I have dabbled in real estate investing for the past 8 years. I bought a few houses to renovate and flip and held on to a few for cash-flow. I am currently a Realtor and with the economic downturn affecting my business, I figured that this would be a great time for me to actively pursue my career as a full time investor. With disclosure laws as they are (at least in NJ) I am finding it difficult to change hats from Realtor to investor though. I don’t have a problem making calls, writing letters, or knocking on doors to solicit listings to sell, but I feel uncomfortable doing so for my investment business. I seem to be meeting up with a lot of suspicion from potential sellers either like I am trying to pull a fast one on them or that I am just using the line of my being an investor to weasel my way into a listing. Having a RE license has its advantages like the word of mouth networking that may help find deals before they hit the MLS, access to the MLS to perform your own market analyses, the ability to physically visit and tour properties on the market at any time, and savings on commissions (either when buying to be used as part of a down payment or as a savings when selling a property). Are there any fellow Realtors out there applying Dean’s principles in their investment business? For example, as a Realtor, how do you work the “wholesaling” aspect of the business without running into ethics complaints? I’m not saying that there’s anything wrong with wholesaling, but I just be nervous about a seller complaining to the RE Commission that I misrepresented the value of the property as a Realtor knowing that I could sell it for more? Any suggestions on how to handle this and other aspects of creative investing as a Realtor?
Live well, laugh often and love much.