Agent or Brokers License

[Tyler Hayes]

Not sure if I am posting in the right area, so let me know if I should move this somewhere!

Currently my partner and I are looking to get into flipping/renting out a few properties. We have a construction company and a remodeling company currently, so moving to flips and rentals is what we believe to be our next step. We are a little stuck on whether I should get my brokers license, and keep everything in house, or just become an agent and hang my license somewhere. I am not planning on bringing on any other agents in the near future, and we are planning on expanding pretty quickly. If I don't get my brokers license up front and become an agent, there is a two year waiting list before I can apply and get my brokers license. Anybody have their brokers license for their investments? What benefits do you see from it? Drawbacks?

[Brandon Sturgill]

@Tyler Hayes I'm not sure how this works in Nebraska, but in Ohio you have to have been an active RE agent for 2 of the last 5 years and completed 40 transactions...you have to be qualified and an industry professional before you can broker...

California has an education "bypass" where you can substitute college credit for time in the field and experience...which is a bad idea... not good for consumers.

If you can simply walk off the street and take a brokers exam or you have another standard, I'd do it in a heartbeat...a broker and an agent are the same thing effectively...the only benefit to being a broker is having other agents hang their license with you...but you'll need to be a viable business in my opinion to make this work.

If you're just starting, having your agent's license will give you control over your deals from start to finish. If you are required to hang your license, don't do it with an institutional brokerage, because you'll get killed on fees and restrictions. Look for a small local guy who is agreeable to let you invest how you want to...if you love the industry and grow, get you brokers license later.