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A realtor that invest in Real Estate? But Why?

Hello all! I was wondering if anybody has successfully been on both sides of the fence. As a Realtor and at the same time a real estate investor. My question is what are some of the challenges one must go through? Furthermore, most of you who have read the book Rich Dad Poor Dad, written by Robert Kiyosaki, have an understanding that investing is a powerful way to financial freedom, and earlier retirement. Just as a side not I added here the 4 qudrants that Mr. Kiyosaki believes make up the world of business. For those that have not read the book Rich Dad Poor Dad, I highly recomend it as a source of knowledge to be applied for financial freedom.

THE 4 Quadrants that make up the world of business according to Robert Kiyosaki include:

Comments from individuals that are Realtors that are thinking about investing, or have successfully invested in Real Estate is greatly appreciated.

Posted by Kevin Raymund Lao Jacinto on 04/18/2007 02:06 PM

Comments (15)

15 Comments on A realtor that invest in Real Estate? But Why?

JUN

2007

Strange that this is a featured post in the Investor group and this is the first comment since Mid April,

Hmmmmmmm. could it be the grop leader is the author, Hmmmmmm

JUL

2007

Hi Kevin,

I'm surprised there was no responses. I have similar questions! I do know realtors that are major investors; I also know some investors who became "inactive". They felt that being licensed was more of a hinderance than a help. You need to be cautious because some agent investors own a property or two but aren't really building their investment portfolio. I am just getting started in investing. We are attending the Rich Dad training offered through Wealth Intelligent Academy. I'm a new agent and hope to build my business around investors.

JUL

2007

That is great Kathy. Thanks for the feedback! How much does that Rich Dad training cost and how has that been working for you so far?

-Kevin

JUL

2007

Hi Kevin,

It isn't cheap by any means! There are multiple levels of training ranging from about $15K to $45K. We signed up in a program to have a mentor assigned to us who comes out helps us for 3 days. Hopefully we'll be far enough along by then to make that 3 days really effective. Once we have a few more classes behind me, I'll endorse it (or not!). So far the training has been good but I haven't taken many steps beyond just planning. Being in a fairly remote location where good investments are probably beyond my current means, it is tough to look for opportunities elsewhere.

I already have run into an issue with local agents who say they don't want to work with investors because they will get blacklisted for coming in with lowball offers. I hope that doesn't prove to be case. Does anyone have experience with that? And if so, how do you mitigate or manage?

JUL

2007

I'm getting real close to making the plunge. I'm building up my investment account to make sure I have a cushion before I dive in.

NOV

2007

Kevin,

Do you have any problems with purchasing properties because you are licensed?

Just curious to know :)

I am hoping to make the plunge soon also!

NOV

2007

I have no problem purchasing properties because I am licensed. The truth of the matter is that finding the right property that will give me a positive cash flow has been a challenge. It takes a lot of patience and looking at numerous deals which has been not necessarily a problem, rather I'd say challenging. It is very important we as Realtors use our resources and contacts to purchase these investment properties at the price we seem fit, after all we know real estate right? I intend for much success to all of the Realtors out there looking/purchasing investment properties, and taking the correct action steps toward financial freedom!

APR

2008

I have always been told that a buyer should use an agent that invests. I can see the wisdom in that when I am helping others. I have obtained more knowledge of being the one stressing over a purchase frequently. Hands on knowledge goes a long way

APR

2008

I don't think that you can be blacklisted in Real Estate by making low ball offers. Most of the times you are low balling foreclosures or distressed properties which in turn need to be low balled. Most people who sell property are trying to sell with out investing time in fixing up the property. Then they are upset when they can't get their asking price.

APR

2008

Kevin - I have been an investor for over 15 years and last year finally decided to get my brokers license. The investing part has been great. The broker part is still fairly new, but my intention is to use my RE experience and knowledge as an advantage to helping others buy properties.

Although I will act as a buyers agent for home buyers, my interest is more to be a buyers agent for investment properties.

I guess I'm moving in the opposite direction. Actually, I first got my salesperson's license over 20 years ago, but decided to get into investing instead of sales. Now with property values being what they are, I saw too much money slipping thru my fingers and going to random realtors. I dn't have a problem with sharing commissions, just have a problem with seeing all of it go to others.

As far as Rich Dad, Poor Dad, I first read the book several years ago. loved it! all I could think about, is that if I had ever written a RE book, this wood have been it. as far as the seminars and other books, well, I guess there's no such thing as too much knowledge, but sometimes you can get more features than you are ready to use.

JUN

2008

Kevin - I started off as a flipper some 15 years ago and was frustrated with the lack of TRUE real estate knowledge I was finding out there in the Realtor ranks so I got my Agent's License. Why pay someone to post a property in the MLS and walk away.

Since then I have not flipped a home in 10 years, listed and helped many others become home owners and moved on to my broker's license, empireteam.com. I still have a couple investment homes that I bought in the early 90's, one a three bedroom condo in Fontana that I picked up for $43k.

I am watching the marekt fundementals and getting reafy to purchase more investment properties. Throughou these last 15 years I have learned much and plan on leveraging my knowledge to purchase between 20 and 200 homes. Investing is nothing more than doing your homework and implementing a plan.

Take care!

RJH

AUG

2008

I think being an agent and investor is a great combo. I've been doing both for 7 years and each has helped the other a ton. A common thought is investors believe consumers will be wary if they know they have a license. This has not been a problem for me. I sell it as a a benefit because I can coordinate title/escrow/financing etc. I think it adds credibility that I can get the deal closed. I also have other agents keeping their eye out for me and I make it clear that if they find me a deal they get the commission. That's important so that they see you as a client, not a competitor. Make sure the whole world knows what you do!

OCT

2008

Hi Kevin,

My comments on this are from a full time RE investor who does not have a RE license.

Tax Challenge owning property as a realtor could have tax consequences to you that are different(consult accountant) commissions vs business profits vs dividends from your business, share holder loan treatment
Self Employed status of most realtors and market stygma will influence sales and purchases

It would be my suggestion to hold your properties in a holding corporation but that greatly depends on how many properties you want to own and how you want to conduct yourself

MAR

Ok, so almost 24 months has passed since this was first posted.

Is investment property seen as a financial growth tool, now?

MAY

It's the best time ever to invest. I've had my license since '82 and started investing from the beginning. My license has probably been an asset as it gives me access to the MLS and a lot of other training and networking. I've fixed and flipped and also buy for long term hold. Today is a great time to be buying, discounted prices, low interest rates, rental market is fairly strong. I bought 8 houses in 2008 and hope to buy that many in 2009. I own my own brokerage company and mostly specialize working with investors. It's a great gig.

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