I was hoping investors on this board, would be able to help me with this question. I currently am an investor, who is looking to buy anywhere from 10 - 15 homes this year in the Dallas market. I own 5 currently, and was wondering what the benefits and draw backs would be to having a real estate license. My thought process, is why don’t I make the 3% on all of the homes I buy…
I have been told though that having a license makes it a lot more difficult to be an investor because of all the disclosure issues. I just hate thinking about all the money I am losing by not having the license. (aka 3%) per home. Any thoughts would be appreciated.
“I have been told though that having a license makes it a lot more difficult to be an investor because of all the disclosure issues.”
I hear this a lot clear across the country, and I think it’s an old wives tale personally. However, maybe your state is different. They did afterall, just pass a law which sounds very restrictive regarding the future use of Lease/Options. A law–coincidentally enough–apparently endorsed by a Communist Party (based on what’s been shared on this Message Board).
Agents are allowed to invest. Agents are allowed to make a profit. Agents have to disclose their qualifications…that’s never caused a problem for me. In fact it’s never been a problem for any Agent I’ve ever known & I know some Investor/Agents who’re extremely wealthy.
We used our commission toward the purchase of our latest investment property.
I don’t know of any drawbacks, but the benefits should be obvious…you’ll see more opportunity than you have time or money for.
“Does that mean I can profit with a realtor commission (3%) when I buy a personal investment property?”
Yes you can profit, however, it will all depend on your arrangement with your Broker. For instance; we pay a commission split to our Broker…we don’t get a full 3% until that split has been achieved. But, we can buy & sell a personal residence once each year without paying the Broker anything if we haven’t reached our split.
You’ll just apply any sales office commission to lower the sales price. It’s the same amount to the seller either way.