Value in getting my real estate license?

Question

Hello BP members,

I am currently an aspiring real estate investor in the greater Philadelphia area (I say greater because I own no properties, but I would like to concentrate on west Philly).

This one is for the agents/investors out there. As I am ahead in college credits, and will be taking only a few classes for the next six months (I go to Drexel so summer term as well) what are the benefits of becoming a licensed agent? I am not sure if I would want to practice, so this question is strictly related to the benefits associated with investing from becoming an agent.

One final point- I am looking to BRRRR, not sell properties, so the commission fee I would save does not really apply here.

Thanks!

Sean McDonnell · Answer

@Brett Stander  For what you are looking to do, I would not recommend getting your license.  There are fees that you would pay to get your license and keep it active.  For example, down here in NC, I paid $500 for a pre licensing course, $100 to take the test, and around $500 to join the MLS. I also pay $80 a month in recurring MLS fees.  If you did get into the real estate sales business, you would be in the green after your first big transaction but if you are not wanting to get into sales, I would just find a good agent that is willing to hustle for you.

Jonathan Greene · Answer

The biggest perk of having a license is access. You can see any on-market properties anytime you want when scheduled, without having to rely on an agent who doesn't understand your goals. It makes looking and learning much easier. In terms of commissions, you can find brokerages that work better with investor-agents that will understand what you are trying to do. You will also learn a ton of things that investors need to know by taking the class because the class to get your license isn't solely about working as an agent, it's about understanding real estate and the pitfalls.

Joseph Scorese · Answer

@Brett Stander access is key and a fellow human being will never disappoint you so get your RE License. Regards Joe Scorese

Marquez Griffin · Answer

I'd suggest getting your license if you will be pursuing BRRR deals all in the same area as well as helping other clients/ investors buy or sell in the area. If you are only getting your license to help yourself find more deals, then the fees and time invested may not make it worth having your license. A great agent in the area your interested in would probably be your best bet and could save you lots of money in the long run. I wish you the best of luck!

Russell Brazil · Answer

87% of people who get a real estate license do not even renew it on the first renewal period.  That is illustrative of the fact that everyone thinks its great to have one, til they have to pay all the costs associated with it even though they dont use it, then let it lapse instead of incurring those costs year in and out.

Kiersten Vogt · Answer

I love having my license simply to make it easier to have access to the MLS and make appointments on my own timeline. You'll have to decide if the cost is worth it for you. Just because you aren't going to make money off of it doesn't mean you shouldn't get it, it could just be another cost of doing business for you. I've even waived my commission to make my offer more appealing to a homeowner - a good advantage to have in a seller's market.

David M. · Answer

@Brett Stander

All of the above... yes, your realtor fees will probably be about $2k yearly... after access (to both properties and networking with agents), the next is for you decide if having a license is worth it for you to earn a commission here or there.  My Realtor earned tons off my rentals since after renting from me, they generally need to buy something next.  Since my agent also was dual role as my psieudo property manager, she picked up all those leads and got tons of transactions, and the subsequent transactions

But, if you have no interest in being a salesperson, might not be worth it for you.

Joe White · Answer

Access is pretty handy - both in showings and with seeing the MLS. Plus, there is always information to be had. I'm a broker and I still go to seminars, workshops and I'm in a real estate class now at Temple. It all helps with investing.

Value in getting my real estate license?

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