As a real estate investor, you will be presented with interesting questions from time to time. You will find that a handful of people can have different answers to the same question. There is one question, however, that remains polarizing: should you get your real estate license? In one camp, the answer is a resounding yes. The other side will tell you that while it is nice, it should be way down on your list of things to do. There is truly no right or wrong answer; only what you feel is best for your business. Here are five reasons why you would consider getting your real estate license:
1. Licensed In 30 Days: There isn’t much needed to become a real estate investor. There is no formal license or education required. All that is required is the ability to make an offer. While getting your real estate license has a few more steps, the process can be completed in as little as 30 days. There is no yearlong training or apprentice period that you have to go through. Depending on the state, all that is needed is to complete a statewide real estate continuing education class, pass the course and schedule the exam. This is not to say that it is easy, but from start to finish you can be done in 30-45 days. This means you can hit the ground running, and enjoy the benefits of your license sooner rather than later.
2. Work With Buyers & Sellers: One of the reasons that investors get into the real estate business is because they like to work with people. Being a real estate agent is no different. Between the buyer, seller, lender, attorney, appraiser and inspector, there are a handful of contacts on every deal. If talking to people is something you enjoy, getting your license is right up your alley. Instead of sitting in your office and crunching numbers all day, you can get out in the community and talk to as many people as you can.
3. Work Around Your Schedule: Being a real estate agent means you aren’t bound to a set schedule. Since the job is a commission-based position, your income is based on your production. If you want to devote more time in a given week to your investing business, you at least have the option. If you have a week where you have multiple buyers, you can devote more time towards real estate. You may go weeks without using your real estate license, and then use it several times over a few days. You don’t have to commit 40 hours a week to it if you don’t have the business for it. A real estate license gives you the flexibility to use it as much or as little as you like.
4. Networking: One of the most important aspects of any business is networking. Being a licensed real estate agent opens a door to networking possibilities that you may not have known existed. Starting with just your real estate office alone, there are a handful of people you can reach out to. As we mentioned earlier, every real estate transaction involves anywhere from three to six people. Networking to these six people on every deal will greatly improve your investing business. Even on the transactions you don’t close, a real estate license allows you to meet people you normally would not have. Every time you show a house, there is a new agent for you to talk to. Whenever you list a property, everyone that sees the house is someone you can follow up with. You may not make a large commission on a given deal, but the networking opportunities are abundant.
5. Extra Income: When you are just starting out, you may not have a multitude of deals to work on. At this point, any extra revenue is welcomed. Closing just one real estate deal a month can provide you with the extra income you need. This income can be used for household bills, or to grow your investing business. Even one rental listing provides additional income that you would not have had otherwise. Making or saving money is the motivation behind getting any additional education. Your real estate license is no different.
For some real estate investors, getting licensed makes a ton of sense. For others who are busy handling multiple projects, it doesn’t fill the same need. There is no right or wrong answer as to what you should do.