If you asked a large number of investors to answer the same question, there would likely be a split in their answers. It is essential to obtain your real estate license. There are many reasons you should get your license. I will only highlight some of them:
1. MLS - Access to the MLS is crucial for your investment career. You don't need to depend on friends, colleagues, or agents for access if you have your license. There are hundreds of fields in the MLS system that provide information about the property's features. Real estate professionals are experts in the local market and determine these fields. You will find the following information on the MLS: the address, sales term and tax information. HOA dues can also be found. Loan information is also available. The MLS also offers historical data, which can be extremely valuable. You can refine your search to find exactly the type of property you are looking with proper MLS data mining.
2. Networking - Once you have obtained your real estate data licensing, you will be able to connect with other professionals at the place where your job is. You will also have the chance to use the vendor services offered by your real estate brokerage. Some real estate brokerages offer discounts for advertising in local newspapers and magazines. Networking with other agents is also a great way to gain advantages. These benefits allow you to build creative relationships. You can encourage other agents to work with you by offering a portion of your commission. You can also offer a portion of your real estate commission over time to other agents, which will lead to more deals.
3. Additional funds - You will be able to make additional cash flow from transactions once you have received your license. This is in addition to the expenses. You will receive a commission of 3 percent for every transaction that you are involved in. These additional funds can be used to fund any aspect of your business. You can take an example: If you purchase $2 million worth of property within a year, that's $60,000.
You can reach many homeowners who are looking to sell their homes by running a real estate marketing campaign. You may be so busy you don't want to list the home. You refer the listing to another agent for a referral fee. Remember that you still have to pay commission splits and dues. Referring to other agents as part of your business plan can be a good idea. They will more likely offer deals to you if they see a deal that is worth their while. This is unlikely in today's market but it is something I would recommend. I can also guarantee you that the market will return at some point. Real estate is just like other industries.
4. Controlling the Deal – You will occasionally hear of other investors losing deals due to their agent. If you are not one of the few dedicated and knowledgeable real estate agents, you will eventually run into this issue. A licensed agent gives you the ability to work directly with appraisers, title companies, inspectors, closing attorneys, and lenders on both sides. You and your company will also be responsible for the selling of the property to buyers, marketing the property and targeting potential buyers. Because you and your company are directly involved in the sale, you will be more motivated than any agent to sell the property.
For all the reasons I mentioned, I recommend that any new investor get their license. However, the knowledge that real estate courses offer is also valuable. It will help you to grow and accelerate your real estate investing career.