It’s no secret that there are some smokin’ deals to be had on the MLS right now in the form of short sales and REOs. While having your real estate license is by no means a necessity if you want to score great deals off of the MLS, there are definitely some advantages to being licensed. Following are a few of those advantages..
Having access to the MLS
I’ve been wholesaling REOs for the last two years, and I can’t imagine doing so without having access to the MLS. Aside from being able to look up comparable sales, I can also do research to find out where the investor hot-spots are, as well as find out which properties have fallen in and out of contract multiple times, and which properties are due for a price reduction (I specifically target such properties). The MLS contains a wealth of information, and is something that I rely on heavily in my day to day investing activities.
Making a Commission on Purchases
Another upside to having your license when pursuing listed properties is that in many cases you will be allowed to take a commission on the deals that you purchase. While you may elect to give your side of the commission away to the listing agent in order to sweeten your offer, it’s always nice to have the option of making a commission on top of the profit you are making on your deal.
Access to Properties
Being licensed will also allow you quick and easy access to any listed
properties you wish to get inside of and make offers on. When great deals hit the MLS, you need to be able to get into the property and have your offer on the table ASAP. If you don’t have access to the property, many times the deal will be gone before you are able to set up an appointment with a buyer’s agent to view it.
If you are a wholesaler, having access to the properties will make it much easier for you to show deals to prospective buyers once you have something under contract.
Ability to Make Your Own Offers
Finding deals on the MLS is a numbers game. You most likely are going to have to make multiple offers before you land a deal, and many agents are less than excited about submitting lots of low-ball offers to the banks. While it is certainly possible to find an agent who is willing to submit multiple offers for you, it can be an uphill battle. Having your license will allow you to circumvent this issue, as you can simply make the offers yourself and not have to worry about irritating a buyer’s agent.
Like I mentioned previously, having your license is not a necessity if you wish to pursue listed properties, but it is something you might want to consider, as there will be far fewer hoops for you to jump through as a licensed agent.