Should I Get a Real Estate License?

Think long and hard before deciding how the answer the question, “Should I Get a Real Estate License?” There are definitely Pros and Cons that must be considered. Let’s begin with the biggest issues of time, money, and additional responsibility. Getting and holding a license is going to cost you in every one of these categories.

Before you ask, “Should I get a real estate license?” the more important question to answer is “What are my primary goals regarding real estate?” If you want to mostly broker deals for other people and do your own investing as a side job, you’ll definitely want to get your real estate license. On the other hand, if your primary goal is running your own investment business, getting your real estate license is probably more con than pro.

Getting a Real Estate License Requires Time and Money

Training and testing cost both time and money. State requirements vary but 100 hours of training is a reasonable beginning point when considering. Should I Get a Real Estate License? This is before any additional training the broker you work for will require. Long term, you also need to consider the ongoing training required to keep your license current. For most people, I estimate the basic costs are between $1,000 and $1,500 plus the time commitment.

There are other fees and time requirements to be considered as well. The brokerage firm you work for will have specific fees you have to pay. Also, you may be required to join associations – even to gain access to the MLS which also costs money. Additionally, the brokerage firm will require a big chunk of your time manning the office phones, holding open houses, filling out weekly reports, and more.

Responsibilities Come with Saying “Yes” to a Real Estate License

Consider the added responsibilities when asking “Should I Get a Real Estate License?” From a professional investor’s point of view, the most challenging responsibility is full disclosure. I believe in full disclosure, however having a license adds a disclosure requirement that can work against you. In every state I’m aware of, you’ll be required to disclose to all buyers and sellers that you have a real estate license. When brokering deals for other people, this works in your favor by enhancing your professional standing. But not so much when buying or selling your own investment properties. That same enhanced professional stature leads many buyers and sellers to believe you have an upper hand that works against them in personal deals – even when it’s not true. This is an important part of understanding your primary goals when deciding. Should I Get a Real Estate License?.

Are the Benefits of a Real Estate License Worth it?

When asking the question “should I get a real estate license?” most investors are primarily interested in unfettered access to the MLS and to a smaller degree the professional networking with other brokers. Without a doubt, most transactions do go through the MLS.

But do most of your investment deals go through the MLS? At this point in time and many parts of the country, the MLS deals don’t appeal to most investors. These MLS deals are priced at the high end of the comparable range and often result in bidding wars. Not exactly the types of deals most investors are looking for. Successful investors network though local investment clubs, probate attorneys, bankruptcy attorneys, and even the mailman that comes across distressed houses on his daily route.

You can always use a licensed broker on the occasions that you do want to use the MLS. By working closely with a few licensed brokers, they will give you the next best thing to unfettered access to the MLS.

Answering the question “Should I get a real estate license” really does start with understanding if your primary goal is becoming a real estate investor or a broker. If you plan to work out of a real estate office, you will be added to the company webpage and receive marketing training along with generic marketing materials. But it will cost you a lot of time and money. That’s time and money that may be better spent learning from other well-established and successful real estate investors.

Without knowing you personally and your specific circumstances, it’s impossible for me to give you a definitive Yes or No answer to the question “Should I get a real estate license.” However, I will be thrilled getting to know you and your circumstances so that the two of us can come up with the best answer.

By Wendy Patton

For more than 30 years, I've used the Sandwich Lease Options System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate and find profitable deals. It's because of that fact and my personal success that I share the Should I get a real estate license with others.

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