Many real estate investors wonder whether they should get their real estate license.
There’s no right or wrong answer here. It really just depends on your business.
But if you’ve been wondering whether you should get your real estate license, here are some benefits you should definitely consider:
1.Maintain control over transactions
If you have your real estate license, you can maintain more control over property deals.
For example, you can list and market your own properties. And you can structure the deal however you want, like through seller financing or rent-to-own.
When buying properties, you can work directly with appraisers, home inspectors, attorneys, lenders, and seller agents and write up quick offers and counteroffers. No need to go through a middleman.
2. Get direct access to the MLS
A real estate license gives you direct access to the multiple listing service (MLS), where most deals are found.
Sure, you can find properties on Zillow, Trulia, Realtor, and other sites. But the vast majority of properties get listed on the MLS first.
That means you can be the first to know about investment opportunities and beat your competition to the punch.
Plus, the MLS offers much more detailed property information than other sites—like how much a property sold for in the past and how it compares to others in the area.
3. Learn more about real estate
Getting your real estate license is a great way to learn more about the industry. You’ll learn about selling and buying property, housing regulations, and contracts.
You’ll also learn skills for negotiation, marketing and advertising, and how to host an open house—all of which can help you make more money.
And getting your real estate license training isn’t hard. You can get your real estate license online fairly quickly and affordably. And if you work for a broker, you’ll learn even more on the job. Soak up as much learning as you can!
4. Save on commissions
Whenever you sell a house, you usually pay a 6% commission to real estate agents—3% to the seller’s agent and 3% to the buyer’s agent.
But if you have your real estate license, you can represent yourself whenever you buy or sell a property. That means you’ll save 3% on any deal (minus any broker fees if you work for a broker).
You can then invest your savings toward more real estate deals to grow your portfolio.
5. Earn commissions
A real estate license also lets you broker deals between other sellers and buyers. If you represent both parties, you can earn up to a 6% commission!
This is a nice way to supplement your income. As an investor, you’re already deeply involved in real estate, so why not make some extra cash by helping on other deals as well?
6. Network
Lastly, getting your real estate license opens up a lot of networking opportunities. You’ll get to work with agents, appraisers, surveyors, bankers, contractors, investors, title companies, and other real estate professionals.
Such contacts come in handy when making deals. So the more connections you have, the better! As they say, your network is your net worth.
Final thoughts
Ultimately, it’s up to you whether or not to get your real estate license as an investor. The benefits are considerable, but it will take some time and money upfront.
Run the numbers to see if it’s worth it.
One thing is for sure: Getting your real estate license can’t hurt your business. It can only help it.
Founder Dinis Guarda
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