Become an agent or not!?

Question

Russell Brazil · Answer

If you want to work as an agent, then yes become an agent. However if you merely want to get your license to assist in your own investing, I dont think it is worth the hassle unless you are doing 5 plus deals per year.

John Rogers · Answer

@Jeff Copeland has it correct...

All of us here are Realtors as well as investors.

Do the simple math...

You are both an investor and a Realtor...

You get paid commission to find yourself a property, then pay yourself for the priveledge.

As an investor you rehab... As a Realtor, you shop the property.

Once done, as a Realtor, you get a listing... if you did it correctly you also have potential buyers lined up.

You sell the property and pay yourself for the sale.

Simple...

Chase Loeb · Answer

As well thank you @Jeff Copeland

Chase Loeb · Answer

Thank you for your input @Russell Brazil

Russell Brazil · Answer

Costs, time costs, liability, increased government over site of your real estate activities.

Jeff Copeland · Answer

@Chase Loeb - I was in the same boat as you a couple of years ago, and I am a huge proponent of getting your license. It opens up a whole new source of leads/properties (MLS) and income (Commission).

In addition to having access to the MLS, and saving 3% on every purchase and sale I make, I am on track to earn six figures in gross commission income this year (independent of my own RE investments/flips and property management) - about half of which comes from working with other investors.

If you are a flipper or a buy and hold investor, then I see absolutely no reason not to get your real estate license.

But opinions will definitely vary - there are two very divided camps on this. If you are doing a lot of "wholesale" deals, then being licensed can be a risk, since licensees are held to a higher standard when dealing with the public (to "buy") and advertising properties (to "sell").

As far as the hassle and expense...let's face it: The bar for getting your real estate license is not set that high. This is not a knock on realtors (I am one!), it's a fact that the National Association of Realtors has identified itself in a report they commissioned last year.

Hope that helps!

Chase Loeb · Answer

Thank you Russell.

@Russell Brazil Are you saying until someone is doing 5 deals a year its not worth it? Is that only because of the hassle??

Would there be any other reason not to??

Become an agent or not!?

Most Popular Reply