RE License/Contractor License

2 Replies

Hey everyone,

Should I obtain a license in my state for Real Estate? Does this create a conflict of interest? Have you heard of a contractors license being useful to anyone to cut out a middle man? I know someone in most of the major categories of a home in my area. Any input is much appreciated and thank you in advance!

@Christian Drake

I have a home improvement contractor's "license" for PA (we have a registration and insurance requirement, no license) and it's been extremely useful. When you do any work within the City of Pittsburgh on pretty much any property that you are not the owner and occupant of, you need to be registered and insured. Now, if you want a building permit within the City proper, you need to be further licensed with the City, which might sound impressive but just means you've got to have six times the minimum insurance a PA contractor needs and pay the City $100 a year and that's it. No one will sell you a general liability policy for less than 10 times the insurance a PA contractor needs, so...

As you can see, pretty much the whole Pennsylvania GC registration licensing system is all smoke and mirrors designed to give the public a cheap illusion of confidence in an army of bumbling handymen and to keep a second army of insurance industry lobbyists fat and happy.

It's a bit different if you want an electrician's license for the city, and plumbing licenses, yeah, they're the real deal.

There is absolutely no conflict between being a PA-registered or Pittsburgh-licensed GC and having a real estate license. Getting a Pennsylvania RE license is a different private joke here, but that's another matter.

So I think this is something you're going to have to investigate locally on a state and municipality level. The entire country can't possibly be as silly about this as western Pennsylvania.

Account Closed wow that is a lot. Sounds like the big city is trying to push the smaller guys out. Thank you this is a bit of an eye opener. I will definitely do my due diligence on this.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here