Getting into real estate investing can be a lucrative experience. However, your experience can be even more fruitful with a real estate license and brokerage license. In this blog, we’ll discuss the benefits of a real estate license and the added perks of going on for your brokerage license as well. We hope you find this helpful as you decide what your next steps will be.
While it’s not necessary to get these licenses if you want to invest in real estate, it can be beneficial for you in a variety of ways.
You Can Gain Access to Properties Before Your Competitors
Let’s first talk about how it can put you ahead of your competition. When you’re a realtor you have access to a Multiple Listing Service (MLS). This allows you to view properties as they come on the market. You won’t have to wait until an agent tells you about them or they become visible in a public space. You can gain access as soon as they’re available. You can easily search the locales you’re interested in and jump on the property before your competition does. However, if you don’t have your real estate license you chance missing some of these opportunities. Listing properties on public sites can be an added cost, which means realtors often want to get these places sold before they have to be marketed on these online pages. Their clients will have priority, as they share these properties with them when they see them come available. However, the clients will still have to wait until that agent sends the properties their way. If you have direct access to MLS, there’s no middleman. You can identify properties you want with more immediacy. It’s also easier for you to go see these properties without having to hire a realtor to line this up for you.
There’s also another benefit of having access to MLS. You can see a lot of data about the property that provides important historical information. This will be more in-depth than you’d find on any public site.
It Can Add More Money into Your Pocket
It can be financially beneficial too. When you sell an investment, you will save some money on the commission fee. If you buy a property, you will receive a commission. Keep in mind, that if you work under a broker, your broker will also receive part of this commission (unless you’re paying a flat rate to be a part of the office).
You Can Grow Your Knowledge
You’ll also have an opportunity to grow your real estate knowledge which can be helpful when it comes to investing. To become a realtor, you have to go through a series of classes. This will help you learn things like marketing/branding, how to find leads, how to handle contracts, how to negotiate, and more.
It Will Help You Build Valuable Connections
When you’re a realtor, you’ll have more advantages when it comes to building valuable relationships. You’ll get to know brokers, other realtors, inspectors, lawyers, lenders, appraisers, etc. If you nurture these relationships, they can be beneficial for you. For example, if other realtors appreciate you, they may send leads your way when they come across them.
You Can Be Your Own Boss
If you want to take this further and go on for your brokerage license, you’ll truly be your own boss. You no longer work for a broker or share your commission with one. In fact, you have the opportunity to earn more. Not only do you avoid having to share the commission you make with a broker, but you can also earn on other realtors’ commissions if they work under you. This is one option, or you can simply charge a set fee for them to gain access to your office. Overall, the financial advantages make a brokerage license worth it.
As a Broker, You Can Gain Even More Knowledge
Being a broker also means that you have gained more knowledge in real estate. Brokers have to participate in more hours of schooling, so they will typically be more educated. This education and experience will make you more appealing to work with from a buyer and seller perspective.
You Can Reduce Potential Risks
Being a realtor or broker can also help you reduce the potential risks of investing. You’ll be more knowledgeable about any liabilities and able to proceed correctly following any applicable laws. If you work under a broker, your broker will have knowledge of these and be able to steer you in the right direction. If you’re a broker, then you’ll have this knowledge at your disposal.
Either way, whether you choose to get a real estate license or go on for your brokerage license afterward, it can be beneficial for you in the world of real estate investing. You will gain a valuable edge over your competition and can also increase your financial status.
If you already have investment properties and you’re looking for additional help managing them, please reach out to us: . If you allow us to manage them, it allows you more time to spend investing and growing your bank account.
