Real estate license a good start for a newbie?

12 Replies

Hello,

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

I never heard anyone regretting getting their license but you should think ten steps ahead on how you're going to utilize a license to its full potential. if it fits within your personal goals, go for it!

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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?

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 $$$.

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.

Originally posted by @Kyle Gregg :

I never heard anyone regretting getting their license but you should think ten steps ahead on how you're going to utilize a license to its full potential. if it fits within your personal goals, go for it!

 Thanks Kyle for the advice! 

Originally posted by @Dan Mackin :

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?

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

Originally posted by @Colin Smith :

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 $$$.

 ah ok! Thanks Colin!

Originally posted by @Ronnie Wilson :

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.

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

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. 

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!

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.

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