Advantage of being a Real Estate Agent?

Question

It seems like it would be advantageous to get a real estate license if you are a real estate investor. Presumably, the education involved would be helpful and you would keep a little more of your profit. What are the advantages (disadvantages?) of going to the trouble and expense of becoming an agent? Is it worth it?

Sam Steadman · Answer

@Jesse Chunn

I had the same question as you. I currently have my license.

I'll try to be short and concise with my answer.

Benefits

- Better access to information A.K.A. MLS! This can be huge for finding properties and gaining comparable information for investments.

- Like you said, you keep more of your profits on the buying and selling side of a transaction!

- With a license you better understand the contingencies, contracts, and other paperwork involved in a deal

- Overall, getting your license cannot hurt b/c you gain more information about the whole process and can even help family and friends sell/buy properties if you are interested in making some extra cash!

Losses

- The class takes a good chunk of time to get.

- You have dues and expenses along with holding a license

- You have to maintain it and make sure you take CE courses to keep it active

I think that it is worth it. I am have not been doing it for 30 years so I am sure there are others with different perspectives and information, but from my experiences it has been excellent. Also, it is very affordable to get and maintain a license when you calculate how much you save from 2.7% on the buy side and 3.3% on the sell side of every transaction. Essentially, knowledge is power and I don't think it can hurt to take the courses and get licensed. If you end up hating it you can always drop it!

Jesse Chunn · Answer

@Sam Steadman

Thanks Sam! Very helpful. I hope some others will also chime in.