Main advantages are speed and MLS access. I think a lot of depends on your volume per year. If you’re buying 10 plus properties or selling that many it’s probably worth it to be an agent. If you’re buying one or two it’s probably not worth it.
I think every investor should become a RE agent. These are just some of the benefits of being licensed:
-Access to MLS. You can pull all the metrics you want without asking an agent.
-You save money on commissions when you list your own flips. You are more likely to beat your competition if you go into a multiple offer situation and listing agents ask for "Highest and best". Another way to see it, you have less risk of losing money because you're saving money on commissions.
-You are the first one to make an offer on any listed property. It happens very often. You see a great property and someone else already got it under contract. Your agent might not be able to send you the contract promptly or maybe it took him too long to send it over to the listing agent. You have to be very quick in this market.
Hi Alex, great question. It's not cut and dry on whether or not to become an agent before an investor. But in my experience, becoming an agent does not propel you to becoming an investor any quicker in most cases (maybe if you are working for a Broker who focuses on investments). When you ask about becoming an agent, do you mean you want to do sales? or work in Property Management? Both have their pros and cons, but could make a stronger argument for getting into PM with a license to help with your investment career moreso than focusing on sales (assuming you are going into passive income and not flips). With all of this being said, I was an investor for 8 years before I got my license, and decided I didn't want to work for anyone any more, wanted to replace the income from the job I was leaving, so I got my license and use it as a complimentary piece of my investment business. I have found that most agent's have no clue about investing, and I try my best to educate them when they ask for assistance. If you are looking to make income and be in some type of real estate activity while you are building your portfolio, it's not a bad way to go, but if you have a decent job you are considering quitting to become a sales agent because you think it will help you become an investor faster, I would caution you on that course of action. The best way to start investing is to start surrounding yourself with other investors by going to meetings, conferences and any education in your local market so you can network with those who are doing it day in and day out. In my opinion, surrounding yourself with those who are active and successful investors is the best way to become an active and successful investor.
Another big advantage to having a license is access to the lockbox.
best, Cheshire Cat metaphor comes in the form of a highly existential conversation between he and Alice. She asks “I was just wondering if you could help me find my way.”
His reply: “Well that depends on where you want to get to.”
She says it doesn’t matter. And then he says (*insert drum roll here*), “Then it really doesn’t matter which way you go.”
@Alex Gallardo begin with the end in mind and then you'll have your answer.
Getting your license will teach you pretty much nothing that will help you become more successful as an investor. Licensing is about learning and knowing the laws - you will learn NOTHING about the mechanics of negotiating, processing transactions, finding deals, actually working in the industry, or making money.
A license will give you access to private information, will allow you to make commissions, and will help you to create relationships that you may not otherwise be able to build, but generally speaking, if you're going to be successful in Real Estate, you will be successful with or without a license.
Can I jump in here & build on what Alex is asking? I'm 2/3 through my real estate studies and plan to take the exam before April.
My story is one like Rich Dad, Poor Dad -- my dad is a commercial real estate broker who has one investment property. My best friend's dad is the same but with a $50m+ dollar portfolio. My best friend works alongside his dad hunting multi-families and has connections to investors and track record of 20-60 unit properties.
I've always desired the lifestyle of my best friend's dad, afforded by the passive income of their properties, and seek the same for my lifestyle.
When I obtain my RE license, which way do you think I should go? As my father says: get a job in real estate (brokerage, property management, or corporate in-house for someone like Target, Home Depot, etc) and learn from the inside out. Or, as my best friend advises: to continue running my small dog walking company and hunt for deals (20-60 units) in the moonlight to bring to him to partner on a deal to bring to their investors?
Thanks for your advice.
I like the "inside-out" idea, personally.
Thanks for your response @Scott Inno
@Nick Carrel Keep walking dogs and hunting for deals, but you will likely find more financial success doing the deals yourself.
As a real estate agent, I didn't learn diddly squat regarding investing. I learned investing through reading books, biggerpockets.com, Fortune Builders, and REIA meetings.
I do hear advice from very experienced investors to work under or partner with experienced investors to learn the ropes instead of making every failure in the book. They say, "Why make the mistakes that others before you have experienced already?" I think this significantly shortens the learning curve.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.