A real estate license is not required to be a successful real estate investor. People have made a career in real estate without ever having to get their license. Although this is true in some cases, they are few and far between. Here I will lay out a few options about the pros and cons of obtaining your real estate license.
If you are serious about the real estate business and want to make it your full-time career then the more education you can attain about the industry the better. Receiving your real estate license will show to potential customers that you are serious about the work you do. With a real estate license, you will be equipped with the knowledge and tools needed to close deals efficiently and proceed on to the next project quickly. As opposed to not getting your license, you may be left in the dark on what your next step is at any point in the process. Great, you have closed your first deal, now what? You want to be able to turn a profit in real estate and know what the next steps are so you can move on to the next project without much downtime
Pro: Insider Deals
Having your real estate license gives you access to opportunities that others who do not have their license do not have access to. You will receive information from the multiple listing services and be able to act upon leads and know about your competitors in other areas. This information could sway you to pursue other areas of real estate opportunities and keep you informed throughout the process.
Con: It’s Expensive
Real estate licenses do not come cheap. You want to consider expenses such as everything that goes into the preparation of the exam. You will have to pay to take the exam, and if you do not pass it, then you will pay again for it. Fees are required in many aspects of real estate. Fees are required after you have passed the test to join organizations who have information on prospective customers. In some cases, you are required to shadow a broker who will have another fee attached to it. Even after that, potentially there could be more training later down the line if you are serious about a career in real estate. Fast changing market trends and customer demographics in your area could call for retraining or additional training in your field.
There are many more pros and cons to account for when considering pursuing a real estate license. Ultimately, it is up to you to know if you have the motivation and drive to do it on your own or have the help, and the money, to take the test for your real estate license.