Series 7 AND Realtors License
I’m taking a shot in the dark in hopes someone might have some info on
being dual licensed as a RR/agent AND obtaining a realty license.
I’m currently Series 7 licensed and on August 22, I’ll be sitting
for my Series 66. I’m considering dabbling in realty, but does
anyone know if it is a conflict of interest to hold/practice all three
licenses? From a future investment/financial adviser stand point, I can see how the dual licensing
could benefit the client and both practices, but as a client, would you
ever look to your financial adviser to fulfill your real estate needs? Thoughts?
I’ve known of someone with a 7 and Real Estate license. It’s up to your compliance department to approve it like any other outside business activity.
I totally agree with Ice. I currently have a real estate license and unless you’re a full time person in demand in the luxury market, it’s a waste of time and an aweful career. If I were a millionaire and you told me you’d like to meet to discuss some ideas you have for my portfolio, right after you get done showing a client some houses for sale, I’d be moving my money. I’d say forget the real estate license and go full force on prospecting and building your FA business.
I am both a Insurance Agent/Registered Rep and a Realtor. I will tell you it is working out well. The only real estate deals I handle are for family and friends. My compliance department had no issue, as long as I did not advertise that I did both on company literature. I do maybe one deal a month and I use that money to further my other career. This month was nice, I closed 2 real estate deals, I have maybe 3 hours total wrapped up in them and will net 4k. I have done about 10 deals since I have been a RR and I have not ran into any issues. The best deal so far is the couple that wanted me to sell their house. I sold it in 2 days, they made a little over 100k and I ended up selling a small annuity with the money they made. The continuing ed is no big deal, most can be done online through your local Realtor association. Another benefit is that if you can make it work you can send refferrals to another Realtor and then when the sale is made you can get part of their commission, I have done that a few times as well when I did not have the time to deal with a new buyer. You have to just try it and see if it is for you. Of course if you are in a bad market it will be tough, you won't do any deals and pay to keep the license active. I am in a strong area and the market here is great.
[quote=Ferris Bueller] [quote=hawxfan]
I am both a Insurance Agent/Registered Rep and a Realtor. I will tell you it is working out well. The only real estate deals I handle are for family and friends. My compliance department had no issue, as long as I did not advertise that I did both on company literature. I do maybe one deal a month and I use that money to further my other career. This month was nice, I closed 2 real estate deals, I have maybe 3 hours total wrapped up in them and will net 4k. I have done about 10 deals since I have been a RR and I have not ran into any issues. The best deal so far is the couple that wanted me to sell their house. I sold it in 2 days, they made a little over 100k and I ended up selling a small annuity with the money they made. The continuing ed is no big deal, most can be done online through your local Realtor association. Another benefit is that if you can make it work you can send refferrals to another Realtor and then when the sale is made you can get part of their commission, I have done that a few times as well when I did not have the time to deal with a new buyer. You have to just try it and see if it is for you. Of course if you are in a bad market it will be tough, you won't do any deals and pay to keep the license active. I am in a strong area and the market here is great.
[/quote]Case in point. You are a retard.[/quote] Wow. The OP was looking for some honest advice and that is what I gave. It works for me, it is not for everyone, and you are acting like a jackass.
[quote=Ferris Bueller] [quote=hawxfan] [quote=Ferris Bueller] [quote=hawxfan]
I am both a Insurance Agent/Registered Rep and a Realtor. I will tell you it is working out well. The only real estate deals I handle are for family and friends. My compliance department had no issue, as long as I did not advertise that I did both on company literature. I do maybe one deal a month and I use that money to further my other career. This month was nice, I closed 2 real estate deals, I have maybe 3 hours total wrapped up in them and will net 4k. I have done about 10 deals since I have been a RR and I have not ran into any issues. The best deal so far is the couple that wanted me to sell their house. I sold it in 2 days, they made a little over 100k and I ended up selling a small annuity with the money they made. The continuing ed is no big deal, most can be done online through your local Realtor association. Another benefit is that if you can make it work you can send refferrals to another Realtor and then when the sale is made you can get part of their commission, I have done that a few times as well when I did not have the time to deal with a new buyer. You have to just try it and see if it is for you. Of course if you are in a bad market it will be tough, you won't do any deals and pay to keep the license active. I am in a strong area and the market here is great.
[/quote] Case in point. You are a retard.[/quote]Wow. The OP was looking for some honest advice and that is what I gave. It works for me, it is not for everyone, and you are acting like a jackass. [/quote]
you must be new here. I'm always a jackass. BUT my advice is always spot on.
Doing double duty as a shillrealtor is a good way to lose client credibility. Are you also an Amway/Quixtar rep? Sell them Mary Kay too?[/quote] Obviously you have something against Realtor's, I am not sure what it is, but the personal attacks against me are uncalled for. I have hundreds of clients, a large book that is growing each week, and a great referral business. If I was losing clients do you think I would have posted here? Next time you purchase a home (if you are able to, maybe that is the issue you have with Realtor's and mortgage brokers) try doing it without representation, let us know how it goes. My guess is not very well.
[quote=skippy]
Do a search for "Western Financial Planning Corporation". They're a firm based in San Diego and Orange Couny, CA. They require their financial planners to obtain a real estate license in addition to insurance and securities licenses. This is NOT a recommendation, but just another firm to gain some perspective. www.wfpc.com[/quote] skippy, This link is coming up as "malware" on my computer. What gives? IMO, an investment advisor who poo-poos real estate investments or poo-poos an investment advisor with a real estate license is a piker of the highest order. Who the hell do you think holds the majority of wealth in this country? It sure as shit not the employee with some duckets in their 401k. It's the people who own lots and lots of real estate. You guys piss on it because you can't jam 'em in a VA or MF or wrap account. FTR, I do not have a real estate license, nor do I plan on getting one in the forseeable future. However, I know several in my office who do. They do a phenomenal job for their clients.[quote=deekay][quote=skippy]
Do a search for "Western Financial Planning Corporation". They're a firm based in San Diego and Orange Couny, CA. They require their financial planners to obtain a real estate license in addition to insurance and securities licenses. This is NOT a recommendation, but just another firm to gain some perspective. www.wfpc.com[/quote] skippy, This link is coming up as "malware" on my computer. What gives? IMO, an investment advisor who poo-poos real estate investments or poo-poos an investment advisor with a real estate license is a piker of the highest order. Who the hell do you think holds the majority of wealth in this country? It sure as shit not the employee with some duckets in their 401k. It's the people who own lots and lots of real estate. You guys piss on it because you can't jam 'em in a VA or MF or wrap account. FTR, I do not have a real estate license, nor do I plan on getting one in the forseeable future. However, I know several in my office who do. They do a phenomenal job for their clients.[/quote] As far as "malware", I get it too. The website is safe, but I just don't understand why my server blocks out that site. Here's a "Monster" listing that you can see about Western Financial that references that same website. http://jobview.monster.com/GetJob.aspx?JobID=67380448[quote=Ferris Bueller][quote=hawxfan][quote=Ferris Bueller] [quote=hawxfan] [quote=Ferris Bueller] [quote=hawxfan]
I am both a Insurance Agent/Registered Rep and a Realtor. I will tell you it is working out well. The only real estate deals I handle are for family and friends. My compliance department had no issue, as long as I did not advertise that I did both on company literature. I do maybe one deal a month and I use that money to further my other career. This month was nice, I closed 2 real estate deals, I have maybe 3 hours total wrapped up in them and will net 4k. I have done about 10 deals since I have been a RR and I have not ran into any issues. The best deal so far is the couple that wanted me to sell their house. I sold it in 2 days, they made a little over 100k and I ended up selling a small annuity with the money they made. The continuing ed is no big deal, most can be done online through your local Realtor association. Another benefit is that if you can make it work you can send refferrals to another Realtor and then when the sale is made you can get part of their commission, I have done that a few times as well when I did not have the time to deal with a new buyer. You have to just try it and see if it is for you. Of course if you are in a bad market it will be tough, you won't do any deals and pay to keep the license active. I am in a strong area and the market here is great.
[/quote] Case in point. You are a retard.[/quote]Wow. The OP was looking for some honest advice and that is what I gave. It works for me, it is not for everyone, and you are acting like a jackass. [/quote]
you must be new here. I'm always a jackass. BUT my advice is always spot on.
Doing double duty as a shillrealtor is a good way to lose client credibility. Are you also an Amway/Quixtar rep? Sell them Mary Kay too?[/quote] Obviously you have something against Realtor's, I am not sure what it is, but the personal attacks against me are uncalled for. I have hundreds of clients, a large book that is growing each week, and a great referral business. If I was losing clients do you think I would have posted here? Next time you purchase a home (if you are able to, maybe that is the issue you have with Realtor's and mortgage brokers) try doing it without representation, let us know how it goes. My guess is not very well.[/quote] Why would I need a mortgage broker? My house is paid for and if I ever move I will pay cash. Most people don't know this, but a realtor isn't necessary. A good title company and $500 for a real estate attorney is all that is needed. Realtors in general are uneducated people that couldn't hack it in the real world. They are notoriously bad with investments and money. It's once thing to have your real estate license to facilitate transactions for family and friends, but another to couple it with the securities business. I still stand behind what I said to the OP, including the part about you being a retard. No offense.[/quote] Ferris, I agree with you - most realtors are horrible with money and have no clue how financial planning works. Frankly, paying for a house with cash is retarded. And I can prove it. Which goes to show that you don't have the foggiest about how real estate really works. Which is why you would benefit from using a mortgage broker. A realtor? It's debateable. Make them an order taker. But locking cash up in real estate makes zero financial sense.
amazing…
How long have you been an advisor Ferris Bueller?In all honesty, as a Realtor myself, Realtors are a scam. Why should you pay 6% to basically have someone put your house on a website and sit there a few Sunday afternoons. All you really need is a site like craigslist or a FSBO site that’s inexpensive and a copy of your yellow pages, and possibly a google search or two. The whole “You can’t buy or sell a house without using a Realtor” line is a joke. Realtors are one big racket. And this is coming from a Realtor.
I don’t know about you guys, but I was thinking of getting my food handler’s license to sell my clients food.
Snaggletooth Vice President - Investments, Executive VP Food Services[quote=Ferris Bueller]
[QUOTE] Frankly, paying for a house with cash is retarded. And I can prove it. Which goes to show that you don't have the foggiest about how real estate really works. Which is why you would benefit from using a mortgage broker. A realtor? It's debateable. Make them an order taker. But locking cash up in real estate makes zero financial sense. [/quote]And paying several hundred thousand dollars in interest makes sense? So I save 40cents on the dollar, but I'm still paying 60cents on the rest. So instead of paying a mortgage, I take what I would have paid and DCA into the market. I'm putting aside about 10K a month. I'm in my 30's and a millionaire. Please tell me again about how it makes zero financial sense.[/quote] You lose your tax deduction by paying with cash. A BSD such as yourself can appreciate having tax deductions, no? Plus, paying off a house vs. keeping it mortgaged has no effect on the value of the house. Ultimately, the cost of owning a house paid for with cash vs. mortgaging it for a long as possible will wind up costing a significant amount more.
[quote=snaggletooth]I don’t know about you guys, but I was thinking of getting my food handler’s license to sell my clients food.
Snaggletooth Vice President - Investments, Executive VP Food Services [/quote] I guess I'll just stick to selling Mary Kay on the side. JK :)Whoever says you shouldn’t pay off your house because you’ll lose your tax deduction is a fool. Think about these two situations:
Pay the bank $1000/month and write off $750/month in interest. So every year you're writing off $9,000. ORHave your home paid off and lose the write off, meaning you have to pay taxes on $9,000 more each year. Even if you paid 30% taxes, you're paying $2,700.
Would you rather pay $9,000 to the bank instead of $2,700 to the IRS?
I was thinking about making application for Itinerant Vendor License. All sorts of options with the License.
[quote=IsOldSpiceRightForMe]Whoever says you shouldn’t pay off your house because you’ll lose your tax deduction is a fool. Think about these two situations:
Pay the bank $1000/month and write off $750/month in interest. So every year you're writing off $9,000. ORHave your home paid off and lose the write off, meaning you have to pay taxes on $9,000 more each year. Even if you paid 30% taxes, you're paying $2,700.
Would you rather pay $9,000 to the bank instead of $2,700 to the IRS? [/quote] Maybe you should be a Financial Advisor???
I think that’s good advice Ferris. And, it may mean a little less investable assets up front, but they could set up the amount they were paying for their house payment in a monthly draw going towards some kind of retirement investment.
Ice - point taken one transaction versus a revenue stream. But I am still going for my Itinerant Vendor License …just in case.
[quote=Ferris Bueller]deekay is the kind of guy that tells his clients to pull cash out of their homes (for the deduction) then invests it into long term variable annuities. Whenever I get asked the question from a client about paying off their house, I tell them to PAY OFF THE HOUSE.
Some advisors either don't understand this simple concept or are looking out for themselves. [/quote] Wrong answer there, guy. I have plenty of clients who pay their houses off early. I show them how to do it in a more efficient way than plowing extra payments into their mortgage. I never recommend a client refi to invest in anything, variable annuity or otherwise. Even still, I can PROVE that paying off a mortgage early might not be in their best interest. You provide your OPINION. Seems to me that giving a client all the information needed to make a decision is pretty ethical.I know this post is old, but I felt compelled to reply anyway. I am an Investment Wealth Adviser/RR and Realtor. It infuriates me when someone bad mouths either of these professions.
Thinking a realtor is a scam is lunacy. If you believe that statement, you’re just as likely to believe a registered rep charging 1% (or more) per year on your money is an even bigger scam. These people argue that you pay this recurring fee for no service when you could buy a no-load mutual fund from Schwab with the same result or better.
Both professions are invaluable because of their expertise and advice. You want a financial adviser to monitor your specific investments, asset allocation, guide you through turbulent markets, adjust your risk tolerance over time, plan for taxes and responsibly plan for future financial commitments.
A realtor has much of the same expertise. List and sale price based on when you need to move the property, your expected closing costs and the tax consequences, current state of the market and the appropriate competitive price to move a property quickly, negotiating with buyers/sellers (not to mention listing/buyer agents), and answering questions regarding title, insurance, mortgages etc.
I will agree you need to have an educated individual in both professions and many people have trouble recognizing the good advisers and realtors from the bad. Nonetheless, a proficient expert is invaluable in both professions.
IsOldSpiceRightForMe:In all honesty, as a Realtor myself, Realtors are a scam. Why should you pay 6% to basically have someone put your house on a website and sit there a few Sunday afternoons. All you really need is a site like craigslist or a FSBO site that’s inexpensive and a copy of your yellow pages, and possibly a google search or two. The whole “You can’t buy or sell a house without using a Realtor” line is a joke. Realtors are one big racket. And this is coming from a Realtor.
I know this post is old, but I wanted to respond because it surprises me Financial Reps would bad mouth the real estate industry so much. A majority of wealth is obtained or retained through real estate holdings. I have a series 7, 66 and a Real Estate License. I am a sales agent for new construction in Boston. I sell exclusively for my myself and one developer. I do not market to my wealth management clients that I sell real state. I use my real estate license as a tool to purchase, redevelope and then sell real estate I own or have an investment stake in. I have made more in the last 3 years through real estate that I made in my entire career in the financial industry.
Unfortunatley my compliance department recently decided I can no longer hold my real estate license. They are considering it a conflict of interest now. I will likley quite my financial career and focus on real estate alone now given the potential for growth. Many of the skills I use as financial advisor I also use as a realtor. Honestly I think the careers are very similar. There are many shitty financial advisors out there and even more shitty realtors. A good realtor is hard to find and extremly valuble once you do.
Source URL:https://www.wealthmanagement.com/forums/rookies-trainees/series-7-and-realtors-license