Should I get a Real Estate License? Investors tend to be adamant one way or the other about being a licensed Realtor®. I am definitely on the side of becoming licensed. Being licensed has been one of the best tools I have as an investor. If you’re considering getting your real estate license, either as an investor or as a career Realtor®, I’m offering my free book “Becoming A Real Estate Agent” to answer questions you probably have.
Ask almost any investor and they’ll say MLS access is the biggest payoff.
Owning a Home is Still the American Dream
Every year the National Association of Realtors conducts a survey that consistently shows more than 9 in 10 homeowners see homeownership as part of achieving their personal American Dream. I don’t know of any industry that has more clients (including repeat clients). If you want a steady and unending source of clients, the answer to “Should I get a Real Estate License?” has to be at the top of your career contemplation.
In 2019, the Baby Boomer generation was still 71.6 million people strong. And they are actively buying retirement and senior community homes today. But wait…. Baby Boomers are no longer the biggest generation looking for houses. In 2019, Millennials overtook Boomers with a population of 72.1 million. And although a slightly smaller demographic, Generation X numbers 65.2 million.
There are more than 200 million potential real estate clients.
Why is this important about should I get a real estate license? The answer is very simple because young adults are forming households in tremendous numbers. They require the services of real estate agents whether it’s for a traditional purchase, a sandwich lease option, or a rehab and flip.
Having a real estate license enhances your ability and skills in every type of real estate transaction.
How Should I Get a Real Estate License?
Every state requires real estate brokers and sales agents to be licensed. To become licensed, most states require that prospective agents must be a U.S. citizen, a high school graduate, at least 18 years old, pass a written test administered by the state, and not have a criminal record.
Also, most states have pre-licensing coursework as a requirement. The educational requirements differ greatly from state to state. As an example, California requires three college-level courses. Other states, such as Idaho, require two courses that total 90 hours of training. Your education can be obtained in a variety of different ways. Some real estate companies offer pre-license training in-house. There are also real estate training schools. And there are online courses that let you do it from the comfort of your home.
The free book that I offer points you in the right direction to becoming a licensed real estate agent. It includes links to resources for real estate licensing requirements in each state.
Accessing the Multiple Listing Service (MLS)
When asking the question “should I get a real estate license,” most investors are primarily interested in unfettered access to the MLS and to a smaller degree, the professional networking with other broker/agents.
Without a doubt, most transactions go through the MLS.
But let’s be honest, not all investors need full access to the MLS. When I talk about “traditional sales” or “retail sales,” I’m almost always talking about MLS listings. MLS deals are priced at the high-end of the comparable price range. It’s very unusual for these to be “distressed sales.” If your investing strategy is rehabbing and flipping or wholesaling to other investors, you’re not often interested in the high end of the comparable price range. When the need arises, you can always use a licensed agent with MLS access. By working closely with a few licensed brokers, they will give you the next best thing to unfettered MLS access. I understand this. That is why I cover all aspects of real estate investing by also offering the “Working With Realtors® Course.”
But…. sandwich lease options are not distressed sales. Sandwich lease options are the same white-picket-fence houses that you find in the MLS. It’s a seller’s market out there with a ton of buyers looking for these very houses. By having your real estate license and access to the MLS, your market share is enormous and includes the most sought after houses everywhere.
Tips for Getting Started With Your Real Estate License
There are costs involved with starting a career as a real estate agent. One temptation is dropping $1,000 for an advertisement in a glossy magazine to announce that you are in business. But don’t do it until you have a full plan.
I will help you find the best ways to use your real estate license!
Before you spend a dollar, when pondering the question “should I get a real estate license,” sit down at a computer and write a business plan that is heavy on the strategy section. Start by deciding if you are going to help others buy and sell real estate or if your primary goal is facilitating your own investment business. In most states, a real estate license allows you to collect a commission when buying and selling your own investments (including sandwich lease options). However, you do need to be careful not to get yourself into a conflict of interest situation.
If the primary answer to “should I get a real estate license?” is gaining full and instant access to the MLS as an investor, you probably don’t need much marketing (I have other solutions). However, if you want to attract the commissions that come from working other people’s deals, you’ll need to market yourself. That’s when you need the $1,000 glossy ad.
But I share with you many other options. My favorite place to start is still with Cooperative Lease Options or sandwich lease options. Neither of those requires expensive marketing. You get started with both by making a few telephone calls and following the free script I provide for talking to sellers!
Should I Get a Real Estate License? – Taking the Full Plunge
Before expensive marketing, think about your sphere of influence – all of the people you know. Including those that you haven’t contacted for a while. Now is the time to make sure they know you said “Yes” to “should I get my real estate license?” Ask them to tell everyone they know. There is nothing better than word of mouth advertising.
Taking the full plunge includes working with a mentor. Often, your broker is your mentor and hopefully others in your office will help as well. Ask them if you can sit in on listing presentations and tag along to show houses. Don’t interfere with the sales presentations of others. Instead, stay in the background and wait until the client is gone before asking the many questions that come up.
Have you already said yes to “should I get my real estate license?” but don’t have a broker yet? I can help. I’ll be glad to help you on your journey to becoming a highly successful real estate agent by mentoring you through the process. It doesn’t matter what part of the country or Canada you are in. I work with agents all over North America. Call me at 248.394.0767 or send a note to my office at wendypatton.com/contact.
One of the best things about being a real estate agent is working for yourself instead of having a boss. A broker is much more about having a mentor than it is about having a boss. As a mentor, he/she shows you the ropes and keeps you focused on success. But being self-employed means that you set your own work hours, decide what to specialize in, make all of your career decisions, and much, much more.
I’ll help you continue on your journey to becoming a real estate agent and/or investor.
I’m sure you still have questions and I want to help you find all of the answers. EVERYTHING YOU NEED IS RIGHT HERE!
- Cooperative Lease Options.
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
- You’re Wealth Building Arsenal.
- Add Personalized Coaching.
- Expand to Get the Deed “Subject To.”
- Round it all out by Working with Realtors.
By Wendy Patton
For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.
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