I'm debating whether or not to get my real estate license to invest in additional properties. Can anyone tell me how much money I should expect to outlay each year to have my license with a broker/firm for this convenience. I want to make sure it's worth the effort and cost. Also, any additional advice would be appreciated.
It cost me about $1,000 a year.
Hi @Lisa Henrich ! Check w your local board as fees vary. I believe I spend around 1500/yr. On top of that where you hang your license will also usually have monthly desk, technology fees etc. NAR has dues on top of that etc etc
I believe access to the MLS is losing value because so many portals have that data now. Do you plan on representing clients or is this just for your own use?
@Jeff Valentino Hi Jeff, I don't plan on representing clients unless they fall into my lap (unlikely). This is purely for investment purposes. I should also say that I'm interested in buy and hold properties. Worth it?
Hi @Lisa Henrich this is my opinion but I would say no-for the same reason a carpenter probably shouldn't pound nails on their own rehab. Also, given that buy and hold would represent fewer transactions I think it's best to have a good agent as part of your team. A good agent will allow you to focus on your strengths more while they handle property search, negotiations etc.
A case could be made that if you purchase a property per year the commission you earn would cover the fees. I would say that the "work" of representing yourself outweighs that especially since you'd mostly be buying which doesn't cost you money.
Lastly my purchasing experience has shown me it's slightly more difficult to negotiate as an agent on your own purchases. I would offer my commission on a personal purchase.
Hope that helps,
Thanks so much, @Jeff Valentino . I was initially thinking it wouldn't be worth the cost/hassle for a buy and hold focus. You definitely reiterated my original position.
I have my license and it costs me about 1K/year. I only use it for investments and usually hire agents to do all the work. It depends how many houses and how much you are willing/able to spend a year. I make my realtor income from referrals. Anytime I buy and/or sell a property (in any state) I get a referral fee of about 25-35% or about 1% of the purchase price. If an agent doesn't want to give me a referral fee, then I just move to the next one.
If you're only going to buy 1 house every couple years, then it's not worth it. Unless you tell friends and family that you want to be able to refer you to agents they already decided on.
Free eBook from BiggerPockets!
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.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.