Real Estate License Limitations?

Question

As a new investor, I have been debating getting my RE license to help learn the business. I've read several posts on the forums and see this is a very hot topic on whether or not to do it but I have been finding more pros than cons of being licensed in general. Are there REI limitations that are imposed on you by the broker you work for? I'd be interested in hearing about the experiences that others have been having especially those in the Memphis, TN area.

Jennifer Lee · Answer

I don't think the license limits you per say.

I'm an investor that got my license. I'm also trying to figure it all out. 
I think the key is the brokerage and what you plan to do with your license.

I like it for the MLS  access for info not necessarily for deals.
I like it for control over your own deals and nego (disclosure of course)
I like it that I can access all property on the market.

My issue is my deal with other investors that needs certain services I just can't do.
I can only be paid through my brokerage (so no finders fee etc)
My company don't provide transaction licensee service.
Although get license means residential and commercial, I need to take in-house training not available til fall!!!! And I have ppl asking about commercial (myself included)
My company has min commission and turns off investors hahaha

I was thinking about leaving my company but decided against it.

I really depends on you and your brokerage.

Gary Mariencheck · Answer

I would like to know this as well. Where and how do I go about getting licensed in TN?

Account Closed · Answer

Anson Young That's good to know. I wasn't aware that being a realtor would eliminate your ability to do subject to. I'm not sure what kind of impact that would have on me yet. I'm thinking I may just invest for a while and then decide on whether or not to license once I have a good idea of how most of my deals are getting done.

Account Closed · Answer

Thanks Jennifer Lee Has having your license had an impact on you as an investor?

Anson Young · Answer

I'm just going by my employing broker, who lets me do nearly everything else.  But I'll have to triple check.

Wayne Brooks · Answer

Anson Young I'm licensed too, and don't really look for sub 2's, and do them only when the closing needs to be right now, and I pay off any underlying debts within a couple of weeks.  But, how does having a license eliminate you from doing sub 2's.  Is there some specific state real estate licensing reg.s that prohibit it.  Or, are you referring to a Realtor organization restriction.  To me, sub 2's can be perfectly legal-or they can be structured illegally-niether one dependant on being licensed.

Anson Young · Answer

It might be state specific, maybe not, I dont know.  There are 48 other states I'm NOT licensed in, so lots of things I dont know.

Jennifer Lee · Answer

Barry Marshall and Gary Mariencheck
I realized last night, it really what you plan to do with your license.
do you need it as a tool, or to make money???

I just need it as a tool, reason I am not making $$$
is I am hanging out too much and fooling around with investors. 
I don't see a problem with that. I just flipped my project.

The commission I earned paid for my license.

My activities with the investors aren't any different from what I was doing before, but I am learning a ton more from seasoned investors.

BUT this frustrates my husband and my broker.
B/c although it's FUN and interesting..... I get the feeling that I am used/abused!

BUT I get it, investors needs to make 100 low offer, maybe 1 gets accepted.

But they are making offers with other agents too, and I only have a non-exclusive agreement with them.

IF I WERE to spend this much time, on finding regular mom/pop clients. I would be making $$$.

SO I need to find a balance.  AM I an Investor or a REALTOR???

But because I am good at what I do serving investors.... they are the only ones coming to my door thus far. hahaha

catch 22

My husband says, you don't need to be a realtor!!! just find us deals ;p

My Broker says, dump your investors, you are wasting your time ;p

Jennifer Lee · Answer

I think Anson has a point.
Now I need my husband to get involved in deals.
I think a partner, one with one without is best.

As an investor, no difference, my only limitation is I can only do 2 deals of my own where I get 100% commission a year. That is where a partner is helpful.

This would have not been an issue, but now we are capable to do multiple deals a year.

Anson Young · Answer

One major thing I cannot participate in the two states I'm licensed in: Sub 2.  Otherwise I'd say it hasnt hindered me a bit.

That said, the long term plan is for my wife to get licensed, and I'd drop mine, because sub 2 is just too good to pass up.

Real Estate License Limitations?

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