Real Estate License?

Question

Hello, as a new investor is it wise to obtain a real estate license? I know it is not necessary but is it advantageous? I have been listening to some podcasts and the one guy mentioned that having it allows you to look at homes whenever you want even if you have no plans on purchasing that home. From what I have heard, it can be helpful in researching the area and determining the value of a home. Also being my own agent allows for more efficient negotiations and I would know exactly what is going on, not just a play by play from an agent. I have also thought that this could serve as somewhat of a side income by being a part time agent (I have a full time job) and help gain first hand experience in real estate. Any tips and thoughts?

Jonathan Greene · Answer

Yes, get your license. People forget how valuable the actual licensing course is for learning about all aspects of real estate. Too many breeze through it online and forget that a lot of that information will be very important when vetting properties, like rules of easements, neighboring rights, landlord-tenant. Just because you get it doesn't mean you can't also work with agents until you are ready, but if you take my theory that every investor should see 25-50 homes before they buy their first one, a license is the easiest way to get access and research comps.

Filipe Pereira · Answer

Based on your post and that it appears you know exactly what you want out of an agent @Jake Ernst I would recommend get your agent's license as well. Not only because I think you will have a hard time finding an agent that will give you everything you want (let's be real - the play by play that your agent is going to give you is not as much as what you would be getting first hand) but also because it will help you in the future.

If you were only looking to do one deal I would advise against it, but if you are thinking about using it to help others as well, it's probably worth it for you. Just make sure you look into the ongoing costs of being an agent beforehand.

Shawn Mcenteer · Answer

@Jake Ernst having my license has saved me 10's of thousand of dollars on my own deals alone in the form of collecting a portion of commission check. When I close on an MLS deal commission will cover the closing costs at least.  If you are starting out as part time agent you can for sure crab a few clients each year.  If you commit a few hours each week to being a realtor work you can get a nice return as a part time agent.

Nathan Gesner · Answer

It's absolutely worth it if you leverage it. One buyer/seller will pay all your fees. The rest is cake. You'll save on your own sales. You'll have access to the MLS. You can network with other REALTORS and have them help you find deals before they hit the market. You can buy/sell for other investors to produce additional revenue and to build relationships that can lead to more deals for yourself.

It takes effort.

Aaron K. · Answer

If you know what you are doing absolutely, if you need someone to hold your hand through the transaction and the various areas of the city then a real estate agent is worth their weight in gold.

Jonathan Greene · Answer

@Jake Ernst Yes, I would get licensed and join a local team at an established brokerage if they allow part-time agents. A team will allow you to do Sunday Open Houses for bigger agents and get your feet wet for that side income.

Michael Belmore · Answer

@Jake Ernst

I think it defiantly can be a good idea if you have the network and are willing to put in the extra work. Having an experienced agent on your team can offer you a larger network and off market properties. Also, they can act as an accountability partner to help you stick to your goals.

Good luck

- Mike

Jake Ernst · Answer

Thanks Jonathan! That is along the lines of what I was thinking. Would you recommend getting licensed and then working part time as an agent for someone else to learn the ins and outs of real estate?

Sparkle Reed · Answer

Hi Jake!  I am a new investor as well, I have my second project happening in my hometown of Chicago. Its been interesting because I live in VA, but all good.  I am licensed in DC (interesting how this happened) and planning to take the VA state exam so that I can be licensed here as well.  I think it's a great thing to do, even if you don't plan to be an active agent, just having access to the MRIS and real estate wherever it works in your favor as an investor.  You hit the nail on the head with all the reasons for getting your real estate license, it is beneficial.  I too work a full-time job, but finding ways to generate other streams of income in my real estate business is part of my generating wealth goal.

Real Estate License?

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