Real estate license required?

Question

Is a real estate license a requirement when wanting to be a real estate investor?

Would it be beneficial if so ?

Kobe Xin · Answer

@Miguel Sanson

Hello! I recently got licensed, and I am an aspiring investor getting ready to start my journey of purchasing that first rental property. I chose to be licensed because I don’t have an extensive background in real estate and the networking and learning opportunities a brokerage can offer me is extremely beneficial in my opinion. My brokerage also offers me 3 personal transactions per year where I can keep 100% commission which is another plus. Also getting to your point about looking for brokers that has no desk fees, all of the larger national brokers will have desk fees to some degree, the only brokers I know of that might not charge a monthly fee is some smaller local ones. But the main thing I would suggest is to look for brokers that won’t be charging a franchise fee on top of your monthly desk fee as that can add up rather quickly. Hope I can help, and if you have any other questions I will gladly answer them to the best of my abilities.

Timothy Lewis · Answer

@Miguel Sanson I actually don't have any personal experience with virtual brokerages.  I agree with Barry, it's  something you can negotiate; however, as a new agent there are laws to follow and having a closer relationship with a broker (often comes with more fees) may be worthwhile at the beginning.

Barry Pekin · Answer

You would have to negotiate with the brokerage.  I know an investor who started her own brokerage house and she was very investor friendly.  I would probably go work with her if/when I get my license, but I don't know her terms.  I've never heard of a virtual brokerage, but if I were you, I'd start asking around.  When you go to local REI events, seek out realtors and ask them what they do.

Miguel Sanson · Answer

@Timothy Lewis

I appreciate the feed back & it seems like to me that there are both good and bad things that come when obtaining the license so I will have to keep that in mind when approaching it.

Another thing is when obtaining the license is it possible to be in real estate brokerage that doesn’t required me to pay fees such as monthly desk fees, franchise fees. Would it only be virtual brokerages that offer that?

Barry Pekin · Answer

@Miguel Sanson,

I would say it's a benefit, but you do have to do it right.

That said, I was at a REI meeting last night.  One woman talked about how she was creeping around a house trying to look inside.  (FYI, I don't recommend that!)  There was an agent there who said they wished they could do that, but their license ties their hands up way too much.  I found this a bit odd and humorous at the same time.

I still say it's a benefit.  In my opinion.

Miguel Sanson · Answer

@Barry Pekin

Thank you for the feed back !

Is a virtual brokerage the way to go if I want to shy away from the monthly desk fees, franchise fees ect. ???

Timothy Lewis · Answer

@Miguel Sanson There are many posts weighing the pros and cons on having a license. However, it is definitely not a requirement. You can benefit from saving on agent commissions and have direct access to the MLS, but a great agent is worth every cent.

If you think you want the be agent agent go ahead, otherwise, the carrying costs and required disclosures to sellers may reduce the benefits.

Real estate license required?

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