Relator license for Investor?

Question

Hi Everyone,

I am from Ontario, Canada and was wondering if there is a benefit to getting a Real Estate License for an investor?

I am fairly new to REI but am interested in potentially getting a realtor's license if there is a benefit.

Any input is appreciated!

Thanks,

Quinton

Daniel Massicotte · Answer

It really comes down to money and strategy. I could write a whole book on it. Remember to factor buying and selling, also taxes... Getting 2% on a $1M purchase price is great... but then there's taxes you need to factor in. You may already be in the highest income tax bracket. On the other hand you can work with an agent and put a ton of $ in their pocket in exchange for other benefits.

Hai Loc · Answer

If its strictly investing then I would advise to go to a smaller brokerage that does not charge royalties and large monthly fees that will eat you alive like Royal Lepage Remax etc.. Crea and Orea Fees are already hefty. Also decide soon because the rules are changing on how the course structures are in Ontario.

Quin Green · Answer

Thanks Everyone :)

Jordan Moorhead · Answer

@Quin Green I don’t think it’s an advantage. Having a great agent is but having to do all the work of an agent along with all the responsibilities of the investor don’t make it worth it in my opinion. I would spend your time and effort learning how to be a better investor. I’ve sold my own duplex as an agent and bought with other agents while being an agent. Having a great agent and not having to do the work makes it so much easier.

Josh Bakhshi · Answer

Quin,Welcome to the world of Real Estate Investing. There are three main advantages of having your license as an investor.1- You get the commissions and referral fees. Do enough deals and they add up.2- You get access to the properties easier w/o having to wait for your agent to show you (on properties that are listed)3- You can make as many offers as you want at your time. Again, you don't have to wait for someone and feel like you are a bother.And other than having to take a stupid class, pass a dumb test and pay your broker to hold your license, you don't lose anything.

Michael Bartley · Answer

I will say it depends on your business model. I am in investor/ agent licensed in GA and AL and I see the benefits for my business model. It boils down to what is the best use of your time. Each circumstance will be different and you will (or should) ask yourself that question in each circumstance. You have 3 options on a deal essentially:-You can pay the agent commissions as an investor. Essentially paying them to do what they are good at so you can be great at what you’re great at-You can “refer” the client and listing to the agent and receive a partial fee -Or you can do the listing on your own and keep the commissionIt’s all in how you want your business to run. As mentioned earlier, as an agent you will see leads that you may not normally see as an investor. Great question!

Roy Cleeves · Answer

I would agree with @Michael Lewis Lee. I am a Realtor and an investor so I would say yes since being licensed and in the business, I see opportunities that I might not have gotten as an investor yet there is always that disclosure requirement every time you buy or sell real estate. So go with Michael's advice.

Michael Lewis Lee · Answer

Hello Quin! That subject has come up several times but I think the Agents say "yes" and the non-licensee people say "no". I was broker that as licensed in Texas. I tend to say that its education can help you as the networking opportunity. It is really if you have the time. One bad thing about is your disclosure statement can be good or bad as far as the seller goes. One good thing is about saving money on your purchases or sells. Many say its a way to make more money and others say it takes too much of your time.Even though I was a broker is about 30 years in Texas, I tend to say it is up to you. It is better to spend most of your spare time or to get a commission. You usually do not try to be Agent during sells and the an Agent do that for you when you sell. The Agents business is very competitive but their access to the MLS and typically go towards retail and you want to buy at a discount. You do not need a license to do investing.Every 2 years I had to go to school for 2 days 9 to 5. Convenience and your goals that it matters. I think it might help you be more competitive and productive and not have to get something to do investing. One they enforce this that the real estate teaching has a test in the end (in Texas) to get your attention. If you have to go back to school they usually tell you about current changes. The bottom line is being productive and to never stop the education. It depends on your time and discipline. Wherever you get the license in your state and move to another state you'll probably lose your license because those laws are state by state, I think. If you're going to stay where your at then that would probably be beneficial. If you have to leave your state then I do not think that you will need a new license but if you are moving out of your state you might lose your license. It might be too burdensome if you have regular job. I think that reading books, webinars, and events are pretty good. Beware of the Internet because there are many crooks on there trying to get you to buy something over the noise they make so do not make emotional purchases. They tend to limit things to make you purchase whatever they are selling. They usually are just good salespersons that try to get you to believe them. Good luck to you!