Should I get a real estate license?

[Eddie Werner]

Do you believe there is a strong advantage in having a real estate license before I go about investing in real estate myself?

[Aaron Mazzrillo]

If you are thinking of getting a license because you will learn more about real estate, don't waste your time. The licensing process teaches you nothing about investing in real estate and 1% of what you need to know about being an agent and selling property. You will get much better info taking a Principals of Real Estate course down at the local community college.

Here is what I do with my broker's license:

- Make offers on behalf of my company. When they get accepted, I send a letter to escrow stating I am crediting 100% of my commission towards the buyer's recurring and nonrecurring closings costs. This allows me to make slightly higher offers than my competitors, yet still pay less for the property.

- I list and sell my own rehabs. I can pay 3-4% commission to the selling agent. This cuts down my cost on selling. It also gives me full control of the selling process which I find is essential to getting my retails deals closed quickly and with less hassle. Furthermore, as a student of marketing, I list my properties with the best pictures and amazing descriptions detailing why buyers should be making an offer on my property. I don't trust agents who have zero marketing experience to market my 6 figure merchandise.

- Credibility - I use my license as a way of expressing my professionalism to private sellers. It works and has helped me close countless deals below what my non-licensed competitors have offered.

- Access to the MLS. Although this is fairly easy to obtain for those determined to get it, I don't want my lively hood controlled by someone else. Being licensed gives me full access.

There are a host of other advantages from being able to list my rentals in the MLS for free, to listing my neighbors houses for sale and getting paid a nice (and easy) commission.

As far as disadvantages goes, the only two I can think of are the extra expense (yearly dues and fees) and absurd continuing education requirements to maintain the license.