Should I get my license?

Should I get my license?

Member since 2017 · 27 posts · 2 votes

I should start by saying I have already taken the course and passed the state licensing exam. So naturally I feel inclined to pull the trigger since I've already invested all of that time. I live in Michigan if that makes any difference. My investment strategy looks something like this 1) Start direct mail campaign / generate website leads 2) wholesale and co-wholesale deals to start. I have a mentor that will analyze my first few deals and go in 50-50 with me if he finds buyer. 3) Once I've built some capital do some rehab deals 4) Get into buy and holds, BRRRRR Strategy / multi family

I'm sure this strategy sounds familiar to many investors out there. My question is, should I move forward with getting my real estate license? I know there are advantages and disadvantages. Some people argue having your license is an advantage to have MLS access, being able to see retail properties easily w/o an agent. If I do come across leads from my DM campaigns that would be better suited for a RE agent services, I could pursue these deals and list them instead of buy/wholesale/etc.

On the flip side I've also heard it sort of defeats the entire purpose of your business if you do both.  If you are spending time being an agent, it would take away from your investor business.  However, it seems like as long as you keep the two separate, and always disclose you're an agent there shouldn't be a problem.   Lastly, when it comes to direct mail,  if I'm a licensed agent and I'm sending out a targeted DM campaign to buy distressed properties (not list them), would I need to include my brokerage logo & info on my advertising?  I know anytime I'm advertising a property or my services as an RE agent I must do this, but curious how it works when you are marketing exclusively as an investor. 

Sorry for the long-winded post, as you can see I've been going back and forth with this for quite some time now!

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Real Estate Agent · Renton, WA · Member since 2017 · 204 posts · 151 votes
7y

I've been licensed for 15years and just stared doing wholesaling about a year ago.  For me I like the fact that I can get access to the comps, leads through expired and cancell listings and have access to preview homes to get a good indept understanding of micro markets in my area.  Also networking with other agents are great as I've sold a couple of my wholesale properties through other agents and also acquire wholesale deal as well.  Most agents don't understand wholesaling and over look the opportunity to pick up a deal themselves. 

If I find that the margins aren't there for a wholesale I'll pick it up as a traditional listing.  The disclosure to the seller that you are an agent is not an issue for most sellers, as long as you're transparent of your intentions.

It is not necessary to startout with a license and having one doesn't hurt either.  If you do get licensed you could even help friends and family buy a house while you're at it.  

Happy Investing!!

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  • Real Estate Agent · Renton, WA · Member since 2017 · 204 posts · 151 votes
    7y

    I've been licensed for 15years and just stared doing wholesaling about a year ago.  For me I like the fact that I can get access to the comps, leads through expired and cancell listings and have access to preview homes to get a good indept understanding of micro markets in my area.  Also networking with other agents are great as I've sold a couple of my wholesale properties through other agents and also acquire wholesale deal as well.  Most agents don't understand wholesaling and over look the opportunity to pick up a deal themselves. 

    If I find that the margins aren't there for a wholesale I'll pick it up as a traditional listing.  The disclosure to the seller that you are an agent is not an issue for most sellers, as long as you're transparent of your intentions.

    It is not necessary to startout with a license and having one doesn't hurt either.  If you do get licensed you could even help friends and family buy a house while you're at it.  

    Happy Investing!!

  • Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
    7y

    @Ryan Dosenberry My inclination is to suggest you go ahead and get your license.  As @Quito Keutla suggests, there are many advantages you gain from getting access to the MLS. The only major downside is that by being licensed, you are now subject to the rules and regulations of your state's licensing board, so this exposes you to more scrutiny and you have to abide by their rules.

  • Member since 2017 · 27 posts · 2 votes
    7y

    @Stanley Bronstein  Thanks Stanley.  That's what my gut is telling me also!  Just need to be extra cautious that I am following the rules & regs.

  • Member since 2017 · 27 posts · 2 votes
    7y

    @Quito Keutla  That's helpful.  I do see more advantages than disadvantages.  When you advertise your services as an investor do you disclose your licensed or include brokerage info on your advertising material?  

  • Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
    7y

    @Ryan Dosenberry My experience is that you can almost never get in trouble for disclosing you are licensed, and you can most certainly get in trouble for not disclosing it. I tend to err on the side of disclosure.

  • Investor · Farmington Hills, MI · Member since 2015 · 97 posts · 22 votes
    7y

    @Ryan Dosenberry  I was in your shoes this summer and decided to go ahead and get my RE License.  It just made sense.  I will sent you a PM and I can share with you a bit more.

  • Real Estate Agent · Renton, WA · Member since 2017 · 204 posts · 151 votes
    7y

    @Ryan Dosenberry Yes, I disclose per our licensing rules, My contracts states clearly my license and I also have a conversation with seller so its super clear.  Like @Stanley Bronstein mention you'll never get in trouble for disclosing.  

  • Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
    7y

    I'm kind of in the same boat. I passed the course and got the green light to take the exam, but taking the exam isn't a priority right now. My acquisition guy is a licensed agent so he can already provide MLS access if I need it. And if a lead is better suited for a listing, then he can list it. The core of my business is wholesales and rehabs, not listings.

    Since you already passed your test, I would just hang your license with an online broker and do the proper disclosures like the others here suggested. :]

  • Member since 2017 · 27 posts · 2 votes
    7y

    Thanks for all the advice!  Definitely leaning towards getting my license.  Just need to find the right broker. 

  • Member since 2017 · 27 posts · 2 votes
    7y
    @Pratik P. You mention online brokerage firms. Any suggestions on where to look? Assuming would still need to be Michigan-based since I live here. Thanks!
  • Flipper/Rehabber · Sacramento, CA · Member since 2016 · 807 posts · 815 votes
    7y

    @Ryan Dosenberry I heard eXp and RE-ebroker are good ones. Better commission splits but less training resources. But I don't think you would care about agent training since that's not what you want to do. 

  • Member since 2017 · 27 posts · 2 votes
    7y

    Thanks Pratik!

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