Broker vs. Real Estate License

[Theresa Nguyen]

I am new to REI and my goal is to learn as much as possible in the field before buying my first property. After reading many threads, it seems the best way to do this is to get either a real estate or broker license. Which would you recommend and why?

[Bill Gulley]

@Theresa Nguyen

You can find the license requirements for your state pretty easily, just go to your state's real estate commission site, it should be there. 

Having a license is NOT an encumbrance or road block to investing in real estate, unless you plan on doing things that are illegal or unethical, there are "those" "investors".

A broker's license adds a bit more credibility to your business card, in reality that's about it as you are assumed to have greater knowledge than an agent in the public's eyes. This route would probably be as a "Broker-Agent" meaning you'd have greater recognition of being a broker but you'd be dealing under another broker as an agent.

Being an independent broker isn't cost effective just dealing for yourself. You may be required to have a sign out, that could mean an office, you'll probably need regular office hours, business phone for the public (as well as regulators). Your office may need to be occupied during your business hours by someone, doesn't usually have to be a licensee. 

Only a fool would attempt to defuse a bomb with simple step by step instructions without proper training. Real estate can be a financial bomb that can blow your financial world apart! I said "proper training" which is what you get taking a class to be an agent, NOT deal making training. Learn the basics first, then learn investor stuff! You also need a good BS Meter, read my blog on "How To Develop A Good BS Meter"!

You don't NEED a real estate license to invest, but you do Need a good education, however, having a license IS a better way to operate in real estate and I highly suggest getting one especially in the beginning. :)