Should a RE Investor Get A Real Estate License

Question

I'm a RE investor in Ohio with a small portfolio currently but looking to grow.  I would appreciate any feedback on 2 questions:

1) Does it makes sense for investors to obtain a RE license?  I'm leaning toward obtaining a license so I don't have to rely on other Realtors/Agents for showings, etc.

2) For Ohio residents, any suggestions on the best way (or most efficient) to go thru the entire process of getting a license?

Thanks for any suggestions/feedback.

Account Closed · Answer

I find that Not being an agent gives me more resources and leverage than if I was tied to a broker. I see no real advantage to being a real estate agent and I've been buying houses for quite a while. Saving a few bucks by becoming an agent is an illusion. Now, if you like the camaraderie of an office, and spending your time telling jokes at the water cooler, then it may be a good fit but you won't be making any money. If you are a busy agent, you don't have time for the office. It all depends on your goals.

Aimee Parker · Answer

Hi Todd,

Have a license in Ohio does take some time and $$.   Fitting the required classes into a schedule can be tricky, whether you choose in-person or online classes.  You have to find a Broker to sponsor for the state test, and then to host your license, and they can be a wide variety of expense/fees/requirements etc.  Some require you to belong to the National, Ohio and their local board of Realtors, which can be costly per year.  I have some great friends that now own a "virtual" brokerage, which really cuts down on fees/meetings/requirements for office space etc".  They are very successful (husband and wife team) that now have 60 agents under their wings.  I could put you in touch with them to get some better info.  They've been in the business about as long as I have (since 1997 or so).  It can be a big plus to have the MLS access, e-Key and lockbox access for viewing properties, etc.  I can offer help with title searches and closings throughout Ohio, and we can do e-signing where "in-person" isn't necessary.  A great option due to busy schedules, out of town/state investors, and the virus paranoia!  Let me know if I can help.  If you can swing the schedule and initial class fees, as well as the "pay to play" annual costs, it can be worth it, vs. relying on an agent to get you what you want as fast as  you want it. Keep in mind there are continuing ed requirements and post licensing courses required to maintain your license in Ohio.  You could utilize an agent from another area for help/access if you are looking to purchase outside of your MLS area, or in some cases have the option to just pay for MLS access in a particular area.  good luck!  (I have been licensed since 2003, but have my license on deposit being in the title side of the business now).

Evan Polaski · Answer

Hi @Todd Gutekunst, as an investor in Cincinnati with my license, I am town if it was all worth it.  It helps when you can get into properties at the drop of a hat, since I am guessing you are like me and mostly buying vacant houses.  Has no value on this end if you have to schedule and be approved.

I have also found value in being able to waive my commission by acting as my own agent.  There is $0 effect to my purchase price, but it can yield several thousand to seller, which can put my offer above others.

I went through Hondros online.  Fairly simple, but it is a continual pain in the butt with continuing ed requirements, monthly fees, you have to disclose that you are a realtor and if not directly owner/purchaser that you have a financial stake in the entity, etc.  Nothing that can't be overcome, but depending on what other hats you wear in your life, it might not be worth it.

For the MLS stuff that others mentioned, any realtor can get you setup with alerts and schedule them to daily, weekly, immediately, etc, so there is no real advantage there.  Starone lets you setup your own daily alerts without going through an agent.

Remington Lyman · Answer

I am a high performing agent and I spend most of my time at my office. I try to spend all day brokering and talking to clients. I guess that is the difference between residential agents and investor agents.

Christopher Brainard · Answer

It sounds like the issue is that you have the wrong agent or don't bring sufficient business to him to demand attention. The right agent that is properly compensated will drop what they are doing and be there for you.

-Christopher

Todd Gutekunst · Answer

Thanks for the responses.  Really the key/only reason I'd like to get my license is to be able to react faster to see properties that go on the market.  The market is so hot right now, by the time I coordinate with my agent to setup a showing with the seller's agent, oftentimes the property is already pending.  But my thought is if I had a license, i could immediately schedule a showing for myself and be able to react faster in this market we're in today.  Does that make sense?

Thanks

Christopher Brainard · Answer

It can make sense, depending on what your investment strategy is and how many properties you buy a year. Expect to pay several thousand dollars a year to maintain your license and more marketing your business if you intend to use it for retail purposes. The only real advantage would be to cash in on buyer's commission and avoid the seller listing fee, however, most brokers still charge a flat fee minimum for transactions. Typically, you can negotiate a better price, if you aren't using an agent, as  the bottom line is what matters for most sellers, so it is hard to quantify the exact benefit when buying. For us, we needed to be transacting at least $500k a year to make it worth it - Your mileage may vary.

On a side note, MLS access can be obtained without a license through third party agents and if you're serious about investing, you should obtain it.

-Christopher

Steve Morris · Answer

Does it makes sense for investors to obtain a RE license?

One big advantage is IF you get a place to hang your license and they have access is access to the MLS service.  They usually limit those to licensed agents and there is a fee paid to keep it up.

You can use it for automated search/notification since a good deal doesn't last long.

Should a RE Investor Get A Real Estate License

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