Is having a real estate license beneficial before investing?
Hi everyone! I am very new to real estate investing. The most experience is with buying a fixer upper for my first home , rehabbing it and eventually selling it. I am in the process of taking a real estate course to get my license. I'm aware that you dont need a license to invest, but wanted to know if it's worth it either way.
Most Popular Reply
Hey @Niecy Smith, good question. I think it depends...
I've been investing for a few years now. I got my license last year. It has helped me tremendously. I was working logistics for an Agricultural equipment company prior to working full time as an agent and I was always frustrated because a lot of my time was being allocated to work and my other responsibilities. I quit (I had a side business) and got my license and now I am working in real estate every day. Sure, I am spending time helping people find deals and new homes or selling their homes, but I have control of that in my schedule. I also have control of when I want to focus on investing. And I get to network and connect with a lot more people that are in the industry. That is something I could never get with my job.
The only downside I have been going through since being licensed is that I have to wait 2 years of tax returns to be lendable again through traditional financing. Have I bought since then? Yes, but through creative financing. I want to buy a new owner-occupied home. I've yet to close on a creative deal through owner financing. So I have to wait 1 more year to get conventional owner-occupied financing.
If I were to go back, I would have:
1. Set up a HELOC on my current residence before quitting. Then I'd be able to access a lot more equity to make bigger moves.
2. Worked as an agent on the side before quitting my job. You will not get many deals done but there's a big learning curve when you start (understanding laws, contracts, building your network, etc.) that you can leverage while working and receiving consistent income and then moving full time when you build up a reserve and build up your network.
I don't think getting your license takes away from investing unless you see yourself as an agent. I see myself as an investor with a license and I am doing both.
I hope that helps!