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  • Getting real estate agent license for real estate investing?

    Would it make sense to obtain a real estate license as a physician if one wants to do real estate investing? Would save money on buy/sell fees and have access to homes before reaching the market.

  • #2
    Originally posted by kev777zero View Post
    Would it make sense to obtain a real estate license as a physician if one wants to do real estate investing? Would save money on buy/sell fees and have access to homes before reaching the market.
    There probably isn't a point. A few things to consider - first you have to find a broker to hold your license. They aren't going to do this for free. So you may "save" some money on commissions when selling, you're still going to have to pay the commission, because the broker is going to take their cut, plus many charge monthly "desk" fees or other random fees just to hold your license. When buying a home it can be useful though, since you're not paying the commission anyway. In that regard, you'll pick up the buy side commission on every transaction, which will give you ~1.5-2.0% each transaction depending on commission rate and split with your broker.

    With the license comes a bunch of headaches. You have to keep up with the con ed requirements in most states, which isn't difficult but is just a pain that you have to keep track of. Also you should note that there is no magic access to properties before they hit the market just because you have your license. That's only going to come from your own work and/or networking with other agents (who are probably still going to shop it to their own clients before you sniff it). There isn't some magic portal for agents only where you see a list of properties that are going to be listed but haven't been put on the market to the public yet. Again, you may be able to hear about something from another agent in your same office, but even then, they're probably pushing it to their own clients first.

    Long story short, outside of picking up some buy side commissions, you can do everything you're hoping to do in your post without a license, because it's all about work and networking yourself so you can find the properties before they hit the market. Getting your RE license isn't going to do anything to help on that front, since there is no secret agents only market you can just log into and pull a list of properties that are about to hit the market. Even on the sell side, with the tools out there, you don't need a license to sell a property, you just need to approach it the same way an agent would (professional photos, staging, open houses, etc.). People aren't solely reliant on the MLS to find residential properties anymore.

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