Is being a real estate agent a disadvantage for investing?

[Johnson Michael]

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.

Thanks,

Johnson

[Brian Ploszay]

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.