Real Estate Investing: The Benefits of Getting Licensed

by Jeff Minter

You might be considering getting into flipping real estate and wondering whether or not it's worthwhile to get a real estate license or if it's better to partner with a realtor.

We've decided to help you out with a list of pros and cons.

Let's start with the pros (stay tuned for a post fleshing out the cons) -

If you decide to get your license, you will have to hold your license with a brokerage for a minimum of two years. You will also have to demonstrate a history of successful sales before you can have your own brokerage and work independently.

As a licensee with a brokerage, you'll have some help and support and protection if you need some hand-holding. Brokers are responsible for the agents that work with them and have a vested interest in their success. Most offer free training regarding the real estate process.

Secondly, when you have a license and represent yourself, you may be able to reduce your commission or waive the bulk of it to make your offers more appealing. This opportunity depends on your brokerage policies, so make sure you check those out before you sign on with a broker.
Additionally, you can list your own finished product and only have to pay a buyer's agent, instead of both a listing and buyer's agent. This is assuming you're a full-time realtor with a track record of successful marketing. You should fare much better than most for-sale-by-owner sellers who typically fail to maximize their opportunity on the market.
Most importantly, you will be able to successfully navigate the real estate transaction, and won't be dependent on someone else's availability or lack of knowledge.
As an added bonus, you will also have the ability to sell for others for additional income.

If you're still wondering if this is the right option for you, follow us on social so you can check out our next post and video on the cons of this route. Let's talk soon.