Real estate and financial advising COMBO

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Jul 21, 2006 6:13 pm

are many of you doing it?


any thoughts and suggestions on it? etc etc

Jul 21, 2006 6:34 pm

Bro K.....


What exactly are you trying to ask?  Do any of us help our clients with advice relating to real estate holdings?  Do any of us sell both real estate and securities? 


I help people from a financial planning perspective to evaluate and incorporate their real estate holdings into their overall strategy.  I do not sell real estate though and from my understanding it would be very difficult to do both because of rules relating to "outside business activities" and how most firms interpret and enforce those rules.

Jul 21, 2006 6:45 pm

if you sell both real estate and financial securities


and i think in your situation, dude, it's different since you are working with a wire.


any indys do both?

Jul 21, 2006 6:53 pm
brothaK:

if you sell both real estate and financial securities


and i think in your situation, dude, it's different since you are working with a wire.


any indys do both?



It doesn't matter if you work for a wire or if an indy firm is holding your ticket.  Your employer must be notified of any--as in ANY--outiside business activity, including working an early morning shift on Sundays at your local Dunkini Donuts.


Failure to notify will normally result in INSTANT termination.

Jul 21, 2006 6:58 pm

Exactly.  Although I've never eaten at a Dunkini Donuts before.

Jul 21, 2006 7:04 pm
dude:

Exactly.  Although I've never eaten at a Dunkini Donuts before.


And I suppose you've never had gellato?

Jul 21, 2006 7:09 pm

ok.. so regardless lets say it is approved by your firm


My question is do you FAs think about doing the combination? or are just too damn busy that it doesnt even come into your mind.

Jul 21, 2006 7:10 pm
dude:

Exactly.  Although I've never eaten at a Dunkini Donuts before.



Now, I don't care WHO ya are, that there's funny!


Are those really tiny little donuts?


Jul 21, 2006 7:11 pm
brothaK:

ok.. so regardless lets say it is approved by your firm


My question is do you FAs think about doing the combination? or are just too damn busy that it doesnt even come into your mind.



I cannot imagine that there is a B/D out there that would approve it, so I suppose your point if moot.


I would not approve it because real estate sales is too time consuming--I would not want you rushing off to show some property, attend a closing or anything other than prospecting for business.


If you have not been hired somewhere do NOT even think of discussing it--there is no smile face in this issue.

Jul 21, 2006 7:22 pm

Little Bro,


This is kind of like asking a Surgeon if they've ever thought about doing a little Chiropractic work on the side...


Not the same training.


Not the same skills.


Not the same License/Education Requirments.


I advise my clients about Real Estate.. I personally like it as an investment. But, being on-call to show property on weekends is NOT what I think of as a good use of my time.

Jul 21, 2006 7:29 pm

Time to learn a new acronym Bro K: REIT's.


They generally come in two flavors: private and public.


Learn a little about the real estate industry and you'll clearly see why being a real estate broker and a stock broker are not compatible professions.  The time required to sell even a couple houses a month would be ENORMOUSLY distracting from running a good practice.  Getting a home closed is paperwork intensive, relies on multiple factors outside your control coming together at the exact right time and when complications arise you must be ready to drop what you're doing at a moments notice and fix problems.  You think people get b*tchy when their portfolio's fluctuate?  Try seeing how civil they are when they are sitting in a motel with their 2 kids because their house didn't close.  If I was your client I'd be unrestrainably pissed.


You only have 16 hours a day to work with and your hands are too full as an advisor to deal with all that crap.


Jul 21, 2006 7:29 pm

how about just having the realestate liscense


1. for yourself, when you want to buy or sell your house


2. I heard somewhere either on these boards or in a magazine that clients like it that you have the RE liscense. (i'm not too sure about this, i'm just throwing out the idea)

Jul 21, 2006 7:32 pm
munytalks:
dude:

Exactly.  Although I've never eaten at a Dunkini Donuts before.



Now, I don't care WHO ya are, that there's funny!


Are those really tiny little donuts?




No, they're donuts that can escape from a hot cup of joe and make your hunger dissappear.

Jul 21, 2006 7:37 pm
dude:
munytalks:
dude:

Exactly.  Although I've never eaten at a Dunkini Donuts before.



Now, I don't care WHO ya are, that there's funny!


Are those really tiny little donuts?




No, they're donuts that can escape from a hot cup of joe and make your hunger dissappear.




Well, would't those be called Dodgin' Donuts?


Now, Dunkini's kinda conjurs up a different image altogether...maybe it's like Hooter's- only for Donuts...

Jul 21, 2006 7:46 pm

Dunkini = Houdini, ya' know the famous magician.


although I probably didn't really need to explain it.

Jul 21, 2006 7:49 pm

Lemme guess here, you'd want the creme filled doughnuts, right?  Although I don't think I'd find Dunkini Donut waitresses to appeasing visually, especially if they enjoy their own products.

Jul 21, 2006 7:51 pm

correction: too appeasing.  Since we are building off of NASD's little spelling error.

Jul 21, 2006 8:37 pm

dude,


Nice response to brothaK.  REITs are good.  However, if brothaK would also take the time to learn about 10-31 exchanges, TICs (tennants in common securities), and private annuity trusts then he can "sell real estate" by helping his clients get the cash out of their real estate holdings.


I believe that most advisors fail to properly address real estate holdings when speaking with a client.  Additionally, a great deal of the wealthy in American have a substantial amount of equity in real estate.


I don't believe that anybody invests in real estate because they want to own more land than anybody else (unless they are named Ted Turner).  They invest in real estate because they want the cash, income, wealth and security that is associated with real estate.  As such, showing clients how to gain access to, and proper utilize, the equity that they have acquired in real estate is paramount for a successful advisor.


On a side note...this is also why Ric Edelman's and Doug Andrews' principles on managing home equity are essential concepts to understand too.

Jul 21, 2006 11:09 pm
NASD Newbie:
dude:

Exactly.  Although I've never eaten at a Dunkini Donuts before.


And I suppose you've never had fellatio?

Jul 24, 2006 2:01 pm

That one went over my head.....what am I missing?  Maybe a cup of coffee?