Although a real estate license does not mean that you should become a licensed agent, it does expand your capabilities. As a licensed agent, you can represent others in real estate transactions. Not only do you have access to databases that can help you find the perfect property, but also you’ll be held to higher standards by the law. The cost of a license can add up quickly if you don’t have time for it.
Getting a real estate license opens many doors for investors. Besides letting you offer more money than cash, it opens up a broader network. When you can network with other real estate professionals, you’re more likely to close deals. It could mean meeting the right real estate agent or being in the right office. Either way, a real estate license can make a world of difference.
A license allows you to take advantage of first-mover advantages. You’ll have the advantage of accessing deals that may otherwise be off-market. Additionally, it can help you establish great relationships with lenders. As an investor, a license gives you an edge over your competitors. You can leverage their time, perform research, and leverage other agents’ expertise. And most importantly, it can help you save money on the cost of marketing.
A real estate license will allow you to self-represent yourself on purchase contracts. In addition to saving money, it gives you access to 6 percent of the purchase price in extra profit. This extra money can add up, especially if you are doing a high volume of deals each year. And in larger deals, such as apartment buildings, it can add up to thousands of dollars. Hence, a real estate license is essential if you want to make a decent living in the real estate business.