Would you recommend becoming a realtor to start RE investing

Question

Would you recommend getting your real estate license before starting to invest in properties? What are the advantages and disadvantages of doing this?

Mark Williams · Answer

Hi Brett,

Obtaining a real estate license before venturing into property investment offers several distinct advantages. It equips you with an in-depth knowledge of your local real estate market, grants access to the Multiple Listing Service (MLS) for efficient property searches, and provides a network of industry professionals for collaboration. Additionally, you'll gain valuable negotiation skills, potentially save on commissions, and enhance your credibility within the industry. Your understanding of real estate law and ethics can help navigate legal complexities, and the flexibility to balance a real estate career with investing can open up diverse income opportunities. However, it's essential to consider the time and commitment required for licensing, the associated costs, adherence to strict regulations and ethics, and the potential for conflicts of interest in your dual roles as a realtor and investor. Weighing these factors against your long-term investment strategy is crucial in making an informed decision.

Patricia Steiner · Answer

I don't recommend it. First, the real estate course and exam doesn't teach you anything regarding investing - and not much about real estate either. The knowledge comes from 'doing' - and mentoring - which takes experience, learning, and time. It is also not a cheap date to become a realtor as you will be required to join the local, state, and national realtor associations plus the MLS - and then pay desk fees to a brokerage firm. If your goal is to be an investor, focus on that and learn the business - which includes valuation, building codes/setbacks, landlord/tenant laws, market demand and returns, construction and rehab scheduling/costs. While you can study this, it's not the best way to learn. Get a mentor, take a part-time job with a subcontractor, flipper, handyman, more. And, save your money...you'll need money for not only acquisition by rehab/repairs and more. I was a real estate investor and wealth banker before I started my firm which is a private client investment firm. There is nothing in being a realtor that prepares you for jump starting an investment career. Focus on the goal. Going sideways just delays your progress and success. Just my opinion...you'll get lots more. Best.

Russell Brazil · Answer

Maintaining a real estate license costs thousands of dollars a year. And the reality is, youll never use it.

Yu Liu · Answer

I agree with both @Mark Williams and @Patricia Steiner above

Cons: costs, time, doesnt teach about investing

Pros: you can buy your own deals, access to MLS

If your main focus is to be an investor, I do not think getting your license is truly worth it. From my experience and as someone who got a real estate license, the real estate course does not teach you much about investing. I learned far more from doing the investing than the course.

Would you recommend becoming a realtor to start RE investing

Would you recommend becoming a realtor to start RE investing

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