REI with a license. Pros and cons

[Daniel Gorman]

I am trying to decide whether it is better to have a license or not to in the state of North Carolina when it comes to investing in real-estate. Is it limiting? Do I have to share with my brokerage firm?

What do you think?

I am leaning towards becoming a full time agent, but I know my ultimate goal is to grow my investment real-estate portfolio and to donthat full time in the long run.

[Kevin Sobilo]

@Daniel Gorman, lots of agents invest in real estate. So, there is no inherent issues with doing that.

However, I do think wholesaling with a real estate license should be avoided. Technically wholesaling isn't investing in real estate per se. I think a lot of brokers would have concern or even disallow their agents to wholesale because its too easy to run afoul of their obligations as an agent.

With other investment strategies you would not be "sharing" with your broker. However, if you are acting as your own agent to buy or sell your own investment properties you would be splitting any associated commissions with your broker just like any other transaction, but the broker isn't getting a cut of your investment profits.

Only become a fulltime real estate agent if you are sure. It takes a lot to get rolling to where you make a living. A lot of agents do it part time. Only a small percentage do it as their primary source of income in my experience.