When you first got into investing in fix-and-flip or fix-and-hold properties, you probably read somewhere that you don’t need to get your real estate license to get started. That’s definitely true, and I know a few investors who’ve been making money with real estate for years without ever getting their real estate licenses.
But if you’re looking for ways to improve your bottom line, get deeper into the real estate business, and become a better investor, becoming your own real estate agent is a really good way to go. If you’ve been waiting for the right time to do this, now might be it… but how do you know? Answer these questions for yourself, and you’ll have a better idea of whether or not you should start the process to become a real estate agent.
Do You Have the Time to Take the Courses?
Getting your real estate license is, unfortunately, more involved than just going to a government office near you and applying. To get a license, you’re going to have to take at least two rigorous courses (this may vary, depending on your state). So, do you have the time to get the education you need to pass the exam to become a real estate agent?
If you’re already running your own house-flipping business, you’ll likely be in a better position to do this than if you’re still working your day job while you get your investing business started.
Do You Have a Relationship with a Great Brokerage?
After you finish your coursework, you’re going to have to work for a brokerage as part of your training to get your license. If you’ve been working in the real estate business for a little while, you’ve likely worked with at least one real estate agent. So, even if you don’t have a direct relationship with a broker or brokerage, you probably have a link to one. Talk to your real estate agent and others in the real estate business to find out which brokerage you should approach.
Can You Pass a Criminal Background Check?
While all states require you to pass a state and national exam to get your real estate license, not all of them will require a criminal background check. If this is going to be a problem for you, you might want to look into your state’s requirements or continue to work with a real estate agent instead of becoming one yourself.
Do You Have the Money to Start the Process Now?
Finally, do you have some cash saved that you can spend on getting your real estate license right now or do you need to save for a few more months? From paying for your courses and the exam to budgeting for marketing, you can expect to spend upwards of $2000 to become a licensed real estate agent.
However, you’ll save money on realtor commissions and can make additional commissions if you help other people buy and sell their houses, so getting your real estate license now could pay off in less time than you know.
So what do you think? Are you ready to be your own real estate agent, or would you rather keep focusing on finding great deals and let your agent take care of the details for you?