Advantages and Disadvantages of Getting a Real Estate License If You Are a Real Estate Investor

The number one question beginning real estate investors have is whether or not they should get a real estate license. There are pros and cons for getting your license as there is for not getting your license. Here are the advantages and disadvantages of getting a license if you are an investor.

Advantages

The biggest advantage of having a license is easy access to the MLS. This gives you complete access to all the bargains that can be found in the listings. This will give you a chance to possibly find the deals before other investors without access to the MLS find them.

Real estate agents are required to attend training before earning their license. The training covers the contract process in detail. This gives you a better understanding of a purchase and sale contract and the procedures involved in buying and selling a house.

Agents are required to have their license listed with a broker. You will have access to all the other agents in the office which might give you insider information on a deal that has not yet been listed in the MLS service.

If you have your license you could earn a commission on the purchase or sale of a property. That is an easy way to pick up some quick cash.

Disadvantages

The biggest disadvantage is the process of actually getting your license. You are required to attend a training course and pass an exam to earn your license.

If you have a license you are required to disclose this whenever you enter into any transaction to buy or sell a property. Some sellers may think you are trying to take advantage of them because you have a real estate license and will not sell to you.

You are required to follow the rules and regulations of your state's commission. If someone has a complaint against you then the members of the commission will decide if you have done anything wrong.

All agents are required to have their license listed with a broker. This broker has to approve every one of your transactions. If you are buying an investment property for yourself, your broker must still approve the transaction.