Real estate investing is fast and competitive, and investors are always looking for advantages over competitors. One possible advantage is getting your real estate license. Investors often work with real estate agents to find promising properties, negotiate offers, and close deals. Some investors like the idea of getting their license and doing all that themselves, taking more control of their ventures.
There are also benefits for real estate consumers. Your investing skills can be beneficial for your real estate clients and you can learn a lot from other licensees and real estate clients and customers.
Here are some other reasons why investors should invest in a real estate license.
Acquire Valuable Knowledge and Experience
Learning about real estate transactions from the agent’s perspective can give you some useful insight. The extra knowledge you gain about the mechanics of a transaction, the contracts and contingencies, the processes and deadlines provide more opportunities to draft advantageous deals.
Most real estate pre-license courses explore financing, appraisal, market analysis, and other topics that would be useful in investing. Every year you’ll be learning more: to renew your real estate license you’ll have to complete real estate continuing education.
For the price of a real estate course and application fee, you can get a license in your state to represent property buyers and sellers for a commission. An agent’s commission is usually a percentage of the sales price, for example 6%. You likely won’t have to invest in new office space or equipment. Much of the real estate business is now conducted on the go online, including singing and delivering documents, property searches, market analysis, and financing.
The extra income you earn as a real estate agent can be invested in other ventures. You may not get super rich, but you’ll likely earn enough to grow your investment business.
Extra Edge for Success
Every little bit of access and inside knowledge can help you close more lucrative deals. Becoming a successful real estate agent requires a lot of the same skills as being an investor: self-promotion, market knowledge, negotiation skills. The knowledge and experience acquired as an agent can be put to use in your own projects such as flipping and buying rental properties.
Being a real estate licensee can give you access to new deals. Agents enjoy special access to the local multiple listing services. You’ll be the first to know when a listing that may interest you hits the MLS. Without the step of communicating back and forth with an agent, you can move faster to make offers and close deals. These extra advantages can put you ahead of the competition. Plus, there is tons of data available on the MLS regarding areas, types of buyers, and types of houses.
Cut Out the Middleman
Investors like to work fast. They know exactly what they want, how to get it, and the value of time. Some investors get frustrated with real estate agents who are slow to get on the same page and learn or apply their preferred strategies and formulas. Such delays can be the difference between success and failure in a fast market
No one knows better what you want and how you analyze deals than you do. When the right listing goes active, you will be well positioned and well equipped to move fast. In a competitive market with lots of offers, a great property can be snatched up in the blink of an eye. As an agent and investor, you have complete control of your deals.
Prospecting and Referrals
Former clients are great resources for referrals. Working more with agents, buyers, and sellers puts you in a great position to prospect and develop new leads. Realtors love to get together and talk about real estate. Some of the best leads can arise from open houses, seminars, and industry events.
Being a real estate agents means really knowing your audience, your niche, and the local market. Getting involved and known in the community can expand your sphere of influence, thus boosting the number of possible future leads.
To earn a real estate license, you will need to complete a real estate pre-license course, submit an application, pass the licensing exam, and find an established broker to sponsor you. Getting a real estate license can be a great way for serious investors to gain valuable knowledge and take more control over their deals.
If you’re ready to get your license, 360training.com is a great resource. A leading provider of elearning, 360training.com offers the best solutions for any training needs, from pre-license to continuing education to professional development. Enroll in convenient, online courses today!