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Obtaining a Real Estate license

Discussion in 'Pharmacy' started by vtrx2013, Sep 13, 2017.

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  1. vtrx2013

    vtrx2013 2+ Year Member

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    Real Estate seems to be a good option for a passive income. For starter, how can I obtain real estate agent license? Online? Community college?
     
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  3. Blizzard1mage

    Blizzard1mage 5+ Year Member

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  4. ChalupaBatman86

    ChalupaBatman86 2+ Year Member

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    Oh no. Don't be one of those pharmacists.


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  5. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    Online classes and a state exam will get you a broker's license in CA.

    But it's not actually passive income. There are fees to access MLS, and you actually have to, you know, do some work or convince someone to trust you with likely their largest asset vs. someone who actually does it for a living.


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  6. animalsasleaders

    animalsasleaders

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    I'm curious as to what pharmacists do for income besides their 9-5 (more like 8-9) jobs. Passive income generally seems like a good idea to me. So if not real estate then what?
     
  7. ChalupaBatman86

    ChalupaBatman86 2+ Year Member

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    There's always money in the banana stand


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  8. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    By definition, passive income requires minimal to no work to generate some sort of cash flow, which is the opposite of being actively involved in the real estate industry.

    So that means buying a rental property and outsourcing its day-to-day management meets that definition.

    I generally prefer active income since losses are deductible, whereas passive losses are disallowed (except against passive income); but....

    I suppose we have to discern between the true IRS definition of passive income and the laymen's idea of "passive income" which to a lot of people means "a side gig that I don't have to clock a 9-5 for and showing up is optional without risk of getting fired"


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  9. pezdispenser

    pezdispenser 10+ Year Member

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    Just invest in stock. I have about $500k invested now with a goal to make 10% so that's already $50,000 per year. Of course I'm going to keep adding money and letting it compound. You don't even have to spend much time on it if you don't want to. Just make regular DCA investments into an index fund like Vanguard Total Stock Market Index or an S&P 500 Index.
     
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  10. animalsasleaders

    animalsasleaders

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    The best reply in this entire forum.
     
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  11. animalsasleaders

    animalsasleaders

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    I think passive income is a bit of a misnomer. It still requires a hefty investment (time or money) to start, but then is essentially self running after that investment. So it doesn't require "minimal work" because then everyone would be doing it.
     
  12. Unchained

    Unchained 5+ Year Member

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    Do you live in a state where there is a state legal cannabis program? Pick up some extra hours in a dispensary or get into the educational field. It's a rather lucrative side hustle.
     
  13. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    Yeah I was hewing to the IRS definition, which is itself wonky (rental property where your tenants call you EVERY DAY is still considered passive income), but hefty start up investment can mean a lot of work (your average wage earner) or none at all (inheritance).

    I'm in the "invest your money" crowd. If you really want real estate, find a nice REIT to pile into. Managing a property is a great way to blow all of your free time for a few years.


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  14. Abby Atwood

    Abby Atwood

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    Some state boards (even states with medical marijuana laws) have rules against pharmacists promoting marijuana. If proceeding, I would do so with caution.
     
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  15. Unchained

    Unchained 5+ Year Member

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    Where? Can you name one? I haven't heard this to be the case anywhere and I'm generally well informed on this topic.
     
  16. BidingMyTime

    BidingMyTime Lost Shaker Of Salt 10+ Year Member

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    I'm not surprised that you didn't realize this, you also haven't heard that vaccines can actually prevent disease.
     
  17. Abby Atwood

    Abby Atwood

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    New Mexico; there are also some Arizona rules specifying that marijuana is misbranded if the packaging does not give quantities. I'm only somewhat familiar with marijuana dispensing, but that may be a problem. (Unless Arizona dispensaries have stepped up to meet labeling requirements on edibles)*

    *Just to clarify, these are a couple states that I'm familiar with. It's not a comprehensive list.
     
    Last edited: Sep 14, 2017
  18. Unchained

    Unchained 5+ Year Member

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    I couldn't find any position on this from the New Mexico Board. You might have inside knowledge. States pass labeling requirements and if the dispensaries follow it there is no problem. One should check with the Board and an attorney before entering the cannabiz. Some states such as Connecticut, Minnesota and Pennsylvania are requiring pharmacists to be in the dispensary. It can be very lucrative if you team up with the right people.
     
  19. wagrxm2000

    wagrxm2000 2+ Year Member

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    Real Estate Crowdfunding & Investing | RealtyShares

    There's no point in owning rentals. Let others do the work for you or just invest in ETFs. The DOW is up over twenty percent in the last year and twelve percent year to date.

    Unless you can achieve double digit returns after paying a property manager, it's pointless. If you can only achieve double digit returns by doing it yourself, that is just way too much time and effort on your part. You are already working forty some hours a week, enjoy your time off.
     
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  20. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    It's too much risk, too much work, and too little reward. You're sinking, what, $500k into ONE single asset, spending how many hours dealing with stupid, constantly worrying if your tenant is going to destroy said asset, and then spending 6% to dispose of it at the end just to chase 3-4%/yr avg increase in value?

    I mean, I guess there's the cash flow aspect of it...but in that case, buy some high dividend ETF's. hell...$500k of Disney stock (5000 shares @ $100/share) yields $7800/yr in dividends (or $650/mo).

    For some more risk, ABR (Arbor Realty) has an 8.97% annual dividend, so your $500k will throw off ~$45k/yr in dividends ($3737/mo). But good luck buying $500k at once.

    However, I'm not anti-real estate, sometimes it's fun, I think if you're able to leverage low interest rates, have a good network of handymen/vendors, and can spot a non-turnkey property that you can turn rental in a robust market, it might work out (and be fun).

    But it's a little more visceral when the 4 walls and a roof you bought drops 40% in value (and your tenant leaves) while your loan payment on it is the same, vs a straight 40% drop in a retirement plan balance.


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  21. lord999

    lord999 Moderator Emeritus 10+ Year Member

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    To your point, there's also competition with the government provided housing situations. One of the reasons why Germans don't usually own homes is that their version of rentals is government-owned housing competing with the private sector (much like how we have our nursing home situation divided between government direct, Medicaid primary, and Medicare/private pay primary). With all that housing stock Uncle Sam owns now due to foreclosing on so many people, it might not take long for the government to get directly into the business of rentals (and probably not in the direct sense, but as provisioned housing like the landlord's "favorite" voucher system: Section VIII).

    What you see in real estate rentals if you don't actually have the general contractor skills to upkeep the places yourself (or a cheap, dependable contractor in places where it requires you to hire outside) is that those small time investors get wiped out when a city wants to redevelop the land by condemnation and eminent domain (thank you Kelo v. City of New London). So, the problem is that if you're a smalltime landlord, you need to be successful in that you have paying tenants and the housing market favors renting, and not too successful such that some big developer who is in with City Hall conspires to legally expropriate your property. Worked for San Francisco (Blight and Rent Control), it'll work for your community too. This is one of the aspects that I don't like CA especially if I were a landlord.

    REITs perform horribly even under medium-term expectations because of bad debt packaging. Don't take my word for it, look up the performances yourself or CALPERS/CALSTRS. For many of those portfolios if held to term for the originating mortgages in 1980, they weren't winners in 2010 due to the extensive refinancing wiping away those outrageous interest rates of the 80s.

    But, feel free to someday subsidize some loser tenant who hasn't paid in three months while you stress out over making the mortgage. After going to small-claims court enough times, you'll hopefully enjoy that "passive" income just like real estate management companies do. Again, passive is a relative term just like anesthesiology is a passive sort of practice, usually chill but punctuated by moments of insanity which make people reevaluate their careers after such incidents.
     
  22. TheBlaah

    TheBlaah 7+ Year Member

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    Well, I guess I'll speak as someone who actually rents out houses.

    Whether or not it's lucrative will depend completely on your own situation. I would never think to do it in area where housing prices are inflated (Seattle, LA, NY, ect). It also depends on timing, but so would any financial venture. I've been involved with rental houses for about 7 years now. While it's not nearly as lucrative as when I first started (~80% net gains/yr in the first couple of years after the housing crash), I'm now averaging about 10% net gains per property. This is after I account for a property manager (they generally take the first month of rent along with 7% of the monthly rent), taxes, repairs, ect (I don't have any mortgage loans). For all intents and purposes, I consider it passive income due to the property manager since they practically handle everything. Speaking as someone who's handled a couple of evictions in the past: they're definitely not worth the time or effort; just hire a manager. I probably spend maybe 2 hours a month on each property. Of course, this can increase drastically if something happens with the property, if you have to evict someone, or when tax season comes because you want to deduct everything possible.
     
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  23. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    That's extra good stuff right there, I think I maybe eked out a good 7-8% ROI but I was the property manager (family money, I was in undergrad so I had a LOT of free time on my hands). Never evicted someone, but I did have lots and lots of late rent payments (or people just up and left) and random repairs (water infiltration was the worst).

    I still don't think it's worth it for most people. But I may wade into it again...eventually.


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  24. Dred Pirate

    Dred Pirate 2+ Year Member

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    the best money to make from rental is in being a sort of slum lord - without going to crappy. Obviously each market is different, but generally you want to get 0.5-1% of the value of the house each month (150k house rents for 750-1500 per month - probably around 1k or so. If you can find that perfect place you can get a 75k house and rent it from 1000k - then you are over 1% - that is were the money is - not in super nice houses. You want a low priced home, but then find good tennents who won't trash it - obviously easier said than done. I would NEVER buy a 500k rental property, FWIW I live in a townhome community - selling for 300k (2 years ago for 255k) and they rent for 2k a month = 0.66%.
     
  25. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    Slum lord eh? But then you have to start thinking about the whole "moral turpitude" clauses baked into RPh licenses, even if you insulate the investment into an LLC.

    I figure if someone can get their license taken away for making counterfeit t-shirts, violating Fair Housing laws by accidentally/subconsciously turning away Black tenants is grounds for that as well.


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  26. Dred Pirate

    Dred Pirate 2+ Year Member

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    I am not saying I would do it. And never mentioned anything about race I just said the beat money in owning rental homes are low prices homes and they give you the best return for your money. You just have to find the right tenants. I personally have no desire to do it. To much work.
     
  27. confettiflyer

    confettiflyer Did you just say something? 10+ Year Member

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    Oh no I'm not accusing you or anything, I'm more bringing up to the peanut gallery that "passive" income isn't passive and a side business CAN very much affect your main gig in ways people didn't think of.


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  28. NewRPh2006

    NewRPh2006 2+ Year Member

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    On point. Totally agree. Major keys... dollar-cost averaging (DCA), compound interest, and index funds. Vanguard Total Stock Market Index (VTSMX) has extremely low expense ratio and is super-diversified - allows you to invest in over 3,000 businesses simultaneously (large cap, mid cap, small cap all at the same time). Average annual historical returns around 10% (6-7% inflation-adjusted), low-turnover fund, and only capital gains tax rate. Requires ZERO effort... except clicking the button to buy more shares. What could possibly be better than that? Real estate = labor intensive/hassle hassle hassle. Just my opinion. I prefer a simple approach like indexing that can be put on autopilot and yields excellent results. Recommended reading: The Little Book of Common Sense Investing by John C. Bogle. Author is founder of The Vanguard Group - the largest mutual fund company in the US. He knows more about the stock market than everyone on this forum combined. May change your life/investing strategy.
     

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