Benefits Of A Real Estate License You Can’t Ignore

Key Takeaways

The benefits of a real estate license are unquestionable. The advantages that come with a real estate license are well worth the time, effort, and money it would cost to obtain it. Few strategies, for that matter, can offer investors more leverage in growing their business.  That said, the benefits of a real estate license are not something you can ignore; you have to acknowledge them if you want to try and realize your full potential.

It is not uncommon for investors to ask themselves, “should I get my real estate license?” from time to time. While you certainly don’t need one to be successful, every advantage helps. Getting licensed, however, may take more than most realize. Getting licensed takes both time and money – not something every new investor has. If you can use your real estate license for deals, networking or to save or earn more money, it is worth the investment. Of course, you can always work with licensed people, but sometimes having your own avoids a lot of hassle.

Top 5 Benefits Of Being A Real Estate Agent (As An Investor)

If you’re having trouble deciding whether the investment of getting a real estate license is worth it or not, then perhaps it will be helpful to receive a detailed analysis of the benefits. Remember that some of these real estate agent benefits are enhanced on a deeper level if you are an investor with a real estate license.

Here are the five irrefutable benefits of a real estate license investors shouldn’t go without:

  1. You can earn extra income.

  2. You’ll gain access to more deals.

  3. Your contact network will expand.

  4. Your business knowledge will increase.

  5. You can earn commissions.

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real estate license

1. Extra Income

If you are starting, there is a good chance any extra income will be welcomed. Even if you don’t intend to make a career out of being a real estate agent, it can provide you with supplemental income. Listing one house every few months or completing one broker price opinion will not help you retire any time soon, but it will generate a little income here and there. Additionally, it is a great way to learn the business from another perspective. You can see how real estate agents work and what they need to be successful. All the while, you can work with the contacts you have to make money and learn the investing business at the same time. Your first wholesale deal may take months before you get going. A real estate license will help supplement your income during that time.

2. Access To Deals

One deal every few months is nice, but it is not the primary reason you would get licensed. Getting your license opens doors to deals that you may have never thought of in the first place. Instead of waiting on your Realtor to alert you of any new deals, you will be the first point of contact. As soon as a new listing hits the MLS, you will know about it. You can quickly see properties in locations you like and make an offer by the end of the day. Access to new deals is the primary reason to get your license.

3. New Contacts

Being a real estate investor and Realtor can be a delicate balance. Some are skeptical about working with an investor who also wears a Realtor hat. This number is small compared to the number of new contacts that being a Realtor can help you make – not only in your own office but at open houses and local networking functions. One of the benefits of being a real estate agent is the opportunity to develop contacts internally at banks that could give you the inside track for bank-owned properties. You are also open to working with other brokers and agents within your office. In doing so, you can learn through their experience and get tips on saving time on certain tasks. Brokers can warn you about certain legal issues you may face and educate you on contracts. Other agents can also introduce you to reliable real estate professionals such as surveyors, appraisers, and lenders.

No matter how you slice it, having the opportunity to dramatically increase your network is one of the major benefits of a real estate license. The more people you can meet, the greater the chance that you will close more deals. Meeting the right real estate agent or being in the right office can completely change your investing business.

4. Education

The more you know about the business, the greater the chance of you becoming successful. Almost every investment deal you get involved in will have some contact with a real estate agent. Knowing how the real estate side works will give some insight into structuring a contract and even what to look for in a property. You will have a better feel for what is really needed to get your deal closed. Even if you have closed a few deals, you may not really understand what goes into an addendum or legally binding in a contract. Being a real estate agent will give you a different perspective: one that can save you time and money down the road.

5. Commission

In addition to making money on the deals, one of the benefits of being a real estate agent is saving commissions on your own personal deals. If you close just six investment deals a year and act as the Realtor, you are saving and making over $10,000. Since you would buy these properties anyway, extra income could be put back into your business. If you flip these properties and quickly list them yourself, there is another 2.5% on the sales side. After you pay your broker split and taxes, you are still making money that you would pay out to someone else.

Let’s go through an example scenario. If you purchase a property for $200,000, and the total commission is 6%, the selling agent’s office and your office receive $6,000. In a fifty-fifty commission split with your office, you receive a $3,000 commission in the same scenario. If you sell the house for $300,000 as the listing agent, you receive a $4,500 commission after splitting with your offices and broker. Another benefit of being a real estate agent is the opportunity to earn up to $9,000 commission if you can sell the property without involving another agent.

benefits of being a real estate agent

Disadvantages Of A Real Estate License

There are many benefits of getting a real estate license, but you should also consider a few disadvantages before deciding that doing so is right for you. One of the main advantages of having a real estate license is gaining access to the MLS. Still, if you already have strong relationships with other real estate agents in your network who can grant you access, there is no need to obtain your own. Furthermore, you will need to be prepared to spend time and money on a real estate course to be qualified to take the real estate license exam, and even more money will be required to maintain your license each year. You will also be held accountable by a code of moral duties if you possess a real estate license, so be prepared to take on these responsibilities as well.

Real estate agents do not work for an employer and can create their own work schedules, but this may not necessarily be advantageous. Your salary will not be set and instead will be based on commissions, so you may find yourself taking home less money during slow months or working on weekends and outside of the traditional 9 to 5 workweek. You may also find challenging and stressful situations with your clients, as buying a home is typically a large financial decision for most people.

Can You Sell Real Estate Part-Time?

Yes, it is certainly possible to sell real estate part-time. In fact, many new agents and investors start this way. Keeping a position with a steadier income while pursuing your license and getting your career off the ground will help offset inconsistent income. Whether you are working another job or taking care of children at home, the flexibility of this career makes it viable for many different people.

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Other Benefits Of A Real Estate License

Owning a real estate license has numerous benefits, and can open doors professionally. Besides becoming a real estate agent, here are other perks associated with pursuing your license:

  • Real Estate Property Manager: If you own a real estate license, you are also qualified to be a property manager. Property managers are responsible for maintaining the building and ensuring the tenants’ needs and requests are met. They work closely with the property owners to keep up the financial and physical aspects of the property.

  • Leasing Agent: A real estate license also gives you the opportunity to become a leasing agent. Leasing agents are responsible for finding tenants to occupy residential or commercial property. They are responsible for finding listings to dive leads and marketing and promoting the property to minimize vacancies.

  • Real Estate Broker: The most common profession to enter with a real estate license is that of a real estate agent. To operate as an agent, you must sign with a brokerage and work for the head broker. However, agents can start their own brokerage and work for themselves if they are especially driven individuals.

  • Risk Minimization: After securing your real estate license, you will begin working with a broker who will oversee your deals as an agent. This can add an additional layer of oversight to your real estate business, in some ways offering further risk protection.

  • Credibility: Expanding your professional education will only add to your overall credibility in the industry. Agents, investors, and clients will be interested to see your broad array of experience and it may even help you continue to build your network.


Receiving the benefits of a real estate license takes more than simply wanting to get licensed. In fact, getting your real estate license is no simple task. For starters, you need to pass a local real estate class. Only then can you take the test. Even experienced investors sometimes have trouble with these tests if they do not put the proper study time in. Next, you have to find a broker that is willing to hold your license. There are application fees, expenses, and annual renewals that must be met on top of all this. It is far from easy to get licensed but is often worth it. A real estate license is not necessary for every investor, but it could completely change your business for the right investor.

Have you ever weighed the benefits of a real estate license with the amount of time and effort it would take to acquire one? Perhaps you have had better luck working with an actual agent instead of becoming one yourself. Whatever the case may be, we would appreciate your thoughts on the whole thing.

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