Real estate license for wholesalers?

8 Replies

Are there any wholesalers that have their real estate license? I’m thinking about getting mine just as unlimited access to the mls and was wondering if the pros outweighed the cons in this scenario

I have a Broker's license and I've done several wholesale deals (however I don't consider myself a "wholesaler").

If the only reason you want a license is to have access to the MLS you will be going through a lot of work and effort, and spending a lot more money than you really need to. It would be a lot easier to just get a couple different agents that send you whatever you are looking for.

There are several pros to having a license, but when it comes to wholesaling, there are a substantial amount of liabilities that you take on when you have a license and you do a wholesale transaction.  So if you want to go full-speed wholesaling, having a license is likely to put a couple extra steps into your process.

If you're going to be successful in Real Estate investing, you will be successful with or without a license - wholesaling or otherwise.

You'll hear some say that it helps. Others will say that it doesn't. That's up to you. My thoughts are that at some point you may have a target on your back. Some states view wholesaling as brokering without a license. There are differing opinions on that also. Yes, you will have access to the MLS. Also, you'll have the opportunity to get a listing when a wholesale deal may not work.

@Louis Siano why do you feel you need "unlimited access to the MLS" ? As a wholesaler your buyers are looking for mainly off-market properties. If they want properties off of the MLS, they can use their agent for those properties. Investors are always looking for off-market deals, which is where you as the wholesaler give value.

I definitely would get one, if your state requires that. In the states where I do business, it is not required.

@Blair Poelman wow that’s good insight thank you very much for responding! Exactly what you said Blair... I’m not doing a bunch of wholesale deals here. Just an additional way to increase my revenue. But I was just curious if people that wholesale deals full time were getting their license as well.
@James Green thank you for responding! But I would argue that my buyers from wholesaling do not care where the deal comes from as long as the numbers make sense. I do wholesale deals on the side as an increase in my revenue but was just curious if this was something that people did.
Originally posted by @Blair Poelman :

I have a Broker's license and I've done several wholesale deals (however I don't consider myself a "wholesaler").

If the only reason you want a license is to have access to the MLS you will be going through a lot of work and effort, and spending a lot more money than you really need to. It would be a lot easier to just get a couple different agents that send you whatever you are looking for.

There are several pros to having a license, but when it comes to wholesaling, there are a substantial amount of liabilities that you take on when you have a license and you do a wholesale transaction.  So if you want to go full-speed wholesaling, having a license is likely to put a couple extra steps into your process.

If you're going to be successful in Real Estate investing, you will be successful with or without a license - wholesaling or otherwise.

 Just curious, can you list the pros of having your license as a sales associate, not a broker? I'm expecting to test for my FL's license exam in Spring and been wondering about the benefits and if I should really be pursuing this. 

I have a job that pays well and I semi-enjoy so I don't believe I'll be jumping ship to work for a broker but who knows. But if I don't, I won't have an active license. (Still learning..) But I think that disqualifies me from collecting a % on any deals I may be apart of and acting as the agent in the deal, thus saving some costs? 

@Cristian Aviles-Morales   

Brokers hold substantially higher liability on pretty much everything compared to a sales agent.  If you have a license and you want to be active, you're going to work for a broker wether you want to or not - since most states (if not all) require agents to work for a broker for some time prior to being able to work on their own as a broker. 

You are correct - if you want to earn a commission you have to have a license - and technically you are earning your broker a commission and then your broker pays you whatever the agreed upon rate between you and the broker.

The concept of saving money on costs while acting as your own agent works, but it may not be as sweet as it sounds.  There are some costs that you will save, but having a license has plenty of costs as well.

Having a license can restrict you in some ways, and in other ways it is a big benefit.   That list is too long for me to write out without you writing me a check...  but like I said previously, If you're going to be successful in Real Estate investing, you will be successful with or without a license - wholesaling or otherwise.