Real Estate License - Is It Necessary?
I have made a profit through building my own house these past three years. I would now like to begin rehabbing 1-2 properties a year. Is it worth it for me to get my own real estate license? I would only use it to sell my own properties. Do most of you REIs who rehab have your own license?
I don't. I can't think of a time that I thought to myself, "if I were an agent, this would be easier/cheaper/more profitable"
Agents tend to be involved in standard type real estate deals, not the creative type.
Just my opinion
[addsig]
Be sure to check into the
1. Costs of $$ and time to maintain a license.
2. Legal requirements of disclosures on Realtors.
3. Requirements on you to maintain it.
I got my license in '97 because I am sincerely interested in the business, but the requirements on me as a landlord were a bit much. I let it go for now.
My son is now licensed and every time we turn around in our normal day2day operations, we have to check what he has to have on a normal sign, normal ad, normal listing .
Oh, and with some work, you can find pros who will work w/you to reduce your costs if you are loyal / repeat / etc.
I have read professionals decide to let their license go because it holds them back in normal creative negotiating.
Just my 2 cents ~~
Thank you for your responses. That is the direction I was leaning. I seems like a lot of work and fees for something I will not use much. But could you explain a little more about the legal disclosure problem and how it interfers with your every day operations?
"My son is now licensed and every time we turn around in our normal day2day operations, we have to check what he has to have on a normal sign, normal ad, normal listing . "
I belive that It is very good to get your liscence. You will be around properties 24/7 and making hundreds of deals. I couldnt see a reason why not to. I got my liscence for 200 dollars. If anything at least you recieve FREE comps, FREE expired listings, FREE connections. I work in the stoughton Exit Realty office in MA. The owner of the Office is the most sucessfull investor in MASS. You will be dealing with people all the time that you can not help. Mabye there isnt any way to make an INVESTMENT deal to help out but you can help them sale the property. For 200 dollars I hang around a office with employees whom represent 40% of all the employees working in the office including the most sucesfull real estate investor in my state. Just being around Real Estate in general is the best way to learn. If it doesnt work out Its only 200 dollars. You pay more than that for making business cards.
The only thing that you have to disclose to the customer is you are also an investor. A simple " I am also a investor and may choose to purchase your house" is all you have to say when someone shows them your home. When ever I find someone whom I cant help investment wise I say " I am also an agent and I could assist you in selling your home". Its a easy way to get listings and the money isnt bad.
Where did you go for your RE course and test? I am in MA too. :-D
Hey,
If you buy stocks, do you get your Series 7 license (Stock Broker)????
You are a RE investor (or atleast you want to be), not a RE Agent. They are two different beasts.
Now if you are already an Agent, it is a great idea to become an investor also.
Lastly, ALL the agents I know have to PAY a monthly fee to their Broker for access to the MLS, etc, so there is a monthly cost to being a RE Agent.[ Edited by Bruce on Date 11/03/2004 ]
I agree w/the agent in Mass. that there are countless exposures to be gained which Might be Worth It. In addition:
--There are many fees to being a Realtor in MY area. Just look into that in your State/County. Might be true, might not be.
--Our State laws require disclosures that you are a licensed Realtor on any ad that you place(so your normal ad just got a lot longer and confusing), any sign that you place and on any forms that you use. Just check into that in your area.
--You will want to find out requirements/costs to maintain your license. Both from the State, Count(ies), Localities?, and Broker and Regulating Boards. Insurance Boards. Access to data..
Write to Bob Bruss to ask him why he dropped his license as an investor...he has written about it many times.
I am understanding more the pros and cons of having my own license.
lets say I decide to not get a license. Any problems with selling my own investment properties to save on realtor fees?
ceinvests - is there another thread on this topic? How do I read about Bob Bruss' experience?
Thanks all
A very inexpensive way to learn about RE is to take the real estate agent course from a school in your local area. This gets you good information about state requirements and criteria, and you are not required to take the test if you don't want to. Try it, you might like it.
Bob
I have a referal agents licenxe which means I do not get involved in the selling process but I get a percentage of the sales commission which saves me something when I am flipping houses on the buying and selling end.
Viking,
I agree that taking the course will get you started in knowledge. However, I had no idea of all of the different expenses until I jumped in. Looking back I would have spoken to at least 10 brokers by phone to ask their office process/procedures.
Asked for written costs from them. Then spoken to at least 5 realtors (probably more).
I am NOT trying to discourage you, just inform you that the costs Might not warrant the savings on their own.
Oh, www.BobBruss.com is one of my favorite Guru's.
2. Above referral Agent in Md. -- Do you have costs? Do you have access to mris? costs? choice or requirements?
Who did you go thru to take the class?
Any recommendations? thx
As a agent when buying os selling something you must disclose buyer (seller) is a licensed real estate associate. There may be office policy that restructs what you can buy. In our office they don't like to see us buying in house listings.Being a Realtor can be expensive and some office have requirements for you. I am a agent and I think it was the right thing to do for me I am 23 and have been licensed for a year. I started working with investors and learned how to write offers for them. As a agent you have access to classes that others don't.
http://www.thecreativeinvestor.com/ViewTopic36845-19.html
This getting started in CA in the wholesale section might give you more insight, too.