Should I get my real estate license?

Question

I've been considering getting my real estate license.  I am a newbie investor - working on getting my first property.  Should I get my license?  Is it helpful?  OR is it better to have a good agent on my team?

Jeff Copeland · Answer

You might consider taking the pre-licensing course, at a minimum. It's the perfect way to learn the basic real estate laws for your state, typically at a cost of only a few hundred bucks. You can then decide whether to pursue the actual license.

There are many advantages to having a license (MLS access, saving 2-3% on every deal you buy/sell, and being able to legally earn a commission come to mind), but you'll find many different trains of thought here in the forums.

Interestingly, most of the people who say it's not helpful to have a license and who harp about the disadvantages of being licensed, are not licensed and never have been (so how would they know?). And those of us who are licensed can not imagine ever going back to being unlicensed.

Sure, it may not be for everyone. But the advantages far outweigh any possible disadvantages (of which there are very few, in my opinion).

Michael Lee · Answer

@Nicolette Alger I've heard arguments made for both sides but for me, I went ahead and got my license for convenience of being able to go look at a property whenever I wanted, pull comps from MLS, etc. Other investors I know do the same thing and don't actively practice real estate as full-time agents. Maybe you can have the best of both worlds, i.e. get your license for convenience but also to network with other agents in your area who can actually represent you when you're just being an investor. Also, maybe you'll find out that you like it and can do a handful of deals a year for additional income/experience. This was my thought process and it's worked out well so far. Good luck!

Account Closed · Answer

As stated by most above there are pros and cons. My wife has her license so we have the pros mentioned above, she does however sell real estate full time.

Using a good licensed agent is just another part of an investing team, for example should you also get a contracting license or plumbing license.

There are costs and required training to maintain a license. If you have plenty of both it could be worth it.

I feel energy is best spent on the tasks you are best at.

Cara Lonsdale · Answer

Anyone who says that geting your license is a dumb move is flying blind to the opportunities that open up to you as a licensed agent.

Access to properties whenever you want to see them.

Real time access to market activity (yes, that's right!  The internet has a time delay in getting MLS info....usually a couple of days), which is crucial when you are looking for deals because by the time they hit the internet, they could already be sold by the agent with real time MLS access.

Knoweldge and experience to write and negotiate contracts (and the proper forms to use to do so).

Resources, Resources, Resources.  As an agent, you have access to title records, comps (sales, rental), tax records, marketing programs, etc.

Speaking of marketing, as an agent, you are offered discounts on specific marketing resources, web campaigns, etc.

Commission, or the ability to reduce the purchase price equal to the comission.

.....Just to name a few.......

WAY worth the cost of entry IMHO.

Jeffrey Holst · Answer

I recently got mine after being a investor for quite awhile.  I am happy I did.  I know people who think its a dumb move but there are distinct advantages particularity for a newer investor.  So on balance I would do it.

Should I get my real estate license?

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