What everyone should know about being a Realtor, from one.

What everyone should know about being a realtor, salesperson, agent, houses, sales, home, tucson, az, arizona, salary, education, information, expect http://jessicacoaches.com/2017/04/what-everyone-should-know-about-being-a-realtor-from-one/

Jessica Deratany a licensed Realtor with Tierra Antigua Realty.

I love real estate.  I listen to podcasts about real estate for fun.  When I have access to cable television I will choose HGTV, Income Property is, of course, my favorite! I love touring houses, especially the really old gross ones that can be transformed into something beautiful.  I have been involved in many complete renovations and even a new build.  I have become very skilled at most things it takes to renovate a home, construction, and design.  I love negotiating a deal.

Real Estate is kinda my thing.

So, I decided to get my Real Estate Agent License, the entry requirements seemed pretty low in Arizona, and we have some of the higher requirements in the US.  Minimum of 18 years old, 90 hours of licensure course, background check, and pass a state and school.   All in for the license I was looking at under $1000, for a career with unlimited earning potential what a steal!

 

real estate agent giving couple their dream home keys

 

So I enrolled in a local quality school.  It became very clear that with a few exceptions the bulk of the course was about legality.  I enjoyed learning all of it, but there was a theme throughout the course that troubled me.  Refer out most knowledge, do not give opinions on most things to avoid fault, and full disclosure of any facts you do get. (Which most often seemed to be in a huge page that people would skim because of so much legal talk.)

 

Okay, Okay, I get it, my knowledge about anything other than real estate sales and marketing should not be used in this.  I passed the test with ease.

 

Then I started looking for a brokerage to work for.  This was very eye opening; the big companies straight up wanted half of everything I made.  This was usually till I had paid them up to some cap which in our area was around $20,000.  I also had to pay for all my consumables, marketing, insurance, MLS Access, associations, and necessities.  I managed to find a more human, charitable, local brokerage company, Tierra Antigua, which didn’t seem like my wallet was their bottom line.  So they are out there! However, it had become very clear, very fast that I was now a walking milkshake and everyone had a straw.  

 

 

 

 

It got worse.

 

I was thrust into an environment that was all about how to close.  Everyone who spoke to me, save a few, just sounded like a predator talking about the kill.  Sales is an intense world.

 

So where did that leave me? A person who wants to tell people:

  • Buy a house that makes you money, and never to buy one that would not rent for a good chunk higher than your mortgage. See: 4 Ways Real Estate Investing Could be Making You Money Right Now!
  • Selling your home is costly, and if you’re hoping to make money and not just break even or lose money in real estate, you need to hold on to that house as long as possible if there has not been significant forced appreciation (Owner fixing the house), or market appreciation. (Your neighborhood prices are skyrocketing.)
  • That the big American dream home is an unhealthy obsession and provides a lower quality of life.
  • That signing an agreement with me locks you into a decision for a period of time, and I like choice?
  • That house while pretty on the surface could be a potential nightmare, for this, this, and that reason.

 

Honestly, if my being a Realtor were our main source of income, I would have a quit a while ago and used my Real Estate Salesperson Licence for one of the other many jobs it affords; or maybe sold out and hustled?  I am not a shark, nor do I fit in with them. Perhaps, if I felt more positively towards American consumerism, it would be a better fit for me.  Right now, I keep it to help friends, family, or maybe someone who wants be told what they need to hear instead of want.  But, sadly, they do not seem in high supply.   The access to the MLS is also a great perk, as we are investors ourselves, and it is an amazing tool.

 

 

What is your experience with Realtors?  If you are one, have you experienced the same thing?

Owning a Vacation Rental – Ready to Have That Winter Home and an Investment Too?

Owning a Vacation Rental, ready to have that winter home and an investment too jessica coaches real estate blogger life coach http://jessicacoaches.com/2017/03/owning-a-vacation-rental-ready-to-have-that-winter-home-and-an-investment-too/

Have you thought about buying a property near the beach? The mountains? You could vacation there whenever you want, a little home away from home, but it seems out of your reach? Or maybe you just hate finding, and paying inflated rates during yearly events, like our International Gem Show here in Tucson, AZ because everything is full, but wouldn’t imagine buying a house here because it would just sit empty for the rest of the year.

What if I told you: You can have that vacation home, and not only break even, but make a profit!

I have owned a vacation rental for a little over two years now and the gross yields off that vacation rental are over DOUBLE the gross yields of what it was getting as a month-to-month rental.  Keep in mind that vacation rentals have significantly more expenses though.  But, that means if you bought two homes, lived in one, and managed your own vacation rental out of the other it could potentially pay for both homes!!

 

 

 

 

 

 

 

Here are all the things I have learned during this time:

The Good-
1. No more hotel bills when you visit your favorite vacation spot! You have a home there. You can have all your stuff locked away in the garage or a storage cabinet so you feel like you just left.
2. Great money. In general, the yields off a vacation rental are higher than a normal rental. People will pay significantly more for shorter stays.
3. Lower wear and tear. On average you have a lower occupancy rate with more dates that no one is using your appliances, walking on your floors ect. The premises are also being cleaned regularly which helps with this a great deal.
4. There are management companies that will take care of the whole thing for you.  These vary widely in how much they charge and the extent of what they do.

The Bad-
1. Most of the time you want to go to your rental when everybody else does. I have decided to stay with family instead of at my vacation rental because I really wanted that 2k paycheck!
2. You might be the one stuck paying all the utilities and bills for the property if your manager does not do that. These homes tend to have everything you do at your home, internet, cable, water, ect. This is mostly just an inconvenience but something to keep in mind.
3. The risk is higher than a month-to-month rental. There are periods of time when you might have no renters, such as low tourist season. You will still have to pay all those bills, and maybe a mortgage, while there is no money coming in. This will need to be planned for by saving back some earnings from better times of the year.

 

What are your experiences? Do you own a vacation rental or would you like to?