Updated: Feb 26
Benefits of Getting a Real Estate License
Acquiring a real estate license provides an individual with the opportunity to act as an agent who represents property buyers and sellers. With a real estate license, they can become managing brokers, work for an apartment complex, work as a landman/woman, teach real estate classes, or even provide expert testimony in a court case.
Isn’t there a lot of competition?
It depends. If you have experienced any economic situation in life, or a business you know that what it takes is CONNECTIONS, calculated planning, new construction developments, on-going knowledge of market trends, and the like. When you are just starting, it may be better off to join a high performing team to establish yourself.
Either way, people will come and go over time. Web strategy, community presence, and different branding are among the major channels to becoming a real estate rock star! Do not let the fear of competition deter you from pursuing this goal. Again, there are many practical uses for a real estate license such as Real Estate Investing other than engaging in the traditional REALTOR profession.
Below are a few benefits that why should real estate Investors get a real estate license?
A license will give real estate investors access to industry events therefore, individuals have access to great networking opportunities and contacts. Real estate is a people business thus, the more individuals a real estate license draws into your network, the better. Better yet, a real estate license may set you in contact with focused professionals than “hobbyists.”
New contacts may be the most valuable assets investors have in their arsenals. These close relationships are essential for a strong real estate investment strategy. If you’re well-regarded within your community, people will forward you tips and leads.
Being a real estate agent licensed by the National Association of Realtors (NAR) is that investors and clients know that you are governed by a code of ethics. Realtors have a proscribed code of ethics that is stricter than the actual law. Even if you are not working as a realtor, but just trying to purchase a property or invest, you have to abide by this code.
If your investment strategy involves reaching out to off-market sellers and convincing them that you are trustworthy, it’s easier as a Realtor.
The educational opportunities that are associated with getting a real estate license are enormous and will aid you in understanding a different aspect of the business. Even though you are an experienced real estate investor, you don’t have access to what transpires in a real estate office and how realtors interact with one another.
The mandatory real estate courses will enlighten you on;
· Writing contracts
· Negotiation skills
· New trends for marketing and advertising properties
· Preparing open houses.
Ultimately, understanding all the aspects of being a real estate agent increase your chances of success as a real estate investor.
As an investor, you ought to understand that earning commissions helps you save a lot of money when you are selling out your real estate investment properties. Come to think about it, with a license; you are set to earn a commission when you buy property. For real estate investors, acquiring your real estate license can be termed as a license to print money.
There is loads of revenue to be made in legally accumulating a commission on the sale of a property. Yet, the investor community has a habit of belittling real estate agents. There are some agents in your region raking in $1M or more a year. Are you earning that kind of annual income from your real estate undertakings? Lastly, as a licensed agent, you will sell your house without another agent being involved.
To learn more about real estate investing click here
If you do not have a license, you’d have to hire a real estate broker to find you a good deal. They usually charge roughly 3% commission for each successful transaction that you make. However, you can get rid of these expenses of middle-men if you get your real estate license.
When you acquire a license, you become a realtor and no longer have to pay agents a commission since you can do the job yourself.
Bargaining Your Commission
You can also bargain your commission when purchasing real estate. Your seller may not be completely comfortable with accepting your low offer but if you throw in that you will not charge your commission this can completely change the seller’s motivation. Now you are potential changing what the closing costs by thousands of dollars. This to me is the biggest advantage in being a real estate investor with a license when it comes to negotiating.
Once you have acquired your real estate license, you understand how to do things the right way. You have built your network, and you’ve met tons of real estate agents.
Your broker should equip you with support staff to assist you with anything and everything related to being a real estate agent. With these aspects at your fingertips, you will have access to deals beyond your imagination.
· Transaction coordination
· Contract reviews
· Web design
· Lead generation
· Discussions with buyers and sellers
· Training and education
Without these aspects, real estate may seem like a jungle, especially for beginners. You have no idea where to start, or where to go, or who to talk to. A real estate license puts you on the right track.
Access to the Multiple Listing Service (MLS)
MLS is a private database created, used, and maintained by real estate brokers. This platform has two crucial benefits for investors: First, you can closely monitor a neighborhood and identify a new property when it pops into the market. Therefore, you do not have to use a public website like Zillow or get an agent to find a property for you.
Secondly, the MLS provides detailed information about prices and comps from way back in history, making it the gold standard.
See Properties Beforehand
Having a license allows you to visit properties that don’t have an open day. You can access these properties before others and make a deal before the property is listed on the market. Most of these properties are away from the public eye but available on the MLS and.
Real estate wholesalers are willing to give licensed realtors a tour of the house before the actual open day.
Finally, if you are thinking of getting into real estate, you may have to consider getting your real estate license. Yes, the training is intensive and long, but it is worth the trouble in the end. One common concern we hear a lot is whether or not it’s ‘easy to get into’ real estate. The answer is most certainly yes! The reason is that there are a lot of business opportunities depending on your goals, unique skills, and preferences.
To learn more about investing from Robert Kiyosaki (Rich Dad Poor Dad) click here
Here's a recommended book/flashcards that could help you get your license and invest in real estate: