RE license?

16 Replies

Hello All!

I just joined BP yesterday and I plan to buy my first rental property within the next 6 months. Quick question, should I get my RE license? I don't want to be an agent but I just think it couldn't hurt. Is it a waist of time and money? Thoughts, suggestions, benefits, experiences?

Thanks!

Welcome! As an investor and agent myself, I think if your goal is to be an investor - start with learning how to be an investor. Real estate school teaches nothing about that. If you want to pursue your license to help you find deals, that is great, but there is a learning curve involved in that as well. I would wait until you have a few deals under your belt and know that you want to grow your investing business before getting side tracked with the time and expense to get (and keep) your license. Opinions vary widely on this on BP - take my opinion with a grain of salt!

@Kristin Holmes If you want to sell RE get the license, if not you will end up paying $2-3k /year in dues. Unless you plan to purchase a lot of property per year and/or will buy & sell for clients I would suggest not getting your license. Find a good REI agent to work with.

I personally have my license and work as an agent part time but my goal is to sell enough properties/year to pay for dues and turn a good profit to put down on investment properties. Long term I want to be able to quit full time job and do full time RE agent work. For now my goal is to learn the trade secrets of being a RE agent, build amazing customer service, and network. The point I am making is I want to be an agent so for me it is worth getting a license. Having a license will not hurt you but you just have to make sure you are comfortable paying the dues and fees associated with being an agent and your REI covers those dues.

Best of luck :)

@Kristin Holmes Great question I was wondering about the same thing.

@Jonna Weber

@Shawn M. Thanks to both of you for the response that makes a lot of sense.

@Jonna Weber and @Shawn M. Thanks so much for the insight! I was definitely leaning toward not getting my license now especially if I don't plan on actually being an agent. I also was told that you would have disclose that information which could work against you when buying. Thanks again guys you guys have been a huge help!

My advice is the same to all newbies. If you plan to do anything at all on the MLS, then become a Realtor. The advantages are huge. 24/7/365 MLS access that you can customize to your own needs, set up and schedule your own appointments to view houses on your own schedule, savings on commissions, more knowledge, and great networking. Plus, writing your own offers is a huge advantage and time saver.

Totally agree with everything Bryan L. said.

I could not imagine being a great investor and not having your license . I have my license and I have not represented a customer in a sale of a property in years. Having full access to the MLS is so important , I use this as my primary source for finding properties and I use the tools built in the program to determine vales of all homes I look at. I could determine in two minutes if a home I see falls in my criteria of properties that I may be interested in. I don't know how else I would be able to do this .

Getting your license should not get your mind off the subject of being an investor. I think they go hand in hand. You stated you want to invest within the next six months. In some states you can get your license relatively quickly using online resources. I know there are plenty of investors that don't have a license and they are successful- true. But I would think that most investors do.

@Bryan L. and @Martin Zawarski I love hearing the pros on why i should get my license really gives me something to think about. Having MLS access would definitely be worth pit. Thanks again guys!

@Bryan L. I agree with what Bryan said. I am a relatively new investor, and I just started taking classes for my real estate license. Access to the MLS and setting your appointments is huge. I also like learning about real estate in a structured environment. I have heard a lot of pros and cons to getting your license. However, I think your investing style and personality are factors in determining if getting your license is right for you.

I vote yes on getting your license. You don't have to be an agent, rather you can hang your license with a low cost broker. Having access tot he MLS is huge, IMO.

We are just starting out too. My wife got her RE license and and it's been great so far.

I'm lost on what the cons are for getting your license. Yes there are dues and biannual testing, but why would you not want your license?

Originally posted by @Bryan L. :
My advice is the same to all newbies. If you plan to do anything at all on the MLS, then become a Realtor. The advantages are huge. 24/7/365 MLS access that you can customize to your own needs, set up and schedule your own appointments to view houses on your own schedule, savings on commissions, more knowledge, and great networking. Plus, writing your own offers is a huge advantage and time saver.

Sooo true--this is exactly why I got my license. I also wanted to immerse myself in real estate & gain as much knowledge as possible (the retail side, as well)--I feel this can only help me long term as an REI. I do agree w/ some others, though--dues can become expensive so make sure you make a return on your RE deals as much as possible.

So while having a license will any sale that you make require that you pay the brokerage a commission? Or how exactly does that work?

I am a califoria agent and the cost is only$250 for 4 years plus mls dues are about 1200 per year If you only sell 1 deal a year you more then pay for multiple years as an agent.Do you like playing baseball with your bat or do yo want to borrow one every time you are up at the plate?

When I took my first real estate investing class in 1992 my teacher said that I should never get my license because it would make it harder to buy off-market properties due to disclosure issues.    I listened to him until 2004 when I got licensed.   At that point I realized how wrong he was.    Get the license!  As other have mentioned, it makes everything easier as an investor.  It is also worth noting that real estate sales is almost risk free, requires relatively little effort and is VERY lucrative!    My advice is to find a local Keller Williams office, talk to the Team Leader there and get going!  

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