Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
If you plan to buy multiple deals a year and want to represent yourself and have MLS lockbox access being license agent will make sense. You will save money and time by doing it yourself.
If you plan to buy 1 deal a year or less it is not worth it. There is no big advantage of being licensed if you are not doing any volume. Annual realtor fees, MLS, and lockbox access runs about $2,000 in my area.
If you think that a real estate class and being license will make you a better investor it won't you are wasting your time.
Investor · New Orleans, LA · Member since 2012 · 968 posts · 747 votes
7y
Hi @Danny Bessinger. I am both an investor and a licensed realtor in New Orleans. Personally, I think having the license makes things much easier for me as an investor and leads to more opportunities through my network and when I come across deals that just don't work as an investment I can always convert it to a listing, rather than having to refer it out. That money stays in house if you know what I mean!
Pros:
Access to MLS
Larger real estate network
More knowledge
Gives more credibility with sellers
Puts more money in your pocket
Cons:
Annual continuing education requirements
Annual dues for local, state and national
Costs associated with hanging your license with a brokerage
Held to a higher standard in a court of law
All in all, I say the license if more of an asset than a liability, but that is just my opinion...
Rental Property Investor · Brooklyn, NY · Member since 2018 · 75 posts · 31 votes
7y
i am a newbie investor who is currently taking the 75 hour course required for licensing. My reason for doing so is, i market to absentee homeowners with property in Brooklyn NY using hand written letters. They all want top dollar so until i find a deal that’s good for me i plan to list the others and receive a 25% commission when it’s sold (because i do not want to be a salesman. I am an investor) And when an end buyer needs help finding a home i can send them to someone who can help them and get a commission on that too.
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
If you plan to buy multiple deals a year and want to represent yourself and have MLS lockbox access being license agent will make sense. You will save money and time by doing it yourself.
If you plan to buy 1 deal a year or less it is not worth it. There is no big advantage of being licensed if you are not doing any volume. Annual realtor fees, MLS, and lockbox access runs about $2,000 in my area.
If you think that a real estate class and being license will make you a better investor it won't you are wasting your time.
Investor · Cincinnati, OH · Member since 2014 · 538 posts · 432 votes
7y
We keep several licensed agents in our office, but for me personally as an investor with over 1600 sales....I've never once needed it or wanted it. Many pros and cons going either way...but for me, I've never once felt limited without it!
Rental Property Investor · Oldsmar, FL · Member since 2014 · 238 posts · 61 votes
7y
Real Estate license is not needed. I would only become a Realtor if you want to do it as a career or you are buying a lot of properties or making a lot of real estate transactions. I got my real estate licenses once and did not like it. So you will have to make that decision.
If you plan to buy multiple deals a year and want to represent yourself and have MLS lockbox access being license agent will make sense. You will save money and time by doing it yourself.
If you plan to buy 1 deal a year or less it is not worth it. There is no big advantage of being licensed if you are not doing any volume. Annual realtor fees, MLS, and lockbox access runs about $2,000 in my area.
If you think that a real estate class and being license will make you a better investor it won't you are wasting your time.
100% agree. In my years of being a licensee here in Florida and the several courses I had to take for pre/post license requirements, the investor education piece is basically non-existent. I see so many Realtors put together terrible underwriting on investment properties for clients just because they never really learned how to do it.
Real Estate Agent · Annapolis, MD · Member since 2017 · 109 posts · 82 votes
7y
I agree with the points made by @Braden Smith. In my case, I got my license in between jobs, I figured it'd help me as an investor and I had the time to do it (2 weeks of online classes, another week to take the proctored exam + the state exam for MD), and then selling real estate became the new job because I really enjoy it.
That being said, if selling real estate is not for you (not even "on the side"), the license in itself for 1 transaction here or there won't do much for you. However the opportunity to affiliate with a brokerage and learn from successful agents will teach you a LOT about negotiating deals, avoiding pitfalls, etc. All of that could be really helpful for your future deals.
There are things I've learned "by doing" as a real estate agent that I would have never learned by reading online forums or watching YT videos. Every transaction is so unique!
Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
7y
This is a recurring question. Are you interested to represent buyers or sellers and get into the REI representing others? If your license is for your own benefit, the only thing you could get advantage is a substantial savings on your own deals, assuming you are buying more than one property a year, and is actually a partial payoff to you because you are not a broker, so you will have to pay someone anyways to close the deal. You will get unlimited access to the MLS, but your broker/realtor also have unlimited access.
If you are just buying and doing nothing else, then you will spend some $ on classes, licences, periodic education to keep up with licence, etc. Not for me. I buy and hold, and if I sell, is like once every four years after getting enough equity, at which point, I will hire the best to do that. If you are buying, then usually seller pays the commission (free for you).
Its all about having a good relationship as an investor with good brokers/realtors. They will work hard for you if you are serious and professional.
Real Estate Agent · Columbia, TN · Member since 2016 · 34 posts · 16 votes
7y
@Danny Bessinger
I have one, but haven't really needed it. I haven't bought any properties that I found on the MLS, and the one flip I've done so far was bought by some people who drive up to see it as it was being rehabbed. The rest of mine are rentals.
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Danny Bessinger
I’ve been an agent/investor for 3 years. It’s a balancing act between selling properties to please your broker and buying for your own interest.
I find it best to go commercial, most commercial agents understand investing and let’s be honest - it’s where the money is at. Most residential agents are too busy prancing around talking about the paint on the wall. I don’t get paid enough to care about that.
Being an agent is hard. You need to have thick skin and the determination to get up after getting kicked to the ground, everyday, for years.
On the plus side, I own properties and I’m working on acquiring more - my license helped. I’ve gained knowledge through helping others in transactions, which is hard to get. I’m able to find information on properties faster than your average investor. Thats the edge you get with your license. If you stick with it long enough you’ll start to develop your own skills to get you ahead too.