Advantages of Continuing Education

Every couple of years I have to head off to complete my “continuing education” in order to keep my Real Estate license.  It’s hard to believe it’s been 25 years already since I’ve become a Realtor but I realize many other professionals have to do continuing education as well; whether you’re an attorney, accountant, etc.  Even though we all tend to complain about it when we have to go, I think about all the advantages that being licensed has done for me over the years.

                  First and foremost today the biggest advantage is taxes.  Being a licensed Realtor is the only profession in the IRS tax code where you can offset earned income with unlimited Real Estate losses, not the normal limit of just $25,000 like everyone else.  For me this has been HUGE, especially lately. Many of us have had our share of losses from the real estate boom that went bust. Recently I went through a three year IRS audit, and all they were concerned about was that I could prove that I was actively involved as a real estate practitioner so that I was truly entitled to take these losses.  There was never a time that I was more glad to be a licensed agent.

                  Second, I’ve had a big advantage when purchasing a lot of notes in the area when trying to get a good handle on (FMV) Fair Market Value.  Access to the MLS or TREND (Multiple Listing System) has proved to be extremely valuable and is more accurate than most desk top appraisals.  The reason it makes you more money is because you can find a gem in a pool of notes, if there are any local notes I could get a more accurate value than a note seller would’ve thought it was worth. 

                  The third biggest advantage has been all the knowledge that I’ve obtained as well as savings when buying and selling my own Real Estate portfolio, not to mention my commercial deals that I’ve done over the years.  I don’t have to pay commission on my own deals! I’ve bought over 50 properties in my life and think of all the commissions I’ve saved, literally hundreds of thousands of dollars plus like the pool buying, I’ve found estates, REO’s, administrators, expired listings, etc.  Knowing how the retail real estate world operates is very valuable when liquidating a property that’s been taken back through foreclosure.  And let’s not forget the most valuable thing I’ve gained through all this knowledge, the ability to buy properties the best way affords me time.  Time is the most valuable asset of all and without it I wouldn’t have been able to live my dream at PPR and all the ways of working the notes business.

                  So as I gripe to get up early on my Saturday morning or to go late after work to continue on in my Real Estate education, I remind myself of all the positive advantages of being licensed have really meant to me.

                  How’s your continuing education going?