» Do I Need a Real Estate License to Invest? » Posted by Realestator      

Does a Real Estate Investor need a real estate license in order to be successful? Often new investors will ask themselves this question.

What is the answer? Well, it depends on the person asking the question. There is no right or wrong answer. First, each investor must look at their goal in real estate investing. Do they want to purchase one property a year, or twenty?

If they’re taking the “slow and steady” approach, then access to a lot of property will not be a high priority. This investor can take their time in locating profitable markets, performing market research, acquiring team members, and making offers that are accepted. They basically can accumulate their resources and leads through methods other than being a real estate professional.

If, however, they want to invest at a consistent pace, with a goal of one to two properties a month, and they want to do it in their own backyard, then perhaps having a license would be beneficial. This would give them access to all inventory on the market, in addition to “insider tips” on new or upcoming listings.

In fact, in a buyer’s market, they may turn a potential listing into an investment purchase, creating a win-win for the seller and the agent, since in a buyer’s market it can take many months to sell a home, and they’ve just saved the seller the realtor commission.

If an agent operates in an area that does not meet their investment criteria (i.e. cash flow, appreciation, etc.), then there obviously is no benefit to becoming an agent in the first place if one of their primary goals is to find investment property.

As many realtors will tell you, it is not an easy job. You have to work when everyone else doesn’t, which means a lot of nights and weekends. People will want to negotiate your salary. You may play tour guide instead of agent if you’re not good at pre-screening clients. And in a down economy, you may find yourself with very little to no income.

So, do you need a real estate license just because you’re investing - not unless it’s a job you really want to do and finding viable property is simply a perk!

For more real estate investing information, visit the realestator’s website at www.real-estate-investing-support.com

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» Posted in Common R.E. Questions on May 15, 2008.

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