In the past few decades, interest in real estate investing has grown, resulting in a corresponding upsurge in competition. To stay ahead of this competition, many real estate investors have opted to acquire their real estate licenses, which gives them the legal ability to represent buyers and sellers of real estate.
In order to get a license, one is required to go through a rigorous training course - and this requires no small amount of time and money. For many investors, this can be a serious discouragement. So the question arises: should you get a real estate license or not? It is important to consider what you want to accomplish in real estate to resolve this dilemma. So the question then becomes, "would getting a real estate license really help me accomplish my goals?"
In trying to answer this question, you need to consider some of the benefits of getting a real estate license as an investor.
Apart from giving an investor the legal ability to represent buyers and sellers of real estate, acquiring a license also gives the investor easy access to the multiple listing service (MLS), a database of all on-market deals in the country. The multiple listing service is a significant benefit because most available properties on the market are found there. This means you can view more properties and view them more quickly than if you have to find them through a Realtor. The more opportunities you are exposed to, the more likely you are to make a successful investment.
Getting a real estate license will also open the doors to industry events, which are a great way to network. In the real estate business, the more people you meet, the better. A real estate career requires you to be sociable and approachable, which can be a great way to learn these necessary skills.
There is also the benefit of the training course. In order to get a real estate license, you are required to first take and pass a comprehensive training course to certify your competence in the field. This course will open you to a world of knowledge and information, as well as tools and resources that are not easily accessible to unlicensed investors. This certainly gives you an edge and will help you prepare for a successful career as an investor.
Also, whereas a licensed agent may earn a referral fee, an unlicensed agent may not. A referral fee is paid between licensed agents as compensation for finding a client and closing a deal. If agent A has trouble finding buyers for a particular property, and agent B helps him find buyers, this entitles agent B to a particular percentage of the gross commission received by agent A.
Finally, getting a real estate license would establish you in your real estate career, which may be just what you need. A career in real estate is flexible and self-defined. You can do it part-time, work from home, and decide your income. If you've been considering an additional source of income, then you should go and get your real estate license.
