Any reason NOT to get my real estate license?

Question

I'm new to the idea of REI and still in the research phase, and learning so much! Very exciting. I'm planning to move to another state in about 6-7 months and have decided to get my real estate license in that new state, mostly to quickly learn the state RE laws and regulations and also take advantage of the networking opportunities.

Is there any reason that being a licensed agent would work against me in my plans to buy and hold multifamily properties? I mean, is there some kind of investing or buying/selling process that civilians can do or benefit from that an agent couldn't? I can't find anything about that specifically online.

Any insight would be greatly appreciated!

Jonathan Greene · Answer

@Erin P. - good points made above by @John Knisely and I would add to that - if you are going to be an agent and do investments, you should have two completely separate business entities. I have a real estate team LLC and an investment LLC and they work independently, but on-market opportunities are funneled to my team. If we make an off-market deal straight with us and a seller, that's the investor entity. If we put together a deal for a seller and buyer, that is through my brokerage even if it's off-market as I can't get a commission or payment if it does not go through the brokerage. I hope this helps.

Nick C. · Answer

The only reason to not get licensed is if you're planning on conducting shady business practices and don't want to be held accountable.

The pros far outweigh the cons.

Erin P. · Answer

Thank you so much for the replies! Lots of good stuff to think about

@Jonathan Greene - good point about getting my education elsewhere, I'll check out those sources first. And as for networking, I'm seeing more and more how critical that is to being successful in this business.

Thanks again!

John Knisely · Answer

Some sellers might not trust real estate agents due to previous run-in with less than stellar agents. Could be the difference between someone wanting to work with you and sell their property to you vs not. This is strictly a perception thing in my opinion, not a legal issue.

Also generally speaking the code of ethics for licensees makes things like wholesaling a bit of a gray area in terms of who all gets a piece of the pie (broker's comission split and other distribution of earnings)

Any reason NOT to get my real estate license?

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