Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
Good morning BP Nation! I wanted to get some opinions on getting your real estate license in today's market for the purpose of finding deals to invest in for the purpose of flipping. Is it worth doing this still, considering the cost of fees each year. I'm in Baltimore Maryland and I'm trying to find the best way to get started in the investing business. I eventually want to start a property management company for future multi family properties I plan to acquire as well as manage properties for other investors. On the state of Maryland licensing website it states that you do not need to be a licensed broker to own a property management company but would it still be beneficial to have the knowledge of an agent to run the property management company successfully? Thank you in advance for any advice you have.
When I decided to head down the real estate investment road, I knew virtually nothing related to the topic. Getting my license provided me a large amount of quality insight into the real estate world (granted, from the salesperson perspective), in a relatively short amount of time that I could build upon. I now have the freedom and flexibility to openly browse MLS listings and gain entry into distressed properties after my day-job without having to depend on someone else or their schedule. This is of course at a cost. To me, what I pay for my license and MLS fees is offset by the convenience these things provide for me. This remains a controversial topic, but in this ever changing and litigious landscape, best to cover all your bases as well as you can. Quality education is a part of that process. Good luck!
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
11y
If you plan to earn a living as a real estate operator having your license is a no brainer. You will have so many opportunities to earn additional revenue by having your license.
When I decided to head down the real estate investment road, I knew virtually nothing related to the topic. Getting my license provided me a large amount of quality insight into the real estate world (granted, from the salesperson perspective), in a relatively short amount of time that I could build upon. I now have the freedom and flexibility to openly browse MLS listings and gain entry into distressed properties after my day-job without having to depend on someone else or their schedule. This is of course at a cost. To me, what I pay for my license and MLS fees is offset by the convenience these things provide for me. This remains a controversial topic, but in this ever changing and litigious landscape, best to cover all your bases as well as you can. Quality education is a part of that process. Good luck!
Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
Thanks @James Wise and @Pietro Rondinelli, that's how I was feeling about having a license. It seems invaluable just based on the insight you would gain. I guess I just needed to hear that from experienced investors like yourselves who have been there and can reinforce what I was thinking. Thanks for taking to time to give me some advice.
No problem...if you have any specific questions about that process or what the exam was actually like, just message me and I'll fill you in. Happy investing!
If you only do one deal per year, your commission will pay for all the fees related to maintaining your license. It's a great way to learn a lot and develop some great connections in a short period to time.
Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
Okay, will do @Pietro Rondinelli, i'm registering for the Pre-Exam classes later today. One question I do have is regarding if your license can transfer from one state to another because I may relocate to Atlanta with my family in the future and would obviously want to continue the same business down there. Thanks again for all your help.
Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
Thank you @Andrew Davis I appreciate the response. I was thinking having my license and actively using it would help better recognize deals as well as non-deals. Also as you said, it's a great way to make connections.
Reciprocity does exist between states, but you would have to investigate the state laws of which you are moving to. For me, I moved from CT to NC, and although there is no overt reciprocity, I am only required to take their State exam part of the state license. They essentially waive all other requirements (except the fees!) since I already have an established license in CT. This may be true in your case as well, but make sure to do your homework on the topic.
Rental Property Investor · NY MA CT VT MT, MO · Member since 2015 · 200 posts · 116 votes
11y
Im not sure I would totally agree that it's a no brainer; there are a few things to keep in mind when getting licensed. Absolutely you learn tons of valuable information, but it does certainly open you up to a lot of liability. In fact, if you have a broker that you are planning on hanging your license with, you should let them know ahead of time that you are planning to be flipping a lot, or whatever else you'd like to do. I say this after 20+ years of being licensed; you just have to be hyper vigilant about disclosures, and making sure people are very clear that you are a licensed agent. If someone feels like they missed a great opportunity when you make a solid, well deserved profit on their property, often they look for someone to blame, and the lawsuits begin. And the courts see someone who is licensed as having a vast advantage over the lay person, so if your written disclosures are not bullet proof, you and your broker may find yourself in court.
I don't mean to be a wet blanket; I have been fortunate enough to have found some great deals as a broker, some that I've even listed, and bought people out of tough situations when the house wouldn't sell (a situation that has it's own, more acute liabilities). Just be aware that, no matter how ethical we all try to be, there is a lot of room for perceived conflicts of interest.
On the plus side, your understanding of your market will expand exponentially, and you will see lots of deals before they hit the market, depending on how large and/or active a brokerage you join. Good luck!
Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
Thank you for your detailed response @Alan Brown. It's nice to know the other side of the reality of being a licensed investor. I have read on other forums that there is the issue with disclosing that you're a licensed agent. I have no problem doing that because I want I be honest in everything I do and the relationships I establish. I plan on being licensed under Keller Williams. Am I right to assume a company like KW would know how to handle/create such disclosures? Thanks in advance for any assistance.
Getting your license is a no brainer. One thing to keep in mind is if you own multiple properties that you are managing yourself..you will have to assign those properties to a property management company or go through the quarterly audit process. The benefits far outweigh the cost. So good luck!
Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
Thanks @Azeez K. What part of Georgia do you primarily focus on? I have family in Douglasville as well as Valdosta. I like Douglasville to move my family to but do you have any advice on some good areas for Buy and Hold?
Investor · Valdosta, GA · Member since 2015 · 187 posts · 112 votes
11y
Hi Craig. I get alerts for the keyword "Valdosta" because it's my hometown. :)
I just started learning about real estate investing in December. With the profit from my first deal, I plan to get licensed.
I'd never considered being an agent before, but through talking with so many motivated sellers willing to sell for decent discounts (just not a wholesale deal discount), I can see how I'm leaving money on the table by not being able to list and market them myself.
I'm willing to bet that I could make more as a seller's agent than as a wholesaler.
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Keller Williams Agent · Parkville, MD · Member since 2014 · 28 posts · 6 votes
11y
@Nikki Robinson, I agree with you about making more money as an agent as opposed to a wholesaler and I just feel being an agent fits my personality better. What part of Valdosta are you in? My step son lives close to the Air Force base in Valdosta but I'm not very familiar with that area. It seemed like there were some good opportunities for buy and hold near the base. What's your opinion on the market down there?
@Nikki Robinson, I agree with you about making more money as an agent as opposed to a wholesaler and I just feel being an agent fits my personality better. What part of Valdosta are you in? My step son lives close to the Air Force base in Valdosta but I'm not very familiar with that area. It seemed like there were some good opportunities for buy and hold near the base. What's your opinion on the market down there?
I'm a bit further in town but not far (about 15 minutes) from Moody. It is a good place for buy & hold. I think the market is much slower for people only looking to flip. Investors interested in the sub30k niche and/or Section 8 landlords would do best here in my opinion.