Should I get my Colorado broker's license?

Question

Hi everyone. Should I get my realtor's license in Colorado if my intention is to fix and flip/buy and hold residential properties? I've heard both sides of the argument.
On another note, I may want to move into multi-family commercial units. Should I consider a commercial broker's license as well? I know I'm asking a lot of questions...Maybe someone could point me in the right direction?

Side note: Not sure how much this helps, but I offer 21 years electrical experience, if anyone's in need....

Bill Gulley · Answer

Well, this question has been answered at least a hundred times before, but for others. As I recall, the advice is pretty vanilla, but I'll toss out a slightly different view...

Investing is not the real estate business carried on by Realtors. Two different worlds, almost. It's investing and not paying half of a commission is what you'll usually benefit from. You'll also have access to the MLS. That's been said, the cost benefit depends on your plans.

Being a broker means you'll have additional expenses usually. Many states require an office, phone, hours of operation being posted, insurance, bonding, a business sign and escrow accounts. IMO, it takes some sales to pay for that and the education requirements. 
You can hang your license with another broker as a broker-agent and avoid those costs.

IMO, the costs and continuing requirements, office meetings and all that goes on really doesn't enhance investing, but the education does.

If you know alot of people and are good with the public, sales as a Realtor can be a great business.

Other than that, we can't make your plans, but I do suggest getting the schooling, it's where every investor should begin, IMO. :)

Stephanie Dupuis · Answer

I've decided to get my license (WA state). I'm currently studying for the exam ad part way through. Really glad I'm doing this for several reasons.

1. The course material is great. This will enhance your investing in itself. We're motivated for different reasons than the typical agent and I feel I'm learning the content differently.

2. Access to properties.

3. Expenses to maintain license are considered high here. I am also paying high upkeep expenses in my current field (which I expect my j.o.b. to go away in the next 2-5 yrs, maybe sooner). And my current field pays very poorly (I want to make more so I can invest faster), and I'm needing to work more and more for less and less. I've been successful in RE so far (I've been very cautious and slow, perhaps too much so). That, combined with poor-quality competition in our area for the most part with agents (I've been watching this closely for 12 yrs.) makes me consider the possibility of utilizing my RE license full time. I'll sell properties to the average homeowner for commission - I'll know what's on the market b/c I'll have been to the properties already, and hustle to get listings. And, if I use my license for investing only, I'll recoup expenses on one property per year (depending on where I hang my license). It's worth it.

4. MLS access. This is like pulling teeth here. I want it fast and when I want it.

5. Arms-length deals. My RE agent colleagues say they are doing these. I need to learn if they are allowed. If so, I want in. I hear they are not allowed on REOs, but on other properties? well, lots to learn.

Mark Ferguson · Answer

Anson Young, I agree.  I think there are a few bare bones companies that charge low fees to hang a license.  I haven't researched them myself. It's not just the overhead and commission you are saving, but the opportunity cost.  I have gotten many deals from MLS because I was the first to make an offer.  No way someone without a license could offer as fast as I can.

Anson Young · Answer

I dont see how it could possibly hurt your goals to have direct MLS access, go see properties whenever you want and write up your own offers.  CO license is really easy to upkeep and maintain, and not really expensive either.  I say go for it.

Grant S. · Answer

I'm in a similar boat Bryan. I have my license in Colorado but it's expired. I am seriously considering it for MLS access and so I can see the properties and make offers in a more timely fashion. The last Realtor I spoke with said she would call me the next day. It's been a week and im still waiting. I had let her know that I have money place. That blows my mind. How do people keep their business running like that? If I had already reinstated my license, I would have walked it and possibly made an offer last week. I have a full-time job and am not interested in selling real estate. I'm interested in input for everyone else on this. If you think I should do this, what do you recommend me to do in order to find a broker to hang my license with? Obviously, desk fees would be a waste of money for me.

Bryan Wood · Answer

Thanks for  the input Bill. It is greatly appreciated. I hadn't considered researching the overhead.

Should I get my Colorado broker's license?

Most Popular Reply