Yes I know tomes have been written on this subject and it's been hotly debated. So why am I asking? Let me explain. I've been working in corporate America for 20 years now. For the past 14 years I've been working for the same company in sales. I make 6 figures have full benefits and a new company car every few years. I have over a month in vacation due to my tenure. I have 2 boys one of which is high functioning autistic and a hubby that makes more than me. So what's the problem? After all I have a comfortable lifestyle well relatively speaking since I live in Los Angeles. Every time I look at houses I want to buy let's say Hollywood hills or Santa Monica I can't afford it. I want to vacation when and where I want. In short I'm tired of being middle class. I've done a few private money loans and have 2 outstanding. One for 130k one for 180k so I have some experience in real estate but I consider myself a student of the game not a master. I'm thinking getting my license will help me analyze deals better and get me to my goal of being a millionaire quicker. However being a listing or sellers agent doesn't appeal to me as I'm back to trading time for money. Anybody else struggle with this? I'm interested in your thoughts thanks!!
I should have titled this getting out of the middle class trap!
I'm thinking getting my license will help me analyze deals better and get me to my goal of being a millionaire quicker. However being a listing or sellers agent doesn't appeal to me as I'm back to trading time for money. Anybody else struggle with this? I'm interested in your thoughts thanks!!
Hi @Jeanette A. !
I'll chime because I've thought about this and have helped answers figure out their options. Getting your license will no doubt help you get educated about the legal aspects of real estate, especially ways to hold title, appraisal, some finance, and escrow. It will not in and of itself help you analyze deals better. That's something, in my opinion, that comes from practice and learning from others and probably doing what you are already doing which is staying engaged in your market and with the investment community - constantly looking at deals.
The investment to get your license is pretty small so that's a plus. You can take all of your classes online at http://www.alliedschools.com/ and pay for the exam/licensing fee for all under $1K. However, you're looking at thousands more per year if you want MLS access and to join the Board of Realtors.
On the pro-license side, I would say that it has helped motivate me to continue to get more and more education. I used it as a tool in the beginning to show people that I at least cared enough to get licensed.
That said, alternative finance is a major market and is especially relevant right now with marketplace lenders popping up all over the place. It seems like you've had some personal success there - why not build upon that success with your experience in the corporate world and figure out a way you can carve a piece of the pie? You've already shown quite a bit of initiative and risk mitigation / underwriting with the loans you've made. I can think of at least one new marketplace lender that I could put you in touch with to talk about how you could become involved.
There's nothing wrong with having a solid stable career and investing in real estate on the side. It affords you piece of mine and additional capital to invest in yourself and deals. Why not try and look at buying a cashflow property a little further out where it isn't so expensive?
There's just a few ideas. I'd get your license for the education, but I wouldn't look at it as your pathway to becoming a millionaire (a personal goal of mine as well). For that, I think you should continue down the road of being an entrepreneur and look at potentially building a business (or joining one as an executive) in the real estate finance sector.
I hope this helps in some way!!!
Thank you for your insight!
If you are only looking for knowledge then do everything except apply for the license. Take the courses and the test, skip the license application. Sounds like you don't have the time or need the income of an agent. Your not required to get a license after taking the courses and test.
@Jeanette A. It only helps you on protecting yourself as an agent and protecting clients, it's all legality, disclosure and etc. Doesn't help with anything else, I have been also thought of getting a license but found out the only financial help it will give me is save on commission when buying and maybe split commission in selling, it doesn't interest me. My options to grow the business is either go for larger government contracts on building, expanding to government road works, or multi family condo development. Maybe a 4-plex will be enough to start, SFH doesn't look that good, also multi mid class modular homes recently looks promising. I've done some 8 duplexes from ground, but those are concrete type houses. You might want to check the Santa Ana area, I've been invited couple times in those areas for a large scale condo, but wasn't really interested in doing it as they are too cheap.
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