New investor. Should I get my own RE license?

Question

I'm almost finished reading The Book on Real Estate Investing, and I'm reading a lot of articles about the benefits of getting my own RE license.

Do you think it's worth it? What are the pros/cons?

Ryan Savage · Answer

In my opinion, it's definitely worth getting. I love having complete control and not having to deal with middleman scenarios. Also helpful for when you want to go view properties. To me, the only con is the cost of getting the license and time it takes.

Taylor Hudgins · Answer

I think it really depends on how active you are as an investor.  There are lots of fees that come with being an agent, but if you're doing 20 deals a year, then it can definitely be worth it!  If you only are purchasing once a year, then it may be worth it to wait.

Corby Goade · Answer

Totally worth it- the people who say that it's a liability are short sighted. I wish I had done it 20 years earlier. The return you get from the doors it will open for you is unlimited. Definitely do it.

Charlie Cameron · Answer

@Derek Jackson There is some excellent advice on this thread already.  I just want to add three things:

• If you think getting licensed will be a distraction from your goals, you might want to reconsider.
• On the other hand, I wouldn't let cost factor in to your decision much, if at all. You're getting your license because you intend to use it.  If I close one transaction, it pays all my expenses for 2+ years.  Hard not to justify it, especially if using it for investing (and getting 100% commission on personal transactions).
• I see that you are a full timer.  Don't let that discourage you either.  There are some models that provide total flexibility in training and support - which is what I had to seek out to be successful.

Best of luck!

Jake Kain · Answer

@Derek Jackson

It's hard to answer because it is honestly different for everyone but I will share my experience. I originally got into REI after a friend told me about BP. I went down the same path and decided that getting my license might be a good way for me to maximize my investing potential. For me, it was definitely worth it. I have save/earned thousands of additional dollars from my past 3 deals since getting my license which has helped significantly in getting started. It has been easier to understand the process and legalities. It has made networking and building a team a lot easier, and quicker! I work with other great agents who are also investors that have helped mentor me along the way! Just as @Ryan Savage stated, I like to control my own deals and run my own schedule. I have access to the MLS and setup all my own searches. As soon as something hits I hop in the car and show myself, no relying on aligning schedules with anyone else. I could go on, but those are the main ones!

There are some cons as well that I will share. Obviously the biggest is the expense to maintain your license. Yearly dues, broker fees, business expenses, CE training costs, etc can add up and if you aren't using your license enough to make it worth it. It takes time and money to keep you license active. Also, for me personally, I quit my w2 and I am now a full time Realtor. This took a lot of time away from focusing on my personal investing as I was trying to get my RE business up and going. Finding a balance to do both is still a challenge! And of course, being a licensed professional means you have more liabilities and need for disclosure. It hasn't had too much of a hindrance on me personally but I know that is a big downfall for some people. No matter how many deals you do, having a license is having your own business and running it properly takes a lot of time and effort.

All in all, I love it. I love the flexibility it gives me. I love being fully immersed in RE everyday. I really enjoy helping others buy, sell and invest. It was totally worth it for me.

New investor. Should I get my own RE license?

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