Wanting to become a buyers agent

[TMNT]

well sort of

im thinking about becoming one or something along the lines of it

ive been sourcing deals for myself over the years and contacts,

however, I cant take them all,

what options can people recommend,

Ive got IPs around the country and want to operate around the country, but im certainly not going to get 1-3 year real estate qualifcations for all states,

while being completely legit, and above board, what can people recommend
here are a few things ive considered

- become a valuer
- just keep on finding more deals with more margin, and do these projects by myself
- Charge a finders fee for every project I give away ( i guess its a buyers agent but without being one)
- start an investment group amongst friends

I really want to stay within real estate, but i would rather die then become a real estate agent, or a property manager, I feel im pretty good at what I do, as its worked for me

any ideas everyone?

any comments apprecaited, even the negative ones

 

[Propertunity]

......want to operate around the country, but im certainly not going to get 1-3 year real estate qualifcations for all states,

Once you qualify as a BA in one state, you can get licensed in other states by simply filling in a form and paying money. They have reciprocal RPL.

- Charge a finders fee for every project I give away ( i guess its a buyers agent but without being one)

You may run foul of the law doing this unlicensed. "Friends" have no protection if you give wrong advice or make a mistake unwittingly. BAs are required to have PI insurance.

- start an investment group amongst friends

You may run foul of ASIC if you start a "syndicate" without a PDS etc.

Just do the BA license, which you can do via e-learning (all internet based) these days with RTOs or the REI in the state you are first getting licensed in.

 

[TMNT]

Once you qualify as a BA in one state, you can get licensed in other states by simply filling in a form and paying money. They have reciprocal RPL.

are you sure about that?

when I spoke to the RE institue of NSW, they said, one per state required?

so wouldnt it be better to get one qualification in the easiest state, and then get other states,
do you know how much $ we are talking about?

 

[Propertunity]

are you sure about that?

when I spoke to the RE institue of NSW, they said, one per state required?

One per state is required. But getting one in a state (say Qld), after you already have one (in say NSW), is a form filling exercise and payment only.

...so wouldnt it be better to get one qualification in the easiest state, and then get other states,
do you know how much $ we are talking about?

Less than $2K for a BA licence training in NSW from memory.
http://www.reinsw.com.au/imis15_pro...spx?hkey=32818f29-59f2-4a30-9b8c-e0e19f8303d7

 

[TMNT]

One per state is required. But getting one in a state (say Qld), after you already have one (in say NSW), is a form filling exercise and payment only.



Less than $2K for a BA licence training in NSW from memory.
http://www.reinsw.com.au/imis15_pro...spx?hkey=32818f29-59f2-4a30-9b8c-e0e19f8303d7

hey prop,

yes I m aware of the costs of the course, was more interested in the cost of getting approvals in different states, as the last 2 companies I spoke to have told me I need one new qual per state

 

[tobe]

my 2 cents, if you are worried about a couple of grand licencing fees, rethink becoming self employed.

And I dont like the idea of doing it nationally. If I were going to engage a buyers advocate I want a local.

You asked for negative as well......

 

[Scott No Mates]

Dieing is a necessity if you want to run a real estate business as defined in the PSBAA NSW.

You will need to complete the real estate agent licensing course eg through REINSW which takes 5 weeks full time. Then apply for your rea licence in NSW. If you only complete the registration course you will not be able to work for yourself.

You will also need to complete cpd each year, each state has different requirements.

Becoming a valuer - registration is state based, there is an experience component for a cpv.

 

[Jacque]

One per state is required. But getting one in a state (say Qld), after you already have one (in say NSW), is a form filling exercise and payment only.



Less than $2K for a BA licence training in NSW from memory.
http://www.reinsw.com.au/imis15_pro...spx?hkey=32818f29-59f2-4a30-9b8c-e0e19f8303d7

Hi TMNT

If you run a buyers agency (even as a single operator) you will need to be appropriately licensed- speak to the REINSW about legal requirements here however it's more than a Certificate course (that Alan has linked to above) I would strongly urge you to do the complete licence as it's far more beneficial and allows you to run a trust account down the track, should you wish to hold clients monies for deposits etc, not to mention the insight it provides you with learning about selling agent common practices, strategies and negotiation techniques etc.

I can't speak for licensing in other states (as we only operate in Sydney) however a valid point has been made about local knowledge. A good BA should have an experienced, intimate and working knowledge of the areas he/she is buying in for you. I'd always select an experienced local BA over someone who resides interstate (it can differ, of course, if they have lived there previously/recently, have staff that do so etc) so be aware of this.

If you really are keen on becoming a BA, may I make a suggestion? Garner some experience under a well-established agency first for 12mths+ to see if it's really what you want to do. Even if you are taken on as a trial basis or work as a researcher/assistant it may serve you well, to experience the industry firsthand and what is actually involved. It's certainly not for everybody (especially those that like their weekends ) and running a business is never as easy as it looks. Best of luck.

 

[TMNT]

my 2 cents, if you are worried about a couple of grand licencing fees, rethink becoming self employed.

And I dont like the idea of doing it nationally. If I were going to engage a buyers advocate I want a local.

You asked for negative as well......

totally agree with you, going nationally is hard,

if the fees are $5k per state, and I do 4 states, thats $20k, not chump change for me

I can't speak for licensing in other states (as we only operate in Sydney) however a valid point has been made about local knowledge. A good BA should have an experienced, intimate and working knowledge of the areas he/she is buying in for you. I'd always select an experienced local BA over someone who resides interstate (it can differ, of course, if they have lived there previously/recently, have staff that do so etc) so be aware of this.

If you really are keen on becoming a BA, may I make a suggestion? Garner some experience under a well-established agency first for 12mths+ to see if it's really what you want to do. Even if you are taken on as a trial basis or work as a researcher/assistant it may serve you well, to experience the industry firsthand and what is actually involved. It's certainly not for everybody (especially those that like their weekends ) and running a business is never as easy as it looks. Best of luck.

thanks Jacque, to be honest, and without sounding like a knob, i know im good at it, I dont need experience to tell me what its about, obviously Im trying to do it on my own, ive run businesses in the past, at present I come across/negotiated/relationships with agents, that I simply cant take them all ive pawned off heaps of deals to other people (sometimes I get paid, sometimes I dont, which im not too fussed about at this point in time)

 

[willair]

, i know im good at it, I dont need experience to tell me what its about, obviously Im trying to do it on my own, ive run businesses in the past, at present I come across/negotiated/relationships with agents, that I simply cant take them all ive pawned off heaps of deals to other people (sometimes I get paid, sometimes I dont, which im not too fussed about at this point in time)

Maybe just do what ever you need to do to get fully lic ,then just go out a buy a a business that's already running you see them all the time in local
papers,i know a person that's done the same 4 years ago in inner Brisbane..

I think it took him 5 weeks or so to get fully legal lic ,,and he did not pay much for the business then has just built up the rent roll and sales..good luck I think you will do well..imho..
I thought about it a few times myself but I did it before in the 1990's and once you see the dark side of the business I just walk out the door,at least you learn all the agents game plans..

 

[Peter_Tersteeg]

I agree, think local as a BA. If the demand is there, then expand. I know some BAs who have expanded but later they've downsized because they found it was diluting the service and expertise the could over as a small firm.

You'll find that peoples perceptions are similar as well. People will say they're buying in Sydney, so they call Jacque, then they might call Andrew if they want to buy in Brisbane.

If you're seriously going to go national, you need to do it on a bigger scale like Metropole has.

You also need to consider that whilst $20k is a fair bit of money on the day you open a business, it really is chump change. Most people are amazed at how much it costs to run a business. The good news is that for a BA, $20k is 2 deals (but it's probably the profit from about 7-10 deals).

 

[TMNT]

Maybe just do what ever you need to do to get fully lic ,then just go out a buy a a business that's already running you see them all the time in local
papers,i know a person that's done the same 4 years ago in inner Brisbane..

I think it took him 5 weeks or so to get fully legal lic ,,and he did not pay much for the business then has just built up the rent roll and sales..good luck I think you will do well..imho..
I thought about it a few times myself but I did it before in the 1990's and once you see the dark side of the business I just walk out the door,at least you learn all the agents game plans..

hmm.I think youve confused me as to wanting to open a real estate agency!!

 

[willair]

hmm.I think youve confused me as to wanting to open a real estate agency!!

ok re read your post,BA would be a whole different game..

 

[mrmonopoly]

A good BA should have an experienced, intimate and working knowledge of the areas he/she is buying in for you. I'd always select an experienced local BA over someone who resides interstate (it can differ, of course, if they have lived there previously/recently, have staff that do so etc) so be aware of this.

If you really are keen on becoming a BA, may I make a suggestion? Garner some experience under a well-established agency first for 12mths+ to see if it's really what you want to do. Even if you are taken on as a trial basis or work as a researcher/assistant it may serve you well, to experience the industry firsthand and what is actually involved. It's certainly not for everybody (especially those that like their weekends ) and running a business is never as easy as it looks. Best of luck.

I couldn't agree more with what Jacque has said here. There is a large difference between being an effective property investor who can filter and pass on occasional deals to friends than being an effective buyers agent.

I can only speak for myself and my team within Sydney, but VERY rarely would we ever lose business to a competing one man band buyers agent who claimed to cover all 650+ suburbs in Sydney, let alone the whole of Australia. It is simply far too inefficient to be consistently effective.

Local knowledge and leverage is imperative to representing your client (the buyers) best interest. By spreading yourself thin, you are losing considerable opportunities for your client by not being able to dedicate the time necessary to proactively generate options by contacting and building relationships with key agents/developers/private sellers etc for off market or pre market listings.

If you are relying on property search portals, you are just competing with the general public and will have often already damaged your chances of securing a property at the lowest possible price, as by the time it has gone public the vendors expectations will have almost always risen. A good buyers agent will often have previewed a suitable property for a client prior to marketing, a great buyers agent will get in at the earliest possible opportunity i.e. Initial agent appraisal or at minimum photography session, so they are best positioned to effectively execute an appropriate acquisition strategy on their clients behalf.

Whilst it will vary considerably depending on the dwelling category and price bracket, if you have any ambition to represent buyers in the prestige sector i.e. $2M+, a general hobbyist approach to buyers agency will make it very difficult to crack a market which is more about 'who you know' rather than 'what you know' and where almost half of transactions never hit the general market.

Whilst there is no definitive way to being a buyers agent in Australia and relatively speaking is still a fledgling industry. Competition is most certainly heating up and best practice being adopted from more developed BA segments overseas i.e. USA/UK. This coupled with peak bodies such as REBAA, REINSW and PIPA rightly holding buyers agents to a higher standard, means it is only a matter of time before BA Darwinism eradicates the self proclaimed experts from those who actually know what their doing.

Please note this post is not targeted at you TMNT as I believe those with true investing aptitude will always find a way to succeed in some capacity, but at what I am seeing in the general market, which is a lot of pretenders/wannabe's who have very little understanding of what it takes to be successful and effective in this industry.

It frustrates me greatly how flippant so many are to representing someones best interests when buying property, which is often one of the largest purchases a person will ever make.

Rant over

 

[redwing]

ive been sourcing deals for myself over the years and contacts,

however, I cant take them all,

Ive got IPs around the country and want to operate around the country, but im certainly not going to get 1-3 year real estate qualifcations for all states,

Hi TMNT

Where are you based (Drone) - must be a WA suburb

If it's a passion and you can obtain good deals for your customers, why not look at it.

Maybe we need another thread "What makes a good BA"

Keep us posted

 

[alicudi]

"What makes a good BA"

Hi

I believe the most important ability to have as a BA is to be able to promote yourself and be very marketable so you can gain good clients to trust you. So for those people who are good at selling real estate will probably make a good BA.

Another good personality trait to have is to be a good negotiator, but this can be overcome if you market yourself and gain your clients trust!

You don't need to be a good property investor to be a good BA but of course it does help somewhat.

Regards,

alicudi

 

[mrmonopoly]

Hi

I believe the most important ability to have as a BA is to be able to promote yourself and be very marketable so you can gain good clients to trust you. So for those people who are good at selling real estate will probably make a good BA.

Another good personality trait to have is to be a good negotiator, but this can be overcome if you market yourself and gain your clients trust!

You don't need to be a good property investor to be a good BA but of course it does help somewhat.

Regards,

alicudi

Sorry but I think this is a little shortsighted. A 'fake it, til you make it' approach will only get you so far, but to me this attitude is incredibly negligent taking into consideration the magnitude of accountability entrusted in buyers agents.

A good buyers agent will live and die by the results/deals they put together, and therefore ability to work hard, source and negotiate is paramount. Ultimately buying well for clients by uncovering opportunities with good prognosis for growth, maximising achievable equity and manufacturing better NET yields to balance cash flow, will better position them to be able to build portfolio in the long term.

Likewise great results, lead to referrals and repeat business, not just from the clients themselves but from their professional network who also benefit from their clients success i.e. MB's on further lending, FP's with increased insurance etc.

There are MANY transactional buyers agents out there, but as the sayings go "A rising tide lifts all boats" but "only when the tide goes out do you see who's swimming naked".

 

[alicudi]

Sorry but I think this is a little shortsighted.

A good buyers agent will live and die by the results/deals they put together, and therefore ability to work hard, source and negotiate is paramount. Ultimately buying well for clients by uncovering opportunities with good prognosis for growth, maximising achievable equity and manufacturing better NET yields to balance cash flow, will better position them to be able to build portfolio in the long term.

Hi mrmonopoly (great discussion and thanks for your reply)

Yes I agree with you that my post is very shortsighted. My post was created based on only my opinion and also the fact I do not know any BA's at all and have never met one.

However I would class a BA to be working in a similar industry to professional real estate agents and that is someone that is providing a service for a property transaction. Based on very intimate knowledge of the real industry from parents, brothers, aunty's, uncle's and even myself I still say that some people that could potentially make a good BA would be those with good marketability. I know in my personal situation I understood the job of an estate agent and even get called up by local estate agents for advice from time to time but because of my lack of marketability and low negotiation skills when I was 18/19 years old these led me to quit my job at that time and concentrate on other ways to create an income. It was not un-common for me to purchase property and double my money on it within 2.5 to 3 years...I did this time and time again.

Jump forward 21 or so years I realised that I did have the knowledge to sell real estate back then but lacked my own brand and uniqueness that I could offer the potential client and due to not been an experienced negotiator as I was fresh out of high school was another very limiting factor. I then steered into property development and investing and was able to make money that way as it wasn't heavily reliant on my negotiation skills at the time as I left it to the estate agents.

Having said all of the above I believe a BA would find it very difficult to operate in todays market let alone gain clients if they weren't marketing their own brand correctly or were a good negotiator and if you were to take either of these traits away from a BA they would not succeed let alone get off the ground.

But maybe in 20 years time from now I will think differently again, who knows?, as I found with age comes wisdom and I never stop learning.

Regards,

alicudi

 

[mrmonopoly]

Thanks Alicudi,

Absolutely presentation and marketability are very important, not least because one of a Buyers Agents key stakeholders are Real Estate Agents who live and breath by the "Dress the business, to get the business" mantra and therefore can often relate better to those with a similar view on life, which often helps in coaxing out information for negotiation or carrying favour when trying to gain early access to a listing.

The only reason I responded was that I don't agree it is the most important ability in a Buyers Agent.

FWIW yes real estate agents can make great buyers agents, so long as they can move away from the transactional mindset so ingrained on the sales side.