CT Investors: Is Getting My Realtor License Worthwhile?

Question

Just to get this out there, this is my first post on biggerpockets and I'm still figuring everything out, so apologies in advance if my post is in the wrong place or anything like that.

I am just now starting to educate myself on real estate investing and have spoken to a couple real estate professionals in CT about the value of getting my realtors license. Some have told me it's a necessity, while others have said it's a waste of time for real estate investing. With some experience as a Broker's Assistant in the Southern California market, I see huge value in having access to the MLS information, property taxes, etc. but was hoping to gauge the CT community's opinion on acquiring a license for investing purposes in this state. Do you think its helpful as an investor to be licensed?

For those of you investors who do hold a realtor's license and aren't out there chasing commissions, how did you go about finding a broker to hold your license? Was it challenging to find a company that would do this for you knowing that you weren't in it to be a traditional realtor?

Any and all information/advice is greatly appreciated. As I said, I'm just starting out, so I'll take all the help I can get. Thanks!

Craig Curelop · Answer

@Mike Goldenthal - Here is my two cents.

All things equal, are you better off with your license? Absolutely. Let me help you dig a little deeper and put a number value on it.

I'm note sure what it takes in CT, but in Colorado, I would be looking at ~$3,000 in initial costs plus 168 hours of class time. Assuming my time is worth ~$30 an hour, that is ~$5,000 worth of my time. $3,000 in initial costs + $5,000 of time = $8,000 of total startup costs.

If you buy a property for $300k, you would likely be able to save ~$9,000 (3%) on the purchase price because the seller would be paying you. This can either be deducted from the purchase price or paid to you separately.

So just after your first deal you make your money back by transacting it yourself.

Additionally, with having our license you have direct access to the MLS, can visit properties whenever, and can even turn it into a side hustle. If your friends are starting to buy houses, you can help them through the purchase and pocket an extra $5k-$10k here and there.

If you're looking to purchase one property, maybe the hassle isn't worth it. If you're looking to accumulate a portfolio of properties, have a good grasp on the market, and be able to get the good deals fast. Then having your license is definitely beneficial.

Hope this helps!

Huy N. · Answer

@Mike Goldenthal It's really up to you. I would say if you can spend the money, go ahead and get the license anyway. It can only do you good. If for a period of time you don't like having a license, you can simply let it expired.

The license came in handy for me when I go buy/sell my own deal and I don't have to depend on anyone to run comps in the MLS

And yes, It is better to find a broker that is also investing in real estate. You don't want to surround yourself with broke agent. My 1st mentor is actually my Broker. Feel free to reach out to me if you need more help on this

Jon Lee · Answer

Hi @Mike Goldenthal....so in a nutshell...it all depends!  ;-)

Seriously...only you can determine if it is right for you to get your license. A couple things to take into consideration:

1) What will your license do for you?  Is it not to leave money on the table?  CT has high values like CA...it could make since to help keep some of the commission on a flip.  In NV, I have license but I don't use it for much except a few referrals a year.

2) Is the cost of your license worth the access to you? Do you have the ability to get the same info (or close to it) through other means or relationships.

As for finding a broker to hang your license...that's easy.  Brokers almost everywhere will let you hang your licences but if you don't really plan to do "agency" transactions with primary home buyers; look to the brokers who are investor friendly.

Hope this helps...best of luck to you!

Rick Santasiere · Answer

@Mike Goldenthal, I am a real estate broker with offices in Granby and Clinton, CT.  Please reach out to me privately and I would be happy to share my experience and story with you.  We are totally new to Clinton, but have no where but UP to go!!

Mike Goldenthal · Answer

@Jon Lee  @Huy N. @Craig Curelop Thanks for the advice! All good things to keep in mind.

CT Investors: Is Getting My Realtor License Worthwhile?

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