It is not uncommon for real estate investors to wonder; Is it worthwhile to obtain a real estate license? Is it worth the time and money? Is there any justification for today's investors to bother with obtaining a license? What does having a real estate license offer you that you don't have already?

The answer is pretty simple. If you are looking for just personal investments, in today’s real estate industry you do not need a license. But, if you think you may want to assist others with investing, then yes you will want to earn a commission and you will need a license to do so. So, when it comes to gaining an edge: becoming a licensed agent or an investor is a great way to start.

While most information can be found on many websites, there are some advantages of having a real estate license. Here’s why:

MLS (Multiple Listing Service):

You can legally and legitimately have full access to the multiple listing service once you have your own real estate agent's license (MLS). This access will take your Real Estate Investing to the next level because not every listing entered in MLS does the seller want their property on every 3rd party site, so there are some listings that will not show up in other places.

By using MLS, you would be able to keep a close eye on every neighborhood and spot a new property as soon as it hits the market. You don't have to wait for an agent to notify you of a property or for an email from a real estate website to open the door to a deal. You will have full access to all property information in your preferred locations and will be able to make a bid by the end of the day directly to the listing agent.

There are other non-MLS websites such as Zillow, Trulia, Dealty, Redfin who provides the housing data for free.

Moreover, you have access to the Real Estate historical data which includes all the relevant transactions related to a property. The Multiple Listing Service (MLS) offers accurate information on rates and comparables, with direct access to public tax records. Other websites like Trulia, Redfin, Dealty, Zillow, and LoopNet, also have historical data shown on their websites.

Commissions:

It wouldn’t be wrong to say that the investor got a license to print money. Most investors purchasing property for themselves will typically negotiate the commission off of the purchase price if they are not working with an agent, but it’s possible to make a lot of money by legally collecting a commission on a real estate sale when they are licensed. 95% of all people go through a real estate agent, the rest 5% are real estate investors themselves. By serving as an agent in a deal, the investor gets out of paying the usual commission associated with working with an agent.

Even if most investors don't have the time to be both a listing agent and a buyer's agent, they can certainly refer the deal to another agent and split the profits with them. They should be able to settle a 25% of a 2%-3% fee for referring a client.

After a while, the referral commission can add up to a lot of money, particularly if you're generating a lot of seller leads.

Education (Improved Business Knowledge):

Almost every investment you make would entail some kind of interaction with a real estate agent. So, you need to enhance your knowledge base. The more you understand about the real estate industry, the more likely you are to succeed in it.

If you are new to investing, the required real estate courses will assist you in understanding how the real estate industry operates, as well as providing insight into contract structuring and even what to look for in a house, you will learn the negotiating skills and the right way to market a property. After this, you'll have a better idea of what's needed to close a contract.

Networking Opportunities:

Real estate is a people industry, the more people you can bring into your network with a real estate license, the better. Being a licensed real estate agent opens up new opportunities by enabling you to connect with brokers and agents in the office where you work.

Not only can you pick up some tips and tricks for closing a deal but they can also share great resources with you such as qualified and trustworthy lenders, appraisers, surveyors, and other real estate professionals who will help you with your investments?

Is It Worth It?

After going through the above-mentioned benefits are you still looking for the answer to this question? I bet not!

A real estate license could be the best choice if you're passionate about real estate, want to invest in real estate frequently or help others invest with this new career path. Start paying for your classes, begin studying right now, and get started on your new career path as soon as possible.