Newbie Post: Get a realtor license or not?

Question

Hi All-I'm pretty new to the REI world, and was wondering if getting my real estate license is a good idea? My intentions are not to become a real estate agent, but to build a portfolio of multi family rentals and short term rentals. Being completely new to this business, does getting a real estate license give you a solid foundation of knowledge? Does it save anything when purchasing deals for your own investments? As always, thanks in advance for the info!

Paige Marie · Answer

Hi Mike, I'm new to the REI world as well, but thought I'd offer my two cents. I'm finishing up classes to obtain my license in Maryland as we speak. Prior to joining Bigger Pockets, obtaining my license was a no brainer. I was happy to learn upon joining that it's something they advise as well. For me, I was thinking of: 1) Access. As an agent not only do you have first notification of what's hitting the market, but you also can enter any home rather than having to wait on your agent. I hate waiting, and in this business, time is money. You can also write your own contracts and have direct conversations with all the key people in your deal because you're not just the buyer, you are the agent. 2) Commission. Even if you aren't in the REI world, I'm told at minimum, if you buy and sell your own personal properties it will cover any membership or association fees and the class. But for those of us hoping to enter the REI world, it makes even more sense. 3) Knowledge. I like to educate myself on anything I'm considering engaging in, so learning every aspect of real estate made sense to me. As for what I've learned, it's a very broad overview, and we're told the nitty gritty comes when we pass the test and are actually in the field. Also, like you, my intentions are not to become a real estate agent, but if family or friends ask, I'd certainly assist, and in my mind, it's another revenue stream in a field I'm familiar with and enjoy! Just a few things to consider.Good Luck!

Cody L. · Answer

I got my lic when I started to lower the amount of time I had to deal with other agents (meaning I could deal with things myself).

Paige Marie · Answer

@Mike Moe So I took my class exam this evening and passed, now all that's left is the state exam and I will be a licensed real estate agent! whoop! whoop! You don't have to worry about transacting without a broker because after passing the state exam, regardless of where you are, you have to hook up with a broker. This is where the real education comes into play by way of formal classes offered thru your agency and/or actually assisting/doing the work. Gotta admit to being excited and looking forward to learning and better understanding the process so I can put my skills to use!

Mike Moe · Answer

Paige Marie congrats!! That's awesome, and you make a lot of solid points. Another question I had though- if I get my license, aren't I still limited by what I can do without a broker? It might be worth it just for the fact of getting first access to the deals, and being able to enter properties yourself, but can you transact without a broker? I don't plan on ever becoming a real estate agent full time, just thinking of getting my license to help with my investments.

Paige Marie · Answer

@Mike Moe So when I posted, I didn't realize I only have 2 classes left. YAY ME! Anywho, the class prepares you for the test. Period. Knowledge of the process of buying/selling comes after joining a firm and diving in. Can you obtain this knowledge without the latter? Probably. BP seems to have a wealth of information and folks seem eager to share, which I love. I guess it's all in what you want to do. I firmly believe no one is going to work as hard for me, but me. No one's up at 6am scouring listings for me and no one is going to stay up until 1am preparing my contracts so part of my rationale was to be hands-on with these key components and not rely on someone else. Nothing will allow you/me that except a license.

Cody L. · Answer

Access to all the contracts. Entering stuff on the MLS myself. No issues (Whatever they might be) in doing my own leasing - or having my employees do it. Back when I was doing single family it was nice being able to call the showing services to setup a viewing. Having a Supra key, etc. It's not a 'must have' or a game changer but it was helpful.

Justin Heitter · Answer

I have a similar plan. They talk about this topic almost daily on the podcast. One guy got his license so he could avoid paying $50 grand to an agent on a million dollar property he wanted to buy. I work for direct tv doing installs, and I met a guy who does tons of flips. He was using an agent and that agent became the "top producer " in our area. The flipper realized he didn't need the guy as much as e thought(he was the reason the other guys numbers were so huge). He got his license and started saving tons of money.

Dylan B. · Answer

Getting your RE license can be very helpful. I would recommending listening to the podcasts that are available from BiggerPockets, they give great insights into this topic. You will have annual fees being a realtor which is a downfall however you will have full access to the MLS which is a positive. I have used a realtor for all my deals, as long as you are buying you have no realtor fees, the seller pays the commission. I do plan on starting the coursework to obtain my RE License for the convenience factor.

Chris Grenier · Answer

Yes you should get your license, it will help you get familiar with the legalities and actual 'know-how' on how to conduct a transaction.

Mike Moe · Answer

@Cody L. I'd imagine these are things like searching the MLS and entering properties yourself? Is there any other aspects that you felt cut out the middle man of an agent?