Should I Get a Real Estate License for Wholesaling Houses Full Time?
Should investors get a real estate license if they plan to get into wholesaling houses full time?
One of the most common questions investors have is if they should get licensed as real estate agents and become Realtors if they will be wholesaling houses full time. So is it necessary and if not, then what are the pros and cons of getting one anyway?
Investors will be glad to know that they do not need to get licensed by the state to sell real estate or have to join the local Realtor’s association if they are going to be buying and selling homes for themselves.
Still, that doesn’t mean that you can’t get licensed. The question is what are the real pros and cons?
4 Pros of Getting Your Real Estate License When Wholesaling Houses Full Time
1. MLS Access
Having your real estate license and joining the local Realtor board can get you direct access to the MLS. This means being able to jump on deals faster and access more details on the seller and their motivation.
As one of the pack you might find it a lot easier to network with other agents and gain referrals as well as supplementary leads you wouldn’t otherwise have access to.
3. More Profit
As a real estate agent you can save on buying and selling commissions and add thousands in profit margin to each deal. You’ll also find opportunities to gain referral fees and generate additional commissions for helping other buyers and sellers even if you don’t want to take on their homes yourself.
In addition to MLS access you’ll also receive access to additional tools, materials and forms that will all come in handy.
4 Cons of Getting Your Real Estate License When Wholesaling Houses Full Time
On the downside if you get your real estate license you’ll have to disclose it when buying and selling homes. This may not make any difference in most cases but there are buyers and sellers out there that are adamant about not doing business with Realtors, ever.
2. Lawsuits & Complaints
Unfortunately being a Realtor immediately makes you a target for all types of frivolous and silly complaints and lawsuits. Imagine you reputation being ruined because you were too slow to pick up the phone call from another agent on a Sunday night. It happens.
Sadly, being licensed also means being guilty of committing fraud or at least breaking the rules for things that unlicensed investors can do all day long. This is no small issue, so consider your business model and future plans carefully before getting that license.
4. Added Expense
If you are trying to keep costs down a license might not be for you. Between the state course (multiple if you want to be licensed in other states too), licensing exam, E&O insurance, Realtor dues, renewals and any other required expenditures by your real estate broker you could be putting out a lot more than you think
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