Help ! To become licensed or not ?

Question

After doing some reading on this forum and others I'm now on the fence as far as getting my real estate license.  The arguments that most people seem to make is that as an invester there is far too much liability in being licensed.  I consider my self an investor as I'm not interested in making a career out of just selling property but rather using the licensing process to gain more knowledge and have the OPTION to buy and sell for myself.

I'm looking to get some feedback on whether or not based on my business plan, I should get licensed...

In a nut shell I plan to seek out distressed properties thru various sources, (bank foreclosures, MLS, newspaper, networking, marketing, word of mouth etc etc) and then basically buy low, fix up..and sell high.  Nothing new here.

My thinking WAS that by being licensed I would have a much better working knowledge of real estate transactions, easier access to property listings, and could market myself to all sellers as a legitimate, knowledgeable professionally licensed business owner.  Not to mention the savings on realtor commissions.

But after reading some of the potential liability issues...now I wonder if I should just take the class for the knowledge and not open myself up to these risks.

Any thoughts ?

,

N/A N/A · Answer

"My thinking WAS that by being licensed I would have a much better working knowledge of real estate transactions, easier access to property listings, and could market myself to all sellers as a legitimate, knowledgeable professionally licensed business owner. Not to mention the savings on realtor commissions."

With these ideas in mind:

1) working knowledge of real estate-license really not needed

2) easier access to property listings-why become a realtor, to find deals? Deals are everywhere!

3) could market myself to all sellers as a legitimate, knowledgeable professionally licensed business owner-I got scared just reading it. The people you approach, especially when it comes to a foreclosure, will be terrified of you. They will think that you are some "smooth talker" trying to rip them off.

4) not to mention the savings on realtor commisions-sellers pay commisions to realtors, buyer don't. Buyers do their "due diligence" and research the property way before they even make an offer.

To me, it sounds like you would feel safer having a license. But, I still feel that if your not doing financial or actual realtor business, why get a license? It's not needed.

N/A N/A · Answer

Hello, Being a part of your local REI club will be your best investment. Good Luck on your endevors!

N/A N/A · Answer

Are foreclosures even listed as such on the MLS? 
I don't deal with the MLS so I would not be able to answer that. From what I know, foreclosures are listed in the city courthouse.

Will I have ANY advantage being a realtor when approaching banks to discuss or bid on forclosures? 
The banks work with buyers and investors. Being a realtor will not have any advantage.

Lastly, do you see any benefits to attending the pre-licensing course simply for the knowledge? Or might I gain the same info from reading the course book or other related publications?
These posts are very informative (and free). Courses will help but they don't teach you everything (that's why they sell you additional courses).

Basically, you will learn more by being involved with RE than reading about it. Have you considered joining a REI club in your area and networking? Now there you will learn much about your area and meet people doing RE.

N/A N/A · Answer

Hello, If you are going to be a true investor, then why do you need a license. If your going to get into the financial or realtor side of RE, then you might want a license.

I would suggest investing for awhile. Then if you find that you want to pursue other avenues of RE, go for your license. Good Luck!

N/A N/A · Answer

Thanks for the response.

I realize I don't HAVE to have my RE license - but for the reasons I mentioned I see benefits to going ahead and getting it.

I guess I should rephrase my question.  Simply put - based on the business plan I outlined above - will having my RE license be a potential liability ?

N/A N/A · Answer

Yep...looking at attending the local real estate investment club later this month.

Thanks for your time!  I appreciate the feedback.

N/A N/A · Answer

Good points.  I could see where some people may be turned off by the "appearance".   Here's a few basic questions that will really determine if I need to get licensed :

My understanding is you must be a licensed realtor and a member of NAR to subscribe to the MLS ?  I want to have direct access to the MLS myself so I can review properties on MY schedule and not rely on a realtor.

Are foreclosures even listed as such on the MLS?  I am looking to find as close to a "one stop shop" for viewing foreclosures / distressed properties instead of having to view a half dozen, or more, bank web sites.  I'm not afraid of some hard work, just trying to build the perfect beast and create a business plan where I work smart not hard.  If there is nothing to indicate that they are "foreclosures" on the MLS, then I don't need direct access and that sort of kills one of my biggest reasons for getting my license.

Will I have ANY advantage being a realtor when approaching banks to discuss or bid on forclosures?

Lastly, do you see any benefits to attending the pre-licensing course  simply for the knowledge?  Or might I gain the same info from reading the course book or other related publications?