For an Real Estate investor, getting a real estate license has a lot of pros. You’ve probably also spent a good deal of your investment profits on commissions paid to real estate agents. Here’s why real estate investors should consider a real estate license and why obtaining one is easier than you think.
- MLS Access – By receiving your license and gaining to the MLS database and you’ll be able to find properties in the neighborhoods you’re most interested in as soon as they hit the market. Many MLS databases have built-in features and tools that can help you identify and track neighborhoods that you are most interested in by variables such as tax assessed value, school districts, and proximity to amenities. The MLS also works as your ticket to higher quality comps by giving you access to tax records and other files that give you real.
- Save Money – When you go to sell a flipped house or a rental property, you can list your own property for sale without the aid of a Realtor. This, in turn, will help you save some money. Let’s assume a 6% Realtor fee. First, half of that fee will likely to go to the buyer’s agent, leaving 3% for the listing agent (you, if you get your license and list your own properties). If you sell a $500,000, you will save $15,000 (minus Broker Fees).
- Earn More Money – As an agent, you’ll be able to collect a commission on the deal. If you buy a $500,000 house, for example, and each agent receives a three percent commission, you will collect $15,000 (minus Broker Fees). It is still money in your pocket that would otherwise not be there. Therefore, as a real estate agent, when you buy a property, you can represent yourself and use that commission toward your down payment, repairs and more.
- Find deals fast – Aside from having direct access to the MLS at any moment, you can also view any property on the MLS through your lock box access as an agent. And in an industry where your success relies heavily on your ability to make quick decisions, this can be key. Plus, you’re cutting out the middleman of another agent and dealing directly with the sellers or buyers and their agent. This means you can write up quick counters and offers, determine your own closing date, and have full control over the transaction.
- Networking – Another great benefit of getting your real estate license is the connections you’ll make and relationships you’ll build in the real estate industry. This could lead to off market deals being brought to you first before other parties get a chance to see these deals.
There are some expenses to consider once you do get the license. For instance, to have access to the MLS, it will cost you money on a regular basis. You’ll have real estate association dues you’ll owe, as well as fees and dues you will owe to the broker. Always weigh your options and make choices best suited for your business and as a real estate investor.