Should I get my real estate license?

Question

Hello everyone, I am new to real estate investing and me and my father are looking to start our real estate journey. We want to begin flipping houses and also buying rental homes. Would it be beneficial for me to get my real estate license to help with this. I currently have the time to get my license so thats no big deal. I know it isn't necessary but would you recommend doing this to help learn and get started and to be our own agent?? Is it worth it??

Jonathan Greene · Answer

I would never think of it as only being your own agent. The savings over time thinking this way never works out unless you are doing a ton of deals and then if are, you would be generating leads on your flip listings that you could then take out as buyers. People think too small about getting their license as an investor. Why wouldn't you help your friends and other family find homes or invest or sell their homes over time, even with a full-time job? If not, they will use an agent who doesn't care about them. I suggest all investors get their license, especially if they want to eventually leave their 9-to-5. You get access to the MLS and homes direct and education in the class that is much more valuable to investors than a regular residential agent.

Jeff Brower · Answer

I would go for it! I have a full time W2 and got my license in 2016 for my own investing purposes. I can now pay myself back whenever I buy a home. I have helped 3 to 4 friends per year buy or sell as well which covers my expenses of holding the license plus some (about 2k a year to hold it in ohio). I would highly recommend.

Andrew Adam · Answer

As an agent I would say it can be a toss up as far as it being beneficial for investing.

PRO: It can keep you in the industry/market.

CON: Selling homes is different than investing.

PRO: You might be able to find deals off market.

CON: A Buyer's agent is usually not paid by you the buyer anyway.

PRO: You can make a good living. But it may take 1+ years before you make much. AND being commission only can hurt you for awhile when qualifying for a loan to buy property yourself.

CON: It is a commitment. To make it worth having the license, keeping up with the education, fees, lockbox access ect you will need to do a certain number of deals a year which takes time. Time you could spend on a career that you prefer or looking for your own deals.

So Yes it can be helpful to get your license but maybe map out how you plan to get the first few properties as far as financing and check to see if being a new full time agent would fit in that plan.

Either way you can't go wrong.

Best of luck!

Dmitriy Fomichenko · Answer

@Matthew Whitney, I think getting a license would certainly be valuable for you.

Chinyere Orie · Answer

If you have the time and the money, I would do it.  Like you said, it's not necessary, but it certainly is helpful.

Matthew Whitney · Answer

@Jonathan Greene That is a great point, I will definitely be looking to get my license soon. Thank you.

Should I get my real estate license?

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