license because it can create an additional revenue stream for their business. That’s because real estate investors who have a license can change their “hat”—changing from an investor to a traditional real estate agent when it comes to dealing with property sellers. Sometimes a real estate inves- tor will find himself or herself meeting with a seller, and for whatever reason, it’s just not possible to purchase the seller’s property under your real estate investing hat. In these scenarios, you can offer the sellers another solution if you are a licensed real estate agent – by perhaps listing their house on the MLS as their licensed agent and selling the home that way. You could generate revenue by get- ting it into contract and earning a commission when it sells. This may not be as much as you could have earned as an investor, but it’s still a way to monetize the lead and the time you’ve invested with the seller. Even more importantly, it provides the sellers with a solution to sell their home even though it wasn’t the solution you originally intended. Now, let’s talk a little bit about the disadvantages of a real estate investor having a real estate license. I think most promi- nently and importantly, you’ve got to acknowledge the cost and time it takes to hold a real estate license in your state. Just to get the license de- mands a significant investment in time and money. There is course work required—books, class time and online time, depending upon your state and its requirements. DISADVANTAGES: COST AND TIME
Then there’s a test. You must pay to take the test. You must study for the test. You must take the test to get issued the license. Then the license itself in your state is going to cost something … assuming you passed the test. There are also other expenses to consider once you have your license. For instance, you’ll have to pay to have access to the MLS. You’ll owe real estate association dues, as well as fees and dues to the broker who sponsors you as a licensed agent. Always weigh your options and make choices best suited for your business. Ultimately, it’s your decision. The good news is a real estate license is not required for you to become a successful real estate investor. And it’s not a hin- drance or detriment if you do have one. You have options, and it’s completely up to you as an investor how you want to run, manage and create your real estate investing business. • entire policy or at least for the perils that have been loss issues for the past owner. For exam- ple, if frozen and burst pipes have been an issue in the past, request a higher deductible for that specific peril. If the past loss had a payout of $8,000, then request a $10,000 deduct- ible for that peril, if financially it makes sense for you. This will offset the risk and “cover up” the loss altogether. Do not jeopardize your business by taking on a higher deductible than what you can stomach as an owner. You are better off looking for another property to purchase or paying the higher > Continued from :: PG 71 More Myths Debunked
> Continued from :: PG 39 Decision Swayers to drawmore potential buyers or renters and tend to shortenmy days onmarket andmaximize my returns. Why?Well, usually because the park will market its community more aggressively. Often, the park will do some sort of reputationmanagement, too. Additionally, I have more mobile homes to choose from in the park andmore comparable properties to helpme gauge my fair market value or market rent. I prefer parks that have a mix of single-wides and double-wides. I like to see a mix of older and newer mobile homes, too. It tends to help keepmarket values in check and draw a more di- verse mix of potential prospects for my units. I have even found that quite a few of my buyers will request to trade in the two-bed- room single-wide they bought fromme for a three-bedroom double-wide. If I like working with those individuals, I can help them stay within the same community and get into a larger home – while also increasing my rate of return on those mobile homes as I recycle them through my portfolio. These four factors should be considered before you buy a mo- bile home in any mobile home park. I have found that these fac- tors will readily impact my net profit, so I ampretty particular with how far I will stray frommy investment criteria. My objective – like that of any other real estate investor – is to maximize my net profit. I have found that certain mobile home parks are golden geese, while others turn out to be albatross. I hope you can take this information, apply it in your market and get your mobile home investing business off the ground. •
> Continued from :: PG 41 Diversification Tips You could invest in
historical homes that have a history of hauntings, for example. That would allow you to offer ghost tours. How about buying huge swaths of land in the form of ranches? You could hire someone to operate a dude ranch to attract people who want to try out that kind of lifestyle. Beautiful gardens could be just as interesting. You will be amazed at how many people would be willing to hold major events like weddings in beauti- ful gardens if you market your investment in the right way. If you find the right real estate investment, the pos- sibilities are endless! Think about it. • > Continued from :: PG 57 License to Invest Knowing all of the field’s legal- ities will make your investing career simpler. Plus, things change rapidly in the world of residential real estate. Having your real estate license – and keeping it by taking continuing education courses -- is a good way to stay abreast of new regulations and procedures. You can stay on top of things and maintain a level of professionalism, expertise and credibility with sellers. A license also may help you expand your network as a real estate investor. ADVANTAGE: ADDITIONAL REVENUE STREAM I’ve seen real estate in- vestors pursue a real estate
94 | think realty magazine march :: april 2017
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