Investors, pros/cons of getting RE license?

Question

Hello BP investors! My husband and I are starting our investing journey and I had my RE license years ago, but not as an investor. I think one of us having our license would help with finding more timely deals/contracts and we are also in a metro area that borders 2 states so the potential would be getting licensed in both states and getting a broker's license after the 2-year waiting period to avoid brokerage fees. Just one state to start though.

What are the pros and cons of this? I know the associated fees can really add up over the year ( my friend said it cost her approx. $4700/yr plus $100/mth broker fees). I don't want invest the time and money right now if it's not a big enough advantage. I'm not really interested in pursuing real estate as a career, but have kicked around the ability to do that if nothing else for family and friends and possibly helping other investors along the way. But for now, this is mostly to find deals and buy/sell our investment properties. We'll be doing flips to start, but plan to add rentals next year as well.

Thanks for your advice!

Michelle

Russell Brazil · Answer

Pros: Easier access to properties, collect commissions

Negatives: Costs, liability.

I saw a post on here recently where a part time agent wired $25k out of the country to a thief, because he wasnt aware of wire fraud schemes, which any full time agent knows about.  The thing is once you get licensed...you are 100% responsible for know everything there is to know about being an agent.  At least that guy had only gotten scammed out of his own money instead of putting a clients money at risk.