Should you get your Real Estate License?

[Maxwell Hutchinson]

Hi everyone, I am starting my journey into becoming a real estate investor (leaning towards multi-family properties for rental cash flow). I am also a new member of this blog. I have been on the fence about getting my real estate license. I have been getting advice from friends, co-workers, etc. I feel if I do, I’ll have access to real estate software, ability to connect with more real estate investors, and learn more terminology. But i also feel that if I do get it, I won’t use it because I want to be a investor. I am curious on what this blog feels. TIA

[Daniel Utley]

It depends on what you want to get out of it.  It is a double-edged sword.  Getting your license (depending on the state curriculum) offers a non-traditional education that focuses on the transactional side of the industry.  It isn't necessary as an investor, but you will learn quite a bit about the industry (history, legal concepts, general lending education, and the industry lexicon among other things).  However, there is a cost component in regard to your personal finances and time involved in obtaining your license.  As a licensed real estate professional you will also be held to a higher standard from a legal stand point.  I was in the same boat as you, and I decided to pursue my license.  I do not regret my decision, but from start to finish it took me longer than I would have liked (due to COVID and other professional obligations).   However, my license has enabled me to generate additional income to be used as capital for investing.  It has also been beneficial from a networking stand point as I have had the opportunity to develop relationships with other real estate professionals across the industry spectrum.  The pathway you are considering is one way to skin the proverbial cat, but it is by no means a necessary course of action to be a successful real estate investor.  I would recommend you place your primary focus on educating yourself if real estate investing is your ultimate goal, and then decide if the ancillary benefits of being a licensed real estate professional are worth your time and money.  A new real estate license will not make you a successful investor.  The education you pursue and the experience you gain as you get started investing will do more to set you up for future success in investing.  YMMV.