Is it worth getting my RA license?

Question

I currently live in CA and can't leave in the forceable future. My current goal is to buy a single family residence and rent it out (Not sure if I want to do that in CA). I've read a couple books, so far including  "Real estate by the numbers". After a bit of reading, and hours of podcasts and videos, I still feal completely lost as to where to start. My idea now is that I can get my real estate license and the course will teach me some stuff about how the numbers work, and how to find deals and how the process will go in general. I also bought into the Real estate basics bootcamp here on Bigger Pockets.

If I go out of state I have a lot of questions such as:

How do I find an agent?

How do I find a property manager?

If I decide a deal is good, how does all the money get moved around and how do people get paid.

Ultimately, I feel like I'm so green, I need a solid foundation and the best place I can get that is through some of these courses...and becoming a Real Estate Agent. Would this make sense or is there a better way? I already have a full time career that I'm very satisfied with so I wouldn't be working as an agent..its more just to acquire the knowledge.

Trevor Schmitt · Answer

Hi Joseph!

I became a real estate agent 7 years ago with the goal of learning more about real estate investing, the properties themselves, and the transaction. It was great, I learned so much from helping people buy and sell.

For your situation, I do not believe it would be the best use of your time and money to obtain your license just to have it if you are not planning on representing buyers and sellers. IMO, that is really the only way you would learn more from being a licensed agent.

There sooo many resources to learn what you need to learn on virtually any method of real estate investing.

I would save the time and money! Put that time and money into true education for yourself! I believe you will find much better success that way.

Furthermore, studying for the real estate exam is rather time consuming... and unfortunately, 99% of the material would never apply to your investing journey. After that you have fees and dues that need to be paid consistently. The only value you have is to have access to the MLS. You can get the info you need through the MLS by developing a relationship with an agent in the desired area.

Scott Scoville · Answer

Hey Joseph, getting your real estate license would definitely open up doors for you. It also allows you to see properties and get additional info on the MLS more quickly. As an agent, I've been able to lock up deals faster and more consistently once I obtained my license. In the mean time, find an agent that will help you get your real estate investing journey started and one that also understands that you may be getting your license soon as well. My advise is to be up front about that. In regards to property management. If you're open to it, try to manage your first couple of properties. Learn through trial and error before handing it off to a property management company, as you'll better be able to know what you want from a property manager. Best of luck and don't hesitate to reach out!

Brian Wilson · Answer

Here are some answers to your questions:

How do I find an agent?-Word of mouth referrals on websites like this and you interview them. No such thing as the perfect agent, some a really good, some terrible. Ideally focus on one who actively invests themselves. I'd say has at least 2-3 rentals for expensive markets and 5-7 for cheaper markets; ideally more.

How do I find a property manager?-Use your agents referral, and/or ask around here in BP you can filter by major metros.

As for you getting your RA license, if you're doing it for the education I wouldn't. I can recommend some books if you want. There are also some phenomenal investors you can read comments they have made on here. I remember spending 3 hours one Sunday just reading through one these peoples comments. Pure gold nuggets that books may not cover.

If you have any questions feel free to message me anytime. I have invested in and out of state. Happy to help where I can

Clark Henderson · Answer

Getting your RE license can definitely help in some ways if you use it to help other people buy and sell. It can build confidence and help you get a better understanding of how the whole buying and selling process works. It also can get you in with other people that work daily in the re world. Outside of that and as an investor its not needed at all. Most of the time for just strictly investing purposes its a better use of time to have a re agent do their jobs for you so you can use your time to find deals, run numbers, etc. Find and agent through BP or honestly just google it. Best thing to ask them is if they invest themselves. If they don't, I would find someone that does. A lot of agents don't understand what exactly investors are looking for unless they do it themselves.

Noah Laker · Answer

Hey Joseph, getting your real estate license is a good way to learn about real estate, and save a lot of money when you acquire your own personal properties.

I'm a full time broker and investor here in Sacramento. It's a very strong market and we manage over 100 STR properties (Airbnb) which has been very stable here in Sac, as compared to vacation markets around the country.

Michael Smythe · Answer

The only reason to pursue your RA license would be if you just need a structured learning environment.

Otherwise, buckle down and start reading all the materials available here on BP!

Jake Andronico · Answer

Additionally, if you actually love your job (about 65% are not satisfied with their job) that is rare and awesome.

Wishing you the best of luck!!

Is it worth getting my RA license?

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