Get a RE license? To do or not to do. That is the question.

Real Estate Agent
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Get a RE license? To do or not to do. That is the question.

Joseph Delarosa
U.S. Army/Investor · Dexter, NM · Member since 2015 · 12 posts · 4 votes

Hey BP crew,

I am new to REI and I have 9 months before I move from Europe back to the U.S. In that time I believe I can earn a RE license. It may seems like an easy question to answer for you, but is it helpful/necessary to get a license?

Any advice helps.  Thanks. 

Stay frosty

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Bill Gulley
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
11y

After you get a license, your plans will probably change to the buy and hold side. Wholesaling, is just being an agent, legally, you'll make more in the long run charging a commission. 

If you can get free ed classes or discounts through the Green Machine, do it!

If you end up not wanting to be a Realtor, fine, the education alone is worth it! Good luck and thanks for your service! :)

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  • Nick Lee
    Investor · Chorley, Lancashire · Member since 2013 · 82 posts · 22 votes
    11y

    I would say it depends what you want it for. Are you wanting to sell other people's houses for them or just access information?

    If you just want to pull comes a realtor can do this for you

    0Reply
  • Joseph Delarosa
    OP
    U.S. Army/Investor · Dexter, NM · Member since 2015 · 12 posts · 4 votes
    11y

    @Nick Lee thanks for the quick reply. I don't want to sell people's houses for them. I'd like access to the mls and as of right now I plan on wholesaling and buy & hold. 

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    11y

    After you get a license, your plans will probably change to the buy and hold side. Wholesaling, is just being an agent, legally, you'll make more in the long run charging a commission. 

    If you can get free ed classes or discounts through the Green Machine, do it!

    If you end up not wanting to be a Realtor, fine, the education alone is worth it! Good luck and thanks for your service! :)

    2Reply
  • Darrell Shepherd
    Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
    11y

    I wish I'd done mine years ago. The only agent work I do is for friends and that's pretty rare, but I'll save more than 90% of agents make just doing my own stuff next year. They're going to pay me a $7,500 commission to buy a rehab on Friday. $400k ARV so I save $12k on the sell give or take. A little under $20k saved on one deal.

    Being new I think its good to get in and do some agent work to know the market.  This whole notion that investors can't be agents is pretty silly IMO.  I will say, though, that most agents don't have a clue what investors do.

    1Reply
  • John K.
    Investor · Mahopac, NY · Member since 2015 · 110 posts · 32 votes
    11y

    I agree with what others have said, but one point I partly disagree with is becoming an agent to learn the market. I am currently somewhat contemplating weather or not to get a RE license, and this exact reason has me thinking. For an investor I feel at the beginning it might be worth the time to find an expierenced agent in the area. More then likely they will know a lot more then you and can save you from any potential mishaps.

    If you are confident in the area and the market maybe then this will benefit you. As Darrel said it saves money and sooner or later you will probably regret waiting years. Good Luck with whatever you choose, and hope to hear nothing but success from you in the future!

    0Reply
  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    11y

    You don't need a RE license. Just search Zillow, Redfin, etc for listings that interest you. Or, go to a local REIA when you get back to the states and network with other investors. Maybe you'll meet someone who is selling a good investment property. That's how I found my first two deals.

    0Reply
  • Sam Erickson
    Real Estate Broker · Milwaukee, WI · Member since 2014 · 338 posts · 129 votes
    11y

    I licence is worth it if you plan to do at least a few deals a year, anything less then that and you'll probably just cover costs for being an agent, MLS fees, dues, insurance, etc.

    It used to be that you could get your agents licence and then turn right around and get your brokers.  Its the brokers license you want, no commission splits. However I know in a lot of areas they have changed the requirements of getting your Brokers.  Now you pretty much have to work as an agent for 2 years before your "qualified" to be a broker.

    Keep in mind when your an agent you have to work for a broker and all those commission dollars you'll save/earn will be shared with your broker.  When your new the commission splits will most likely be heavily favored to the broker.

    I still like the licence strategy buts its become more of a long game strategy It will take a few years to see the full benefit of it.  Also it may be a hard pill to swallow when you have to give a large portion of your saved/earned commission to your broker, especially when its your own deal.

    1Reply
  • Jennifer Lee
    Real Estate Broker · Gibsonia, PA · Member since 2013 · 828 posts · 260 votes
    11y

    From one that eventually got a license! Best move ever

    the key is FIND A BROKERAGE that will be ok with whatever you want to do with your license!!

    I have to move around to find it, my first company had awesome training, my current one I feel it's more sink or swim.  But I am not a newbie anymore, I don't need the training, I just need the flexibility and option to focus my business towards the direction I want to take it. without objections from my brokerage.

    2Reply
  • Account Closed
    investor · McDonough, GA · Member since 2015 · 230 posts · 77 votes
    11y

    I have found an online course in Georgia that I'm going to use to get mine. I'm looking for properties all time. Sometimes I see them online or just when I'm driving around. I wish I could go inside and check 'em out, and then write my own offer. I don't want to keep bothering another agent for property that may never go anywhere. 

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    11y

    Get the license.

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    11y

    I am licensed, and the access to the MLS is awesome.

    BUT

    Know how much it is going to cost before you start.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    11y

    I don't have a RE licence but at some point I plan on getting it. It is just a matter of opinion and personal goals.

    My personal reasons for getting a RE licence:

    If I drive by a house that has a lock box on it I don't have to call my agent to come open it for me knowing I'll probably never buy the house. (Credit to J Scott for saying this on the BP podcast).

    Sellers pay 6% in total to agents and if I'm buying I can put in a better offer since I am the buyer and the agent.

    Selling a home is less expensive.

    These are just my personal reasons and I also believe the education is important.

    1Reply
  • Joseph Delarosa
    OP
    U.S. Army/Investor · Dexter, NM · Member since 2015 · 12 posts · 4 votes
    11y

    @Luka Milicevic @Account Closed

    Thank you all for of your strong responses. I love seeing subjects such as this one from multiple angles. I believe this is one reason why I am so interested into getting into real estate, aside from the wealth. It's the hunt that gets me moving. Real estate is multi-faceted and knowledge is power and the only limiting factor is myself. I absolutely love the challenge ahead.

    I have just signed up for an online course to get my RE license and I have to take leave and fly From Germany to the United States to take the test in person. It's a little out of the way, but with this license I don't believe anyone will work as hard for me as I will. 

    Thank you for your guidance  

    I'm sure I'll need more in the future 

    Stay frosty my friends

    3Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    11y
    Originally posted by @Joseph Delarosa:

    @Luka Milicevic @Account Closed

    Thank you all for of your strong responses. I love seeing subjects such as this one from multiple angles. I believe this is one reason why I am so interested into getting into real estate, aside from the wealth. It's the hunt that gets me moving. Real estate is multi-faceted and knowledge is power and the only limiting factor is myself. I absolutely love the challenge ahead.

    I have just signed up for an online course to get my RE license and I have to take leave and fly From Germany to the United States to take the test in person. It's a little out of the way, but with this license I don't believe anyone will work as hard for me as I will. 

    Thank you for your guidance  

    I'm sure I'll need more in the future 

    Stay frosty my friends

     That is serious dedication. Good luck to you.

    0Reply
  • Eric Feng
    Real Estate Agent · Atlanta, GA · Member since 2015 · 31 posts · 10 votes
    10y

    Great responses. I've been pondering on whether to get a license or not. Now I'm leaning towards a yes :)

    0Reply
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