Real Estate Agent · Fremont, CA · Member since 2018 · 48 posts · 21 votes
Hi,
I was planning to get my real estate agent license before getting into investing in real estate. I spoke to an investor who advised me against it saying that it will open me up to more legal liabilities if I have a Real Estate agent license.
I am aware that if I get a Real Estate Agent license, I need to disclose it before entering into any transaction, which is perfectly fine.
Is there any other cons? I am looking at a California REA license.
It is fairly common to have your real estate license and be an investor. There are potential liabilities if you are flipping houses and wholesaling properties. Real estate agents, who work for brokerages, usually have errors and omissions insurance. Some items are excluded for investors.
It is fairly common to have your real estate license and be an investor. There are potential liabilities if you are flipping houses and wholesaling properties. Real estate agents, who work for brokerages, usually have errors and omissions insurance. Some items are excluded for investors.
@Johnson Michael it's completely okay to be a real estate agent and an investor. There are rules that have to be followed but as long as you follow them there are really no other issues. Make sure you disclose.
It is fairly common to have your real estate license and be an investor. There are potential liabilities if you are flipping houses and wholesaling properties. Real estate agents, who work for brokerages, usually have errors and omissions insurance. Some items are excluded for investors.
Thanks Brian. Yes, I was inquiring for flipping and wholesaling purposes.
Any cons would be the fees. Prerequisite courses and state license fees will be around $800. To be part of the local association will cost you around $2000 a yr. So you need to ask yourself is getting my license worth the cost and time? If you plan to do 1 deal a year I don't think its worth it. If you plan to use the license as plan B or go into real estate sales then it is.
There is also a misconception that agents have access to deals that other investors don't. Not true. I don't have a magic list of homes because I'm licensed. I do have access to off-market deals because I have built a contact list through the years. The same can be done as an unlicensed investor. Just jump in and get started without the license. You won't learn anything from the prerequisite courses that will help you invest.