Will any experienced investor please share your opinion of the pros & cons of having a Real Estate license to be an investor?
Thanks,
SPC
The only reason to me for a investor to become a realtor is to is to learn the real
estate business from the inside of the industry.
Keep in mind that most agents often work evenings and weekends, they work over 40 hours per week, beginners face stiff competition from the more established and your income is sensitive to interest rates and declining economic conditions.
If you have a license, you have to disclose that in the contract. Also, when you see properties in the newspaper that say no brokers, it is difficult to talk to owners because of your licensed status.
The median expected salary for a typical Real Estate Sales Agent in the United States is $32,690
Average hours per week: 50
Average starting salary: $15,000
Average salary after 5 years: $34,300
Average salary after 10 to 15 years: $49,000
Expenses are usually deducted from the commission to pay overhead costs before the agents are paid. Overhead includes such things as the cost of running the office and advertising properties.
You will also incur expenses as a cost of doing business. Typically these expenses include such things as a decent car, gasoline, a computer, access to the Multiple Listing Service, errors and omission insurance, to name a few. Agents are also responsible for paying their taxes, medical insurance and establishing their own retirement plans.
I have never found a use for a license in 20+ years so I will have to say it will be up to you!
http://www.reiclub.com/forums/index.php?board=29;action=display;threadid=6600
This is one topic you will get many different opinions on. Here is one of the many threads you can find in the forums. There are plenty more, just go ahead and look. It might be the most hotly debated topic here.
I did my first four deals with a Realtor. He did a great job. But after that I thought: I could earn these commissions buying and selling just my own properties.
Frankly, I’m no salesman and I would starve if I had to make a living as a full time agent. I did make an extra 9k in commissions last year just doing my own deals. (Money someone else would have made.) I also do deals that don’t go through a broker.
It costs me approx 900.00-1100.00/yr to maintain my license, Realtor affiliations, MLS electronc key and membership,etc. So far it’s been worth it… FOR ME.
Bobos right, though. some people want nothing to do with that aspect of real estate. To each their own.