The real estate investing crowd and real estate agents are often at odds with each other. It’s a decades old Hatfield and McCoys style feud in which both sides are taught to instinctively despise each other. However, while the two might not always get along, there could be a few benefits to becoming a Realtor for investors.
While some find that having a real estate license is restrictive and a high risk move, there are at least 5 distinct advantages of getting licensed and joining the local board of Realtors.
1. MLS Access
Some have mistakenly believed that gaining access to the MLS will magically reveal new properties. Generally all active listings are already found through plenty of third party websites. However, MLS access could mean enhanced speed, ability to hone in on inactive listings, improved tools for checking comps and most importantly access to agent comments. It is the agent comment section and commissions that can provide the additional insight into a seller’s motivation and provide negotiating power, as well as bigger spreads.
2. Cash Money
As a Realtor you are also entitled to commission on each transaction. You can take this as a payout at closing to fund repairs or closing costs, or forego it and build in more equity. Plus, this means being able to generate some side income on homes you don’t actually want to take on yourself.
What many don’t realize (even agents) is that Realtors can generally market any MLS listings, even if they are not their own. This can be a huge advantage when it comes to real estate investing; allowing investors to focus on finding buyers and pre-selling deals instead of having to scrounge for inventory first or be split in two directions at once.
4. Networking Opportunities
You don’t have to love Realtors but there is no denying that they can be useful for lead generation and partnering up in various ways. As a Realtor yourself you’ll have an inside advantage for networking and more credibility.
5. Tools & Education
Your local board of Realtors will quite likely provide many additional tools, discounts and real estate education courses. They may not provide much practical advantage or detail on directly investing, but they can be great for expanding your skill set and ability to perform due diligence.