Coon Rapids, MN · Member since 2015 · 67 posts · 23 votes
I'm reading the book, the book on flipping houses and the author recommends getting my real estate lisence. I haven't done any deals yet but think I have 3 options to help me do my first deal this year. Would you recommend that I get my license? What are some pros and cons? More money, more knowledge, and access to the MLS are some of the obvious pros. I'm not looking to replace my job to be a real estate agent and with all the paperwork that was required to buy my current home, how do you know you're doing it right when you don't work for real estate company? Thanks in advance.
Investor · Boston, MA · Member since 2015 · 95 posts · 32 votes
10y
in my opinion everyone that invests should have their licenses. It only makes sense to and I don't understand the thought process of anyone that says otherwise. You have way more control over the data you receive/access and can submit offers way more efficiently. Not to mention you receive your commission on deals. Would love to hear opinions on why not to from other BP members. Have a great 2016! Much success!!!
Real Estate Professional · Dayton, OH · Member since 2015 · 423 posts · 187 votes
10y
As long as you have some equitable interest in the property/transaction, you don't need a license because you are representing your own interests, i.e., yourself. You only need a license if you are going to represent someone else.
That being said, whether you should get a license or not depends on where you want to go with your business. For example, if you decide you want to start managing properties other than your own, you must get a license.
Furthermore, understand the obligations that go along with maintaining it, like continuing education and e&o insurance to name a couple, and factor that into your decision.
You'll read opinions both ways on this topic. Just be wary of those that speak in absolutes.
@Rick H. I talked to my realtor about local laws and requirements and found out there is a bunch of fees required to be part of a brokerage. Nonetheless,I have an appointment Wednesday to talk to their business development coach. Seems like this brokerage offers tons of training which is nice. I'm determined to make money this year in this industry!
In Arizona it costs around $1,000 for all the various fees including MLS. But as a full time investor it is absolutely worth it, and I would even say necessary.
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
10y
Hi Rob!
Having my RE license as a wholesaler has been the bane of my existence!
I wanted access to the MLS also but i question whether it's worth having all of the time and still may give it up some day.
You constantly have to disclose that you're a licensed agent, it makes your brokers nervous, the RE State department frowns on it and Off-market sellers reject you a lot of the time!
Having my license threw me off my investing game for quite awhile, but I've managed to get around the hurdles but still find it challenging to navigate.
There are other ways to comp your properties without the MLS and you may find it better to stick with those methods.
If you do decide to get your license I wish you the best of luck! It can be helpful, but it can also be harmful.
Specialist · San Francisco, CA · Member since 2013 · 227 posts · 158 votes
10y
So BP is definitely realtor heavy and I'm pretty sure most of the long time posters on here are definitely agents so the answers may be a little bias.
Let me tell you why I didn't get a RE license.
What will you have with a license that you can't get without a license?
MLM access? I have a number a agents that have let me borrow their access some for free others for a small fee, but always much less than what I would be paying if I had to buy it with a license.
RE commission? That means I have to work for a broker and pay all the related fees connected to being with them.
Education? Heard of Google? It's amazing. Anything you want to learn and more you can learn on here. You can learn more about RE than most agents, using Google and learning from experienced investors.
Now what do you lose if you get your license?
Anonymity - In any transaction you have to disclose that you are an agent. While it may not mean much to some, most homeowners will immediately know that you know more than them and most likely are trying to steal the house from them. It doesn't happen all the time but it does happen. I like to approach homeowners as just a normal person like them, trying to buy a property. Not a licensed real estate agent that knows the ins and out of buying a property and all the tricks to buying a property.
It cost money every year - There are years when I'm not buying property. Like I'm not in the market now. If I had a license, I would have to keep up with CE courses and annual dues and fees. Why would I want to be paying for that?
Lastly, having a license won't make you anymore successful or unsuccessful in RE. Your persistence, patience, and right actions will make you successful.