To become a Realtor or not?

Question

I've been listening to the podcast for a year while saving up 20% for a down payment for my first house.  I had a contract for two different condos at two different times but there were way too many issues with both after having it inspected.  I waitress full time because I make alot of money and really want to invest in real estate properties to rent out. I'm wondering if I should get my real estate license.  I'm not super interested in selling though, I would do it mainly for the education (along with all the books I'm reading and this podcast) as well as access to the MLS. I'm really looking for opinions from people on this site.  Thanks!

Kyle Renke · Answer

@Shannon Lydon – I'll second what @Charlie Cameron had to say.  Don't get a real estate license if only to gain MLS access or learn a bit more about real estate investing, as it's definitely a big commitment (both financially and time-wise).  That being said, becoming a real estate agent has provided me with several benefits that have helped me become a better investor and a more skilled professional:

• You gain firsthand experience in real estate while still saving money
• You learn more about negotiation and how to talk to other agents and industry professionals
• If you work with other investors, it allows you to become a better investor yourself
• You can earn extra income in addition to your W2 job, which can accelerate savings
• Working with a high-performing real estate team forces you to grow in ways you may not have grown at your W2 job

There's definitely pros and cons to both, but ultimately, it comes down to what aligns with your long term goals.

Russell Brazil · Answer

Im a full time agent who is in the top 1% of agents....and I rarely use the actual MLS.  You arnt really missing that much. All that data is essentially on other 3rd party websites that have better and more intuitive layouts, which is where Im looking at that information anyways.  The only time Im using the actual MLS, is to input my listings into it.

Charlie Cameron · Answer

@Shannon Lydon I got my license not for investing, but to do two things:

• Raise cash to trade up my current multifamily investments into larger ones
• To provide an opportunity to transition in to real estate from my day job

Look at your biggest goals and work backwards from there!  Does it help you achieve what you want or is it just an expensive and time consuming distraction?  It isn't helping me invest (I only buy bigger multis and not very often), although the knowledge and working with people aspect I find fun and interesting.

Kevin Wilson · Answer

@Shannon Lydon I bought my first REI a few months ago and finished my first Real Estate Agent course and plan on completing my second in spring so I’m kind of in the same boat. I think the information has been helpful. I feel like the more you can understand about real estate only strengthens you as an investor. That being said I agree with you on actually getting and maintaining your license if you don’t plan to sell or help people buy. The benefit I would see is the potential to get referral fees and if you are investing locally you can reduce agent fees and that is money back in your pocket. Kind of like property management some people out source it and some do it themselves, just depends on what it’s worth to you.

Shannon Lydon · Answer

Thanks for your input. That's what is stopping me. Because I'm excited about investing and not selling I know I won't follow through either.  I feel like I'm getting so much information through all the books and podcasts and going through the first few steps of attempting to buy a house along with the dreadful inspection process that I'm learning enough  Thanks again.

Nicole Heasley Beitenman · Answer

I considered it, but after doing my research on the costs, requirements, and restrictions, I decided it was not worth it as I'm not buying more than a property a year yet. I'll reconsider when my business starts scaling.

Amy Silverman · Answer

I lean towards no on getting licensed as an investor. I personally took the courses & practice exams to get my license but then didn't go thru w getting it. The info was good - but the reality of working under a broker & following all the rules/fees didn't seem worth it for me

To become a Realtor or not?

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