Pros and Cons of being a Realtor while investing...

Member since 2020 · 2 posts · 0 votes

I am curious to hear some of the pros and cons that experienced investors have had while also being a licensed Realtor...

As a new investor, I (of course) have a ton of questions about the business, but one of the few questions that continuously presents itself in my mind pertains to me acquiring my GA Realtor license. I know that this isn’t a “necessary” step in order to be an investor, I am just curious to know how the experience has been for those of you who have ventured in both.

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Cassi Justiz

Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes

There really isn't a con to having your license as an investor. The only big con would be the expense associated with acquiring and maintaining a license. You are also held to certain standards and have to disclose that you are licensed when buying/selling property.
As far as the cost, it can vary pretty drastically by state and brokerage. In my area it's usually at least $2k for first year expenses and $2-$3k per year to maintain depending on the brokerage expenses. If you aren't doing at least a couple of deals a year or working with other clients, having your license may actually end up costing you more than you benefit from.

I also would never recommend a new investor get a license without getting at least a property or two first. You don't want to go through the effort of getting your license only to realize you don't like real estate at all.

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Cassi Justiz
Rental Property Investor · Edmond, OK · Member since 2017 · 1k+ posts · 1k+ votes
6y
There really isn't a con to having your license as an investor. The only big con would be the expense associated with acquiring and maintaining a license. You are also held to certain standards and have to disclose that you are licensed when buying/selling property.
As far as the cost, it can vary pretty drastically by state and brokerage. In my area it's usually at least $2k for first year expenses and $2-$3k per year to maintain depending on the brokerage expenses. If you aren't doing at least a couple of deals a year or working with other clients, having your license may actually end up costing you more than you benefit from.

I also would never recommend a new investor get a license without getting at least a property or two first. You don't want to go through the effort of getting your license only to realize you don't like real estate at all.
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Charlie CameronBusiness Member
Investor · Niceville, FL · Member since 2017 · 451 posts · 366 votes
6y
@Deantee Monroe what @Cassi Justiz said! The only cons are: expenses (but doing a sale or two should cover those costs for a while) and distraction from a bigger goal. Some pros of being a licensed investor:
- Earn commission on both ends of your own deals
- Market knowledge
- MLS access
- Property access
- Offer speed
- Negotiation skills
- Established professional network
You get the idea. If you have the time, getting your license is a way to get paid to learn more about real estate. I was an investor first and then got licensed. You certainly don't NEED a license to invest, but it doesn't hurt in my opinion.
Good luck!
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Deantee Monroe
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Member since 2020 · 2 posts · 0 votes
6y
@Charlie Cameron and @Cassi Justiz thank you both for the insight!
I wasn’t predicting that there would be many cons to having a license, so I appreciate that affirmation. As a new investor, i plan to make wholesaling the base of my foundation and wanted to ensure that being licensed wouldn’t hinder my ability to pursue this in any way.
I appreciate both of your posts in reiterating the beauty of having a license, thank you!
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Charlie CameronBusiness Member
Investor · Niceville, FL · Member since 2017 · 451 posts · 366 votes
6y
@Deantee Monroe do a little reading on here about wholesaling and licenses. They usually DON'T go together well without crossing some legal boundaries or grey areas. You CAN wholesale by actually closing a property and then reselling it with a license. But assigning contracts... I myself wouldn't get licensed and then try it.
There are some alternatives though. For example, I have the ability to find properties that meet investor criteria (partnered with my brokerage). Then they'll let me be the buyer agent for the investor and the listing agent once the investor has flipped it. Kinda cool.
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