I'm new to this forum, and it looks very interesting. I'm just getting started in real estate investing in Milwaukee, and I have some ideas that could be really excellent strategies for me. The problem is that I don't know how realistic many of them are.

The particular idea that I'd like to get going on right now involves broker and appraiser licensing. I found some accredited online courses for both, and I know I could complete these courses in 4 to 6 weeks. At that point I could sit for the three exams (including salesperson).

I know that most investors see acquiring these credentials as an unnecessary waste of time. I, however, feel that the knowledge, resources, and networking opportunities gained would make the time and effort pay off many times over.

One of the biggest draws for me at this point in the game is the option of working part time as a licensed appraiser. This would provide enough income to live off of. With that concern taken care of, I'd have much more time available to focus on putting together deals and other investment related tasks.

Another plus about obtaining these licenses is the credibility they'll lend when I'm seeking a partner or trying to secure financing. I think somehow a twenty-three year old real estate broker and licensed appraiser would look better to a loan officer than just a twenty-three year old woman would.

The problem is that getting hired under a licensed appraiser to complete the required field hours is rumored to be quite difficult. This brings me to the point of this post: I'm wondering if anybody can tell me more about how things work in the appraisal industry. Would I be more likely to be hired as an apprentice if I was already a broker? Or would this be unattractive? What if a company knows that I do not intend to stay on with them once my hours are complete? They could like fact that I won't provide much competition in their target market, or they could dislike the fact that they'd be wasting the time they'd invest training me.

I would appreciate any advice or answers. Sorry this is so long!

The particular idea that I'd like to get going on right now involves broker and appraiser licensing. I found some accredited online courses for both, and I know I could complete these courses in 4 to 6 weeks. At that point I could sit for the three exams (including salesperson).

I AM NOT SURE ABOUT YOUR STATE, BUT YOU MUST HAVE PASSED YOUR SALESPERSON TESTING BEFORE STARTING BROKER SCHOOL. I HAVE NO IDEA ON THE IDEA OF ONLINE APPRAISAL SCHOOLS.

I know that most investors see acquiring these credentials as an unnecessary waste of time. I, however, feel that the knowledge, resources, and networking opportunities gained would make the time and effort pay off many times over.

One of the biggest draws for me at this point in the game is the option of working part time as a licensed appraiser.

GOOD LUCK ON FINDING SOMEONE TO HIRE YOU ESPECIALLY PART TIME.

This would provide enough income to live off of. With that concern taken care of, I'd have much more time available to focus on putting together deals and other investment related tasks.

SO AS I SEE IT YOU WANT AN APPRAISER TO HIRE YOU PART TIME SO YOU CAN SPEND THE OTHER TIME INVESTING IN REAL ESTATE??

Another plus about obtaining these licenses is the credibility they'll lend when I'm seeking a partner or trying to secure financing. I think somehow a twenty-three year old real estate broker and licensed appraiser would look better to a loan officer than just a twenty-three year old woman would.

HOW MUCH MONEY DOES THE 23 YEAR OLD HAVE??? WHAT DOES HER CREDIT LOOK LIKE?? THEY WILL NOT CARE WHETHER YOU ARE A BROKER OR NOT.


The problem is that getting hired under a licensed appraiser to complete the required field hours is rumored to be quite difficult.

FROM WHAT I HAVE BEEN TOLD BY APPRAISER, YES.

This brings me to the point of this post: I'm wondering if anybody can tell me more about how things work in the appraisal industry. Would I be more likely to be hired as an apprentice if I was already a broker? Or would this be unattractive? What if a company knows that I do not intend to stay on with them once my hours are complete?

THINK ABOUT WHAT YOU JUST ASKED.


They could like fact that I won't provide much competition in their target market, or they could dislike the fact that they'd be wasting the time they'd invest training me.

I WOULD BET ON THIS ONE.

I would appreciate any advice or answers. Sorry this is so long!

THE ONLY REASON I AM USING CAPS IT TO DIFFERENTIATE BETWEEN THE COMMENTS. I think you need to really research more what you are interested in doing. MLS access as a joe generic agent will be all you need to get started investing if you want and if your investing can pay your local dues and office dues. A broker license doesn't mean jack unless you have intentions on working on your own and for yourself. It doesn't do anything whatsoever with me trying to get a loan on an investment. They could care less. Take an appraiser to lunch. Pick his or her brain. Make a pitch of your proposal and see what they say. By trying to get all these licenses at once, you are doing some wishful thinking. I did agent and then broker and was the only one in my class to get a first time pass on BOTH. It can be done but you need to really spend a few dollars buying lunches and talking with other agents in your area and appraisers if you want to do that also. I would think it would be next to impossible to be an appraiser and real estate agent in the same town.

J

I think you would find that having a salesperson license or Brokers license very beneficial. In most states, your required to work as salesperson for a set period of time before you can sign up for a brokers class and take the exam... often 2 years.

If your interest is in Real Estate Investment and your planning on using some of the most beneficial techniques you may find that having an Appraisers License a liability. Not the knowledge but the actual license status. In many cases if you were working on a deal of your own... using your Appraisers License to provide an appraisal could be a very major error and expose you to significant liabilities.

Also I personally don't know of any Appraisers that would hire an associate appraiser that was doing real estate investment as a principle objective and fewer that would hire a licensed real estate agent. Too many potential problem for them.

Learn the Appraisal methods and use them but actually obtaining a license is another thing I would not recommend very strongly.

Thank you for responses. I think I caused a miscommunication. What I meant was that the idea would be to get the licenses without ever listing or selling a property (unless it's mine) or working for a company as an appraiser (once I've completed the necessary hours). All I really wanted with the brokers license was access to more resources and networking opportunities. If I only need the salesperson license for that, then I probably wouldn't continue on to the broker license. (I haven't seen anything in the state's licensing regulations requiring sales hours to sit for the broker exam, but I don't know for sure.) Maybe neither would be the best way to invest my time right now.

I can definitely see your point about the ethical (and legal) implications in trying to purchase a home that I've appraised for the seller. Is that what you meant, Realty Check?

I spoke with my real estate agent about the licensing regulations, and he said that if you pass the appraiser exam you're licensed, but not to do anything involving the federal government. No Fannie Mae, No Freddy Mac, no VA, etc. He said that I'd be able to work for private lenders and for people who want to know a home's value so they know where to set an asking price or offer amount. I would rather not work for somebody else's company at that point.

My real estate agent also said that for what I'm looking for out of this, it might be a good idea to think about home inspection. He said a state law was recently changed, and now towns with a population less than 2500 need to have new constructions pass inspection. I guess there's a big demand for inspecters right now.

Either way, I do need to take some people to lunch!

As far as the credability I'm seeking with the appraiser and inspecter licenses, that's more for business partners than anything. When presenting an investment to a possible partner, my numbers would be more accurate. But I suppose that could end up a liability, too.

Do appraiers have access to resources that sales agents don't?

I think you may have miss understood your real estate agent or one or more of you got the nomenclature mixed up. Licensed Active (associate with a brokerage) Real Estate agents can do appraisals for properties... these can not be for properties that will be sold in the secondary market to federally backed programs and no VA and FHA appraisals are allowed.

An appraiser that has passed their state test can not do any appraisals until they are associated with a Senior / designated / or what ever your state calls a fully qualified appraiser. The new appraiser is under the direct supervision and review and the senior appraiser that reviews and signs off on the work is responsible.

Obtaining a real estate license in itself does not get you access to the MLS database. Again you must associate with a Brokerage AND be a member of the MLS to have access to this database in most areas of the country. A real estate license training course will not provide you much information in real world real estate. The pre-license courses are about legal processes that the state requires you to know but most will not even teach you how to write a contract or what to do with one if you receive one. They do not go into how to buy and sale real estate.

Most people who obtain their real estate license are very surprised by this but it will not teach or even discuss how to actually do even the most minor parts of real estate.... that is the job of the Brokerage you associate with after you pass your state exam.

Few brokerages will have true interest in you if you indicate your primary goals are personal investment opportunities... they want you to list and sale properties and will not waste their time on agents that are not doing that as their primary goal.... it would not be logical for them to do so.

What I am most interested in is learning all I can about all of the fields of real estate and using this knowledge to earn wages on a part time basis while focusing on aquiring income properties. I definitely understand (more so now) that this means I wouldn't be worth training to most companies, regardless of which field I'm intersested in or license I have. Pretty much what it comes down to is that I need to get a new job, and I can't afford not to work in a field where I'll learn as much as I can about real eatate, particularly my local market.

I did offer to take an appraiser to lunch to pick his brain. He was very friendly and knowledgable. I explained what my goal is, and he seemed to inderstand where I'm coming from. He indicated that it would take far more time and effort to get into the business than I ought to spend unless my goal is a life-long career. He recommended taking classes for the knowledge I'd gain because he thought it would be very useful, but not acquiring the license. He, like the real estate agent I'm working with, recommended I look into becoming a home inspector.

I have been looking into this possibility, and so far it appears to be the most promising yet. Now I just need to take a few inspectors to lunch.

Unless you have extensive experience in the construction industry, preferably a retired contractor... you will probably find you have very little credibility as a home inspector. How much do you know about building codes? Can you identify the various types of plastic plumbing and which are now permissible and which are not? Are you aware of various foundation and drainage needs and codes? Can you tell a 4/6 roof from a 10/12 roof? A composite shingle from a fiberglass? One insulation material from another? How to determine moisture contents and what is acceptable for different areas? How about a 12" centered wall from an 18" or 24" How to evaluate a crack in concrete?

Being a competent Home Inspector requires FAR more than what is presently being displayed by the majority of Home Inspectors at this time. That is the Exact reason most states are starting to formulate rules to prevent unexperienced people from claiming to be Home Inspectors. It is NOT something that you can just pick up in a quick course... it requires years of hands on experience in the construction industry...

That is why only a very few of the massive numbers of companies that "claim" to be home inspectors... have any business on an ongoing basis with real estate agents interested in the true condition of properties and why most fail or do not even get the opportunity to perform an inspection when interviewed by a knowledgeable investor/ agent.

In short most companies "claiming" to do home inspections are a total joke....

We locate knowledgeable and experienced construction people and use them.... never someone who "took a class".

I have to say... you seem to be jumping all over the place and into and out of interest with very different field you do not appear to have a good understanding of.... that is a dangerous thing.

You need to determine what your goals are and not attempt to do everything.... because you lack some of the basic requirements and motivations to accomplish them.

What is your basis for desiring to be involved in real estate investment? Do you know how to even do the math for ROI, Net Income, can you estimate repair cost, how to get a mortgage or do a subject 2 purchase, how to close a contract... or even how to write one?

Determine what your real goals are and look at what your capabilities are and what your willing to do to improve them in key area and what is you business plan going to be.

I really don't get the impression that you have an idea about a business plan and that can be disastrous for not only you but everyone involved with your activities.

Develop some outline and have knowledgeable people review it to see if it is logical. You can be thankful some of the people you have talked to like the appraiser were honest enough to discourage you from doing something you do not appear suited for.

I don't know a lot about these things yet. That's why I want to learn. I find these subjects very interesting.

Yes, that is a dangerous thing. That's why I sought out information both from you and from others.

I do not have the ability to accomplish them all. Although I have interest in almost every aspect of real estate, I cannot and should not attempt to be an expert in more than one or two. I have the motivation, but I haven't yet completed the necessary research needed to make a decision.

Yes, yes, not yet, yes, yes, yes, and that's what an attorney is for. I want to be a real estate investor because next to that, nothing else makes sense. I have enough motivation to stick it out through disappointments and enough sense to be as well informed as possible before making a decision. I understand the meaning of due diligence.

I have yet to learn about an aspect of real estate investing that I did not enjoy. I know quite well that it won’t be all fun with no frustration, disappointment, or difficulties.

As far as what I'm willing to do to improve my capabilities in key areas, I'm willing to work as hard as I need to. What I'm not willing to do is get up every morning and go off to put in my forty hours every week for the next forty years. I do not want to live my life as a part of somebody else's business plan.

You are right in that I have not completed a business plan in its entirety. Right now, I am purchasing a property that I'll live in. I'm also using this time to refine my overall outline, and I’ll soon be to the point where I have a business plan that's complete enough to ask for input on.

Yes, I probably do get a little ahead of myself when considering possibilities, but I have learned not to move forward until I know everything necessary to make an informed decision. I appreciate your frankness. I'd rather have some one tell me something that I don't enjoy hearing than miss out on hearing a different point of view.