Becoming a real estate agent, worthwhile for investing?

Discussion in 'The Buying & Selling Process' started by Hodgo, 6th Apr, 2020.

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  1. Hodgo

    Hodgo Well-Known Member

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    Hi all,

    so I've not been around for a while but I may look at investing in WA again in the next 6 months or so depending upon the fallout of COVID-19. I would be buying, subdividing and selling empty blocks. I want to be prepared as possible when the time comes. So...

    ...in my free time in the next 6 months I was thinking of taking on a course like this one...
    https://wcpt.com.au/courses/sales-online/
    which makes me an "unrestricted real estate representative".

    However I understand I still can't sell anything until I'm signed up by a licensed real estate agent. I don't want to do this as I've got a day job that pays well. Maybe there is another option?

    My question is....is this worthwhile? I would gain knowledge and understanding. I may even meet other like minded individuals, but since it's all online I doubt it. What do you think, is there any need?

    thanks
    Dave
     
  2. thatbum

    thatbum Well-Known Member

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    Nah I think you're better off using that time on this forum reading instead.

    And then researching things like the local planning schemes, RCodes, and practice feasibilities.
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

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    Off market listings are more due to Network, and people skills I suspect

    Dont know if being an REA will help there


    ta

    rolf
     
  4. balwoges

    balwoges Well-Known Member

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    You only have to do 'time' with a Licenced REA for a certain period [check with WA Real Estate Institute] before you can operate under your own licence. Think of it as an apprenticeship.
    IMHO no chance of an agency taking you on at the moment without experience.
     
  5. Hodgo

    Hodgo Well-Known Member

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    Thanks everyone, of consideration is the structured learning with set outcomes, it’s what I need. I also think that with enough projects under my belt a license would be useful in a JV scenario. Learning the jargon to increase my confidence when negotiating or just dealing with a real estate agent would also be very useful.

    I’ve also looked at this....the course seems interesting, will give them a call tomorrow

    Australia’s Best Property Development Course, 100% Online
     
  6. thatbum

    thatbum Well-Known Member

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    Honestly I think searching for that structured learning experience is doing you a disservice. If you really must, at least find a WA specific course, or you're definitely wasting your time and money (that course you linked included).

    And I also think that you're wasting your time with the REA training. It doesn't help with being a developer. Half of them barely understand the Rcodes.

    My REA contacts ring me when they want advice on development potential, and I've had a lot of success making profit on sites that the selling agent did not realise was developable.

    I'm doing what essentially what you're aiming to do now, and I learnt pretty much everything I know by just following this forum supplemented by my own reading of WA planning documents. And lastly the secret ingredient I think is getting out there and looking at sites. Lots and lots of them.
     
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  7. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    I read through the Victorian agents rep course about 20 years ago with someone who taught the course (it took two weekends). I don't think there's any value in becoming a REA if you're just going to invest or develop, but going through the learning experience did give me some insights into the industry.

    Becoming an agent does give you some constraints in what you can do.
     
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  8. Hodgo

    Hodgo Well-Known Member

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  9. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    I vaguely recall that there's some buyer protections that are waived if you're an agent.
     
  10. thatbum

    thatbum Well-Known Member

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    Yep Rcodes are essential reading. Need to know and understand the subdivision parts like the back of your hand.

    I'm a bit concerned that you didn't know that yet, but I guess everyone has to start somewhere. Take your time - it took me quite a few years between learning the Rcodes and doing my first development for profit!
     
  11. Hodgo

    Hodgo Well-Known Member

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  12. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Becoming a successful developer is about wearing many hats. Some of it you can outsource, of course, but it's knowing what you don't know that helps you outsource the stuff you don't know.

    Topics you need to be familiar with so you can seek really good advice
    - contracts - the course may touch on how to read and ammend REIWA contracts but you will need legal advice to properly have a contract in your favout
    - tax/accounting - you need to know that selling land is a GST issue and the ATO would love to be your JV partner
    - entity - what entity and legal structure is best for you in terms of land tax, asset protection, tax minimisation
    - the art of negotiation - this is a skill you generally need to build up yourself. Know how to assess value, how to negotiate value, how to find out sellers motivation
    - town planning - know the rcodes, know a local council Town Planning Scheme,
    - infrastructure - know about Dial Before you Dig and what water, power, sewer easements are and how they impact what you can do
    - feasibilities - know how much it costs to add in extra services, how to assess end values, how to estimate GST, tax, selling costs, holding costs etc etc
     
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  13. Hodgo

    Hodgo Well-Known Member

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    @thatbum yeah I know of them but just wanted to see if these were the types of documents I should study or if there is a more condensed version elsewhere. It seems like a lot of reading, especially when you take into account the Planning and Devlopment Act 2005 which is 200+ pages. Happy to do it if that's all I've got to look at.
     
  14. Hodgo

    Hodgo Well-Known Member

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    @Westminster thanks, that's a very good list of topics. I have been actively involved in developments in the past but have always sought help where my lack of knowledge was evident.
     
  15. Hodgo

    Hodgo Well-Known Member

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    Do you all have a day job but do this on the side? It seems like the amount of information to be consumed would be a full time job, I'm not against hard work, I just want to set myself some realistic expectations.
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    @Hodgo - a developer selling their own project isn't required to hold a RE licence (not in NSW, check WA)

    The RE licensing course teaches how to comply with the RE licensing Act, how to prospect for listings, what a listing should resemble, how to manage the sales process, trust accounting etc not how to become a developer.

    You might look into a short course like the NSW Master Builders 'Keys to Property Development' (they have no agenda for onselling more courses etc & aren't a spruiker).
     
  17. Hodgo

    Hodgo Well-Known Member

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    @Scott No Mates It was more of a way to learn not specifically about property development but to help increase profits, find sites and be able to converse and negotiate with REA in a confident manner.

    The short course looks good but with travel restrictions in place that won't be viable.
     
  18. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I had a day job for most of the time. Around 5 years ago I quit the job to do it full time but the majority of my learning/skill up time was whilst I was working full time
     
  19. thatbum

    thatbum Well-Known Member

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    I don't think you need to read the whole act. Even I've never done that. But you will need to know the Rcodes, and also the local planning scheme for the local government area you're operating in. Maybe a couple of the WAPC subdivision specific policies as well.

    You need to know enough so when looking at a site, you know how much its worth, how it can be developed, and the end value of the development.

    The value parts mean you need to know the areas and types of properties very well too - that sort of thing can only be done in the field.

    I guess it is a bit of a full time job for me on the side, but one where its been streamlined enough for me that I can eyeball most listings within a few seconds and then do the basic napkin DD within a few minutes.

    I recommend trying to get to that level of knowledge, even if its just with a few suburbs to begin with.
     
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  20. Scott No Mates

    Scott No Mates Well-Known Member

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    One or two LGAs will do, you don't want to review too many different council areas.