Should I Get my RE License for my Own Personal Use?

[Carrie Giordano]

As a bit of background, I live in Los Angeles, my investments consist of sfh in Ohio and one vacation rental here in California. Before I began investing, I got my CA real estate license (Its now expIred), signed on with an agency and did it for about a month before realizing that it wasn’t the aspect of real estate I was looking to do. While I don’t do much investing in California, two years ago I rehabbed my condo and traded up to a more expensive home. I would like to do this same sort of live in flip one or possibly two more times to eventually work myself into the neighborhood I really want to live in. With prices being so high in the area paying the 5-6% agent fee upon the sale is quite hefty. So here’s my questions: would it be worth it to obtain my license again for the sole purpose of buying and selling my own homes or is there enough value in an agent to pay the commission? And, if I do go the route of getting my license, how can I find a broker to support this type of arrangement?

[Account Closed]

@Carrie Giordano as a Real Estate Broker of 20 years, I believe it is a very bad idea to be licensed. The reasons being the moment you are a licensee you are considered an expert in the field. As a Broker, even moreso. You also are often excluded from Errors and Omissions insurance coverage on personal deals. I won't even list my own property, I have an associate list it so it gives me the maximum protection. Your duties to disclose are also much more seriously taken, although a seller ALWAYS has the obligation to disclose material defects they are aware of. Investors, wholesalers, flippers often think they can ignore all of this. I also teach Continuing Education and was a Managing Broker for almost 1200 agents. I got served the lawsuits and got all the agent questions. I've seen a lot and I can tell you that unless you are making being an agent your full time job it's extremely dangerous to do it. As far as costs, a buyer's agent is going to be paid 3% typically, closing costs are approximately 1.5-2% (in AZ) and your listing agent will make 2-3%. You can write a listing agreement that still gives you the right to sell the property yourself. This way you don't lose market time trying to get a buyer, because you are marketing through your agent and the MLS all at the same time. Being greedy is a huge mistake. A great agent on your side is a massive benefit. I've brought my investors many deals, I don't give those deals to just anyone.