REI wannabe - should I get a real estate license?

Question

Hi! Looking for some advice here. Long story short: I've been living abroad and will soon be returning to the US, with no job or career but with some cash (hopefully, over $100,000) that I want to invest in real estate. I was thinking that getting a real-estate license might be a good way for me to learn more about the business, face (and hopefully overcome) my fear of sales and networking, and provide me with a job.

Is there any reason that I shouldn't do this?

Kyle H. · Answer

Hi Julia Rowling .  Welcome back :)  Can you elaborate more on what you are trying to define with "conflict of interest".  Do you mean is there a conflict of interest between having your real estate license and investing in real estate?  Thank you.

Julia Rowling · Answer

Thanks, Marcia, for the input.  My idea in getting a real estate license was more to kill two birds, so to speak, in that I don't have a job or profession in the US and I thought that this might be a way to get some income so that getting loans would be easier (as I'd really like to try to leverage my money) and sort of get the inside scoop on properties coming onto the market in my area.

Marcia Maynard · Answer

Be clear in your goals. Keep the end in mind. Do the work. First define what type of real estate investing/work you want to do. You can get the education you need by networking, learning from Bigger Pockets, learning from folks at your local REI group, reading good books, finding good information on the internet and attending workshops/conferences. You don't need to start out by paying a guru, so beware of the peddlers. You don't need to get a license now to learn the business, but if you plan to practice in certain arenas of real estate, a license would be required at that juncture. So take some time now to listen to the podcasts, read the blogs, and read the forums on BP.... then mark your course.

Jennifer Lee · Answer

im having the conflict of interest issues right now too.

My brokerage will let me buy my own stuff at 100% commission 2xs a year. But if and only if its my deal

I buy via LLC. So I was told that doesn't count. Fine print..I know.  (I'm not in investor friendly firm...another story for another day). So I bought it a project unrepresented (brokerage not happy, but.....anyways)

I got into an arguement with my partner last night. Bc he wants me to FSBO it after we renov it.. And I was hoping I can List it to generate business..... Unresolved.... To be continued.

Anyways, as agent the conflict of interest is not an issue in listing. I had no problems selling flip I listed. Just disclose I'm owner and agent, or landlord and agent.. Surprisingly well received by public.

My arguement with my business partner. Is he doesnt see the benefit of my brokerage, if I am capable of doing it all on my own (cut out middle man).

We listed our commercial lease via my brokerage for my quota (new agent, required mentoring of 2 commercial deals). But my tenant came from my signs and not from the firm.. And the brokerage ended up with getting a fee for no assistance. Bc I was capabke of doing it all myself. Before I was an agent I already bought, rent and sold a commercial retail space.  Needles to say I'm leasing the next space by owner.

So yeah, it depend on your contract with brokerage.

Also being Realtor does not equal education to be investor.

I have been investing since 2001. Only got my license bc I can't find an agent like me, and my agent normally do nothing bc I do my research and have my act together and buy cash. They just need to prepare the offer , get it accepted and show up at closing....

Sorry if this isn't much help, I don't have answers yet.

Julia Rowling · Answer

Hi Kyle - Yes, that is exactly what I meant.  Someone on some forum somewhere said something about having issues investing because he was a realtor... It seemed odd to me, but I'd hate to go out and get a real estate license, only to discover later that it causes me trouble in becoming an investor!

Also, I'd just like to find out if there are other investors out there that have gone the realtor route and whether it's a worthwhile way to get better educated.

Thanks!

Julia Rowling · Answer

Thank you, Jonathan - I'll check that information out.  (I'll be in Greenville, SC, btw)... I was mainly concerned with any conflict of interest issues that might exist...

Jonathan Quintanilla · Answer

Well it all depends on the state that you're in, each state has a different process for licensing agents. I would say look into that first, get the fee chart and see how long it will take before you start making money.