Real Many investors think that it would be smart for them to become a real estate agent in addition to being an investor. Before we go into this, here’s a refresher on why you need a good agent on your team. Here’s our take on whether you should become one.
You’ll Learn the Industry
As an agent, you will be required to take classes that will teach you a lot about the home buying and selling processes. You’ll rub shoulders with other professionals in the real estate world, and you’ll learn more about your local housing market.
You’ll Gain Access to MLS
MLS offers tons of helpful data that will allow you to succeed in your investing business. When you’re a licensed agent, you’ll be able to access MLS without relying on anyone else’s login information.
You Can Be Your Own Agent
You and your business partner can have full control over your deals if one of you has your real estate license. You can negotiate directly with listers, lenders, and other parties involved in your buying and selling transactions. You can control all aspects of selling your own properties.
You Can Make Money
This is another big reason that becoming a real estate agent is enticing to investors. Agents collect fees for facilitating transactions. If you’re the agent, you get paid instead of having to pay someone else!
But It’s Pricey… and There’s No Paycheck Guaranteed
It’s not cheap to become a licensed real estate agent. You’ll have to pay for pre-licensing classes in order to get your license. When you’re getting started, you’ll have to buy marketing materials, get a website built, and more. And once you’re established, you’ll have to pay lockbox fees, continuing education costs, MLS fees, and association fees. If you’re working for a big firm you might have to pay office fees. All of this will cost you thousands of dollars.
You’d think that spending all this money would come with a guarantee of it paying off, but it doesn’t necessarily happen that way. If you have the time to really hustle until you start to earn a good reputation, this might be feasible… just know that you’re probably not going to start seeing profits right away.
Unless you have the money to get started and you are really devoted to the idea of becoming a real estate agent, we wouldn’t suggest it. Because of the high cost of getting licensed and beginning your journey, it is unlikely to pay off for you unless you’re able to devote massive amounts of time and effort. Yes, realtors can definitely make a good amount of money—but the ones who are highly successful as real estate agents aren’t doing it as their side job; they’re devoting all their time and energy to it.
No matter how you start your real estate journey, it will take hard work. You don’t need a realtor license to have success in real estate investing, though if you can afford it, it can offer benefits.
Do you have your real estate license, or have you ever thought about getting it? Let us know your thoughts in the comments.