Step 1: Real Estate License...Good Idea?

4 Replies

Hey Bigger Pockets Family!

I am looking to begin my journey as a real estate investor in the New York / tri-state area. My first steps are geared towards learning more about the legalities and loopholes of the realty world. Long story short, I would like to know what are the pros and cons of being a real estate investor with a license. I've heard a mixture of both negative and positive perspectives from both sides but eventually all became blurred noise. If someone could help make sense of all the nose I would greatly appreciate it. 

-Andrew D. Velez

I have a real estate license and it is pretty cool to be able to receive a commission on the deals you do. It does occasionally allow you a little extra on a tight flip to work with. The thing i find to be really beneficial though is the education you gain in study for your real estate license. The MLS access is also pretty useful to directly be able to search for deals and market areas where you can become an expert.

@Andrew V.

This is a highly debated topic. From it, I can only give my own account. I have benefited greatly from having my RE license. I got mine back in 2004 at the age of 22, and it has served me well. My yearly dues have paid for itself in referral fees when I bought my primary home alone. However, that being said, it is not a requirement to be successful in REI. There are investors FAR more successful than me that have done it all without having their RE license. The license is merely another "tool in your tool belt" to get to where you want to be. Having your RE license does not ensure real estate investing success, nor will it provide you with the drive and the will to succeed in any competitive and cut throat environment. All I can say is, I am happy that I got mine to become a realtor when I actively sold from 2004-07. I am not sure that I would get it today, if I am merely investing and not selling my own properties. Just my two cents...

Originally posted by @Jon Huber :

@Andrew V.

This is a highly debated topic. From it, I can only give my own account. I have benefited greatly from having my RE license. I got mine back in 2004 at the age of 22, and it has served me well. My yearly dues have paid for itself in referral fees when I bought my primary home alone. However, that being said, it is not a requirement to be successful in REI. There are investors FAR more successful than me that have done it all without having their RE license. The license is merely another "tool in your tool belt" to get to where you want to be. Having your RE license does not ensure real estate investing success, nor will it provide you with the drive and the will to succeed in any competitive and cut throat environment. All I can say is, I am happy that I got mine to become a realtor when I actively sold from 2004-07. I am not sure that I would get it today, if I am merely investing and not selling my own properties. Just my two cents...

 @Jon Huber thanks for your expert opinion I greatly appreciate it. Have you encountered any legal road blocks that conflicted with your license? That's my main concern. 

@Andrew V.   Never. As long as you are completely transparent and always disclose that you hold a Real Estate license, you won't have any issues. I usually disclose this in the first phone call of any realtor, investor, potential partners, etc. 

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