Real estate license-to get or not to get...?

Question

Hi all! Looking for opinions about the pros and cons of becoming a licensed realtor...

I listened to the amazing podcast with Jay Papason and he shared some benefits of being a real estate broker (along with so much other great information!) I have been thinking about getting my license, partly because I love to learn and seek knowledge of all things real estate and partly because I think it will help me as I build my portfolio. @Brandon Turner has spoken often of starting the process of getting his license but not continuing and others in this community have shared both positive and negative comments without any real reasons, so I'm looking for opinions and the reasons that support your thinking. Thanks!

Greg H. · Answer

I am an independent Broker in Texas since 1989(Broker since 94) who primarily flips houses

PROS :

I get 3% back on any properties listed in the MLS

I can buy HUD properties 3% cheaper than a non agent can by putting $0 in the selling agent commission

I can place all the HUD bids I want and I am not dependent on someone else to meet any deadlines

I have full access to MLS. Since I purchase properties all over the state, when I get a property in another area I can join their MLS as well

I can generate lots of Lowes 10% off coupons for all my buyer/sellers ( ME)

CONS

I have to disclose I am a Broker which has NEVER been an issue

Account Closed · Answer

The most expensive way to get a Real Estate license is by marrying a realtor :)

Kim Vandermark · Answer

@Brian P.-Thanks. Sometimes it really comes down to "just do it"! Thanks for your experienced opinion.

@Aaron Montague-thank you!

@Greg  H.-thank you for your sharing your experience and opinion!

Aaron Montague · Answer

@Kim Vandermark

I see this question a fair amount here on BP.  I have my MA license and recommend getting your license.

Mathematically if you do one deal a year off the MLS, you'll recoup your costs unless you sign up with one of the seriously expensive agencies.  If the MLS doesn't have deals in your area, there is no point.  But statewide access is awesome if you invest our of your immediate vicinity.

Brian P. · Answer

Forget all the pro and con, just do it. The opinion of a broker for 50 years and a investor for 60 years. If it hadn't been a good idea I would have given up my real estate license decades ago.

Steve Vaughan · Answer

Good point, @Kim Vandermark.  If your end goal is to be a broker, possibly stand alone designated even, then yes, I would go ahead and get it.  The barrier to getting licensed is not that high.  You don't have to be a genius, nor is it that expensive.  The carrying costs, continuing ed reqs and stipulations by your agency are there, of course.  I have been begged for years to manage property for others and I wanted to be able to help them.  Quality PM is seriously lacking here.  When a designated broker/owner of a local NW agency asked me to get licensed so I could manage for her clients I looked into it.  In the end I realized managing for others isn't my thing and access to the overpriced props on the MLS here wasn't enough.  Your situation may be completely different.  Nothing much will be lost going ahead and getting licensed if it makes any sense at all for you!

Kim Vandermark · Answer

@Steve Vaughan-Thanks for sharing your thoughts and experience. Do you think that if you had pursued your license and then got your broker's license, it might have been beneficial? I see the salesperson license as a means to an end-definitely don't want to work for someone else for long!

Kim Vandermark · Answer

@Jedd Braunwarth- I totally relate to what you said about pursuing this if for no other reason than to stop asking the question! Thanks for sharing your opinion!

@Fausto Carosella-Hey, congratulations on getting your license! Investing is my primary goal, too, and I think that immersing myself in real estate, meeting others who are passionate about real estate and especially other investors will be a good thing. Good luck to you!

Steve Vaughan · Answer

I guess it depends on if the MLS will actually help you locate deals in your area. Here it's pretty much worthless and so is access to it.  All deals worth looking at are off-market.  I did everything needed to get mine except take the final test.  Did the hours of class work and sample tested in the high 90% range.  What stopped me was the fact that any clients I had (I wanted the license so I could manage for others) were the property of the agency who's wall I hung my license on.  Same would be true for listings or buyers.  You own nothing if you quit, get fired or they feel like it.  90% of the 'knowledge' gained through class time and testing was worthless to an investor.  All about sales, getting listings and esoteric laws and dates that don't often come up.  Just my $.02.  Maybe just connect with a good realtor (that unicorn I haven't been able to find in my 12 years) to get the benefits of eyes on that elusive MLS if deals actually show up there.  Good luck!

Fausto Carosella · Answer

Hey @Kim Vandermark I just got my license this month myself, and the MLS access alone is invaluable... I'm just trying to learn how to integrate wearing the investing hat with the agent hat. Investing is obviously the primary goal, but personally I would definitely like to build up some more capital behind me, I'm hoping the license will at least give me some side money.