Is it worth it to get a Real Estate License??

Question

Hello everyone,I was forced to leave the country “voluntarily” 6 months ago for immigration purposes. I live in Mexico currently but my family lives in Utah. We are renting out our home and my wife and kids moved in with my in-laws. Our goal is to buy a 2nd property to also rent out and keep growing our portfolio when I get back. Are there online courses that I can take while here in Mexico and get my Real Estate License??? Would you recommend getting it if I’m new to Real Estate Investment, why or why not??Any information, suggestions, advice is greatly appreciated!!!!

Peter Mckernan · Answer

Yes, you can find a ton of different places to get your RE License online, is it worth it? Well, it truly comes down to what you want to do and how you want to do it! If you want to use it for just the knowledge you get from obtaining your license I would say no not worth it. If you are thinking about using it on a ton of deals and even becoming an agent for more cash to invest I would say yes 100%. This is the short and simple answer.

Logan McKay Zylstra · Answer

If you are just going to use your license for your transactions, it is definitely not worth it unless you are buying 5+ properties a year in my opinion, and being the buyer it doesn't cost you anything to hire a realtor.If you do it yourself instead of hiring a GOOD realtor (lots of bad ones) you are losing out on the expertise of someone who has a pulse on the market and knows their stuff. You learn nothing about real estate investing while doing your courses. In addition, real estate school does not teach you how to actually take a transaction from start to finish so you would have to figure that out.If that doesn't deter you, I used Stringham for my classes.

Ronald Grams · Answer

@Omar Saucedo CortesOnce you’re a licensed agent you MUST “work with” a broker. It’s not just an individual license to buy and sell real estate. With that there are monthly fee’s to your broker (besides the split of the actual commission), insurance fees, and rules you need to follow. You also have other overhead, MLS Fee’s, Realtor associations fees (if you become a Realtor), technology fees, marketing and advertising, etc. Every broker is a bit different. But let’s say you have a license. If you’re selling your own property and using your own license to market the house on the MLS. You would still need to pay your broker their percent of the transaction. Also, once you have a license doing a For Sale By Owner gets a bit tricky and varies State to State. (You could put your license and your Brokers license in jeopardy) So if you’re just doing it to buy investment properties it’s not a great idea. There’s a couple thousand dollars annually in overhead, and you don’t have full control. In addition the difference between getting a license and learning how to Real Estate is like studying the history of Boxing and then trying to get into the ring with Ali. It takes months and years to learn how to navigate through all the “stuff” of being an agent. MLS, Contracts, Addendums, technology etcTLDR: If you want to start a Real Estate Agent business, then Yes! get your license. If you want to be a Real Estate investor, then NO. Don’t waste your time or money.

Omar Saucedo Cortes · Answer

I appreciate your feedback, thank you!!

James Basile · Answer

As a licensed Real Estate Agent, I would agree with the responses so far and would not recommend getting your RE license. My PA State/National licensing material did not cover any investment real estate topics. My REI education has come from networking, education forums(BP is a great place to learn!), and experience as a full time wholesaler in Philly. Connecting with a real estate agent who has strong market knowledge and connections is much more valuable than getting licensed on your own.If you're planning on starting a career in real estate outside of being a real estate investor, getting licensed through an online vendor (I used the CE shop) is a great option.

Bruce Woodruff · Answer

This question gets asked a lot on here. The answer is a big NO. It does nothing for you. Unless you are doing RE for other people too or want to get into the industry? But as a private REI, just find your own properties or hire a Realtor, they will have a vast advantage in experience over what you can provide yourself...

Steven Foster Wilson · Answer

I became an agent because I love finding deals, I enjoy running the numbers, I enjoy helping people get to their goals, and it brings me joy everyday to wake up and go to work. If you are just going to do it for your deals probably not worth it. I think you have to look at what are your strengths and how can you use that in RE? Is this something you want to do long term or is it just for this session until you get enough passive income? There are so many different ways to go about RE, I recommend you find a mentor that is doing what you want to do.

Will Fraser · Answer

Agreed all around here @Omar Saucedo Cortes. What you can gain through team-work with pros FAR exceeds the percentage you'll save on a few transaction. Actually, flip it around and think of it like this: the amount of money you can use to incentivize and pay (largely at no additional cost to you) pros that will work with you is a power play!

Hunter Gibson · Answer

I would agree with Logan, real estate agents provide so much value especially when you find one that is investing as well. They can help you out along the way as well. also, you do not understand all of the hidden fees as a real estate professional as well. In the State of Utah, you have to pay fees for the MLS and NAR which is over $2,000 a year.