Real estate investing is a field in which you can obtain as much or as little education and certifications as you want. There are endless streams of information and it is completely up to you which ones you choose to jump into. There isn’t a perfectly right or wrong way to go about it, but it depends greatly on what your goals are, what you hope to accomplish as an investor, and how involved you plan to be in your investing endeavors. So, the question we want to talk about today is, should you look into becoming a licensed realtor if you already are or are planning to become a real estate investor.
The benefits of having a real estate license are countless, and include, but are not limited to a few of these points.
- Access To The MLS (Multiple Listing Service): One of the greatest tools known to realtors, the multiple listing service is a marketing database set up by a group of cooperating real estate brokers to provide accurate and structured data about properties for sale. If you are considering becoming a licensed realtor, this may be your biggest incentive. It is only available to licensed real estate agents, and it is vastly more accurate than any other real estate database. As a licensed professional, this is your greatest tool.
- Increased Credibility : Becoming a licensed realtor brings an incredible amount of credibility to your business or investments. If you are just starting out, you may find that you have more opportunities professionally than you will if you are just entering the real estate investing game as an entrepreneur. You will also gain access to networks and industry events that are closed to the public and could increase your ability to acquire properties.
- Income: Having your license will give you the opportunities to take up extra projects that could lead to commissions or even the procurement of addition properties. If would also give you the ability to see properties that you might not have originally considered, but could be perfect for your portfolio or to add to your investments.
- Furthering Your Career: Becoming a licensed real estate agent could seriously further you career as an investor, the network and databases alone could catapult you into a whole new world of real estate investing. That does not mean that it is the right choice for you, but the knowledge that you gain as an agent can be priceless when it comes to investing. That being said, you could also gain a lot of the perks just by working with a qualified agent.
To call it a downfall is a little harsh, but becoming a licensed real estate agent definitely comes with a whole other set of responsibilities, obligations, and a certain degree of risk. Each state is different, but once you’ve gone through all of the classes and testing to obtain your license, you are automatically subject to complaints with the state, and even litigation in extreme cases. However, through careful rule following, and familiarity with the world of real estate, there is no reason why your license can’t be a great asset to your real estate investing endeavor. That being said, it isn’t for everyone. It is more than possible to be a successful real estate investor without a real estate license, but depending on your real estate goals, it may or may not be the option for you.
If you are an accredited investor and you are looking for a real estate investment firm that will help add value and property to your portfolio, contact us here at Magnolia Design Properties. We work with one investor client, one property at a time to make sure that each deal we make is well thought out and has our undivided attention. We aren’t looking for a get rich quick scheme, we are looking for quality properties, timely investments, and dedicated investors who want to join us on our commercial real estate investment journey!