Should I get my real estate license to invest in real estate
on March 24th, 2010
I see this question asked so many times throughout the real estate community from both newbies and relics alike. It seems that the community can be split down the middle. One side will tell you it is bad because you have to disclose it on the contract. The other side will tell you it is good because of the many benefits.
Here is my take.
There is only one downside that I can think of. It is the fact that you have to disclose to the other party of the deal that you have your real estate license. The though process of the people against having your license say that you might lose out on a deal because the seller thinks you are screwing them since you are more knowledgeable. While this could on a rare occasion happen I really doubt it does. Maybe 1% of the time.
There are many upsides to having your real estate license if you want to invest in real estate. The first one being that you will have access to MLS. This alone is IMO worth thousands of dollars a year. I find 90% of my deals on MLS.
Another advantage of having your real estate license is you earn a commission if you purchase a house that is listed on MLS. I would guess I have made between 50k-100k because I have my real estate license and have represented myself. Think about how much money that is for a minute. Do you really want to miss out on that much money?
Then on the sell side you can list your house on MLS and only have to pay the buyer’s agent commission to the agent who brings you a buyer. Tack on another 100k or so in savings now.
As if that wasn’t enough another advantage is being able to run your own comps. It is a great feeling when you can research all this information yourself and not have to rely on anyone Else’s GUESS as to the After Repaired Value of a house. You being the key holder to this information is priceless.
Another awesome advantage is you can go look at any listed property on MLS that you want to. Imagine not having to wait until your agent is ready, you just go anytime you want. You can get into that REO bank owned house immediately.
As if there isn’t enough advantages already another that I like is I can make my own offers. I don’t have to hassle with someone else presenting my hundred offers I decide to make this month. I don’t have the annoyance of an agent taking their sweet time. I can write the offers up immediately and get them to the listing agent. I guarantee this has made me over 50k.
I think that is enough advantages to having your real estate license if you want to invest in real estate. I could probably come up with another half dozen advantages but I think the point has been proven.
