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I talk to a lot of investors at various networking meetings around the state of Texas (and beyond).\u00a0 Often when I ask if they have considered getting licensed, I\u2019m met with a sneer or sour look on their face.<\/p>\nI talk to a lot of investors at various networking meetings around the state of Texas (and beyond).\u00a0 Often when I ask if they have considered getting licensed, I\u2019m met with a sneer or sour look on their face.<\/p>\n
\u201cNo!\u201d they will say, \u201cI\u2019ve heard that is a bad idea\u201d.<\/p>\n
This is not a surprise since a quick google search of \u201cshould I be licensed as a real estate investor\u201d quickly pulls up every top X list of reasons to NOT get licensed.\u00a0 Most of which are myths about what that means.<\/p>\n
Well here\u2019s my Top 14 Reasons TO be licensed!<\/p>\n
14.\u00a0 Be Your Own Boss:\u00a0 I often read in those \u201creasons to not be licensed\u201d lists that if you get licensed, you will have to \u201cwork\u201d for the broker and go to sales meetings, or have desk duty.\u00a0 Nothing could be further from the truth.\u00a0 Brokerages come in all flavors and many don\u2019t have any requirements or quotas.\u00a0 Simply choose the right broker and you can use your license in a way that is best for YOU!<\/p>\n
13.\u00a0 Help Other Investors Buy Houses:\u00a0 If you choose to, you can always help another investor purchase a home.\u00a0 Then collect a commission!\u00a0 But, you certainly do not have to.\u00a0 Many, though, will find that it\u2019s smart to take the money wherever it may present itself.<\/p>\n
12.\u00a0 Auctions:\u00a0 As an investor without a license, it can be difficult to make money by convincing a home owner that their best option is to auction the property.\u00a0 As an investor, you would also need to lock it up under contract and convince the homeowner that the increase in price the auction might create should all belong to you\u2026 not an easy sale.\u00a0 But as a licensed agent, you would be entitled to 3% on top of what is charged by the auctioneer!<\/p>\n
11.\u00a0 Net Listings:\u00a0 Investors often pass on low-end property\u2026 or property that is too rural or unique to get adequate comparables.\u00a0 Those properties can also be difficult to wholesale to another investor.\u00a0 But a net listing allows you to list the property on the MLS with a price given to the seller and anything higher belonging to you.\u00a0 Essentially you are wholesaling a property on the retail market to retail buyers getting retail loans!<\/p>\n
10.\u00a0 Commissions on MLS Purchases.\u00a0 Buying a homestead or find a great deal on the MLS?\u00a0 Well you can get a commission or \u201ccash back\u201d on your transaction, even if you are getting a loan on the property!<\/p>\n
9.\u00a0 Access to more Tools:\u00a0 Filling out contracts is easier with ZipForms.\u00a0 RPR (Realtors Property Resource) is a great tool for looking at sold prices wherever you are on your phone.\u00a0 This and many other tools available only to agents will help make investing easier!<\/p>\n
8.\u00a0 Make Money on Short Sales:\u00a0 Particularly in down markets, it seems over half of the motivated seller leads don\u2019t offer opportunities to investors but should be listed as a short-sale.\u00a0 Unfortunately, the days of getting steep discounts or wholesaling short sale properties are over (with a few exceptions).\u00a0 But you can still make money on these leads\u2026 list as a short-sale!\u00a0 And if your broker (like StepStone Realty) offers short sale processing, you won\u2019t find an easier listing!<\/p>\n
7.\u00a0 Access to Properties:\u00a0 Being an agent allows you to enter property for sale on the open market.\u00a0 There is no better way to see your competition before you do a rehab on a property!\u00a0 Find out if everyone else is putting in granite or quartz countertops before you spend the extra money.<\/p>\n
6.\u00a0 MLS Access:\u00a0 Comps!\u00a0 Available properties!\u00a0 I see way too many investors asking agents for an ARV.\u00a0 Since they are promising a future listing on that property for the comps, the agent has every incentive (consciously or unconsciously) to fudge that number up.\u00a0 It\u2019s always best to comp the property yourself!<\/p>\n
5.\u00a0 Referral Fees (the legal way):\u00a0 If you do not want to list a property yourself, you can always refer it.\u00a0 Investors do this as well, but receiving fees for this is not legal, unless you are licensed!<\/p>\n
4.\u00a0 Credibility:\u00a0 I always chuckle when I read someone\u2019s list of reasons to NOT be licensed and it includes, \u201cYou will have to disclose you\u2019re an agent\u201d.\u00a0 First, I\u2019ve never seen a seller reject an offer or even an appointment to see the home because of a license.\u00a0 The truth is, you only have to disclose at the time you present a written offer, but you would be better off telling a seller right away.\u00a0 They tend to distrust investors and trust agents, so letting them know you are licensed actually increases your credibility and enhances your ability to get a deal.<\/p>\n
3.\u00a0 Listing your own properties for lease:\u00a0 Why pay half of your first month\u2019s rent just to get a tenant when you can list it yourself?<\/p>\n
2.\u00a0 List your own properties for sale:\u00a0 On a $200,000.00 house, that is like a $6,000 increase in price!<\/p>\n
1. \u00a0Monetize More Leads.\u00a0 Leads are expensive!\u00a0 With a license, you ALWAYS have something to offer a seller and a way to make money.\u00a0 Who doesn\u2019t like making more money!?<\/p>\n","protected":false},"excerpt":{"rendered":"
I talk to a lot of investors at various networking meetings around the state of Texas (and beyond).\u00a0 Often when I ask if they have considered getting licensed, I\u2019m met with a sneer or sour look on their face. \u201cNo!\u201d they will say, \u201cI\u2019ve heard that is a bad idea\u201d. This is not a surprise […]<\/p>\n","protected":false},"author":3,"featured_media":411,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=337"}],"version-history":[{"count":1,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/337\/revisions"}],"predecessor-version":[{"id":431,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/wp\/v2\/posts\/337\/revisions\/431"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=\/"}],"wp:attachment":[{"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.stepstonetexas.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}