Good Idea: R.E License???

[Matthew Green]

Hello

I am now taking a real estate licensing course in NY in hopes of gaining an introductory knowledge about the business. Is this a good idea if my aspirations are to invest and rehab properties? And do the binding laws of being an agent hinder any RE investment practices?

[Will Barnard]

Originally posted by Mark:

there's nothing wrong with being an agent and investor. It seems that the people who aren't agents and are investors are the ones who say it's NOT recommended, but yet they don't have any substance to back up their advice either.

I never stated that there is something wrong with having a license as an investor. What I did say is that there are adbatages and disadvantages. You then proceed to claim that I and others without a re sales license do not recommend it without any substance to back it up. Not sure that is called for but here is my substance to clear the air.

Disadvantages:
1. RE sales licensees are held to a high "professional" standard and if anything goes wrong, you can be blamed as you are under a ton of disclosure laws and regulations. As ONLY an investor, I am not. This does NOT mean I act in an unethical or illegal manner so please don't go there.
2. Licensees are required to pay a lot of fees, especially here in CA. This adds to the cost of being an investor.
3. Motivated sellers may not want to speak with you as they may feel as an agent, you are only attempting to get another listing.
4. As an agent, you can't pay bird dog fees, marketing fees, etc or anything outside of a HUD 1 without risking your license. I can do all of those things and more.
5. Due to your enormous regulations associated with a sales license, you are required to use company contracts, disclosures, forms, etc and I can use them or use my own, or none at all as the case may be.

I am sure there are more, but those are some that come to mind.

Do the advantages outweigh the disadvantages? That is up to each person to determine for their specific needs and agendas. Have I missed out on 3% & 6% commissions? Of course! I would love to have them and direct access to MLS, but I have also done deals I may not have been able to with a license.