To License OR NOT To License?
I am just getting started in REI, have read several books, & recently completed the 45 hour RE Agent class for my state. Having passed the exam though, am not sure whether it makes sense to go ahead & obtain the state license.
It appears that having an agent license could actually be a detriment from an Investor standpoint; due to additional liabilities, diclosure laws, agency relationships with sellers, inability to bird dog for a fee, etc.
From posts I have read, I know some of you are agents/brokers. What sayest thou? Do benefits outwiegh liabilities on one side or the other? Should I get state license or am I better off without it?
Thanks for your time and input. Have an excellent day!
Ron[ Edited by joel on Date 09/09/2004 ]
I beleive it is good to have an edge somewhere in the business. Either a Mortgage broker, a contractor, a real estate broker is a good way to be on the inside. I would go with what you like.
Imagine having immediate knowledge of new foreclosures in your town before anyone else....I do, I am a Realtor! I also have access to all listed properties online in my entire area, complete access to Courthouse data on all properties showing last sales price, how much the bank paid at foreclosure, tax appraisal, etc. I also make commissions when I buy a property.
If you're worried about scaring off potentail deals by telling someone you are a licensed real estate agent, stop worrying. MONEY IS MONEY. Being a real estate pro gives you a great deal of credibility to a seller and they KNOW you will be able to buy the property! I have never had anyone refuse to sell to me because I was an investor.
DO IT - GET THE LICENSE! MAKE LOTS OF MONEY. P.S. I have started marketing myself to other real estate investors as "the agent that is an investor and knows what the investor is looking for". They love me because I always get them good deals. BUT IT IS IMPORTANT TO ALWAYS DISCLOSE YOURSELF!
I have been thiking about tring to get my RE License also, for those exact reasons.
How willing are agencys to let you work under them if you are not doing it full-time?
If you are a REA and purchase a home for yourself do you get the buyers agent part of the commision? just a thought, if you can it would be even more of an incentave.