Getting a real estate license is an obvious choice to make if you want to make money investing in real estate. The process is simple and costs very little money to complete. You will make back that money tenfold with all the money you will save (and earn.) In addition to the cash flow, having a license and handling your own deals will give you peace of mind
Access to the MLS
Real estate agents have access to a valuable tool: MLS. A multiple listing system (also known as a multiple listing service) is a private database of homes for sale that is open only to real estate professionals. Unless it has been specially exempted, every home for sale will be on MLS. Having access to MLS means you can search homes instantaneously. You will not have to wait for an agent to send you listings. Even more advantageous is the ability to compare prices and property value, which is invaluable to investors.
Getting a Foot in the Door
If you’re a part of the business, doors will open up for you that otherwise wouldn’t. Having friends and colleagues that are real estate agents will allow you to network, talk shop, and be handed business opportunities. You’ll also learn the tricks of the trade from colleagues who have been in the business a long time. This sort of inside knowledge is vital to your investing prowess. In addition, once other agents know you are in the market to invest, they will bring you deals. You’ll often be the first to hear about great opportunities.
Saving (and Earning) Money on Commission
If you plan to invest, being a licensed real estate agent can save you a great deal of money. When you go to sell or rent a property, you do not have to give a large commission to an agent. This is because you are the agent. As a result, all the money goes directly into your pocket. On the other hand, you will receive a commission when you buy a house or property. As an agent, if you purchase a $100,000 house with a 5 percent commission, you just made $5,000. Keep in mind, however, that you will have to subtract some money due to broker’s fees. Broker’s fees vary from state to state.
Cancel the Middle Man
Becoming an agent allows you to be hands-on with every deal. And if you’re an investor, you’re probably making a lot of deals. You’ll save yourself a lot of valuable time by dealing directly with all the middle men usually involved in real estate deals. This includes attorneys, inspectors, appraisers, and lenders. You also have control over how the sale of the house is done. You can host your own open houses, and handle all the advertising and marketing. When you know it is being handled exactly the way you want it to be, you save yourself a lot of worry.