As more people realize the earning potential of real estate investing, the competition is growing fiercer.
To truly stand out and secure the best deals, you’ll want to equip yourself with any and all resources available. In addition to a real estate investment software that will help you find off-market leads, gaining your real estate license may be a beneficial next step for your investing career.
Not sure why a license would benefit you as an investor? Here are four reasons to consider getting it:
1. More Opportunities for Expanding Your Network
As a real estate entrepreneur, the connections you have within the industry are crucial.
When you get a real estate license, you’re opening a door to connect with the most experienced agents and brokers. These pros can offer helpful advice about contracts, negotiation tactics, your local market, and more.
Additionally, these pros have experience with lenders, appraisers, contractors, or other individuals you may need to work with. Rather than finding reliable professionals by trial and error, get referrals and work with the best in your region right away!
2. Saving on Commission Costs
In a typical real estate transaction, a buyer’s agent and listing agent are involved.
As a commission for their involvement, around 6% of the total sale price for the property will be divided between the two agents and their brokers (this usually works out to around 1.5% per agent, however, the percentage the broker takes will vary depending on the brokerage).
When you take out the buying and listing agents, you’re left with about 3% extra (maybe more depending on your brokerage) per sale, as investor real estate agents still have to work with brokers.
Want to save on brokerage commissions? You can also become a broker in time!
Think of it like this: You’re a flipper and you sell three houses worth $400,000 each in one year. With a real estate license, the 3% commission you’d owe to other agents works out to be around $12,000 per house, or $36,000 total. With a broker’s license, your additional profit works out to be around $24,000 per house or $72,000 total!
The average cost to get your real estate license in the United States is around $2,000, although this price point can vary depending on a variety of factors. While $2,000 may seem like a lot, you’ll likely earn this investment back quickly with the amount you’re saving on agent commissions.
3. Access to the MLS
Real estate data software like PropStream is crucial for getting the most detailed overview of a property.
It’s the easiest way to weed out property owners with signs of financial distress and target your marketing efforts for maximum efficiency.
When you combine PropStream’s public record data with MLS data, you’re expanding your library of information even more! Getting a real estate license allows you to get direct access to private MLS data.
The more resources you have to learn a property’s story, the better suited you’ll be for the negotiation process when you get in front of a lead! What better way to stand out from the local competition?
4. More Control Over Your Deals
Acting as your own real estate agent also gives you more control over the deals you’re making.
When you have to work around an agent’s schedule, you may end up missing out on great deals, especially if they have other clients.
As your own agent, you can also work directly with lenders, appraisers, lawyers, etc. to get information straight from the source. With that information, you can negotiate on behalf of yourself, allowing you to push for the best deal possible.
Why Not Take Your Deals Into Your Own Hands and Act as an Agent, Too?
Being an investor and agent may help you get more out of your deals, access valuable resources and information, and close faster.
In the meantime, start your 7-day free PropStream trial to begin finding the best leads and begin creating targeted marketing lists!
