Real Estate license: Helpful for investing out of state?

Real Estate license: Helpful for investing out of state?

Petaluma, CA · Member since 2017 · 106 posts · 86 votes

Two years ago I started this journey of educating myself to prepare for out of state real estate investing (I'm near my 4th closed property via Turnkey in Indianapolis...within weeks of that).

Now I'm formulating my plan for taking more of this process into my own hands. But along the way, about a year ago, I signed up for a class at the Junior College near where I live to get a formal weekly basis of knowledge on Real Estate Principles, and now this semester, Fundamentals. The idea was less about becoming an Agent (which is largely what these classes prepare you for) and more about simply surrounding myself with a more traditional educational basis of knowledge on the industry at large, not to mention meeting people in class on a weekly basis, and all that comes with this kind of educational approach.

In the end, I'll likely be prepared enough to take the CalBRE Real Estate exam to get my license. If I've already gone through this much education, I might as well, right?

My question is: How useful is having that license for investing out of state? Sure, it'll be a California license, but I'll have access to the MLS and that's nationwide so that's a good thing... What other benefits might I see from having this license that I can apply directly to my goals of BRRRRing my own properties out of state? I'm not entirely interested in becoming an Agent. (I have a terrific day job) But that doesn't mean I shouldn't get the license. Right?

The license was never my goal. Education was. But if I've come this far, it makes sense to just do it. Right?

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Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y

The main line of reasoning is to be a investor not an agent be one or the other.  Opinions will vary 

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  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Jason Howell:

    Two years ago I started this journey of educating myself to prepare for out of state real estate investing (I'm near my 4th closed property via Turnkey in Indianapolis...within weeks of that).

    Now I'm formulating my plan for taking more of this process into my own hands. But along the way, about a year ago, I signed up for a class at the Junior College near where I live to get a formal weekly basis of knowledge on Real Estate Principles, and now this semester, Fundamentals. The idea was less about becoming an Agent (which is largely what these classes prepare you for) and more about simply surrounding myself with a more traditional educational basis of knowledge on the industry at large, not to mention meeting people in class on a weekly basis, and all that comes with this kind of educational approach.

    In the end, I'll likely be prepared enough to take the CalBRE Real Estate exam to get my license. If I've already gone through this much education, I might as well, right?

    My question is: How useful is having that license for investing out of state? Sure, it'll be a California license, but I'll have access to the MLS and that's nationwide so that's a good thing... What other benefits might I see from having this license that I can apply directly to my goals of BRRRRing my own properties out of state? I'm not entirely interested in becoming an Agent. (I have a terrific day job) But that doesn't mean I shouldn't get the license. Right?

    The license was never my goal. Education was. But if I've come this far, it makes sense to just do it. Right?

    The MLS isn't nationwide. MLS's aren't even statewide actually. They are incredibly regional. All in all I'd say a California Real Estate License will only do you any good if you intend on selling some California Real Estate.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    I know there are various opinions on this topic but personally I think being an investor and an agent do not help you at all. If you have a contractor background that would be helpful but I would t want to be an agent and investor unless you do serious volume as far as purchasing, and it sounds like you don’t
  • Petaluma, CA · Member since 2017 · 106 posts · 86 votes
    8y

    Thank you! That was clearly an assumption on my part. We hear everyone talking about "the" MLS. I just assumed the MLS to be something that Agents had access to equally across the US.

    Honestly, not get the license saves me a lot of time and headache so this answer makes me happy. :)

  • Petaluma, CA · Member since 2017 · 106 posts · 86 votes
    8y
    Originally posted by @Caleb Heimsoth:

    I know there are various opinions on this topic but personally I think being an investor and an agent do not help you at all. If you have a contractor background that would be helpful but I would t want to be an agent and investor unless you do serious volume as far as purchasing, and it sounds like you don’t

    No contractor background. I've met serious investors who are licensed and who don't actively sell as an agent. Why would they have this license if its not of any extra use in this process? I suppose this is something I should ask them directly.

    Thank you!

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    The main line of reasoning is to be a investor not an agent be one or the other.  Opinions will vary 

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    8y
    Originally posted by @Jason Howell:
    Originally posted by @Caleb Heimsoth:

    I know there are various opinions on this topic but personally I think being an investor and an agent do not help you at all. If you have a contractor background that would be helpful but I would t want to be an agent and investor unless you do serious volume as far as purchasing, and it sounds like you don’t

    No contractor background. I've met serious investors who are licensed and who don't actively sell as an agent. Why would they have this license if its not of any extra use in this process? I suppose this is something I should ask them directly.

    Thank you!

    A license in the state you live in & are investing in is incredibly valuable for an investor. Searching the MLS daily, putting in offers & being paid commission for buying your own properties are all great things. It's just irrelevant if the licensee lives & is licensed in California & buying in another state.

  • Real Estate Agent · Richardson, TX · Member since 2014 · 511 posts · 161 votes
    8y

    @Jason Howell Well, in this market it is extremely tough to find good deals in the MLS. Saving you 2.5-3% on the buy side will help you save a ton of money in the long run, assuming you're doing some decent volume.

    If you have a solid team of realtors who can put in offers in a timely manner and send you accurate comps, you probably won't need it. I really don't think it helps that much to have a license but it certainly doesn't hurt. 

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