Do I need to become a real estate agent?

Question

Excited to begin my journey.  Just bought, rehabbed and rented my first property.  Found BP afterwards, reading and listening as much as possible.

When starting out would it be beneficial to become a real estate agent?  I feel like there is so much I don't know.

Nathan Gesner · Answer

Welcome to Biggerpockets!

This question is asked often. It could be beneficial, but you really have to analyze yourself and your goals. For most people, I don't think it's worth the expense and trouble to earn and keep a license. It takes a lot of work to stay on top of the market, understand contracts, maintain your negotiation skills, etc. You could focus on other things and use an agent as an objective third party - paid for by the Seller - to help you avoid making mistakes.

Who would you rather represent you in a court of law? A part-time hobbyist attorney that's cheap, or a professional with 20 years experience that's actively working in the field every day?

Who would you rather have install a new roof? The neighbor that's done it twice in 20 years or the professional company with a crew of six that can knock it out in two days, has 27 reviews and a 4.8-star rating, and their roof comes with a transferrable warranty?

Caleb Brown · Answer

Agree on what Nathan says. It's beneficial if you plan to pursue being an agent as a career which would help you on investing. Being an agent helps me know the market, run comps, see the trending areas, access the MLS, earn great $$$ and ultimately fast tracks me. If you would be a part time agent don't get licensed. Utilize an agent and build a relationship with a rock star.

Scott E. · Answer

Nathan offers great feedback, it's hard to add much but I'll give my 2 cents.

There are a lot of roles that exists to run a successful real estate investment company or real estate development company.

-Real estate agent

-Title company

-General contractor

-Real estate attorney

-Designer

-Engineer(s)

-Draftsman/architect

-Staging company

I have always chosen to focus on my skillset and that is finding deals, then organizing this team of people to help me execute my vision.

My opinion is that if you are a real estate investor, you should focus on being a real estate investor. Getting your license will only be a massive distraction.

Bruce Woodruff · Answer

You certainly do not need a RE license to be a successful investor...but it wouldn't hurt (if you have the time and money) to take the course just to learn all the boring stuff that a good Realtor knows. It will help you as you move forward in your journey.....

Just as important (or maybe moreso) is to learn about the construction/remodel/renovation industry as it will give you a huge edge over investors who skip this step.....

Christian Ehlers · Answer

As @Nathan G. has said that really depends. If you are willing to put the time in to learn to be a great real estate agent and help a lot of clients and build a business that will support your investing, then I think it can absolutely be a great idea and is what I did to start and still do now. You'll have the opportunity to grow a profitable business, however if you already run a business or have a 9-5 that you really would rather keep then I don't think it's necessary to get a Real estate license. Find an agent that understands investing where you are and they will grow your wealth far more than any commissions that the SELLER pays to have them help you :)

@Hollee Mills Biggerpockets, your core team (agent, lender, contractor, property manager etc) and real life experience should be more than enough to be successful.

Drew Sygit · Answer

@Hollee Mills in addition to the points from @Nathan G., there's also this - how will just getting a license help your knowledge?

1) You can still read up on everything that would be on the test.

2) Unless you're going to be in a real estate office consistently, you won't get the benefit of "picking the brains" of experienced agents and learning from them.

The only single thing you can't get around without becoming an agent is MLS access.

Sean Beksinski · Answer

Question I would ask yourself is who not how. When I bought my first property I developed a relationship with my lender and realtor. From that relationship I didn't give up until I got a opportunity in lending. Who do you know that is in real estate ? and out of those people who can refer you to a property management company? Hope these insights are helpful.

Hollee Mills · Answer

Thank you for the thought provoking answers. I am interested in getting g experience in property management or project management. I've spent 20 years in healthcare who would I get started in that?

Joseph Harris III · Answer

@Hollee Mills Being licensed as an agent/broker is not required to invest in real estate, but it does have its advantages. Since you fix and flip, you can list your own houses for sell on the MLS and get paid a commission. That would be one advantage for you. Another advantage would be if you are part of a nationwide network of agents/brokers, then you can refer business to other agents/brokers and get paid a 25% referral fee.

Carlos Ptriawan · Answer

I don't like being real estate agent after reading the real estate agent license class is almost entirely talking about law and regulation. Boring stuffs. But I buy all software tech that gives me better clue where to buy and very detailed BRRR-focused software that's even better than what Re agent has. So I invest my time more in the RE software side and not being real estate agent.

Do I need to become a real estate agent?

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