Pros and Cons of having a License?

Question

As an investor who is starting out, what would be the pros and cons of having a real estate license. In other words, what benefits would having a license offer an investor? What are some of the detriments of having one? Is it even worth it, if you have no plans on working for a brokerage firm?

Rodney Henson · Answer

I'm a broker and I sponsor agent/investors who are branding their own company. The investor/agents under me seem to be doing very good here in Texas. www.YourBroker.info

Sachin Acharya · Answer

Can I please ask the same question but for Dubai instead of the US?

Ahren Henby · Answer

It really depends on what you're goals are, it can definitely be beneficial. At least in NY, if you want to have your license, you have to have a sponsoring brokerage, so if you don't plan on working for a brokerage, it would be pretty pointless. There are some advantages though; if you decide to go for it, you could save on some costs when buying and selling. I think the biggest advantage is the mentorship that is available, I am at a brokerage that has other investors and being able to talk to them about their experiences and learn from them is really valuable, and can help you from making the "rookie" mistakes.

Overall, it really depends on what you are looking to accomplish. It doesn't take that much of an investment to get the license, but if you don't want to deal with the brokerage then it doesn't make much sense. Hope this helps, Good luck!

Russell Brazil · Answer

Pros: Let yourself into a house without having to wait on someone, get some commission back on purchases and sales, direct access to mls

Cons: More regulations, cost, time involved with CE courses to maintain license, broker supervision if you are independent, more threats of legal action