Real estate License is it worth it?

Question

Hello

I wanted to get some input on getting my real estate license. I have been hearing that getting one will provide more resources that could help me grow as a real investor. I have the opportunity to pursue a license for free being prior service but I don't want to waste time and resources if it isn't worth it. If there is anyone that can provide insight I would greatly appreciate it.

Eliott Elias · Answer

I hold my license and primarily invest. I make 3% on everything I buy & sell and don't have to wait for realtors to pull comps.

Sam Pecor · Answer

$500 a year for full MLS access, networking opportunities, access to viewing homes on your own time, and you get 2-3% whenever you pull the trigger on a property... even if your market is an average of a 100k property, that's 4-6 years of your real estate dues off one transaction. People here seem to grossly overstate the complications and cost of maintaining a license but maybe that's state specific. 21 hours CE every 2 years where I live is all it takes to maintain your AB license, you can buy a bundle for $200 and cover that if you want the bare minimum...

My one purchase will cover my dues and CE for decades, some brokers even offer 3 free personal transactions per year with a modest transaction fee instead of a commission split. This is a no brainer dude.

Kit Serrell · Answer

First off, thank you for your service! ... If you can take the class for free, I personally believe it is worth taking just from a generic education standpoint even if you dont end up taking the exam or wanting to get licensed. I know a couple of people who did this and it was really worth it to them.

Even if you can get the license for free, if you want to get licensed... every year you still have random dues, fees, etc that you have to pay that can add up to thousands of dollars (MLS dues, Realtor dues, continuing education, license renewal, insurance, state business/privilege licenses, etc etc) to maintain your license (depending on what state you are in). You normally have to work under a broker for a while and go through the corporate red tape to do so. You also have to disclose that you are a licensed agent during any transaction (including off-market ones). Additionally, being a licensed agent can also open you up to a world of liability with your state's real estate commission and from a personal liability standpoint.

If what to be a realtor, then get your license. If you think you may be doing a high volume of deals, then it might be worth considering also. Its just a personal cost vs benefit. I love being an agent, but if I didn't... my time would be better spent focusing on other income-producing tasks or learning/improving relevant skills.

Just my two cents!!

Michael Dumler · Answer

@Davion Smith if you're not buying multiple deals a year, acquiring your license is not worth the money, time, and energy. FYI real estate commission-approved courses and the State/National exam have nothing to do with learning how to write offers and navigating the MLS. There is a tiny fraction of information that I would say is beneficial. I seriously do not advise taking the course from an education standpoint, your time would much better be spent interacting on the BP forums and attending meet-ups. The bottom line is if you're not going to be a full-time real estate agent or buying multiple deals a year then becoming licensed is not necessary.

Real estate License is it worth it?

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