Licensed or non-licensed?

Question

I think it might be a good idea to get a license as a real estate investor? I mean if someone is serious about investing, why not?

-feedback please, would like to know if I am wrong and the reason?

Gerardo Dominguez · Answer

@Seth Thompson I think it's a great tool to have.  However, before you decide to get it, make sure you have a good understanding of all that it entails.  The cost alone is worth taking pause.  Let alone the time investment to get licensed.  As with anything else, there are pros and cons.  I would strongly suggest you write them down (pros and cons) so you can better determine if it's worth it to you.  I did the same thing and it ultimately made more sense for me to get my license.  Good luck in your investing  either way!

Richard C. · Answer

@Seth Thompson  If you are fairly serious about your investing and doing 1-2 deals per year, I would consider getting your RE license.  When I initially obtained my license it was all about having access to the MLS to find deals.

However there is so much more:

1.  Access to the MLS. (I can search daily or 3x / day if I like).

2.  Access to an improved network of RE professionals which often times leads to deals. (Agents like talking to agents. Agents don't always like talking to investors:)

3.  Credibility as an investor to other investors, RE agents, Appraisers, Inspectors, Lenders. (Can help smooth transactional issues that come up).

4.  The ability to make offers and list property instantly without having to rely on someone else to do so for you  (24 hours is about the time period that many deals worth making in CA are sold).

5.  Transaction costs savings on commissions.

6.  The ability to do retail transactions.   With no marketing or intention, I began doing transactions for my family and friends.   Doing retail transactions on the side has not only sharpened my investing, it has provided some additional revenue as well when I'm not actively making personal deals.

There are many other benefits, but these top the list for me.

It has helped me immensely.

Mike Koprowski · Answer

Hey @Seth Thompson,

Currently thinking about the same thing, well, there wasn't much thinking involved, the answer seems pretty obvious to me.

My partner and I each have our "own" agents that we have used in the past, we figured "Hey, two is better than one!"  So when one agent is busy we can rely on the other.

Well, between vacations, golf league, school plays, dance class and other scheduling conflicts we are still waiting 3,4,5 days to get in to see a property.  This hasn't cost us a deal YET, but I can see that someday it probably will.

Initially, we just want the quick access to the properties as well as the MLS.  I would opt to hand the commissions to my broker and let her deal with the paperwork and red tape while I focus on what is more profitable.

They seem to ask that question a lot on the BP Podcast and I don't think one guest has said "Yea, it was a bad idea for me to get my RE license."  Goals really seem to be the factor though, if your a slow and steady type of investor buying one property a year, the $$ might not make sense.  If your into fix and flipping as well as multiple buy and holds per year, yea go for it.  Worst case scenario you have a license that you don't actively use, but you'll still have the access to the MLS that is packed full of data that us non-licensed people don't get, so when your ready to pull the trigger your are as ready as you'll ever be.

Here in Massachusetts we can take the course over two weekends to get the required hours, so that will be my approach.

Also in Massachusetts it is illegal to charge a prospective tenant a fee for a background/credit check unless.........wait for it......your a licensed agent.

I say go for it!

Eric H. · Answer

Great morning @Seth Thompson,

It ultimately depends on your goals. Having a license can be expensive and a liability. A liability because you are held to higher standards by the real estate commission in your jurisdiction, just more red tape - disclosure, agency, paperwork..... And if you happen to trip over the red tape there could be consequences. I have my license solely for the purpose of gaining access to mls, making offers, and being able to see properties without having to wait on an agent. I am not a 'retail' agent so I stay clear of most of the red tape. My broker is well versed and understands the law well so he keeps me out of trouble too. Definitely interview a few brokers and share with them your goals to make sure you find a good fit. There are plenty of investors in the BP community that do quite well without one.

Happy investing!

Peace!!

Robert Burns · Answer

I've been an investor for about 8 years and have done relatively well but I'm going to get my real estate license so I can take advantage of leads that now I pass up and make money in so many ways that I can't as just an investor. For instance my marketing brings in a lot of calls from sellers who want retail or very close to retail price for their property and therefore are not investor property prospects. If I had a real estate license I could immediately shift gears into listing mode and get a listing contract and work to find a buyer for their property which I could not do as just an investor. I also can get fees for referrals, collect buyer's agent fees. Also a huge benefit is having complete and constant access to the MLS.

Filipe Pereira · Answer

Hey @Seth Thompson I found myself in a very similar situation going back and forth between doing it and not doing it. I ultimately chose to get my License in Massachusetts and am having it reciprocated down to Connecticut. I needed it primarily for the property management work I will be doing, but am also looking forward to commission savings and making a few sales happen for folks.

I would recommend it!

Licensed or non-licensed?

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