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Should Real Estate Investors Study For A License?

Real estate brokers need a license to operate in the US real estate market. Investors don’t need to study for a license if they don’t want to. Although it might seem like a hassle, investors should give some serious thought to taking the time to get a license.

It can bring some serious benefits to their business.

The MLS

The MLS is the license holder’s database for everything related to housing. You can spend hours mining historical data from specific areas. You can find out how much properties are going for and whether it’s a market going up or down. This data isn’t available to the general public and only you can access it.

Many investors credit their business success to the data they took from the MLS. Some investors have made friends with license holders to gain access to the database illegally, but it’s not worth the risk as your access can be removed if anyone decides to perform an IP check.

Make More Money

You need someone with a real estate license to complete any deals on property. Investors can lose up to 8 percent of the value of their transaction through agents’ fees. Over the course of a year, if you make four deals you could be costing yourself up to $100,000. Would-be investors often fail to take this into account and they end up losing millions over the course of a long-term investing career.

More Control

Without the need for an agent since you’re a license holder you can have full control over your transactions. You don’t need to send a message to your agent to contact the other person’s agent. You pick up the phone and start talking. This saves a lot of time and hassle in the long run.

Think about how much time it takes for a housing deal to go through. You can cut this down significantly if you have a license. And as they say in any business sector; time is money.

More Trustworthy

You instantly become more trustworthy by holding a license. An investor can be anyone as long as they have a wallet. You could declare yourself an investor tomorrow if you wanted. It’s not a legal status and it doesn’t really say anything about you. It’s why other agents might be apprehensive about dealing with you.

On the other hand, someone who’s fully qualified will have other agents willing to deal with them. All they have to do is pull out their license and you could well be acting as the go-between for a bank or other major investing agency.

Are there any Drawbacks?

Investors who don’t own a license have said there are drawbacks to holding a license. It’s complete and utter nonsense. The benefits of holding one of these licenses far outweigh any perceived drawbacks. Yes, it takes time to earn, but once you have it you keep it and you don’t have to worry about earning it again. A few months of study is hardly comparable to many years of real estate success!

This article is contributed by Alicia Jones, a career guidance counselor. She shares education and career tips through her articles. She feels that the real estate continuing education is great for people who are trying to find a foot holding in the real estate business.


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