Getting realestate license a good idea?

Question

Hi All, I am rehabbing in the mid west and was looking into getting my real estate license and to become a real estate broker to add value to our rehab venture. Does anyone have experience if getting licensed will add more value to our rehabbing business, or is it not necessary to spend the time to get licensed? Thanks for your input!

Allan Smith · Answer

I have never got my license because I always wanted to stay focused on my one thing, investing in real estate. I use a flat rate broker service to list my property so I don't really pay any extra commission to anyone. For me, getting a real estate license means taking on another business model and until my other businesses are running at least 80% on their own, I can't afford to bolt on another business model. People look at it like getting their license will save them money but they are also taking on another job so I don't really agree with that. I think it does give you access to a little more information but it doesn't seem like it's worth it. I was spending so much time renovating properties, I realized that I was making most of my money as a project manager. So I got my general contractors license and now I can build houses. That also happens to be an industry that is extremely short on labor Supply, so to me that was worth it.

Eliott Elias · Answer

I believe everyone should have their RE license. Running comps will be easier, walking properties will become easier. You can leverage your services to get good deals from contractors and other people in your business

Bruce Woodruff · Answer

I tried it and found it unnecessary. In today's online world you can get virtually the same access to property info as the Realtors. Gaining entry to the property is as simple as a phone call. Unless you do a lot of deals for other people, save your money and time.....

Ray Hage · Answer

I've been a RE investor for 7 and have had my license for a few months. My only regret is not getting it sooner. It will give you more access to information, contacts and credibility. There are plenty of pros and the only cons are that you will need to pay a few bucks and some time to get and maintain the license. If you can find a good broker who understands that you don't plan to really buy and sell a lot of properties for others, then go with that broker. As David said, you can do your course online. That's how I did it here in FL (Gold Coast program) and I could study whenever I wanted and passed the RE exam on the first try. I work with a broker that understands I am an investor, though sometimes I do buy and sell for others earning commissions here and there.If you can dedicate 5-10 hours a week to taking the courses and studying, you should be able to get your license within 3-4 months. Surely things could get crazy busy from time to time so worse case, maybe 6 months. You won't regret putting that time in when you have your license.

David Leggett · Answer

Yes I would definitely do it! Especially now since you can take the classes online. The 10 hour classes on Saturdays were the worst part! Plus you can put your license under a property management company and work with some investors who will definitely need your contracting services. Finding quality contractors and giving quick and accurate estimates are some of the biggest problems investors face in this market, so you'll have a great advantage and will only get more business from it.

Nate Sanow · Answer

Being licensed has value for sure. Just know that money doesn’t come to you because you are licensed, but because you work.

Bruce Woodruff · Answer

I like what @Allan Smith said. If you're going to get any license, get a General's license. That will actually open some doors and save you some money.....But you don't really need either one to be a good successful RE investor....

Dustin Allen · Answer

@James LassakIt can be a great idea if you plan on actually buying and selling homes for other people. Probably unnecessary if it’s only to buy and sell your own unless you buy and sell a lot each year. You also need to find a Broker who doesn’t mind you doing business for your self. Some only want you to buy and sell homes for clients and earn them commissions. Check with your local board of realtors and see what the costs are to be a member. Add at least another 50% for expenses you’ll pay through your office. See how that measures up to the expected commissions you want to earn and then weigh that against the added work. Is it worth it for you?