Should I get my RE liscense?

[Andrew Dillard]

How essential is it to have your own RE license if you are thinking of becoming a buy and hold investor?  Any drawbacks or specific advantages?

[Matt Motil]

Is it essential? no, not at all. Is its worth getting? In my opinion, definitely. There are so many synergies with being an investor and an agent, it makes sense to me to have both. For example, someone responds to a direct mail campaign asking you to buy their house. You don't think it's a good investment property to either buy and hold or buy and flip. If you're just an investor you are done with them. If you are also an agent, you can list their property and get a commission when you sell it for them. Make sense? There are more examples, but this is just one. 

[Alfredo GonzalezC]

Hi Andrew,

The RE license it is not necessary if you want to become a RE investor. 

The advantage of having it though is that it helps you when it comes to having access to the MLS to make CMA (comparable market analysis), search tax records, etc.

There is a division between people that say it is important to have and those who dont.

If I can give you my personal opinion, I rather have the license, because, even though you can add an investor friendly RE Agent to your team, that person might not be always available, so by having your license you may access the information you need at anytime.

Something to have in mind though, once you have your license and you go to see properties wearing the hat of RE investor, you have to disclose to the owner that you are both, RE Agent/Investor. 

I hope this have helped you.

Thanks,

Al

[Matt Motil]

Is it essential? no, not at all. Is its worth getting? In my opinion, definitely. There are so many synergies with being an investor and an agent, it makes sense to me to have both. For example, someone responds to a direct mail campaign asking you to buy their house. You don't think it's a good investment property to either buy and hold or buy and flip. If you're just an investor you are done with them. If you are also an agent, you can list their property and get a commission when you sell it for them. Make sense? There are more examples, but this is just one. 

[Mike Sattem]

I got my license solely for the purpose of buying my own properties, but have been able to pocket an extra $30K ish per year for the last several years helping friends and family. It's no skin off my back, and it provides some extra income, all while giving me a leg up on my investing competition. The only negative, is that I am required to notify any sellers, or potential sellers, in all of my marketing regarding my license status, which can be tricky.

[Jack Butala]

@Andrew Dillard

Great start here in BP. You should take the real estate classes according to their schedule. During the classes you can decide if you should take the test and become licensed.

The education you will get for about $500+/- is a fantastic use of your time if you are brand new.

The biggest difference between a licensed and unlicensed real estate person is liability.  You play by a different set of rules.

Investors usually do better unlicensed for a lot of reasons. 

What ever you do, don't base the decision on "access to the MLS."

Learn to find super motivated sellers with direct mail / offer campaigns and secure undervalued property so you can wholesale it to experienced buyers with cash.

"There's way more money out there than talent."

Good luck and great start.