Looking to but and rent. Should I get a license?

Question

I'm new to REI but would like to buy a small multi family unit, maybe a duplex or quad for some extra cash flow while keeping my full time job in personal finance. Is it worth getting my agent license? I've heard it can be a boon or a hindrance (how it could be the latter, I'm unsure). If I should get it, don't I need a sponsoring broker? Who would sponsor someone that isn't actively looking to sell for them?

I'm in the southern metro of the Twin Cities, Minnesota if it matters.

Thanks!

I'm in the southern metro of the Twin Cities, Minnesota if it matters.

Thanks!

David Moore · Answer

I will try it again.  Cut out the middle man.  Thanks, @Nicole W.  You should read my blog post about 'Duplex Disaster'.  I don't know if anyone reads these, but it helps me feel better.

Nicole A. · Answer

@David Moore I do not have a license, but when I found a property that interested me and was on the market, I was able to do a few short minutes of internet searching to find the listing agent. I would contact them myself and set up an appointment to see the property. I had no realtor of my own to do that.

Eric Mayo · Answer

@KevinMilton

A couple things to consider. In your regular job in Financial Advising, are you registered? If you have a Series 6 or 7, check with your compliance department before actually getting a license or attempting to make money as an investor. As a former field compliance officer I can tell you it's better to ask for permission than ask for forgiveness. There shouldn't be any issues with investing activities but let them know before hand.

Also, in Minnesota we have a licensing option called the Limited Broker license. If you are only acting as your own agent for your own investment properties you don't have to worry about licensing classes, tests and continuing education. You can't assist anyone else in buying or selling like a regular licensed agent but you can get MLS access & as I understand, get commissions. Go to the Dept of Commerce website (http://mn.gov/commerce/licensees/Real-Estate-License/index.jsp) for more info.

Hope this helps.

Nicole A. · Answer

@David Moore I agree lots of RE agents are kinda worthless. But what do you find exhausting?....looking up the listing agent of a property you want to see? It only takes a few minutes typically from my experience.

David Moore · Answer

@Nicole W.

It can be exhausting, though.  I think I might get my license after the latest debacle with an agent.  I still haven't found even one RE agent worth their salt.

David Moore · Answer

@Kevin Milton

Good question, first of all.  I've recently purchased a multifamily (duplex), and there is some stuff to share.  First, getting your license isn't tough, and it could be worth it.  I've thought about it.  Kaplan has an online course that is very reasonable, and I know some realtors very investor friendly.  The advantage is you can call up the listing agent and see properties without going through another layer of realtor.  The downside is most of these require 24 hour notice to the tenants, so that advantage goes out the window.  There is an advantage to writing up your own PA's.  Then you are calling the listing agent, negotiating a little more directly.  And you get part of the cut.

I've prayed about it, and through that process realized I'm too busy to do it.  Let someone else do it.

The next thing to share is most realtors are not worth much, IMO.  You need someone who will really listen to you.  You need to do nearly all the work yourself, or you may get saddled with someone else's idea of a great deal.   Some bring you deals and great lenders (look up Jay Lohn in bigger pockets).  Jay will give you great deal analysis as well.  I will do a deal with Jay at some point, I believe.   i also work with a guy at Keller Williams who gives me direct access to his MLS.  I can send you his # if you are interested.  He is very good to work with....he is not impatient with investors, and actually gives me stuff like comps when I ask him for them.

Kevin Milton · Answer

Thanks everyone. This confirmed my thoughts on the matter.  If I get to a point that I'm buying often in the future then maybe I'll look into it, until then I'm likely better off without.

Travis Sperr · Answer

@Kevin Milton becoming an agent can be beneficial - but not typically for your first deal. You will need someone who can provide the proper guidance and advice to make it all come together.

Glenn McCrorey · Answer

I wouldn't bother getting a license unless you plan to be very active.  Do you really want your realtor (you)  to have zero experience?

Looking to but and rent. Should I get a license?

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