Benefits of having a real estate license as an investor. Have you ever wondered
should you get your real estate license if you want to be a real estate investor?
Well, this is an absolutely great question. As a licensed real estate agent
and a really, really good real estate investor, I'm going to share with you all of the benefits
that exist and tell you some of the mishaps that may come along with it. Let's go.
So, let's just get right into it because like I said, there are so many benefits to having a
real estate license. As a real estate millionaire, entrepreneur, mentor, speaker, author in all things
real estate, I absolutely love real estate and I think that it is one of the best ways
to build your personal wealth, it is surely how I got myself to multi-millionaire status
and it is one of the best things that you can do as a business to create multiple streams of income.
But as a real estate investor, it is very different than being a real estate
agent and most real estate agents use their real estate license, not investors. So, let's be clear, to
be a real estate investor, you do not need a real estate license however, there is a major benefit
that I'm gonna share with you because there's quite a few. So let's get right into that part
because I love real estate investing and I have my real estate license. Number 1, access to the
MLS. MLS stands for multiple listing services and as a real estate agent with a real estate license,
you get access to the MLS. MLS is where all of the real estate agents put their listings of all
the properties that are for sale in one place and again, you only get access to MLS as a real estate
agent. There's definitely other sites where you can sign up to and get access in some regard to MLS
but it doesn't give you the full access that you would get as a real estate agent with a license
that is active. Having an active real estate license will open up a myriad of things that
are just available to active real estate licensees like the MLS. Like I said, MLS has not only all of
the properties that are listed for sale but as the properties sell, then those are also there
so you can see all of the properties that sold through the MLS. You can see how much they paid
for them, you can see how much they paid for it, you can see when they close and you can get all
of this information to all of the real estate in the residential market that has been listed with
agents which is most of the real estate, okay? So, having access to MLS is going to open up so much
information that only licensed real estate agents have. So, if you want access to this information,
you're going to have to get a real estate license but I'm going to tell you what a really, really
important thing is when it comes to MLS and that is expired listings. So, as a real estate investor,
someone that makes money from flipping houses or flipping contracts or having rental properties,
we need to buy property that we have equity in, we need to buy property that is appreciating in value
and we need to buy property that is cash flowing. So those 3 things are really important to us
and oftentimes if you can find an opportunity with someone that listed their house for sale
and they did not sell it, that will be called an expired listing. As a licensed agent, I have access
to all of the expired listings. So, now I have a list of all of these people that have raised
their hand, said they wanted to sell their home but were unsuccessful in selling it, that's pretty good
information, right? So, most real estate agents, they're going to just call that person and try
to get them to re-list their house, you know? Hey, let me sell it let me put my sign in front of the
house, that's fine, that's cool but as a real estate investor with a license, I get to call those people
and actually offer to buy their home. I offer if they want to do seller financing, I offer if they
want me to rent their home and then I make it one of my properties and then they're able to move on.
Basically, I found someone that is having a property problem and I get to call them with
different solutions that real estate investors have, not real estate agents. It's incredible.
Number 2, real estate licensees have access to insider information and insider knowledge. So, like
I said, as a real estate investor, you are not a real estate agent. Those are 2 separate careers.
Real estate agents help people buy homes in the retail market, they drive people around
in their cars and show them houses or they go to their house and they make presentations and they
try to say hey, let me list your home. But a real estate investor is someone that makes money off
selling flipping or landlording properties. And so we have access to information as a licensee
that all of the retail people have and we can do so much with that information.
Real estate licensees learn what's going on with the market, they have all of the experts, all of the
brokers, all of the major real estate people in the area are all giving information, teaching courses,
putting letters and things like that together and all of that information is absolutely free to
someone with a real estate license. So, having your real estate license will open up your knowledge
and access to lots of information that you would not be able to get if you don't have a license
and number 3, the number 3 reason to have a real estate license as an investor is because you
can broker your own deals and receive a commission. This is incredible and this is probably the reason
that most people want a real estate license is because when they buy and sell homes, they can
get a commission. And so I'm going to give you an amazing deal that I just did W weeks ago where
I bought 2 condos, okay, I'm going to show you pictures of these 2 condos that I just bought.
They are unit 101, unit 103, they're like side by side in this major resort type of place so
they're 3 bedrooms, 3 baths and they were selling for almost 400,000 but I
negotiated at 8% commission on both of those units so I got nearly 60,000
dollars in commissions when I bought those properties, okay? $30,000 from
one, it was like 29,500 and something then 29 something. So, again, nearly
$60,000 in commissions i received from purchasing those 2 rental properties, okay? So, I had to put
30% down or 20% down or whatever I had but when I'm calculating and figuring out my numbers,
I add in the commission because that helps, that's money that's coming back to me, that's immediate
cash on cash or what I can often do as a real estate licensee, I can negotiate when I'm buying a
property and have them take the commission off of the price. So, it depends on what you want to do. You
can actually be paid your commission and receive a check for $30,000 or you can
actually have them take $30,000 off of the price of the home if you so choose.
Now, I'll be honest, most of the new builders and things like that, they're going to want to pay the
commission because they want to keep the price, the sales price of their properties at a certain level
because one of the ways that they build in revenue is by increasing the price of their properties
as they continue to build. So, most of your new builders, your new construction, they're going to
want to offer a big commission instead of reducing the sales price because they need for their sales
prices to look a certain way. Like I said, once you have access to MLS, you can see what properties
sold for and that is how we judge what we should pay for a property so builders that have new
properties, they are very, very careful to make sure that they keep their sales prices in order. So,
long story short because the point of this is you can get commissions when you buy properties for
yourself or for your investor clients so, it's an amazing thing to get money in on on hand to get
cash on cash when you buy a property, just get cash right back as soon as you close, 2 days later
they're handing you your commission check or you can negotiate and have those commissions taken off
of the purchase price and start getting properties at a cheaper price because as an investor,
you want those 3 things. You want to make sure that you have appreciation and one of
the things that commission can help you with is getting cashflow and equity because again,
that is money that you have equity in the property if you want to get that reduced, the price reduced
based on your commission. So, super easy to do, super incredible. This is one of the reasons real estate
investors get their real estate licenses and this is one of the amazing benefits that you can use so
let me give you one more thing. So, 'm going to tell you a really special way that you can get
your real estate license for inexpensive price and get it really quickly. You can launch your
real estate career in 3 easy steps. Number 1, take your pre-license course. All potential
candidates that want to get their real estate license must attend a state approved pre-licensed
course. Companies like Real Estate Express allow you to take your classes online. Number 2, once
you've completed the pre-licensure course, the next thing you need to do is pass your state exam.
Real Estate Express school will help you pass your state exam for real estate. Real Estate
Express courses are accredited and approved by the state. This is awesome, that way you don't have to
be worried that you won't be prepared to take the exam. Real Estate Express courses are designed to
make sure that you take and pass the state exam and then number 3, launch your real estate
career. Congratulations! You'll be able to pass the test and all you need to do is find a broker
so that you can start your real estate career. Make sure that you go to Real Estate Express and take
one of their real estate courses. I recommend them, I think they're a great companyy. You can do it all
online and again, they will help you prepare and pass that state exam so you can get your license
quickly and efficiently. I just want to make sure that you have all of the resources, all
of the tools and all the knowledge that you need to be successful. This is Noelle, to your success.