Is a real estate license necessary ?

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Is a real estate license necessary ?

Kandice Manciel
Detroit, MI · Member since 2018 · 38 posts · 14 votes

My plan is to purchase my first piece of real estate by the summer of 2021. I work in the social services sector, but am determined to create cash flow for myself and family through real estate, with a multi-unit property being my first purchase.

I’m considering taking a real estate pre-license course before the end of this year to prepare for getting my license. My question though, is do you think it’s really worth it to get a real estate license if I’m not looking to sell homes?

Thanks for any feedback you can offer :-)

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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
5y

@Kandice Manciel no I don’t. You will spend both time and money on getting and maintaining your license. If you do not plan to use it you are better off finding an agent that does investment properties full time and leveraging their expertise.

That way you can spend your time and money learning about investing, searching for investments, and analyzing deals.

Irish Jones Realty4.947 Reviews
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  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Kandice Manciel

    For further context, my thinking is that by getting licensed I will be able to have NMLS access and know some ins and outs of real estate.

    But maybe there are other ways to achieve this? Not looking for a shortcut, but instead the smartest way to navigate this journey.

    0Reply
  • Jorge Rodriguez
    Member since 2020 · 6 posts · 6 votes
    5y

    Kandice, I'm actually in the same boat as you. I just starting diving into REI and I figured getting the license was a good idea even though I'm not planning on selling properties myself. I completed the pre-license course and it provided me with a lot of good general information, however, the more I educate myself the more I realize it's not necessary for investing purposes, especially when you consider the costs/fees.

    I'm sure someone with more experience will chime in and provide better info. 

    2Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Jorge Rodriguez

    Ahhh see that’s what I was wondering. Thanks so much for your feedback! This is really good to know. Best wishes in your real estate journey ☺️

    2Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    @Kandice Manciel no I don’t. You will spend both time and money on getting and maintaining your license. If you do not plan to use it you are better off finding an agent that does investment properties full time and leveraging their expertise.

    That way you can spend your time and money learning about investing, searching for investments, and analyzing deals.

    Irish Jones Realty4.947 Reviews
    View Page
    2Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Matthew Irish-Jones

    Thanks for your suggestion! That makes a ton of sense. It sounds like it would definitely be worth my time to start making connections with agents in my area then.

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Kandice Manciel

    Here are two relatively recent discussion threads that you should fine useful.  Good luck.

    https://www.biggerpockets.com/...

    https://www.biggerpockets.com/...

    0Reply
  • Jeremy Wirths
    Auburn, NH · Member since 2016 · 235 posts · 207 votes
    5y

    @Kandice Manciel while not needed for investing it is a way to learn about the sales side of real estate especially your state laws. Something to consider, getting your license does allow you to create another stream of income. This is a relationship business and networking is key. As @Matthew Irish-Jones mentioned hopefully you can find an agent that focuses on investment properties and leverage their experience as both an investor and Realtor should you so choose.

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @David M.

    Awesome thanks for sharing these resources! I’ll be checking them out today.

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Jeremy Wirths

    Thanks Jeremy! That is a good point too about creating an additional potential stream of revenue.

    0Reply
  • Blaine Alger
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    5y

    If you are just looking to buy a couple houses here and there and not planning on doing a lot of volume, then I would say its not necessary. 

    Just get a good buyers agent and they will be bale to help you out and provide you with whatever you need.  Only way I think a RE license makes sense for an investor is if you are going to actively use it to work at a brokerage and sell homes or if you are going to do a large volume of flips and that way you can save some on commissions.

    1Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Blaine Alger

    Thanks Blaine! I'm wondering, how would you all recommend going about finding a solid REI agent to develop a relationship with? How do you know which agents are good??

    0Reply
  • Account Closed
    New to Real Estate · Minneapolis, MN · Member since 2019 · 15 posts · 2 votes
    5y

    @Kandice Manciel you and I think alike. I am on the same timeline...

    I think in leverage- what’s the one thing that could make multiple things easier, better and unnecessary.

    I think learning the ins and outs of the process, not needing to rely on an agent and using commission as down payments.. plus work to learn and can accidentally sell 3-4 homes a year adding 20k in income 🤷🏻‍♂️

    0Reply
  • Blaine Alger
    Investor · Waco TX / Conroe, TX · Member since 2017 · 376 posts · 228 votes
    5y

    @Kandice Manciel

    Well that is an art within itself.

    It all starts with getting out there and talking to people. Whether that is agents or investors, they might have a good recommendation of someone who works well with investors. 

    You want someone who is familiar with the deal analysis, owns rentals themselves and who are down to hustle. 

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Kandice Manciel

    Part of finding a good agent is trial and error.  Another is just going through a bunch of agents.  It took me two solid years to find my agent when I was starting.  Direct message me if you want to chat.

    @Account Closed I'm not sure I understand what you are saying...  I believe the OP is looking to build her rental portfolio.  So, on the purchases the buyer really can't save on any commissions (lets skip the argument whether commission is come from the seller or the buyer).  Its on the listing side that you could try to save the commission on a fsbo even though the stats say one normally still comes out better with a Realtor.

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Mikel Billstrom

    Thanks Mike for your feedback! Best of luck to you in your REI journey 🙂

    0Reply
  • Account Closed
    New to Real Estate · Minneapolis, MN · Member since 2019 · 15 posts · 2 votes
    5y

    @David M. Oooooo so agents can’t use their commission when they buy their own house? I’m just getting started in this world, so forgive my ignorance.

    1Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Blaine Alger

    Makes sense! This app seems to be a great first step (look at me already making connections). Thank you!

    1Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @David M.

    Thanks David! Look out for my dm!

    0Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    5y

    @Account Closed

    Oh, I misunderstood you.  Yes, if you represent yourself you do get your commission, buy or list.  You are just playing both roles.

    0Reply
  • Fred Cannon
    Rental Property Investor · St Augustine, FL · Member since 2019 · 265 posts · 279 votes
    5y

    @Kandice Manciel. Going thru the real estate course is a great idea and you will learn a lot about real estate law. Getting a license and maintaining it is an additional expense. You can use Zillow and other web based engines to see everything on the MLS or find an agent that you know and like to work with. I took vacation a few years back and did the real Estste class. It was one of the most interesting classes that I have ever had. I did get my license but to hang your license with a broker and have MLS membership is way to expensive and to try to be a part time realtor is foolish. That was my experience. So thumbs up on the class and good luck with real estate. Read books and read BP, but don't believe everything you read or hear.

    0Reply
  • Trevor Rice
    Real Estate Agent · San Antonio TX · Member since 2017 · 15 posts · 3 votes
    5y

    @Kandice Manciel I personally don’t think you need a license but if you get it you will Learn a lot and the legalities for a cheap price. I don’t have my license and I’ve been successful with my operation for 4 years. I use PropStream for comps and analysis/tax record digging.

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Fred Cannon

    Thanks Fred!! Yea, the class could prove pretty worthwhile even without the license 🤔

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @Trevor Rice

    Thanks for the feedback, Trevor! I’m going to check out that resource!

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Kandice Manciel:

    My plan is to purchase my first piece of real estate by the summer of 2021. I work in the social services sector, but am determined to create cash flow for myself and family through real estate, with a multi-unit property being my first purchase.

    I’m considering taking a real estate pre-license course before the end of this year to prepare for getting my license. My question though, is do you think it’s really worth it to get a real estate license if I’m not looking to sell homes?

    Thanks for any feedback you can offer :-)

     If you plan on doing say 5+ deals a year then I'd say it's a great move.

    0Reply
  • Kandice Manciel
    OP
    Detroit, MI · Member since 2018 · 38 posts · 14 votes
    5y

    @James Wise

    Yea, not yet or in the first year or so I’m thinking. Thanks James!

    0Reply
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