A friend of mine is a licensed Real Estate agent and has access to the full MLS info 24/7. I hate to keep bugging him on his time if there’s no deal in the works, I just like to keep a pulse on home values in my area. I’ve thought about getting my own RE license simply to have this same access.
–Is there a disadvantage when doing RE investing to having my own RE license?
–Am I taxed at a different rate or excluded from certain types of loans or contracts?
–Can I handle my own RE deals as both the Buyer/Agent or Seller/Agent to save on commissions?
I was enrolled to become a real estate agent for the same reason… MLS access. I talked to a few people and they said that there are alot of reasons NOT to get your license. One being disclosure. If you are dealing with anything real estate related you have to disclose that you are a licensed realtor/broker. There are also guidelines and rules you must follow with a license that you don’t have without a license. It is just my understanding that there are alot more disadvantages to license than advantage. There are also companies around that specialize in fair market value. Look in the yellow pages or do a google search. Hope this helps!
Jared
Hi,
You should never sell your own property if you are a licensed real estate person. The broker’s “Omission and Deletion” insurance will not cover any transactions where the licensed saleperson/broker is acting as an agent for him/herself.
When a deal go sour, the buyer is usually the one to sue. Your (or your broker’s) insurance will not cover this transaction, so you don’t want to be the seller. If you are the buyer, you are unlikely to get sue by the sellers because they already have your money at the close.
Besides, it will cost you a couple of thousand dollars each year to join your local real estate board (There’s also a desk fee to work under a broker). Only joining the local real estate board do you get access to MLS!
Frogger