Having a real estate license is not a requirement in property investing. However, there are many benefits that come with being a licensed real estate agent.
Being licensed is how I’ve been able to master my 3 part investment system; making money going in, making money during, and making money coming out.
The benefits are plentiful, but I’ll give you my personal top 10.
#1 Better Investment than School
After high school I followed society’s recommendation and went to college. I invested 4 years, and over $100K…WHAT A WASTE! Being licensed earned me more than my college degree ever has; and it only cost me $600 dollars and 3 months of my time. You do the math!
#2 Full Access to Any Properties
Once you become a licensed agent you have full access to any properties on the MLS (Multiple Listing Service) at your convience. As an investor, this gives me the opportunity to view properties as soon as they're listed.
#3 Commission Checks
When you’re licensed and buying a property you are able to get paid 3% commission when you first acquire that property. Generally that commission would go to your realtor, but in this instance you are your own realtor. Cutting out the middle man gets you paid.
#4 More Avenues to Market Properties
Being an agent opens up more avenues for me to market my listings that I’m looking to sell. It grants me access to the MLS and Broker’s database statewide. Marketing is important no matter what field you work in, and without the proper marketing you could be sitting on a property for longer than you’d like.
#5 Ability to Represent Others
Sometimes I stumble across homes that are great investments, but they’re just not what I’m personally looking for at the moment. When this happens I share the listing with colleagues, and if they’re interested in the home, I make the sale. Think about how often you recommend a friend or family member to store or product, I do the same thing with listings, only difference is I get paid if they make the purchase.
#6 Credibility
Since I’m able to represent others, I have the opportunity to experience different areas of real estate that I wouldn’t typically experience if I was only representing myself. Every investor has their own way, and when I represent others I’m able to learn the ins and outs of doing things their way. This allows me to gain more knowledge and become diverse in all things real estate, therefore increasing my credibility.
#7 One-Stop Shop
As an investor, landlord, and general contractor, being licensed allows me to be a one-stop shop. I’m able to help clients find & buy a home, flip it, & then list it. Being that I’m with my client every step of the way I’m able to keep prices low and competitive, without cheating myself out of a paycheck.
#8 Flexibility
Being a real estate agent can be a full-time job but it doesn’t have to be if you don’t want it to be. As an agent you have the flexibility to work when you want and put in as many hours as you prefer. This is great for me because I am father of 3 and it’s very important that I make time for my kids and my wife. If the school calls me mid-day or if my wife needs me at home, I have the flexibility to be where I’m need most without any negative repercussions from my job.
#9 Extra Income
On top of all of the money making benefits I’ve listed above, as an agent you can always make extra money by tutoring those interested in gaining their license. Property Investing is becoming more popular with millennials and it’s important that those with experience are offering services that can help them gain as much knowledge as possible in the real estate field.
#10 Expanding Your Network
Last but definitely not least, being licensed can expand your network. You receive access to GPAR, & other alike organizations depending on your state. This is great because as we’ve all heard at least once in our careers, YOUR NETWORK IS YOUR NET WORTH! Having a good network around you can be the one thing that catapults your career.
As I mentioned at the beginning of this article the benefits of being licensed are plentiful, and if you’re an investor or looking to become one I definitely recommend going to school to be a real estate agent.
If you’re already an agent be sure to leave a comment below on why you like being licensed. And if you know anyone thinking about becoming licensed be sure to share this article with them, it could help them make up their mind and get started on the next step in their journey.