“Should I get a real estate license?” This is a question that many investors ask themselves and ask others. The counter question to that question is “Will it benefit you to get your license?”
When you are a real estate investor that is not licensed as a real estate agent, you are able to do various things that a real estate agent would not be able to do. However, likewise, when you are a Real Estate Agent you are also able to do various tasks that a non-licensed person would not be able to do. With this being said, let’s weigh the pros and cons of being a licensed agent.
PROS AND CONS OF BECOMING LICENSED
- You will be able to gain access to the MLS.
- You will be able to work with other agents and learn useful information.
- You will gain knowledge of the industry through many forms of training.
- You will be able to be up-to-date with new rules and regulations in the Real Estate Industry.
- You will be able to gain entry to properties listed on the MLS before non-licensed individuals will be able to.
- You will be able to negotiate prices of MLS properties with other agents and non-licensed individuals.
- You will be able to negotiate with Banks.
- You will be able to post properties to the MLS.
- You will gain a percentage of each property that you help your client purchase or sell.
- You will have access to foreclosures and short sales.
- You will be able be your own agent for your own purchases and sales.
- Getting your license involves lots of studying and training that doesn’t necessarily relate to investment practices.
- You will have to pay your broker a percentage of all of your commissions.
- You will have to hold yourself at a higher regard in the public eye as an agent.
- You will not be able to list any house for sale that is not listed on the MLS to avoid paying a commission. (You will have to have someone else list it to sites such as craigslist and postlets if it is not listed on the MLS)
- A lot of time and energy is involved with being an agent.
- Your direct mail campaigns will have to be marketed as a real estate agent and not as an investor.
When it comes to investing in real estate, obtaining your real estate license could make your job easier because you will then be able to go see properties without permission from an agent, you would be able to work with an investor and give them leads of property owners that you have spoken to that did not want to list their house on the MLS (being as though you would not be able to sell their home, your investor friend would be able to and you can get a commission or fee for the lead), you will be able to have information about properties listed before the general public, and if you invest in a property, you will be able to keep the commission from either the purchasing of it and/or the sale of it. However, if you are the buyer and the seller and you sell one of our own investment properties, you will then have to give a piece of your commission to your broker for selling it through your brokerage as you would not be able to sell it any other way because of the fact that you are an agent.
If you are a non-licensed investor, there are ways to gain access to the MLS just like an agent, and like we always discuss here at Rehabber Pro, it is vital to have a real estate team, and teaming up with a licensed investor-friendly real estate agent is one of the first things that you should do. If you have a good real estate agent on your team, there really wouldn’t be a need to obtain your license unless you wanted to for your own personal reasons.
To answer the question of “Should Investors get their real estate license”, there is really no right or wrong answer. It would be a personal choice to you and if you feel that it will benefit you and your business.
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