To be or not to be... a realtor

My boss has agreed to sponsor me for the pre-licensing course to get my broker’s license. I was set to begin last week, but it was cancelled due to the corona craze and I now have the option to take it online via ‘synchronous distance learning’. The course would start April 7.

If I am hoping to act as general partner and invest in MHPs in the future, is it better to have a real estate license or no? My impression is that many ‘mom and pop’ type operations are suspicious of real estate agents. At the same time, the license could allow me to broker MHPs and I would learn a lot of applicable info (I have already read the book for the course).

Please advise.

You are correct that some mom and pops can be suspicious of brokers/agents - and you’re correct that having the license could be useful - it’s just not necessary. It may be useful if you find a park that doesn’t fit your criteria and the seller allows you to list their park. You will find parks that don’t fit your criteria - and listing them will take time away from your effort to find your ideal parks, especially if you don’t have a team behind you who can put together nice looking sales packages and do marketing research on the park like many of the pro brokers do. An alternative to getting your license would be to refer deals to other buyers and ask them for an x% finders fee if they buy the park. I’ve done that and I’ve also connected sellers to brokers who I thought could help the seller… if I was a broker I could have listed those parks. Once you get your park(s) and have time on your hands, then consider getting your license and try to market the deals you’ve come across… just a thought.

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I see no need for it. The idea to become a licensed real estate agent has never once popped into my head. Also, if you are investing nationally, having a license in your home state won’t help.

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I received my brokers license in 1983 and have used it to both buy and sell on my own behalf since then. As a licensed broker, most times I will be paid the buyer’s side of the commission or gain a reduction in the purchase price by similar amount. Of the few razor thin deals I’ve done over the decades, getting the buying commission (or saving the selling commission by doing the transaction directly with the purchaser) was the only “profit” made on the deal. Plus the accumulated real estate contract knowledge in my head enables me to create custom purchase agreements which so far have withstood attorney review. So in my experience, the license has (and continues to) pay for itself multiple times over.

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I have my license too, and it’s a nice perk from time to time, but I never got it for the purpose of investing in MHP’s. I was referring so many deals from my direct mailouts to agents (where the sellers wanted high prices) I decided I should get a legal referral fee as part of work I am already performing.

Given the current economic environment and potential impact to general real estate prices I don’t know how much use it will get for me beyond saving 3% as part of a purchase. It’s worth having, but I won’t say it’s game changing.

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If you want to be a realtor, do it.
If you want to be a mobile home park owner, do it.
If you want to be both, do it.

There is no need to be a realtor at all in order to be a mobile home park owner/operator. You just need to educate your self on parks and get out there and do something!

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Sounds good friends, thank you for the input. I will mull this over. Since NC is going to be under a ‘Stay At Home’ order for April, I will likely go ahead and enroll to continue my education and to add some structure to the day through the crisis.

@mobilehomepark, you mentioned the need for action. I have the following that I am planning to do at this point to start on the investing track:

  • Create a slide deck to showcase to potential investors
  • Begin searching for / analyzing potential deals via MHP store, Craigslist, and other online sites
  • Look for opportunities to apply what I’ve learned at my boss’ current MHP

Are there any other steps you would advise? I want to keep moving, but I also want to prioritize and organize/execute around those priorities.

Thanks everyone for the guidance. I think due to the circumstances surrounding the Corona epidemic and NC’s ‘Stay At Home’ policy for April, I am going to move forward with the license.

According to the article below, one realtor noted the opportunity to ‘use this time to build your expertise so that you’ll be even more prepared to offer top-of-the-line service when the market rebounds’. It seems that this time is a big opportunity for those in the real estate field to take advantage of online education courses, read books, and interact on forums like this. While I am hoping to take action and not wait for the market, I think it is an applicable suggestion.

Are MHP investors with a real estate license held to a higher standard than other MHP investors? Are there more legal expectations and are you more legally accountable if you have a license?

There are disclosure and ethical standards for all deals as a licensee. Yes there can be legal ramifications depending on the severity of the action - or inaction.

If you’re an ethical business person then these licensing nuances don’t have any bearing on your ability to transact and operate.

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What part of NC are you in?

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Based in Asheville. Looking at MHPs in Asheville and Charlotte metro areas. Will go to smaller markets if the immediate location is good. You?

I’m a broker in MHPs & RV Parks. From what I have experienced having a license and acting as an agent can often decrease your chances of getting a deal if you choose to participate in commissions vs just purchasing.

Also being an operator could harm your reputation as an agent in that you are directly competing with your clients. This is one reason I don’t invest in MHPs myself as it is, in a way a conflict of interest.

Still it is possible and I have seen many people do both but it is important to be aware of these conflicts.

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Thanks for your thoughts, will take into account.

I am considering finishing the course now and taking the exam down the line. I am planning to be managing my first MHP by the end of this year. I am going to wait until after to take my exam so that I won’t need to disclose that I am a broker here at the beginning stage. I think this can throw off a lot of ‘Mom and Pop’ operations so should be helpful.