Worth getting your license to be your own agent?

Question

Does anyone find it worthwhile to get your real estate license to do your own deals?

Lisa Mejias · Answer

Hi Lindsay! Well, what's it worth to you? Personally I have chosen to get licensed to do my own deals while also having an interest in working with other newbie investors in my state find FI through real estate. I felt a deep need to have more control over my future in real estate, this is one of routes I feel has more advantages for me. I don't think it hurts to invest in yourself. I'm sure other people on here may stress the importance or value of having an experienced agent.. what it boils down to is how you want to allocate your time/energy.

Dwayne Poster · Answer

Here’s the way I look at it. If you are marketing for off market properties, how do you convert prospects that want to sell but don’t fit your needs. Do you walk away, refer them to a Realtor, or list for the comm. If you don’t plan on listing properties, don’t become a licensed Realtor, because that’s the bread and butter.

Bruce Woodruff · Answer

If you do a search, you'll find that this question gets asked about once a week. The general opinion is NO for a smaller investor. You don't need an agent or license to sell your own property...or to buy one. And the concept that the seller will deduct the 3% from the price because you are not using an agent is usually wrong. The seller will want to pocket that money. (They may however choose your deal over another because of that).

So, no you don't need a license to do your own deals. It wouldn't hurt to take the courses to gain knowledge, but other than that, no.

You also don't need a General Contrs license to run your fixer projects, you can do it as an Owner/Builder.

FWIW, I've had both...

Of course if you want to be a professional Realtor or Contractor, you should get the appropriate license....

Jonathan Soto · Answer

each person is different. would depend on your work load. if you have time to learn the market then yes.

a good investor friendly agent is priceless. there arent many out there but if you do have one then being an agent may not be needed.

it is always good to have a license  for research reasons as well.

Jill F. · Answer

Not for me. Because we are buy and hold investors, and we like groups of properties, we don't do all that many deals. We find that having an mls agent and commercial agent with good negotiation skills is the way to go. Perhaps if I was younger, I would consider it but not at this point in life. I only want to manage our own properties and I don't want to sell real estate...

David M. · Answer

@Lindsay Op de Coul

So, why do you ask?  I just saw in your profile that you are a licensed agent.

Peter Tverdov · Answer

I'm a broker. IMO you need to do AT LEAST 1 deal a year for it to be worth it or you'll be underwater on fees, dues, MLS access etc.

David M. · Answer

@Lindsay Op de Coul

Depends on your volume and if you find a friendly broker.  Aside from licensing, you will still incur some $2-$3k annually in costs to keep your license active.  Meanwhile, Broker really make their money off the backs of agents.  Traditional brokerages splits start at 50/50 for new agents.  Then there are the newer, non-traditional brands offering closer to 80/20.  Remember, there is the split between listing agent and buyer's agent, then its split again by your broker before you get any money.

If you are going to use your license and represent others, then certainly.  Otherwise, you might consider paying for a full time agent to list your properties.  If you don't work as an agent, when/where will you learn to the trade?  Certainly not from the pre-licensure course.

Certainly, its beneficial to have your license to show yourself properties that you are interested in.  Also, you have direct access to at least one MLS (NJ as 12 of them last I checked).  But, don't forget you have an annual cost to keep your license active.

As always, there are tradeoffs.  I'd be happy to chat.  good luck.

Paul Camuto · Answer

100% makes a difference. Even if you are going to do 1 deal. What about your primary residence? How much would you save not having to pay a seller listing fee. There are many other perks depending on the brokerage that you are with. What about helping friends and family as well? With KW the brokerage I am with they have a profit sharing program so you can make money even if you don't have a transaction. Being an agent and getting your license helps with supplemental income even outside of investment properties. Opens up a lot of opportunities.

Zachary Inman · Answer

Depends on the frequency of deals. If you're doing 10+ deals a year, it's certainly something to look into. However, if it's only 1-2, then it probably won't be a worthwhile time/money investment.

Also, a good agent can be a big asset in your real estate journey (and someone to delegate work to...)

Worth getting your license to be your own agent?

Most Popular Reply