Should I get a real estate license?

Question

I live in Wisconsin. I am currently taking a real estate licensing course to acquire a license. I just recently started looking into wholesaling and found out that you don't need a license in my state to wholesale. I've been told by many investors at my REIA meetup to not get a license. The course that I am taking is actually paid for my Keller Williams. I reached out to them on a job posting that they had offering to pay for the licensing course. Now I'm not sure what to do. I've been fighting myself back and forth about the decision. I heard it was highly beneficial and have great advantages to having a license while wholesaling. On the other hand, a bunch of investors at my local REIA are telling me that it's against the rules of a broker and illegal for me to be an agent and wholesale at the same time because I would be unethical and also that the broker will force me to get a cut of all assignment fees if I wholesale. Are there any way around this? Should I opt out of the course and Keller Williams altogether? Can I still go and get a license and not work for a broker but have it for credibility when I wholesale? I'm not sure what to do. If anyone can give me some great advice, I would greatly appreciate it. Thanks.

Corby Goade · Answer

The truth is, it's MUCH easier to make money as an agent than it is as a wholesaler and there's an entire industry already built to support you as a real estate agent. I don't have a problem with wholesaling when it's done ethically, but as an agent, you'd have much better access to resources and the path to getting paid is much cleaner and simpler.

If you have the work ethic and the grit to make it as a wholesaler, you could do the same as an agent with much less resistance.

As a side note- I think it's silly to say that an agent can't ethically wholesale, you certainly can. The assumption in that statement is that as a wholesaler, your goal is to rip people off and lie to them. If that's how you do business, you'll fail no matter what your strategy is.

Get the license and grind.

Good luck!

Hochi Yang · Answer

Thank you very much everyone for sharing your advice and opinions. I really appreciate the time and value you all have put into responding. I am actually finished with the course now and currently working on the Final Unit exam to get prepped for the pre-licensing exam. I came much too far to turn back so I have made the decision to go forward with it and execute. Thank you all again for your time!

Katherine Serrell · Answer

You should only become a real estate agent if you want to be a real estate agent.

I am an agent in NC but I would imagine this is universal advice...  Between brokerage restrictions, state laws, mandatory disclosures, etc it can really be a disadvantage. Additionally, you have annual fees, continuing education requirements, annual cap amounts, monthly fees, MLS fees, Realtor association fees, etc that can really add up. I originally took the course for my own personal educational benefit without the intent of becoming an agent and I found it immensely helpful. You can take the class, take the exams, and then decide whether or not you want to go through with the licensure.

Keller Williams, eXp Realty, Coldwell Banker, etc are very "corporate" and have very strict guidelines and regulations you must to adhere to with little to no flexibility which is totally fine if you want to be a real estate agent. If you still really want your license and want to wholesale, you would likely need to find a small, boutique firm that is less rigid and see what they have to say.

If everyone at your REIA is saying dont get your license... I would take the advice from people who have been around the block.

Marcus Auerbach · Answer

@Hochi Yang - wholesaling is one of the hardest things to do in the RE world! The joke is that it is being sold as "easiest way how to get started". You have to be good at so many things, not only marketing, cold calling, building trust quickly with strangers, but also understand FMV, have an extensive knowledge of construction issues and rehab cost, does not hurt to be an expert on local rents and how to underwrite deals.

Being licensed as an investor is holding you to a higher standard; you can't take advantage of "unlicensed home sellers" - in reality that means having them sign a disclosure about the profit you are going to make. I also don't think that you will learn a lot in the course that will actually help you being a better wholesaler. It's mostly legal stuff. You find out when you have your license that you don't even know how to set up a showing or present an offer - that's when the real learning starts.

Proficient agents close 24+ transactions per year. Anything less IMO is just dangerous and should not work without supervision. This is also why 85% of the new agents quit after year one, and another 80% after year two.

The way to overcome all of these challenges is focus. Pick one and become really good at it!

Eliott Elias · Answer

I believe all investors should carry their license. You get access to the MLS, can make commission on every deal you close, and can make as many offers as you’d like. If you want to wholesale, make sure you find a brokerage that allows you to do so.

Bob Stevens · Answer

you want to be a broker or an investor? If investor no, there is no benefits

January Johnson · Answer

I don't work for KW but I know a bit about them.  It takes 90 KW agents to make a franchise office viable.  They want everyone.  They have lots of technology and tools and training to help you be a successful agent, but you will also pay fees to cover those tools in addition to the cost of staying licensed (here in FL, it's about $2K a year, all in, for licensing and fees, not including anything your broker requires).  If you are willing to do/pay all of that AND you want to be an agent, then get licensed.

Branden Jordan · Answer

A RE license is simply a tool for your toolbelt. It is not illegal to wholesale while having a license. I have never heard this. It is about what is best for the client. Sometimes it is better to not put a sign in the yard as the typical RE sale goes. Maybe the seller wants something more simple and quicker. Maybe the seller can't sell on the MLS because of the poor condition. There are a million reasons to go one way or the other, but they are not in conflict with each other. You can not go around a broker if you are doing licensed business. This is the whole reason for a broker. A license gives very little "credibility" as you stated. Almost anyone can get a RE license. It is not hard. I would suggest anyone buying or selling RE to get a license.

Should I get a real estate license?

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