License vs WHolesaling

[Joshua Manning]

Hey guys, so I know that there are tons of blogs and posts on whether or not t get a license, but I just wanted some input on my personal decision on whether or not to get a license before I decide.

So right now I'm still in college and currently working part time. I just need to break out into the real estate world as soon as possible no matter how big or how small. the biggest thing holding me back rn is lack of money. (I know many people would argue this shouldn't hold me back) So I figured I could either start wholesaling, in which I would have to create a buyers list and network with other investors that I could potentially find deals for, which I would be find with, and could potentially help me out immensely in getting started with no money. The only thing is that its hard to find time to network with investors while in college. And in order to really be successful in wholesaling I would need to quit my job, and I would have to go a period of time with no money at all, which could really hurt me financially if I had to do that.

Or I could get my license which would require a lot of money input on my side, but not as much as buying a house of course. Which with me working rn would be fine. And while I'm working on getting my license I can still be working at my current job, and I wouldn't have to quit until I am being sponsored by a broker, so a much smoother transition I guess. I also figure a license would help a lot more in the long run, and would be a lot more reliable, and safe in terms of making money.

My main dilemma with getting a license is that I mainly want to be a real estate investor and not an RE agent in the long run. If I did get my license I would probably only work actively as a RE agent for about 2-3 yrs or until I save up enough money to buy my first fix/flip.  Then I would mainly want to start investing full time.

Thoughts, Ideas, advice opinions, criticism? Go!

[Kurt Charles]

Hey man, this may take you 10 minutes to read but if you are a serious person, it may help you make your decision without further research, hopefully... I'm not in college but I was faced with the same dilemma last December 2016 when I first joined BP. I wanted to get into the industry but had no idea where to start and wholesaling is a big conversation on here, so I figured without a license I could at least wholesale and make some quick cash learning from BP members. It's not so easy as they make it seem though or maybe it's just my thinking, but...

After attempting some drive around, going through dozens of properties online, offline, exploring market prices, court auctions,  talking to people, trying to learn the game, learning how to find leads, utilizing BP, going to local Real estate meet ups, etc, I quickly realized that wholesaling takes A LOT OF TIME to find one good 'right' property and the expense to find properties also adds up with marketing, gas, vehicle wear and tear, etc. Not to mention, if you not making money looking for deals, you not making money anywhere else either, because your time is wasted looking for deals, the oxymoron of it all is staggering.

It seems like the 'big wholesalers' have other people finding the properties for them and paying them an illegal unlicensed 'commission' or profit split for every property that turns into a deal for the 'wholesaler'. In Florida (at least) they are called 'bird dogs', the ones that run around the streets hustling looking for deals for the 'wholesaler'. The wholesaler is the one that takes the property, and seeks out a ready, willing and able investor from their built up 'buyer's list' to buy the property. That game is playing on a thin line using one single loophole that exists in FL Real Estate laws, but it has been debated every which way. When it comes to wholesaling, every Tom, Dick and Harry has an opinion and I couldn't get a clear answer to questions like, is it even legal, do I need a license, what can I do or not do? Should I just get a license and say f**k it?

After time on here and participating in several conversations, I realized the most 'really successful' people on BP have two things in common, they have a license or their spouse has a license, some are agents, some brokers, some mortgage bankers and some have multiple licenses, and the second thing is that they believe in high moral standards and codes of ethics when it comes to how they do Business. (I'm not saying wholesalers without a license are bad, but many are simply hustlers, scavenging desperately to pay the bills, which can lead to, 'unethical' behavior).

I started doing research from those 'investors with licenses' to discover the pros and the cons, and if it is worth it, and would it fit in with my current lifestyle to get a license. Every investor with a license said it helped them in many ways, more than one. Either way, I already decided real estate was the next direction to build wealth long term and in general, after being a 'web developer, internet marketer' for many years. I figure I could combine the two industry skills if I got into Real Estate. At least I prefer it to excessive stock market 'wishing and guessing'. It's solid for the most part and if you do it right, you can survive any financial storm and build wealth for generations. 

I saw the biggest advantage to having a license is that, in wholesaling, you have one stream of income which is 'borderline' illegal in most states. With a license however, you have multiple streams within one industry. I like that idea very much after being an entrepreneur for some time trying to produce multiple streams from different industries separate to each other. In real estate there is wholesaling, selling for others, investing for yourself, the ability to legally do Real estate business local and cross states, etc. The opportunities to produce income literally quadrupled with a license compared to being an unlicensed wholesaler who if litigated, could lose everything potentially.

So, I decided to get the license, because I figure with so much 'opinions' out there, too, it would also be a great way to learn the Real Estate laws in my state directly from the lawmakers themselves. Now, how much would it cost me I thought? And man, the 'actual' studying I would have to do... F**k, LOL...I had become comfortable and lazy with my free time, but the idea of being just a 'drive around all day type of small time wholesaler' sounded less appealing, compared to some BP 'big players' talking about their latest plane :) 

So, license it is, to start in the game at least, even if I let go the license later on as my investing skills grow, it will be valid for at least two years once I got it, so I could make cash selling and build into an investor.

Didn't have time to sit in a classroom and wanted to study at my own pace. Found an online school called 'Real Estate Express'. The 63 HR Pre Licensure Course was $200. Found a groupon on groupon.com for the school for a $100 discount. Great, got the classes signed up online for $100. Did the course. Did the necessary fingerprinting, etc. Took me all of January to study the entire course 'part time'. School gave me 6 months to study, I did it in one month online in my 'free time'. I'm 37 married with 3 kids. I have limited f**ck around' time. 

I used February to run through notes here and there allowing the info to sink in. I scheduled my FL state exams last week and did it yesterday and passed. So in 2 mths, 1 week, I got the license. Am I rolling in success now? Not yet, but now I can create a Real estate Business that generates multiple streams of income without having to do too much diversification for 'income streams'. There are so many different smaller 'niche' Business models within the Real Estate Business industry itself, it seems most logical as the avenue to build wealth for anyone and create massive retirement cash flow, especially if you start young.

As you are in college, a license could benefit you and you can build a Business that carries you for a long time if you do it right and start now. College is the perfect place to be. What do college kids do once they go into the real world? They start life. Car, house, investing, family... many of them do that at least, even single people invest in property. Who do they need? A licensed realtor, no?  Another avenue, is you can invest some of those commissions you make. As a licensed agent, you have access to the best deals in town without seeking out agents, because you are one. You can buy them for yourself without paying commissions, you can sell them to other investors, you can wholesale, you can fix and flip, buy and hold, etc, etc. Multiple streams, you can say yes to practically  any deal of any kind if it is within your means.

But, can't you do all that investing without the license? The license seals all avenues of Real Estate income, you have the ability to sell, even sell back your own fix and flip properties, saving commissions, etc. Sell properties to other investors, etc. Think about this, when you market yourself to the public, do you want to be only able to make money one way, or all ways, increasing wealth building potential?

In the end my friend,  this is a long story post, but just to end...I figure for $250 or so (Course, plus finger  printing, exam fees and license application form) then 8 weeks of studying part time at home and I have a real estate license now . Not bad in my opinion. Now I feel ready to start building my Real estate Business and already have an invite from an investor savvy Brokerage to join their team. Last December I was just dabbling with the idea, now I have a license with an 'investor mindset'. Seems, like it's a win, win, win to just focus two months and get the license either way. Should be easy for you in college, as your brain and cognitive processes are already attuned to studying?

Good luck. If you read it all the way through, I hope it makes you confident in whatever decision you make. This is your life, not a hustle. Build it right from the first time and you'll do more than anyone in your family ever did.

Best regards man.