm an active investor myself I understand the creative side of real estate, I'm not scared of it and I can help you do it correctly. It's my job to keep you on the straight and narrow but that does not mean limiting you from doing valid, legal and creative real estate.

If I get my real estate license I will have to provide the sellers with comps when I make them an offer.

This is my favorite. I've heard it so many times and yet through all the numerous classes I've had to take for my license it's never come up.  I did some research and couldn't find anything stating this to be the case.  So, just to be sure I called Texas Association of Realtors Legal Hotline (A very cool perk of having a license) and asked. I explained to the TAR attorney that I'm an investor as well as broker and advertise that I buy houses.  When I make an offer to a seller, besides letting them know I'm a licensed agent, do I need to show them comps? I love his response; "Why would you do that... that would hurt your negotiating position". I think this is a great point.  Just because you have a license doesn't mean you don't have a right to negotiate and purchase property for your own benefit.

It's true that as a licensed agent I have do disclose my status as such to sellers and buyers.  However, that does not mean you don't have a right to be an active participant in the real estate market.  Of all the active investors I know who also have a license you would be hard pressed to find one who lost a deal or was put at a disadvantage because they had a license.  In fact, the very opposite is true.  The tools and extra income options you get from having a license put you at an advantage over all the investors who don't have their license.

That is Real Estate Without Limits!

To learn more about the strategies Dan and I use to make the most out of being investor and holding a real estate license join us for one of our upcoming luncheons.

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