Benefits to Having a License

[James Trautz]

Whether or not Investors should have a RE License seems to be a question getting a lot of attention these days. As both a Real Estate Agent and an Investor, let me answer by simply saying “YES.” Here’s why:

As we all know, there is no requirement to have a RE License, and in fact, there are many, Many, MANY (especially on this forum) who are extremely successful without being a RE agent, There are many benefits to having one as well. 

As Investors we rely on information – information about ARV, taxes, amount owed on a property, Repairs required, etc. If you look hard enough, you can find almost all of this information through some innovative footwork on your part, or through the web "Somewhere" at "Some Point." But that takes time and time is money. Additionally, many of the tools that new (and seasoned) investors use are the websites that EVERYBODY uses – Zillow, Trulia, Redfin, etc. While these are great tools, many have found that the information provided through these resources tend to be lumped together through the algorithms these companies use, and the most recent information (e.g., new Comps) is not always readily available. For example, if you were to go to Zillow and look at the house where I live in Plainfield IL, you would find that the Zestimate is ~$218K. However, by narrowing down my search in the MLS and by being specific in the filters I use, my home actually Comps out at ~238K (a difference of almost $20K). For us as investors the $20K delta could be the difference in whether or not we accept a deal based on the ARV - or worse, shortchanging ourselves in the amount of money we could actually earn. In short, as a Realtor I have access to the MLS which allows me to save time, more accurately determine comps, acquire tax and mortgage information not readily available approximate value to be approximately by these companies and that the information is not always updated in a timely manner. In my opinion, access to the Multiple Listing Service is GOLD, and if you yourself have it, it's even better!

Another reason I chose to get my License is because it provides both me and my Clients options. For me, it’s another stream of income, but more importantly, it provides my clients with more than just one option. In my years of selling, I’ve always believed that selling is not selling – it’s providing multiple options with a pre-determined outcome. Here’ what I mean:

When I sit down with a client, my desire is to do what’s best for them, not me. Regardless of my client’s motivation (which tells me what I need to know beforehand), I’ll typically present them a couple of different scenarios: The first, as a Realtor – giving them the information they need to see if it makes sense to List their home. If it makes sense to list their home, I’ll do so. But, what if they can’t? What if they don’t have the money they need to make the repairs necessary to sell their home? What if they need to sell NOW? What if they only have $3,000 in equity in their home, but need $11,000 to close and don’t have the cash to make up the difference? Then I talk to them as an Investor.

Zig Zigler once said, “Honesty and integrity are absolutely essential for success in life – in all areas of life.” In my business, I make sure to disclose that I am both a Real Estate Agent and an Investor. I want clients to know that I’m there to provide a service. Yes, I make money doing it, but I want them to know that my purpose is to create a win-win situation where we’re all comfortable with the outcome. But it’s THEM making the decision and THEY are the one’s doing the choosing – I’m simply providing the options.

Let me end by saying there are many more successful and seasoned Investors out there who would disagree with me. That’s fine, and I respect their opinion. But for me, I’ve found that this is what works best for me. In my opinion, there’s no downside to being an Investor with a Real Estate License. In fact, by doing both, I’ve been able to save time, be more accurate in my analysis of properties, add another stream of income that may not be available to me in certain situations, and provide multiple options to my clients. I hope this answers the question…