As an investor, is a license worth it simply for the MLS?

Question

I've read much of the discussions/articles on here regarding the benefits of obtaining your real estate license as an investor. I have one question:

Would it, more likely than not, be worth it to get a license just to have the advantage of the MLS?  My thinking that if it leads to 1-3 purchases a year, then that's worth it. Having no access myself, I just wasn't sure how likely it is to find deals on there as opposed to the other ways I'm finding them as discussed on this site.

Appreciate any info!

Zach Hawrot · Answer

Thank you for all the great input -- @Jonathan Greene summed up exactly where I am at. For my position, it's not so much the commission saved/made on the 2-3 sales, it's the possibility that I will add 2-3 properties as an investor that I wouldn't have found without the help from the MLS.

I still have another full-time business, so all of this would just be to stay closer to the pulse on the area.

Arsen Atanasovski · Answer

Depends how much your RE agent will like to do services for you? Anytime you see a off market deal you can comp it right away! You find a market deal you may contact seller agent on the spot and talk agent to agent also receive % off any on market deal if your interested in negotiating with the seller agent. Also door codes are sent to you in seconds after requests you may requests at anytime any day and be there conveniently with your GC....... just a few things that makes your life easier but again if you have a close friend or family that is willing to do all that then no point of getting a license .

Brian Mollo · Answer

Yes, it does seem investors fall into the 'pro-license' side, or the 'why would I need it?' side. I personally find it very useful. While Redfin/Zillow, etc. have become more robust, they have limited information when digging deeper relative to the actual MLS. I don't necessarily use the MLS to source deals in my competitive market, but it is very useful to look up an off-market property's historical listing(s), access tax records, and it will give you a much better snapshot of comps. Additionally those comps will sometimes have 'agent only' comments in the listings, that help you understand the story of it, thus giving you a clearer picture of the subject property and make you more accurate your analysis. Early on I had occasionally listed my own flips and sometimes wrote up the offer on the front end to put the commission into the deal. Also, if there is a realtor association lockbox on a property that is pre-market, I also don't have to have someone show me in. And being part of the Association will give you access to Realtors to source deals for you, as 'one of them'. I do think the positives far outweigh the negatives. The cost is relatively minimal over the course of the year and to obtain one isn't that hard. I'm not sure the argument against it really, although I've heard some elude to the fact that having a license holds them to a higher standard or may interfere with their investor/wholesaler activity... I'm not sure what State they reside in, but if you always disclose your license (and actually do operate with integrity) I'm not sure I understand the counter-argument, or the repercussions of doing both activities.  Good luck, Zach!

Jonathan Greene · Answer

I don't think it matters if you want to do business or not, the MLS is invaluable to investors. You can see all the vacant homes you want on one weekend day. You can run real comps and understand what is selling where so your ARVs will be better for flips. And the most unsung part for all the investors who don't think they will use it is - what do you do when all of your friends start wanting to buy their first home? Or your friends also want to invest? You help them because you are their friend, you do a good job for someone you know (so they are hopefully less annoying than a random market buyer), and you get paid. Just join a brokerage with low fees that will let you do x amount of personal deals per year. If you fall into a couple deals for friends, it is free (although the work is never easy) money.

Suzy Sevier · Answer

@Zach Hawrot Another great questions to ask yourself is how much you want to work in your business? Is there something else that you would do in your business instead of looking for deals? It all depends how much you would utilize the license and how much you use your current agent.

Max T. · Answer

@Zach Hawrot

It depends on how much those 2-3 sales are for. It’s a pretty easy math problem. Compare your commissions from those transactions to the costs of maintaining your license.

Paul Shannon · Answer

These are good points and why I think it's worth it, as specially if you are getting familiarized with your local  market.  If you don't plan to sell for others, make sure you find a shop to hang your license that's no frills.  If you go to a major brokerage, you're going to get a lot of sales meetings, optional trainings, ra ra leadership, etc. etc.

Zach Hawrot · Answer

Thank you very much for your input. My main occupation is the entertainment industry, which is shut off from the virus, so trying to put this time to good use, which is why I'm weighing this situation from the perspective of an investor.

As an investor, is a license worth it simply for the MLS?

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