Hi BP Family ! it's been a while, I hope everything is going well for everyone . I was just curious how having your real estate license influenced you're investing. Is the trade off between liability and access worth it?. Have you found that being able to submit offers on your own and not have to wait on an agent advantageous? Has being an agent enabled you to take advantage of more opportunities to increase your net worth as opposed to just being an investor? As you can see im considering getting in the business but want to get some insight from someone who has been able to take full advantage of both sides of the coin. Thanks! Talk to you soon.
I have absolutely loved having my license, and I would never go back now that I have it. I never planned to become an agent, but once I had the license I realized how much more I could do with it! I also have enjoyed being able to take the commissions when I do deals. I can't personally think of any down sides to having a license. You have access, more job opportunities and can take commissions when representing your self.
Are you thinking of getting your license?
There certainly are advantages in getting the license if you are going to be an investor, not just in cutting out another middleman but in learning the process in and out. All knowledge in this business is worth having and being a party to more deals helps you see the things that nobody really knows unless they have done a deal.
That all being said it does add some restrictions and caveats to the way you do deals. You have to disclose your status in deals even if you are buying for yourself which can sometimes make people worry that they aren't getting the best deal because you are a professional. Not too big a deal if you are operating above board like you should but there are also the fees and cost associated with being an agent.
If you aren't planning to monetize your license by actually being a full time agent then you aren't necessarily getting much for the costs involved. In Tennessee, other states as well, you also have to have your license under a brokerage which is just another expense and if you don't plan on actually selling homes no broker is likely to "hire" you under their license as there is no benefit to them.
All in all the time you spend getting your license and acting as an agent would be better used in building relationships in your area and sourcing your own deals. Wholesalers and other agents can funnel their deals to you and while you will be paying for that service you have to look at each hour you spend in this business as opportunity cost. Build a team, build systems, build your business and if your business isn't going to be focused on being a real estate agent first then I would say skip it and work on your primary focus be that flipping, wholesaling, buy and holds or whatever.