{"id":94282,"date":"2021-02-12T15:00:17","date_gmt":"2021-02-12T22:00:17","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=94282"},"modified":"2024-01-15T12:59:55","modified_gmt":"2024-01-15T19:59:55","slug":"get-your-real-estate-license","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/get-your-real-estate-license","title":{"rendered":"8 Reasons Smart Investors Get Their Real Estate License"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC6741830096\" width=\"100%\"><\/iframe>  \n\n\n\n<p>Some beginner investors may look at licensed real estate agent and feel\u2014let&#8217;s face it!\u2014a little bit jealous. Easy access to the MLS&#8230; not having to wait for someone else to tour properties&#8230; the benefits seem obvious. Yes, there are a number of downsides (like having to work under a broker), but the benefits of a real estate license are real.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/guides\/becoming-real-estate-agent?itm_source=ibl&amp;itm_medium=blogad&amp;itm_campaign=guide\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-128679 size-full\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/How-to-Become-a-real-estate-agent.jpg\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/How-to-Become-a-real-estate-agent.jpg 706w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/How-to-Become-a-real-estate-agent-300x53.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/How-to-Become-a-real-estate-agent-702x125.jpg 702w\" alt=\"\" width=\"706\" height=\"125\" title=\"\"><\/a><\/p>\n<p class=\"guide-description\"><em>While a real estate license isn\u2019t a necessity for all investors, some find it an essential part of their investment strategy. But getting your license can be a long process, involving coursework, exams, and background checks\u2014and, of course, you\u2019ll need to find a broker. Learn more about what separates average agents from the great and get all the details on acquiring your license with our in-depth guide:\u00a0<a href=\"https:\/\/www.biggerpockets.com\/guides\/becoming-real-estate-agent?itm_source=ibl&amp;itm_medium=blogad&amp;itm_campaign=guide\" target=\"_blank\">How to Become a Real Estate Agent\u2014An Investor\u2019s Guide<\/a>.<\/em><\/p>\n<p>Our in-depth guide to the\u00a0<a href=\"https:\/\/www.biggerpockets.com\/blog\/dont-get-real-estate-license?itm_source=ibl&amp;itm_medium=related&amp;itm_campaign=opt\" target=\"_blank\">downsides of a real estate license<\/a>\u00a0walks you through the negatives. Now, we&#8217;re here to talk about the\u00a0<em>benefits<\/em>\u00a0of a license. Why should investors go through the coursework, the testing, and the expense of licensure? Here&#8217;s why.<\/p>\n<h2>1. MLS access<\/h2>\n<p>Having a real estate agent\u2019s license allows you to legally and legitimately access the multiple listing service (MLS).<\/p>\n<p>This has two major benefits for creative investors: First, you can closely watch a neighborhood and spot a new property the moment that it comes onto the market. You don\u2019t have to wait for an agent to find the property for you, or for a public website like Zillow to pull the data.<\/p>\n<p>Secondly, you can mine a treasure trove of historical data. The MLS provides detailed information about prices and comps. Yes, some of this is also available through websites such as Trulia, Redfin, Zillow, and LoopNet, but the MLS is\u2014and always will be\u2014the gold standard.<\/p>\n<p>Here are some questions the MLS can answer for you:<\/p>\n<ul>\n<li><strong>How many houses sold in the last year that meet my investing criteria?<\/strong>\u00a0Don\u2019t waste time searching for something that doesn\u2019t exist.<\/li>\n<li><strong>What was the asking vs. sales price for similar properties?<\/strong>\u00a0This will help you save money when putting in an offer.<\/li>\n<li><strong>What are the seasonal trends in prices for a particular area or type of property?<\/strong>\u00a0Some cities have fluctuations of $30 to $50 per square foot from winter to summer in areas with good school districts. Parents don\u2019t want to move their kids in the middle of the school year.<\/li>\n<li><strong>How much do the owners owe?<\/strong><strong>\u00a0<\/strong>If you plan on putting in a low offer, you can pull records that will give you a good idea what they owe on the house\u2014and if they can afford to take even less.<\/li>\n<li><strong>How many days can you expect properties to be on the market?<\/strong>\u00a0Do you need to put in an offer right away or do you have time?<\/li>\n<li><strong>Who owns a specific property, and what is their address if they don\u2019t currently live there?<\/strong>\u00a0You can send them a letter and see if they want to sell.<\/li>\n<\/ul>\n<h2>2. Relationships<\/h2>\n<p>Whether you&#8217;re buying or selling, a licensed investor has the power to make the other agent\u2019s job as easy as possible. You can handle turning on the utilities for inspections, completing extra paperwork, coordinating with the closing attorney, and managing the title search\u2014making the listing agent much, much happier.<\/p>\n<p>Volunteer to go above-and-beyond the call of duty. Do everything in your power to make the other agent feel like you\u2019re easy to work with.<\/p>\n<p>Agents who go out of their way to make the other agent\u2019s job as easy as possible get rewarded with close relationships. And those close relationships are essential for a strong real estate investment strategy\u2014if you\u2019re well-regarded within your community, people will forward you leads and tips.<\/p>\n<p><a href=\"https:\/\/store.biggerpockets.com\/products\/sold-every-real-estate-agent-s-guide-to-building-a-profitable-business?utm_source=blog&amp;utm_medium=banner%20ad&amp;utm_campaign=sold\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-134120 size-full\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/SOLD-banner.jpg\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/SOLD-banner.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/SOLD-banner-300x51.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/SOLD-banner-300x51@2x.jpg 600w\" alt=\"\" width=\"700\" height=\"120\" title=\"\"><\/a><\/p>\n<h2>3. Commissions<\/h2>\n<p>We don\u2019t want to overemphasize this point\u2014the commission is one of the less-important licensure benefits. But that doesn&#8217;t mean it&#8217;s not nice.<\/p>\n<p>As an agent, you\u2019ll be able to collect a commission on the deal. If you buy a $100,000 house, for example, and each agent receives a three percent commission, you will collect $3,000. After paying broker fees, you may net $1,500 to $2,500. (There is a wide variation in broker fees depending on which brokerage you hang your license under.)<\/p>\n<h2>4. Real estate industry education<\/h2>\n<p>A real estate license helps you jumpstart your real estate learning experience. You&#8217;ll go through around 12 to 14 weeks of classes, and you will learn anything and everything associated with becoming a successful real estate agent.<\/p>\n<p>You will also learn other things, like branding, marketing, lead generation, contracts, talking to buyers, talking to sellers, and compliance. Unfortunately, there are a lot of real estate investors out there who do not understand these basics.<\/p>\n<p>This process will also help teach you how to do real estate the right way. There are a lot of cowboys out there who do not know what they are doing. They break the rules and regulations on a daily basis. It makes all of the other legitimate real estate investors look bad.<\/p>\n<h2>5. Risk minimization<\/h2>\n<p>When you do get your real estate license, you\u2019re going to have to peg that license under a broker. Guess who will oversee your real estate transactions, make sure that you abide by all of the laws and regulations, and ensure you\u2019re not doing anything shady?<\/p>\n<p>Your real estate broker\u2014who has a real estate broker&#8217;s license and insurance.<\/p>\n<p>Licensed agent are at lower risk of legal issues and lawsuits\u2014or simply losing money\u2014because they have someone overseeing all of their work. Plus, you&#8217;ll meet multiple people throughout the licensing process. The more people you speak to on a consistent basis, the more your mind expands and the more educated your decisions become. Therefore, you will make fewer mistakes, thus lowering your risk.<\/p>\n<p><em><strong>Related: <\/strong><a href=\"https:\/\/www.biggerpockets.com\/blog\/choosing-real-estate-brokerage?itm_source=ibl&amp;itm_medium=related&amp;itm_campaign=opt\" target=\"_blank\">Newbie Agent 101: How to Choose a Real Estate Brokerage<\/a><\/em><\/p>\n<h2>6. Less start-up hassle<\/h2>\n<p>Once you have your real estate license, you know how to do things the right way. You&#8217;ve built your network, and you\u2019ve met a lot of real estate agents. Now you have a bonafide real estate business.<\/p>\n<p>Your broker should have a full-blown support staff at your disposal to assist you with anything and everything related to agenting. Compliance, transaction coordination, contract reviews, web design, marketing, lead generation, discussions with buyers and sellers, training and education\u2014you will have all of these things at your fingertips.<\/p>\n<p>Without this, real estate can seem like a jungle\u2014especially for beginners. You don\u2019t know where to start, who to talk to, or where to go. A real estate license puts you on the right track.<\/p>\n<h2>7. Credibility<\/h2>\n<p>Another advantage of being a real estate agent\u2014and especially a Realtor licensed by the National Association of Realtors\u2014is that clients and other investors know you work by a code of ethics. Realtors even have a proscribed code of ethics, which is more strict than the actual law. Even if you aren&#8217;t acting as a Realtor, but just trying to purchase a property, you have to abide by this code.<\/p>\n<p>If part of your investment strategy involves contacting off market sellers and convincing them you are trustworthy, it is much easier as a Realtor. Point them to your website and show them how long you&#8217;ve been in the business\u2014screwing them over would hurt me a lot more than it would help me.<\/p>\n<p><em><strong>Related: <\/strong><a href=\"https:\/\/www.biggerpockets.com\/blog\/rockstar-real-estate-agent?itm_source=ibl&amp;itm_medium=related&amp;itm_campaign=opt\" target=\"_blank\">How to Be a Rockstar Real Estate Agent: 9 Tips for Standout Success<\/a><\/em><\/p>\n<h2>8. Early access<\/h2>\n<p>With a real estate license and a membership to the local MLS, you can get into any property you want. If properties are going quickly, you can go see it that day and beat the rush.<\/p>\n<p>Plus, most listing agreements are signed two to four weeks before the property hits the market. It\u2019s expensive and time consuming to market a property, so most agents tell their contacts first, so they can sell it before spending a lot of time and money marketing. You want to be in that group.<\/p>\n<p>For successful real estate investors, the number-one job isn\u2019t to make a little bit of cash on the side.\u00a0<strong>Your job is to find and secure the best new deals.<\/strong>\u00a0Direct access to the MLS can help you find the deal. And speaking directly with the other agent\u2014and giving that agent every reason to like you\u2014may help you secure the deal.<\/p>\n<p><a href=\"https:\/\/www.youtube.com\/user\/BiggerPockets\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-114268\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6.jpg\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6.jpg 706w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6-300x53.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/6-702x125.jpg 702w\" alt=\"ad-youtube-channel\" width=\"706\" height=\"125\" title=\"\"><\/a><\/p>\n<p><em><span style=\"font-weight: 400;\">Any other reasons why folks should get their real estate license? <\/span><\/em><\/p>\n<p><strong>I want to hear from you below. <\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Should you pursue your real estate license? Here are eight reasons investors should consider taking the test.<\/p>\n","protected":false},"author":1672,"featured_media":135320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7119,7390],"tags":[],"class_list":["post-94282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-biggerpockets-daily","category-acquiring-property"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/94282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=94282"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/94282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/135320"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=94282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=94282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=94282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}