Should I Become a Real Estate Agent as an Investor?

Should I Become a Real Estate Agent as an Investor?

I have been a licensed real estate agent since 1986 and I make a point of working with other real estate agents as an investor. I’ve also authored books, blogs, and articles about becoming a real estate agent. So, you know that I do think investors should be real estate agents.

Ask almost any investor and they’ll say full MLS access is the biggest payoff to becoming a real estate agent.

As a licensed real estate agent, you gain full access to properties only available on the MLS (Multiple Listing Service). This is your key to big commissions while increasing your network of professional contacts that help you as both a professional real estate agent and as an investor.

3 Steps to Becoming a Real Estate Agent

Becoming a real estate agent is one of the best tools you will ever have as an investor. If you’re considering getting your real estate license, either as an investor or as a career Realtor®, I’m offering my free book “Becoming A Real Estate Agent” to answer questions that you probably have.

You may need extra income or want a career that allows you great flexibility. You may want to learn how to better invest in real estate or have a passion for real estate, sales, and people. Many people decide to go into real estate after years of a career in another field or to do it on the side for extra money. Whatever your reason, this book will put you on the right track to success as a real estate agent.

After reading the book, these are the basic steps you need to take to make your dream come true.

Step 1: Choose Your Brokerage Firm. When you are first considering becoming a real estate agent, you probably don’t realize how important it is to choose the right brokerage firm. But this is where I believe you should start. We know that real estate is all about location, location, location. A career in real estate is about being an expert in the neighborhoods that you work in. So, you’re going to want a brokerage in a neighborhood that you are passionate about.

The real estate profession is constantly changing. Just look at what technology has brought us over the past decade or so. Virtual home tours, e-document signing, e-marketing, and aerial views using drones are just a few new developments. That means you want a brokerage that provides exceptional real estate training. You will also want an office environment that encourages creativity, investing, and entrepreneurship. Investing, and entrepreneurship are particularly important if you are interested in sandwich lease options and the other creative investing strategies that have proven highly successful.

Step 2: Get Your Pre-Licensing Education. Every state requires real estate agents to be licensed. Requirements in each state vary but generally require that you be a U.S. citizen, a high school graduate, at least 18 years old, pass a written test administered by the state, and not have a criminal record. You will also need to complete some pre-licensing training. This also varies by state but is typically only two or three college-level courses. The free book that I am offering includes links to the requirements in each state. There are several ways to obtain the training including online courses, in-house with a real estate company, and real estate training schools.

Step 3: Pass the Exam to Get Your License. Every state requires that a person have a license before they receive compensation for services as a real estate agent. In some states, attorneys are allowed to oversee real estate sales for compensation, without being licensed as brokers or agents. The exam includes questions on basic real estate transactions and the laws affecting the sale of property. By passing the exam, you are awarded your license.

Now the fun begins! I’ll be thrilled to help you find the best ways to use your real estate license.

Benefits to Becoming a Successful Real Estate Agent

The best part is that you’ll now be more educated about real estate. Along with that come these valuable benefits:

Access to the MLS. This is perhaps the greatest perk after becoming a real estate agent. The MLS is the single greatest source of on-market deals in the country. It is invaluable to investors and active real estate agents alike.

More Income Streams. Becoming a real estate agent opens more doors to earning commissions from clients and making personal investments. One place that you might not have thought about earning money is by avoiding paying commissions to other agents. In some cases, you might split commissions with other agents and in other situations you may earn full commissions, and in other situations you avoid paying commissions altogether. But always be ethical, there will be disclosure issues. When you get licensed, you must disclose to buyers and sellers that you’re a real estate agent. You won’t be permitted to take advantage of some situations.

Networking Opportunities are high on the list of benefits. Real estate is a people business, so the more people becoming a real estate agent brings into your network, the better. It will grant you more and even “preferred” invitations to industry events where you can meet and mingle with other professionals. These can include other investors with fresh ideas, other brokers and agents, real estate attorneys, loan and title officers, along with many other professionals.

New contacts may be the most valuable assets new agents have when all is said and done.

More Credibility. After becoming a real estate agent, both buyers and sellers are likely to view your investing deals with more credulity. It comes from the professional education and code of ethics. Remember, real estate transactions are rare for most people. Being a professionally licensed agent instills trust in an otherwise unfamiliar situation.

More Education. Education is a good thing. That’s why I offer creative real estate courses, blogs, and many other materials to my students. The process of becoming a real estate agent provides a strong foundation for investors to build their ethical and creative investing careers upon. Working with a broker also offers many continuing education opportunities to keep you sharp in your chosen profession.

A flexible work schedule. No more boss-driven, 9 to 5 work hours. Becoming a real estate agent means you are your own boss and can set the hours that you want to work. You’ll be out in the community looking for your investments and showing properties to clients. No more being stuck behind a desk, fast food counter, or in a factory.

Having the freedom to set your schedule and priorities is a beautiful thing!

How to Be a Real Estate Agent – 6 Habits of Success

In your quest to become a real estate agent, I want to share six tips that successful agents follow.

1. Be Passionate. It’s not really work when you’re enthusiastic. All top agents and investors are passionate about real estate.

2. Stay in Contact with Clients. When you have a lead, follow up immediately or that client may move on to another agent. This means following up on phone calls, texts, emails, and faxes at lightning speed.

3. Stay Current with Communications and Technology. You want to be able to take calls and retrieve data from anywhere at any time. Standing in line at Starbucks, the person in front of you might wonder out loud what the asking price for a home across the street is. Having data at your fingertips makes this person your next client. That’s how to be a successful real estate agent.

4. Be a Neighborhood Expert. Not just an expert on a house that a client is currently considering. You want to be able to ask an investor or client what they are looking for in a neighborhood and then rattle off four or five houses matching his or her criteria for schools, public transportation, shopping, etc.

5. Explain Everything to Everyone. This is about creating WIN-WIN-WIN outcomes. Most clients only buy two or four homes in their lifetime. They don’t know how the process works. Explain the process, possible pitfalls, and different scenarios. Keep clients fully informed about purchase or sale negotiations.

6. Have a Great Network. Becoming a successful real estate agent means not only having a great network of sales leads, but also means knowing the best contractors, inspectors, loan officers, and others in the industry.

Follow those six tips and you’ll be well on your way to becoming a real estate agent – a phenomenally successful one.

I want to help you continue your journey to becoming a real estate agent and/or investor.

I’m sure you still have questions and I want to help you find all the answers.

  1. Your Wealth Building Arsenal.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Investing In Real Estate with Lease Options.
  4. Add Personalized Coaching.
  5. Cooperative Lease Options.
  6. Expand to Get the Deed “Subject To.”
  7. Round it all out by Working with Realtors.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

How and When to Use “Subject To Deals”

Creative real estate investing is always about the 3-Rights – the Right Tools in your toolbox – to fit the Right Opportunity – at the Right Time. Subject to Existing Financing is a tool that you need to keep sharp for when the right opportunity comes along. I call these “Subject to Deals” or “Get the Deed.” This is another way of helping sellers out of a pickle when you take control of the property for little or no money AND without having banks involved.

Subject to Deals… When No Mortgage Lenders are Needed!

Subject to Deals Help Sellers When No One Else Will

At the core, Subject to Deals are about taking control of a property AND keeping the existing mortgage in place. The title to the property will be transferred from the seller to the investor at the closing table but the bank will not be at the closing table. Only the seller and investor are involved (and maybe an attorney if one of you has that desire).

The takeaway is that only the seller and investor need to come to a meeting of the minds – no bank rules involved. The investor simply buys the property “Subject-to” Existing Financing. Many times, the best financing that can be obtained for a property is the financing that is already in place! Keep this in mind during the next several months as headlines announce every time interest rates go up another notch.

Our lifetimes will probably never again see the historically low-interest rates that are already on existing financing!

Subject To Deals involve distressed sellers. You might not think there are distressed sellers out there but mortgage foreclosure activity for the third quarter of 2021 was up 34% from the previous quarter and up 68% compared to the third quarter of 2020 (source: U.S. Foreclosure Market Report from ATTOM). I’m certainly not wishing any ill-will towards homeowners, but the reality is that the pandemic-related moratorium preventing foreclosures ended on July 31 of last year. By September 2021, foreclosure filings rose 24% month-over-month and 102% compared to September 2020.

There are distressed sellers out there who need immediate relief when the bank is breathing down their neck.

A “Subject-to” deal can immediately take over responsibility for mortgage payments when there is no better option.

Subject to Deals are About Full Control

If you follow this blog much, you know that I love sandwich lease options because they give you control of a property without owning the property. That is still true but there are times when a Subject to Deal is the best tool in your toolbox. A Subject to Deal can be best when the seller is in a seriously distressed situation.

There is a difference between a motivated seller and a distressed seller. Motivated sellers are ideal for sandwich lease options because they have very good reasons why they want to put a deal together quickly but these people are not usually in a dire financial situation. Sandwich lease option sellers usually want someone else to start making the mortgage payments but have not fallen behind on the payments.

Sellers needing a Subject to Deal are usually in a more dire financial situation and already behind in their payments. When the seller is behind on payments is the time when the Subject to Deal is typically better than a sandwich lease option. It can also be a better solution if the seller has severe financial problems other than with the mortgage. It also works when a divorce is involved which could lead to a messy closing for a sandwich lease option several months in the future.

It’s good knowing when to use a Sandwich Lease Option or when to use a Subject to Existing Financing to get the best results for both you and the seller.

Advantages of Subject to Deals for Investors

Now that we know how the seller will benefit, let’s look at why you want to use a Subject to Deal as an investor. First, you do gain full control when your name is on the title. That means you can do anything with the property that you want. You are no longer limited to a sandwich lease option that also needs to be agreeable to both the seller and the tenant-buyer. If you want to, you could rehab and flip the house instead. Of course, you can still do a lease option but you no longer have to share the rent and the profit with the seller – all the money flows directly to you. Another profitable possibility is renting for as long or as short of time as you want – and selling at the exact time and price that will bring the most value.

There are also financial advantages beyond having full control. Your initial return on investment can be for more money. In a sandwich lease option, you get into the deal for nothing down by using part of the tenant-buyer’s option fee to pay your option fee to the seller. If you do a lease option without it being a sandwich, you keep the entire option fee from the tenant-buyer – you are no longer the middleman.

You gain that full control without having to apply and qualify for a mortgage. That saves you both time and money. No application fees, no points, and no closing costs. Also no credit checks, no background checks, no proof of income required, and no digging up a ton of paperwork from years ago.

No financing needed — just take over the payments!

Why Sellers Accept Subject to Deals

Several years ago, before I knew him, an acquaintance was forced to sell a house because of a divorce. He and his wife had a successful medical equipment business that went out of business because of the divorce.

As a result, a relatively new and nicely built home had to be sold quickly. When it didn’t sell in the first month and the mortgage came due, he ordered the realtor to drop the price like a rock. At that point, the house did sell quickly but he took an almost $25,000 loss. What he didn’t know at the time is that he could have prevented that loss with a Subject to Deal.

Had he sold the house using a wraparound mortgage or one of the other seller financing methods, he likely would have made money on the deal instead of taking a bath.

Finding an owner who will sell “subject to” is not as hard as it seems. These are some of the same distressed owners that you find in other motivated seller deals. Most cannot keep making the payments and welcome the relief. Reasons vary: foreclosure, poor health, some own two houses, divorce, need to move, etc.

You use the same criteria and numbers to determine a good deal as with any other real estate investment. Just because it’s a “subject to” deal does not mean you want a bad deal. One thing you want to look at closely is whether the deed has any liens against it. This shouldn’t surprise you if the seller is having other financial problems. But liens don’t always mean a bad deal when it comes to creative real estate.

Be sure you fully understand the total numbers and how you will profit from any creative real estate deal.

Make Subject to Deals another tool in your investing master plan.

  1. Investing In Real Estate with Lease Options.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Your Wealth Building Arsenal.
  4. Add Personalized Coaching.
  5. Cooperative Lease Options.
  6. Expand to Get the Deed “Subject To.”
  7. Round it all out by Working with Realtors.

Happy Investing!

Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

Debt-Free Investing with Sandwich Lease Options

If you’re having trouble coming up with investment funds or if your credit isn’t good enough to secure a first mortgage on a property, then sandwich lease options are for you. Even if you have funds or credit, why would you want to put them at risk when you can make more money without risk?

Every real estate investor should prefer risk-free and debt-free investing!

Better Than Investing with Other People’s Money

A lot of investors will tell you to invest using other people’s money. But in all situations, other than sandwich lease options, other people’s money involves some kind of debt. It could be debt through a loan, or it could be sharing profits with a money partner in exchange for bringing money to the deal.

Sandwich lease options are not like either of those scenarios.

Sandwich lease options don’t require you to take on debt.

Sandwich lease options don’t require risk.

Sandwich lease options earn as much or more than high debt and high risk investments.

The investment world is full of get-rich-fast schemes that involve borrowing every cent you can get your hands on. Heck, that’s how I got started. About the time I got out of college, I began buying rental houses using a long string of credit cards. I made it work, but the stress of juggling all that debt was unbearable. I got out of debt financing my investments as soon as I learned about sandwich lease options. Along the way, I saw a lot of other people crash and burn under that kind of debt. Like the hare who lost the race to the tortoise in Aesop’s classic fable, what’s the point of being fast if you don’t reach the goal you set out for in the first place?

You will put fast cash in your pocket and be debt-free with sandwich lease Options!

Your First Sandwich Lease Option is the Proof in the Pudding

You can skip the embarrassing and time-consuming step of going to a bank to beg for a loan even though you have no collateral, you have no experience, and you have no credit history. We both know that their answer is going to be NO.

You must have money to borrow money anyway. So, lets’ look at how you can start making money that you won’t have to share with the bank or a partner. Money that you get to keep starting on day 1.

Here’s what you do…

Find a person that wants to sell or rent their house. You offer to rent the house today and buy it in the future. You want an option to buy it but not an obligation to buy it (no risk). People with vacant houses can be extremely interested in this because it pays their mortgage for them. The sandwich lease option explains how to get a sale price for less than you’ll be able to sell the house for. That’s where part of your profit comes from.

Lets’ say that you take an option to buy the house for $200,000 and sell it to someone else for $235,000 in a year or a little longer. Right there, you’ve built in a $35,000 profit for yourself without taking on any risk or debt. You also agree to rent it for $1,000 until you buy it.

Here’s how you arrange the finances without debt and without risk.

You bring in someone that wants to buy a home but can’t qualify for a mortgage for a few more months or a year. This is a person who wants to live in a nice house today and buy it as soon as they qualify (lots of people want this). They know they can pay the $235,000 as soon as they qualify for the mortgage. Since you will let them live there today, they are happy to pay $1,300 a month until they buy the home.

You just put together your first sandwich lease option without debt and without risk – Easy Peasy!

Here are more of the details. You will pay an option fee to the seller for the exclusive right to buy the house in the future for $200,000. Your buyer (the tenant-buyer) will also pay you an option fee for the exclusive right to buy the house from you in the future for $235,000.

Don’t go to the bank asking to borrow the option fee that you owe. Instead, collect the option fee that the tenant-buyer owes you first. Use that to pay what you owe the seller. Be a good financial manager. Collect a $12,000 (5%) fee from the tenant-buyer and agree to pay the seller $4,000 (2%). You pocket the difference as your first payday ($8,000). There you have it – your first payday without debt and without risk.

Next, you collect the difference between what you pay in rent to the seller and what you collect from the tenant-buyer. In the example, that is $300 every month until the tenant-buyer completes the purchase. Boom – another $3,600 in your pocket if it takes a year to close the deal. And when the deal closes, you collect the $35,000 difference between what you owe the seller and what the tenant-buyer owes you.

A total of $46,600 profit that is debt-free and without risk using a sandwich lease option. That’s the proof in the pudding!

Sandwich Lease Options are a Debt-Free Snowball Plan to Your Financial Freedom

You could rinse and repeat a sandwich lease option whenever you need to make some easy money. OR… you can use the proof in the pudding to snowball this debt-free investing method into your financial freedom for life.

That one sandwich lease option deal delivered $8,000 to you, the first week from the option fee and another $300 every month until the big payday of $35,000 in about a year. That should be all the motivation that you need to put in a few hours a week to put together one deal a week.

Every week and every month, your paydays will snowball into bigger and bigger paydays. $200,000 or $300,000 each year is reasonable to expect if you stay with it just a few hours each month.

“Do It All” Debt-Free with Sandwich Lease Options

The key to a life of happiness is for you to have financial freedom and be debt-free! Debt makes you a servant to the banks. You become more focused on maintaining good credit than you focus on life itself. Debt means you have to work a lot to make the payments. You are doing the work but earning money for the banks. You always put money first before anything else.

Central to borrowing for real estate investments is that you (an investor) have to continue paying the bank even if the investment isn’t earning any money. If the investment fails, the bank gets its money back through foreclosure. You walk away exhausted from too much work and all you get in return is to have your credit rating wiped out.

Of course, you don’t have to ruin your credit to earn money with sandwich lease options. Debt and credit ratings just become much less important than the other things going on in your life. You can “do it all” when you invest debt-free because you don’t need to think about owing money to the bank and how much work you need to do to make the next payment. You just don’t have to be dependent on banks for anything. You are in control without having to be responsible for following the rules of the bank.

Sandwich lease options are debt-free investments.

Start today so you can begin collecting the first of many debt-free paydays that bring FINANCIAL FREEDOM to the rest of your life!

  1. Your Wealth Building Arsenal.
  2. Advanced strategies for Buying and Selling with Lease Options.
  3. Investing In Real Estate with Lease Options.
  4. Add Personalized Coaching.
  5. Cooperative Lease Options.
  6. Expand to Get the Deed “Subject To.”
  7. Round it all out by Working with Realtors.

By Wendy Patton

For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.

If you found this information useful, please visit again soon at wendypatton.com.

For more exclusive content, please subscribe to my RSS Feed and YouTube Channel.

What did you think of this article? Please leave a comment below.

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