RE License Needed to Invest in TX?

[Tasha Beal]

I have recently began looking into real estate investing, and I am a bit confused about when you need a RE license. I've heard it varies by state, but what do I need a license for in Texas? I am planning on investing in buy&hold properties, but if I want to sell it a few years down the road, would I need a license for that? 

In general, do you recommend having a RE license as a real estate investor (buy&hold and flipping in particular)? Thanks in advance!

[Cary O.]

It is not necessary to have RE license to invest in real estate, but there may be benefits in each scenario. Weigh the costs vs the benefits. 

For buy and hold, you can work with a real estate agent and the seller typically pays the 6% realtor commission fees (3% for seller's agent, 3% for buyer's agent). The buyer typically does not pay those fees. Having a RE license may be beneficial though for access to the MLS, access to "pocket listings" prior to coming onto the MLS, etc. However, would it be worth the time and money to obtain and maintain your RE license?

When it comes to selling / flipping, it will save you 3% seller's agent fees if you are the agent listing and selling the property. So, if you plan to flip many homes, then it may be worth the investment to obtain RE license.