Pros and Cons of being a Real estate agent and an investor?
Good afternoon,
What are the pros and cons of being an individual that invest in real estate properties and also a licensed realtor?
I know I don't have to be a realtor to invest in real estate but I just wanted to get some insight from other people in that space. I'm considering getting my realtor license so this question came to mind. Thank you for any insight.
Hey Maximillian,
Full Disclosure - I am not a realtor myself, I am mortgage broker. However, I work with a lot of realtors that are also investors themselves. I am here to tell you that there really is not a downside to being an agent, as well as an investor.
You can find properties yourself as an agent, and be ahead of the game before other investors. You can do your own paperwork and partner will other agents on deals (if you wanted to). You will not have to pay commissions to anyone should you decide to sell homes you already own. It can be a perfect combo if you are not being an agent "full time."
I can not think of any downsides, other than you have to invest money for the license and pass the test. It is certainly not a requirement to be an investor, which you already pointed out. Do it if you want to!
Quote from @Jon Puente:Thank you for the information. I am really considering it to kind of catapult me into the investing side to gain more knowledge while working at a brokerage. Things like learning my local market,becoming familiar with different zip codes, not having to pay commission fees, building more relationships among other various things.
Hey Maximillian,
Full Disclosure - I am not a realtor myself, I am mortgage broker. However, I work with a lot of realtors that are also investors themselves. I am here to tell you that there really is not a downside to being an agent, as well as an investor.
You can find properties yourself as an agent, and be ahead of the game before other investors. You can do your own paperwork and partner will other agents on deals (if you wanted to). You will not have to pay commissions to anyone should you decide to sell homes you already own. It can be a perfect combo if you are not being an agent "full time."
I can not think of any downsides, other than you have to invest money for the license and pass the test. It is certainly not a requirement to be an investor, which you already pointed out. Do it if you want to!
Quote from @Maximillian Engram:
Quote from @Jon Puente:Thank you for the information. I am really considering it to kind of catapult me into the investing side to gain more knowledge while working at a brokerage. Things like learning my local market,becoming familiar with different zip codes, not having to pay commission fees, building more relationships among other various things.
Hey Maximillian,
Full Disclosure - I am not a realtor myself, I am mortgage broker. However, I work with a lot of realtors that are also investors themselves. I am here to tell you that there really is not a downside to being an agent, as well as an investor.
You can find properties yourself as an agent, and be ahead of the game before other investors. You can do your own paperwork and partner will other agents on deals (if you wanted to). You will not have to pay commissions to anyone should you decide to sell homes you already own. It can be a perfect combo if you are not being an agent "full time."
I can not think of any downsides, other than you have to invest money for the license and pass the test. It is certainly not a requirement to be an investor, which you already pointed out. Do it if you want to!
Exactly! Both go hand in hand. Its a win/win in my opinion!
Hi! I am a realtor and investor and in my experience and opinion there is really no downside to doing both at the same time. You have to follow the realtor code of ethics but frankly I think anyone trying to do good business should have these standards. Being a realtor has in fact helped me a lot with the investment side of my business. When I started investing I knew the market and how to work numbers; I knew my multiple exit strategies and already had a great team in place and was confident in my decisions, all from my career. I say do both!
I would say that the pros are that you are going to get/find more opportunities that come with your daily lead generation and in turn be able to help everyone - even if you cant make a deal as an investor.
For the cons the main one that I see is that you really cant do someone a disservice and a lot of the time there are deals that could be really good for you and your goals, but the seller selling at a 25% discount is not what would work best for them. I see newer builds on wholesalers lists from time to time, knowing that even if they listed on the market at a discount they would be able to get 10-15% more but since they spoke with the wrong person they are now taking a substantial decrease in profit on the home. Of course the seller knows the risks and obviously should consult someone else prior to accepting an offer.
It's really not a con now that I type it out, as a realtor, you have other ways to help them that could be much better than selling to you for investment purposes.
I always give sellers the numbers (as well as pros and cons) for: listing on the market, a cash offer from me, or a wholesale deal. Typically listing on the market is the best way to go unless they NEED a quick close or the home is in shambles.
- Investor
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I hold my license and I am an investor first. I make 3% on all properties I buy & sell and get MLS access.
- Real Estate Broker
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@Maximillian Engram One thing I would say is you get a better network probably as a realtor....you'll probably be able to better cut the fluff from the stuff. I find you just get a better education and experience if you are a busy realtor for stuff on the investment side. You probably just see more deals, more unusual situations, more opportunities. Not 100% true, but that's what I see after 20 years.
I think it depends on what you want to do though. I usually tell investors...if that is the way you are leaning, if you're like many of the very best and active investors who want to buy and hold and get 1 property a year, don't get your license. You don't need it. Build a team with a great realtor on it who is active and help you find the right properties and keep you out of trouble. If you get it and buy one a year, then too often I see that the basic knowledge gives the investor beer glasses....they know just enough to be dangerous and they get circles run around them in too many cases.
If you're going to buy 10 a year...and be pretty active buying and renting...and maybe selling a few or more for friends, families, other investors...then it might make sense.
You can still take the classes and get the knowledge without getting your license. I'm always up for people learning more and gaining knowledge.
So really depends on what your goals are. Do you have them written down....do you have a plan?
Quote from @Maximillian Engram:network and connection, when you are realtor as well.
Good afternoon,
What are the pros and cons of being an individual that invest in real estate properties and also a licensed realtor?
I know I don't have to be a realtor to invest in real estate but I just wanted to get some insight from other people in that space. I'm considering getting my realtor license so this question came to mind. Thank you for any insight.
also, not all realtor brokerages are the same, some brokerages may have more support or more transfer knowledge but your commission may be less; in other brokerages, your commission is higher but the transfer of knowledge is much less. It's the same as working in a company, some company has a fabulous manager and good work ethics and teamwork, while another company expects you to be 100% independent.
For someone like me, that's like to learn fast, a realtor in lower commish is better for me. Nowadays, much of the "analysis" can be done from software or manual input discussion with contractors. I used to know nothing before BP but I knew more these days especially after made myself hattrick projects. The thing is, never stopped learning but even at the same time, be skeptical, if a guru on youtube tells you to invest STR in TOledo, run away.
The pros are that you are already looking through more properties a day than the average person or investor. The reason is that essentially you are property searching for two different jobs, one for investment properties that most clients wouldn't be interested in or investment properties that could possibly work for me.
The con would be that I always give my clients first dibs, so if I come across a property, I do not want to lose their future business, so I send it to them first and then go from there. If you get in with the right investors, it can be very lucrative for you, as their agent so always better to give them the benefit of having first choice.
What Are the Advantages of Getting a Real Estate License?
1. Access to Market Data and Inventory in Real-Time
This allows you to make informed decisions immediately. If you do not have a real estate license, you are always dependent on another person to reveal the data to you. This may lead to many missed investing opportunities.
2. Access to the Multiple Listings Service (MLS)
The MLS has a huge inventory of active properties on the market. For years, licensed investors have used the MLS to find deals in the marketplace through various techniques.
3. Builds Credibility
Being a licensed real estate agent generally builds credibility among sellers and buyers. After all, getting a license requires effort, money, dedication, time, and commitment. Thus, an agent with a license is deemed to be dedicated, credible, and trustworthy.
4. Networking Opportunities
Once you obtain a real estate license, it will allow you to access professional industry events and meet other licensed individuals. This helps you build a solid network of acquaintances who may open more doors for you as an active investor.
5. Become Knowledgeable
To obtain and maintain the license, you will need to continually be reading and be aware of the real estate market. Like any other profession, the more knowledgeable you become about your field, the more likely it is that you can make informed decisions that can boost your investments.
6. Commissions
As a licensed agent, you will be able to make extra money by collecting commissions. Even after paying the broker, you will net a significant amount of money even from your investment deals!
What Are the Disadvantages of Obtaining a Real Estate License?
There are pros and cons to everything. While there is no question about the advantages of a real estate license, you also need to be aware of a few disadvantages.
1. Investor and Seller Preferences
Some investors and sellers prefer to not work with real estate agents due to bad experiences with them in the past.
2. Time and Money Commitments
To get a real estate license, you will definitely need to sacrifice some time and money. First there are the costs for enrolling, purchasing the pre-licensing books, and the exam fees, which can run anywhere from $600-$1,200.
The time it takes to study and pass the exam can vary from 6-12 weeks or even longer if you have other commitments. Further, if you want access to MLS, there is an additional fee. You may have to join the NAR, which also comes with a fee.
Most people end up spending at least $1,500 a year in their pursuit for a real estate license.
3. Disclosure
Once you become a licensed agent, under state and federal laws you will need to make full disclosure to all sellers and buyers about any property that you represent. Failure to disclose can result in complaints with the state and in some cases may result in lawsuits against you.
To avoid these hassles, you will continually need to be updated on current investing laws and rules. Even leaving “cash for houses” bandit signs would require your agent and license number disclosure!
4. Responsibilities
Being a licensed agent will come with more responsibilities. You will need to know all the minute facts about real estate transactions to avoid litigation.
Buyers or sellers may rely on your advice and guidance, but there is a potential for lawsuits if you make an error or omission like delaying or canceling a sale or failure to disclose a material fact. However, the same liability risk also applies to unlicensed individuals.
As long as you abide by the rules and follow the laws, the threat of litigation can be avoided.
Make the Right Choice for Your Investing Journey
For some individuals, a real estate license can significantly improve investing opportunities. Plus, the cost of a real estate license is not prohibitively expensive and should not be an obstacle. For under $1,500, you can get a license. The coursework can be done online and the number of hours you have to put in varies from 45-90.
This is not an extremely difficult task. In fact, many other professions’ exams and course duration are much longer and more difficult.
Getting a real estate license has some advantages and may help you get started as an investor. Sacrificing a thousand dollars and a few months of studying has benefits beyond just passing the exam; you will have more creative ways to get the maximum profit out of each deal, meet more people just like you, and open a few doors for investing.
All the best!
-
Real Estate Agent Texas (#736740)
- (832) 776-9582
- https://tinyurl.com/f4ce9n8j
- [email protected]
- Podcast Guest on Show #469
Quote from @Wale Lawal:
What Are the Advantages of Getting a Real Estate License?
1. Access to Market Data and Inventory in Real-Time
This allows you to make informed decisions immediately. If you do not have a real estate license, you are always dependent on another person to reveal the data to you. This may lead to many missed investing opportunities.
2. Access to the Multiple Listings Service (MLS)
The MLS has a huge inventory of active properties on the market. For years, licensed investors have used the MLS to find deals in the marketplace through various techniques.
3. Builds Credibility
Being a licensed real estate agent generally builds credibility among sellers and buyers. After all, getting a license requires effort, money, dedication, time, and commitment. Thus, an agent with a license is deemed to be dedicated, credible, and trustworthy.
4. Networking Opportunities
Once you obtain a real estate license, it will allow you to access professional industry events and meet other licensed individuals. This helps you build a solid network of acquaintances who may open more doors for you as an active investor.
5. Become Knowledgeable
To obtain and maintain the license, you will need to continually be reading and be aware of the real estate market. Like any other profession, the more knowledgeable you become about your field, the more likely it is that you can make informed decisions that can boost your investments.
6. Commissions
As a licensed agent, you will be able to make extra money by collecting commissions. Even after paying the broker, you will net a significant amount of money even from your investment deals!
What Are the Disadvantages of Obtaining a Real Estate License?
There are pros and cons to everything. While there is no question about the advantages of a real estate license, you also need to be aware of a few disadvantages.
1. Investor and Seller Preferences
Some investors and sellers prefer to not work with real estate agents due to bad experiences with them in the past.
2. Time and Money Commitments
To get a real estate license, you will definitely need to sacrifice some time and money. First there are the costs for enrolling, purchasing the pre-licensing books, and the exam fees, which can run anywhere from $600-$1,200.
The time it takes to study and pass the exam can vary from 6-12 weeks or even longer if you have other commitments. Further, if you want access to MLS, there is an additional fee. You may have to join the NAR, which also comes with a fee.
Most people end up spending at least $1,500 a year in their pursuit for a real estate license.
3. Disclosure
Once you become a licensed agent, under state and federal laws you will need to make full disclosure to all sellers and buyers about any property that you represent. Failure to disclose can result in complaints with the state and in some cases may result in lawsuits against you.
To avoid these hassles, you will continually need to be updated on current investing laws and rules. Even leaving “cash for houses” bandit signs would require your agent and license number disclosure!
4. Responsibilities
Being a licensed agent will come with more responsibilities. You will need to know all the minute facts about real estate transactions to avoid litigation.
Buyers or sellers may rely on your advice and guidance, but there is a potential for lawsuits if you make an error or omission like delaying or canceling a sale or failure to disclose a material fact. However, the same liability risk also applies to unlicensed individuals.
As long as you abide by the rules and follow the laws, the threat of litigation can be avoided.
Make the Right Choice for Your Investing Journey
For some individuals, a real estate license can significantly improve investing opportunities. Plus, the cost of a real estate license is not prohibitively expensive and should not be an obstacle. For under $1,500, you can get a license. The coursework can be done online and the number of hours you have to put in varies from 45-90.
This is not an extremely difficult task. In fact, many other professions’ exams and course duration are much longer and more difficult.
Getting a real estate license has some advantages and may help you get started as an investor. Sacrificing a thousand dollars and a few months of studying has benefits beyond just passing the exam; you will have more creative ways to get the maximum profit out of each deal, meet more people just like you, and open a few doors for investing.All the best!
great response! ; D
Quote from @Marian Huish:
Quote from @Wale Lawal:
What Are the Advantages of Getting a Real Estate License?
1. Access to Market Data and Inventory in Real-Time
This allows you to make informed decisions immediately. If you do not have a real estate license, you are always dependent on another person to reveal the data to you. This may lead to many missed investing opportunities.
2. Access to the Multiple Listings Service (MLS)
The MLS has a huge inventory of active properties on the market. For years, licensed investors have used the MLS to find deals in the marketplace through various techniques.
3. Builds Credibility
Being a licensed real estate agent generally builds credibility among sellers and buyers. After all, getting a license requires effort, money, dedication, time, and commitment. Thus, an agent with a license is deemed to be dedicated, credible, and trustworthy.
4. Networking Opportunities
Once you obtain a real estate license, it will allow you to access professional industry events and meet other licensed individuals. This helps you build a solid network of acquaintances who may open more doors for you as an active investor.
5. Become Knowledgeable
To obtain and maintain the license, you will need to continually be reading and be aware of the real estate market. Like any other profession, the more knowledgeable you become about your field, the more likely it is that you can make informed decisions that can boost your investments.
6. Commissions
As a licensed agent, you will be able to make extra money by collecting commissions. Even after paying the broker, you will net a significant amount of money even from your investment deals!
What Are the Disadvantages of Obtaining a Real Estate License?
There are pros and cons to everything. While there is no question about the advantages of a real estate license, you also need to be aware of a few disadvantages.
1. Investor and Seller Preferences
Some investors and sellers prefer to not work with real estate agents due to bad experiences with them in the past.
2. Time and Money Commitments
To get a real estate license, you will definitely need to sacrifice some time and money. First there are the costs for enrolling, purchasing the pre-licensing books, and the exam fees, which can run anywhere from $600-$1,200.
The time it takes to study and pass the exam can vary from 6-12 weeks or even longer if you have other commitments. Further, if you want access to MLS, there is an additional fee. You may have to join the NAR, which also comes with a fee.
Most people end up spending at least $1,500 a year in their pursuit for a real estate license.
3. Disclosure
Once you become a licensed agent, under state and federal laws you will need to make full disclosure to all sellers and buyers about any property that you represent. Failure to disclose can result in complaints with the state and in some cases may result in lawsuits against you.
To avoid these hassles, you will continually need to be updated on current investing laws and rules. Even leaving “cash for houses” bandit signs would require your agent and license number disclosure!
4. Responsibilities
Being a licensed agent will come with more responsibilities. You will need to know all the minute facts about real estate transactions to avoid litigation.
Buyers or sellers may rely on your advice and guidance, but there is a potential for lawsuits if you make an error or omission like delaying or canceling a sale or failure to disclose a material fact. However, the same liability risk also applies to unlicensed individuals.
As long as you abide by the rules and follow the laws, the threat of litigation can be avoided.
Make the Right Choice for Your Investing Journey
For some individuals, a real estate license can significantly improve investing opportunities. Plus, the cost of a real estate license is not prohibitively expensive and should not be an obstacle. For under $1,500, you can get a license. The coursework can be done online and the number of hours you have to put in varies from 45-90.
This is not an extremely difficult task. In fact, many other professions’ exams and course duration are much longer and more difficult.
Getting a real estate license has some advantages and may help you get started as an investor. Sacrificing a thousand dollars and a few months of studying has benefits beyond just passing the exam; you will have more creative ways to get the maximum profit out of each deal, meet more people just like you, and open a few doors for investing.All the best!
great response! ; D
My pleasure!
Always happy to share my knowledge and experience.
Keep learning and growing.
Good luck!
-
Real Estate Agent Texas (#736740)
- (832) 776-9582
- https://tinyurl.com/f4ce9n8j
- [email protected]
- Podcast Guest on Show #469
No downside at all. Personally, I got my license for purely selfish reasons first - then started representing clients and fell in love with the relational component. There has been zero regrets on my end. I win by being able to represent myself on deals. I win by being able to use commissions to fix my properties (or get them at a 2-3% discount), I win by being able to help investor clients get killer deals that they otherwise wouldn't get with an agent with no investor experience (most of them say they do, but probably only 10% of agents do). I win by being able to use my commissions from other sales to put right back into my investment portfolio.
Nothing but wins. I am a huge fan of investors getting their license or at the very least getting connected with an agent who started out investing in real estate BEFORE getting into the profession. :)
-
Real Estate Agent CA (#02162394)
- Crosby Show Homes - eXp Realty
- https://www.instagram.com/crosbyshowhomes/
- [email protected]
@Maximillian Engram There are no downsides if you plan to actually focus on sales and invest. Being an agent is great, you get a deeper insight to the market and see things come up before the public. If you’re just getting your license to invest then you’re probably wasting time and money. Just my opinion
I would want to get my license simply for investing... have no plans on selling houses (unless something falls into my lap by accident). I would seek a broker with minimum fees and 100% commission.
why is disclosing the fact that you're a real estate agent a con? what are the ramifications behind this component of being an agent and investor?
Quote from @Wale Lawal:
What Are the Advantages of Getting a Real Estate License?
1. Access to Market Data and Inventory in Real-Time
This allows you to make informed decisions immediately. If you do not have a real estate license, you are always dependent on another person to reveal the data to you. This may lead to many missed investing opportunities.
2. Access to the Multiple Listings Service (MLS)
The MLS has a huge inventory of active properties on the market. For years, licensed investors have used the MLS to find deals in the marketplace through various techniques.
3. Builds Credibility
Being a licensed real estate agent generally builds credibility among sellers and buyers. After all, getting a license requires effort, money, dedication, time, and commitment. Thus, an agent with a license is deemed to be dedicated, credible, and trustworthy.
4. Networking Opportunities
Once you obtain a real estate license, it will allow you to access professional industry events and meet other licensed individuals. This helps you build a solid network of acquaintances who may open more doors for you as an active investor.
5. Become Knowledgeable
To obtain and maintain the license, you will need to continually be reading and be aware of the real estate market. Like any other profession, the more knowledgeable you become about your field, the more likely it is that you can make informed decisions that can boost your investments.
6. Commissions
As a licensed agent, you will be able to make extra money by collecting commissions. Even after paying the broker, you will net a significant amount of money even from your investment deals!
What Are the Disadvantages of Obtaining a Real Estate License?
There are pros and cons to everything. While there is no question about the advantages of a real estate license, you also need to be aware of a few disadvantages.
1. Investor and Seller Preferences
Some investors and sellers prefer to not work with real estate agents due to bad experiences with them in the past.
2. Time and Money Commitments
To get a real estate license, you will definitely need to sacrifice some time and money. First there are the costs for enrolling, purchasing the pre-licensing books, and the exam fees, which can run anywhere from $600-$1,200.
The time it takes to study and pass the exam can vary from 6-12 weeks or even longer if you have other commitments. Further, if you want access to MLS, there is an additional fee. You may have to join the NAR, which also comes with a fee.
Most people end up spending at least $1,500 a year in their pursuit for a real estate license.
3. Disclosure
Once you become a licensed agent, under state and federal laws you will need to make full disclosure to all sellers and buyers about any property that you represent. Failure to disclose can result in complaints with the state and in some cases may result in lawsuits against you.
To avoid these hassles, you will continually need to be updated on current investing laws and rules. Even leaving “cash for houses” bandit signs would require your agent and license number disclosure!
4. Responsibilities
Being a licensed agent will come with more responsibilities. You will need to know all the minute facts about real estate transactions to avoid litigation.
Buyers or sellers may rely on your advice and guidance, but there is a potential for lawsuits if you make an error or omission like delaying or canceling a sale or failure to disclose a material fact. However, the same liability risk also applies to unlicensed individuals.
As long as you abide by the rules and follow the laws, the threat of litigation can be avoided.
Make the Right Choice for Your Investing Journey
For some individuals, a real estate license can significantly improve investing opportunities. Plus, the cost of a real estate license is not prohibitively expensive and should not be an obstacle. For under $1,500, you can get a license. The coursework can be done online and the number of hours you have to put in varies from 45-90.
This is not an extremely difficult task. In fact, many other professions’ exams and course duration are much longer and more difficult.
Getting a real estate license has some advantages and may help you get started as an investor. Sacrificing a thousand dollars and a few months of studying has benefits beyond just passing the exam; you will have more creative ways to get the maximum profit out of each deal, meet more people just like you, and open a few doors for investing.All the best!
what about just going through the coursework but not obtaining or maintaining the license? I am a high income professional blessed with a schedule which allows for significant time off I'd rather spend with my family and hopefully investing rather than selling real estate for the commission (I'd rather work extra at my job). Just to understand the process better? Full disclosure I haven't bought my first property yet.
Quote from @Jon Gardner:
Quote from @Wale Lawal:
What Are the Advantages of Getting a Real Estate License?
1. Access to Market Data and Inventory in Real-Time
This allows you to make informed decisions immediately. If you do not have a real estate license, you are always dependent on another person to reveal the data to you. This may lead to many missed investing opportunities.
2. Access to the Multiple Listings Service (MLS)
The MLS has a huge inventory of active properties on the market. For years, licensed investors have used the MLS to find deals in the marketplace through various techniques.
3. Builds Credibility
Being a licensed real estate agent generally builds credibility among sellers and buyers. After all, getting a license requires effort, money, dedication, time, and commitment. Thus, an agent with a license is deemed to be dedicated, credible, and trustworthy.
4. Networking Opportunities
Once you obtain a real estate license, it will allow you to access professional industry events and meet other licensed individuals. This helps you build a solid network of acquaintances who may open more doors for you as an active investor.
5. Become Knowledgeable
To obtain and maintain the license, you will need to continually be reading and be aware of the real estate market. Like any other profession, the more knowledgeable you become about your field, the more likely it is that you can make informed decisions that can boost your investments.
6. Commissions
As a licensed agent, you will be able to make extra money by collecting commissions. Even after paying the broker, you will net a significant amount of money even from your investment deals!
What Are the Disadvantages of Obtaining a Real Estate License?
There are pros and cons to everything. While there is no question about the advantages of a real estate license, you also need to be aware of a few disadvantages.
1. Investor and Seller Preferences
Some investors and sellers prefer to not work with real estate agents due to bad experiences with them in the past.
2. Time and Money Commitments
To get a real estate license, you will definitely need to sacrifice some time and money. First there are the costs for enrolling, purchasing the pre-licensing books, and the exam fees, which can run anywhere from $600-$1,200.
The time it takes to study and pass the exam can vary from 6-12 weeks or even longer if you have other commitments. Further, if you want access to MLS, there is an additional fee. You may have to join the NAR, which also comes with a fee.
Most people end up spending at least $1,500 a year in their pursuit for a real estate license.
3. Disclosure
Once you become a licensed agent, under state and federal laws you will need to make full disclosure to all sellers and buyers about any property that you represent. Failure to disclose can result in complaints with the state and in some cases may result in lawsuits against you.
To avoid these hassles, you will continually need to be updated on current investing laws and rules. Even leaving “cash for houses” bandit signs would require your agent and license number disclosure!
4. Responsibilities
Being a licensed agent will come with more responsibilities. You will need to know all the minute facts about real estate transactions to avoid litigation.
Buyers or sellers may rely on your advice and guidance, but there is a potential for lawsuits if you make an error or omission like delaying or canceling a sale or failure to disclose a material fact. However, the same liability risk also applies to unlicensed individuals.
As long as you abide by the rules and follow the laws, the threat of litigation can be avoided.
Make the Right Choice for Your Investing Journey
For some individuals, a real estate license can significantly improve investing opportunities. Plus, the cost of a real estate license is not prohibitively expensive and should not be an obstacle. For under $1,500, you can get a license. The coursework can be done online and the number of hours you have to put in varies from 45-90.
This is not an extremely difficult task. In fact, many other professions’ exams and course duration are much longer and more difficult.
Getting a real estate license has some advantages and may help you get started as an investor. Sacrificing a thousand dollars and a few months of studying has benefits beyond just passing the exam; you will have more creative ways to get the maximum profit out of each deal, meet more people just like you, and open a few doors for investing.All the best!
what about just going through the coursework but not obtaining or maintaining the license? I am a high income professional blessed with a schedule which allows for significant time off I'd rather spend with my family and hopefully investing rather than selling real estate for the commission (I'd rather work extra at my job). Just to understand the process better? Full disclosure I haven't bought my first property yet.
@Jon Gardner Yes, you can have your real estate license without selling real estate for commission.
Send me a DM, I will be able to explain more and get you on the right track.
Goodluck
-
Real Estate Agent Texas (#736740)
- (832) 776-9582
- https://tinyurl.com/f4ce9n8j
- [email protected]
- Podcast Guest on Show #469
Quote from @Jossalyn Wallace:
Hi! I am a realtor and investor and in my experience and opinion there is really no downside to doing both at the same time. You have to follow the realtor code of ethics but frankly I think anyone trying to do good business should have these standards. Being a realtor has in fact helped me a lot with the investment side of my business. When I started investing I knew the market and how to work numbers; I knew my multiple exit strategies and already had a great team in place and was confident in my decisions, all from my career. I say do both!
Started buying property in 2015, got my license in 2022, wish I had gotten it sooner. Being an agent is a path to make real estate your career, not just your investment vehicle. If you don't already make a lot of money it can help you make the money you need to invest. Also helps you build your network by interacting with buyers and sellers on a regular basis.
Quote from @Kareem Aaron:
I would want to get my license simply for investing... have no plans on selling houses (unless something falls into my lap by accident). I would seek a broker with minimum fees and 100% commission.
why is disclosing the fact that you're a real estate agent a con? what are the ramifications behind this component of being an agent and investor?
based on this thread... I decided to get my license.
In my opinion, the pros far outweigh the cons.
Fortunately, getting through the real estate salesperson material and exam was not so challenging b/c I was already a full-time investor and had a lot of knowledge.
It took me about 60 days, studying for at least 2 hours a day. I used theceshop.com for my pre-licensing course and did everything at my own pace right from home.
I would recommend investors do the training if only to be more knowledgeable about real estate and things related to on-market deals, such as agency. (I targeted only off-market deals, but that will certainly change now)
I'm just looking for an investor-friendly brokerage to hang my license in the DC Metro (MD, VA, and DC) now.
Thanks to everyone, particularly Wale, for chiming in on this post.
Best of luck to anyone who decides to dive in and be an agent as well.
-Kareem
full-time investor (... and soon to be agent!)
Quote from @Maximillian Engram:
Good afternoon,
What are the pros and cons of being an individual that invest in real estate properties and also a licensed realtor?
I know I don't have to be a realtor to invest in real estate but I just wanted to get some insight from other people in that space. I'm considering getting my realtor license so this question came to mind. Thank you for any insight.
Depends on why you want your license. If you want to represent other people in real estate transactions and be in the real estate agent ecosystem which has a lot of benefits from education, networking, and sales experience. Then get your license.
If you just want to wholesaler or be " the investor" then you don't need your license as it won't benefit you as the licenses are expensive to maintain.
*Note: some states now require a license to wholesale
So what do you want from your real estate career?
L. Thomas