Real estate license a good start for a newbie?

Question

Hello,

I was wondering if acquiring a RE license would be a good step and beneficial for my potential future in retail estate investing.

Gideon Sylvan · Answer

Combined with some hustle, I think getting a real estate license is a great way to start.

I used my license to get a series of low-paying, high-education jobs. My first real estate "job" (all commission) was selling property management contracts to residential investors and investor agents. That led me to a low-paying, salaried job of finding deals and writing offers for a broker-owner investor who covered my living expenses with some commission incentives. Somehow that led to being a deal identifier for Invitation Homes, which was sooo boring, but forced me to learn numbers for nearly every community in our metro area. None of the jobs paid well (although they all promised riches), but I learned a ton with each one.

Along the way (near the beginning), I purchased a low income rental house with money saved up from high school and college, and teaming up with a family member for the loan who saw I was committed to the real estate investing path. I was extremely lucky to have that support and even luckier to stumble on a way to make a full time income working nights and weekends in high school, college, and a bit after (doing magic shows at kids' birthday parties). Perhaps the biggest stroke of luck (or maybe this is just how things work), is that each of my bosses saw me as a younger version of themselves, which made the whole mentor-mentee thing natural.

I think having a real estate license was a critical step in building those relationships. Although people wanted to help, they didn't want to waste their time. By having a real estate license, I could become a cog in someone else's machine, and along the way it would be natural to mentor me. Whereas without the license, I think people would still have helped, but only for the first few emails. And without the experience the license helped me get, I likely wouldn't have successfully convinced a family member to trust me.

JOAN DICKIE · Answer

There are expenses to keep in mind also.  if you want access to the MLS, you will need to pay dues to the national, state and local boards.  Then there is the MLS access fee.  There may be a fee for electronic keys if those are customary in your area.  With a broker, there might be monthly fees and Errors and omissions insurance.  Once you have your license, you will be expected to take continuing education classes to be able to renew your license.

Talk to a couple of brokerages before you start school.  Be specific what you want to do with your license and ask them about all the fees you will pay with them.  This should help give you more information to make up your mind.

Good luck and keep us up to date on your decision!

Roma Korenyuk · Answer

License comes with it's own set of rules, responsibilities, and costs. Sometimes it's easier to use an agent rather than having your own license. But, if you actually want to have a real estate day job, then you will definitely need it. I have a license, but I have no use for it. So I will just let it expire.

Gibrhann Roman · Answer

So true Ronnie. $2k+ for a guru is definitely not for me right now at this point. Thanks for your input

Gibrhann Roman · Answer

ah ok! Thanks Colin!

Gibrhann Roman · Answer

I am looking at a license as a supplement to investing and getting my hands on more material to gain more knowledge.

Gibrhann Roman · Answer

Thanks Kyle for the advice!

Ronnie Wilson · Answer

Having a Real Estate license is very beneficial. I have one. You will have access to resources investors pay too much money for. I would suggest taking a pre-licensing course ($240). Most important you will always make a commission.Verses a guru course $2k-30k.

Colin Smith · Answer

Like most answers, it depends. If you are going to purchasing 1-4 properties a year, it may not be worth it. Yes if you look at it from a numerical standpoint it would be worth it. But you won't have the same market knowledge as a full time Realtor will (or should have) to help you in your investing career which I believe can be worth a lot than just $$$.

Dan Mackin · Answer

It is all dependent upon what your goals are. Would you just get the license as a supplement to your investing or would you pursue it as a career and to be your skill set for the investment world?