Real Estate License - Worth it?

Question

I was listening to a REI podcast and he mentioned how investing in real estate and doing flips without a license is like not having an essential part of your toolkit. I've never considered getting my license but I am wondering if it would be worth doing, would love to hear any insight for or against this idea.

Priyanka Verma · Answer

When a real estate license can be worth it:- Access to MLS: Huge if you're sourcing deals yourself. You get data faster and more detailed than Zillow or Redfin.- Saving on commissions: If you're flipping or buying multiple properties a year, saving 2–3% as a buyer's agent adds up.- Networking: Being licensed helps you build relationships with other agents, wholesalers, contractors, etc.- Side income: You can earn referral fees or occasional commissions if you're active.But it’s not always necessary:- Disclosure rules: Licensed agents have more legal responsibilities you must disclose you're an agent, even when negotiating your own deals.- Costs/time: Classes, exams, continuing education, brokerage fees — it’s not free or passive.- Not helpful if you're passive: If you're working with agents already and not sourcing your own deals, the license might not bring much ROI.

Mohammed Rahman · Answer

Totally valid question, especially in NYC where having the right tools (and people) makes all the difference. Getting your real estate license can definitely give you more control—you’ll have direct access to the MLS, you can run your own comps, and potentially save or earn commission on deals. It can also open doors to off-market opportunities just by being around agents and brokerages more often.

But on the flip side, it comes with responsibility. You’ll need to hang your license with a broker, there’s ongoing CE requirements, and there are legal/ethical boundaries that come into play once you’re licensed (especially when buying for yourself). Some investors prefer to stay unlicensed so they can move more freely and just build strong agent relationships instead.

If you’re already active or planning to go all in on flips and buy/sell regularly, it could be worth it. If you're more passive or time is tight, linking with a good agent might be a better move. Just depends on how hands-on you want to be.

Ned Carey · Answer

@Molly Paprota You will get lots of opinions on this. It is a personal choice and there is no right answer for everybody.

My perspective:

* I was an agent but I am no longer. The cost/benefit wasn't there for me. I move 20-50 properties a year.

* You don't save a penny on commission as an agent. You work for that commission you are supposedly saving

* If the work of selling a property is a more valuable use of your time than flipping, or whatever else you do, then stop flipping and just become an agent.

* If flipping is a better use of your time don't waste it on being an agent, even for your own deal.

A big exception to what I said above is you need a way to comp properties. One of the best ways is to have access to the MLS. Being an agent gives you that.  I have access to the MLS by being an assistant to an agent.

Stuart Udis · Answer

You are likely still paying the buyer agent a commission. There’s real estate agents who get licensed and then there are real estate agents who are true professionals. If you hire a true professional, your property should outperform your own representation by more than the 2-3% in commission savings. Particularly when you account for the expenses and time you can devote elsewhere.  Getting your license for educational purposes or to help learn markets due to access the license provides could be worthwhile depending on the individual but rarely for someone just starting out trying to save on commissions.

Marcus Auerbach · Answer

You would probably not hire yourself aka an agent with no experience. If you get licensed, you have to get to 24+ deals per year to get good. Most agents are 0-6 deals per year and don't know what they are doing.

Bryce Jamison · Answer

For me it's about where you are financially and how many properties you're buying / selling and their commission a year.

I got my license last year and for all my continued education, brokerage dues, MLS fees and Realtor association dues it's about $2,400 a year. Where I am in my life $2,400 isn't life changing, so worst case it's is an expensive hobby...

But I closed on home as a buyer agent earlier in the year, so that will pay for the next 2 years. To my second point, if you're earning commission on at least one property every year it probably more than covers your expenses.

The reason I got my license is because I didn't want 2 people who only get paid if the buyer and seller make a deal talking privately to each other about the negotiation. I've already found out agents are 100% saying things I'm sure their clients wouldn't want them to in order to get deals done.

Real Estate License - Worth it?

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