Whole sale : Should i get my real estate agent license first?

13 Replies

I came across a facebook page on real estate investing & it caught my attention to where i spent 6 hrs watching videos & reading about it . i am in the process of buying my real estate agent license , will that help me ? since i have 0 knowledge about real estate ? 

all the information is overwhelming ! where do i begin ? 

@Vanessa Chavez No. A license will make it legal for you to buy/sell/lease property on behalf of other people for a commission. And you might get a little bit of education on how to fill out a representation agreement and how the licensing laws effect you.

But you won't learn anything about how to market or prospect for leads, negotiation, sales, or how to run a business. You have to either learn that on your own, or find a brokerage that will train you.

Having a real estate license may very well restrict your abilities to wholesale.  The Division of Real Estate in my state is taking a good look at wholesaling right now, and word around the campfire is they are looking really close at licensees who also wholesale.

@Vanessa Chavez a license can be helpful for real estate investing but it is not necessary. I was an agent and I gave it up. I did not like all the strict rules that often didn't make sense or apply to my situation. I am an out of the box thinker. The realtor organization doesn't like that. 

If you search and read some threads here you will see a lot of viewpoints. 

@Doug Pretorius is right you are not going to learn much if anything about investing by being an agent.  Most agents do not understand investing and what it takes to make a  good deal.  You will get a good foundation in real estate law which can be helpful.

okay thank you for all your replies ! the one advantage ive heard about getting the license is having acces to the MLS ? i just feel skeptical to beginning something i have 0 knowledge on , i dont understand where i get the contracts from or how to make the best contract ...how to make it the best legal way to where i cant be sued or any of that other stuff... SO MANY QUESTIONS I HAVE . I am 20 yrs old & unfortunately dont have that pre knowledge from family or friends & doing this on my own & its overwhelming

Hey Vanessa, I know this is a small thing but you can get a lot of contracts from the BP site under the tools tab! I'm 21 and have gotten almost all my knowledge from the podcasts here and by listening to 4/5 podcasts on wholesaling it would give you a solid base and start moving you in the right direction.

Originally posted by @Wes Short :

Hey Vanessa, I know this is a small thing but you can get a lot of contracts from the BP site under the tools tab! I'm 21 and have gotten almost all my knowledge from the podcasts here and by listening to 4/5 podcasts on wholesaling it would give you a solid base and start moving you in the right direction.

Thank you , im on it . Do you recommend any in depth step by step podcasts or forums on bigger pockets that could help me out ? everywhere ive read its simple step by step & as a newbie i would like something in depth

@Vanessa Chavez . If you truly want to do wholesaling, I suggest you don't get a real estate license, as it will set you up potentially for some legal issues or at minimum some RE Ethics violations. 
Contrary to many of the so-called "Gurus", wholesaling, In my opinion, is not something an inexperienced person should engage in. There are too many pitfalls for you personally, and lots of wholesalers end up defaulting on the deal when they don't produce an end buyer.    

@Vanessa Chavez Wholesalers do not get their deals from the MLS. They get their deals by contacting home owners directly. If the home owner is receptive, they chat about selling the home, and possibly get it under contract. The contract would be supplied by the wholesaler from a number of places such as an attorney who drew up a RE sales contract template (so there are just blanks to fill out so it can be used over and over) to a really simple RE sales form they picked up from Staples.

@Vanessa Chavez . I commend your intentions to learn the wholesaling Business "Right"! 

Unfortunately many don't - they end up messing over Sellers, can't / won't close on the deal if they can't find an end Buyer. 

Wholesaling, IMO, is one of the toughest avenues of RE to succeed in. 

yes im willing to do it right , im just figuring out looking for the best in depth forums , podcasts & books im not in a rush at all to just throw myself into shortcuts & anything , want to avoid as many mistakes as i can  . its more confusing to me about all the contracts & forms , the assignment contracts & etc i have analysis paralysis lol 

Hey Vanessa, the shortest path to success in wholesaling is to get a mentor, or partner with someone who is actually successfully doing wholesale deals. Many folks who are not doing wholesaling will deter you from doing it before you even get started. There are many different ways to become successful in real estate and wholesaling is absolutely one of them when done right. 

I wouldn't recommend getting a license unless you are looking to primarily become an agent/broker. If you want to become an investor, just start being an investor. I was license for 5+ years hoping it would get me closer to becoming an investor. Once I actually started wholesaling, I ran circles around every agent I worked with previously in just my first year of investing. 

Now I've surrendered my license back to the real estate commission, as I could write a book on all the investing restrictions that were being thrown at me for being an agent. Not just from wholesaling and lease options, but owning and managing my own properties even if they are in my companies' names. 

If you want to chat further just send me a personal message. I'd be willing to help you out as much as I can on being compliant, and focused on the things that will get you to the goal.