The Benefits of Obtaining Your Real Estate License
By JD Esajian on December 30, 2013
As an investor, you want to place yourself in the best position possible to receive a lead. Not every one of these will turn into a money making endeavor, but the more opportunities you are presented with, the higher number of deals you can close. Obtaining your real estate license is one of the best ways to find more deals. While it may not work for every business model, the cost of receiving a real estate license is more than made up for in the access, contacts and relationships it will likely establish for you and your company.
Gaining access to the MLS (multiple listing service) is one of the most popular reasons for getting a real estate license. This is a member’s only website that announces new listings to realtors as soon as they are entered into the system. This is used by realtors, sellers and even lenders. Many short sale, foreclosure and possible wholesale opportunities are quickly eaten up by realtors and their buyers who have MLS access. This will give you a jump on your competition and expose you to the vast amount of information made available to real estate agents.
A realtor license will give you access to view each listing without having to fit into the listing agents schedule. You can quickly obtain the listing information online, make an appointment and view the house before other investors even know it’s on the market. You can also look up comparable listings and sales and read the all-important agent remarks for each property. Instead of having to wait for your realtor to return your call, you can log-in and preform your own due diligence.
There are also indirect ways to make money, aside from investing. You can make a commission from any of your own properties you are selling and there is nothing stopping you from finding a buyer that you can make money on. The relationships you make on either side of the transaction can open many doors. The more people you can do deals with, the more you will be considered down the road.
Getting your license may be a good goal, but it may not be enough. There are a few steps you will need to take. First, you need to be sponsored by a broker that is willing to hold your license. Not every brokerage is willing to have their name on transactions represented by inexperienced realtors or investors. There are legal ramifications and constant changes in realtor guidelines that can cause complications for everyone involved. In addition to finding a broker, you need to pay for and pass a salesperson class and then a state and national exam. Every year you will need to take 8 hours of continuing education and pay annual dues and MLS fees.
If you can get your real estate license, it can open doors for you and create additional revenue streams that were not otherwise possible. It is not the easiest test to pass and can be costly, but if used properly, it will pay for itself many times over throughout the course of the year.