Some real estate investors think to get a real estate license to get better access to the next MLS list and FMLS, this license will add more income through the property of purchase and sales for others. On the other hand, many real estate agents are now involved in real estate investment to get additional cash flows and to take advantage of better offering they get in the field of listings and sales.
Indeed, more people see become real estate agents and investors at the same time. However, their main concern is how they can invest in real estate without losing their real estate licenses. In addition, most real estate-investors face general problems; That, how do they avoid getting lawsuits?
There are two main problems involved when agents invest in real estate and vice versa. This is disclosure and agency. Disclosure refers to the information you revealed to the party you are interested while the agent refers to who you choose to stand in this transaction. If the investors follow the rules in these fields, they will likely avoid future problems.
The licensed agent is held more responsible in court than non-agent. This means that any irregularities found in one of your transactions between unhappy buyers or sellers tend to see you face prison. This is why it is important to withdraw the line of way acting and thinking as an agent (and not as an investor); While also ensuring you know how to act as an investor (and not as an agent).
As an agent, your job is to promote customers to buy, sell or rent houses. On the other hand, as investors, you buy and sell your own home. There are also many differences in terms of your roles and functions as agents and investors.
Every time you are an agent in your transaction, it is important that you reveal to your prospective customers that you are a licensed real estate agent. However, you make sure that you also tell them that you buy property for your own investment. You can put this in your profile portfolio or your ad / leaflet. It is important that you reveal to your potential customers that you are a license holder over your initial contact. Each initial contact with phone calls must comply with this pattern.
Some professionals in the field believe that customers do not want to work with investors or agents who work as both. But the reality is they will be more interested in working with you if you tell them the truth at first. As an agent, tell them that you are a licensed real estate agent but explain that you are not interested in including their property.
After you know that your client understands these provisions, you must let them sign the agency disclosure form prepared by your country. This will ensure that your customers understand that you are an agent without a plan to place them on the list. One of the main reasons why the agent is required is because the client misunderstands who they represent. In every supply and agreement you make, you must let all parties get involved signing the disclosure of agency. Also, don’t let other people bid. This can be very abundant if the case goes to court.
If you are not sure what to do, just follow and learn the license. This will not be charged anything in terms of money and offers. Instead, it will save a lot of money and the stress you will experience involved in a lawsuit.