Advantages of RE License for Multi Family Investor

[MARK F.]

Hello All

Total newbie to multifamily here... green as grass and doing my homework.

Trying to find advantages (if any) to getting a state RE license considering business plan is to invest in multi-family properties.

Here's my reasoning....

Potential Advantages

- Learning nuances of RE (certainly applies to single family homes, multi family, I don't know)

- Access to MLS (once again a boon for SFH investor, I think does nothing for multi investor as these properties are not listed on MLS)

- Networking w/ other RE agents/realtors (a bonus but I think achievable w/o getting license)

- Potential to pay less commission to sellers agent on properties (this is speculation on my part, I don't know if this would apply)

Disadvantages

- Course, licensing & annual fees

From what I gather, getting a state RE license may not be the best use of time/resouces for a multi family investor although I would appreciate some viewpoints from more experienced investors.

Have a Great Day!

[Johnny P.]

Mark, I don't think getting your RE license will do you much good. I guess if you are looking to start out smaller (2-4 unit range) it may be of some help to have MLS access, but you could always just ask any realtor to pull a list of multifamily properties for you.

The RE license test is a JOKE and will be of ZERO benefit to you in multifamily.

My advise would be to check out the last 10 apartments that sold in your area and learn the deals inside and out.

Where are they, what did they sell for per unit, what are the rents, what is the unit mix, what are the taxes, what was the occupancy at the time of sale, etc. Learn the deals as if you were going to buy them, and it will give you a much better feel for your market.

I'm guessing you don't want to pay $5k to get access to CoStar... so I can pull a list of everything that sold for you, just tell me what county and price range. Hope this helps!