UPCLOSE & PERSONAL
WEEKEND INVESTOR
License to Invest THERE ARE DEFINITE ADVANTAGES TO HAVING A REAL ESTATE LICENSE TO HELP YOU ACHIEVE INVESTING SUCCESS. BUT IS IT A MUST-HAVE?
by Kevin Guz
I
OTHER SOURCES BESIDES MLS There are other sources for the data you can find on the MLS. However, the MLS is the timeliest and the most comprehensive source. And while you can pay a fee to ac- cess other websites with the real estate data you need, those sites are tapping into the MLS to get the information they’re selling you. (Some sites may not require you to pay to access their service; however, their MLS data may be a little delayed—whether it’s hours, days or perhaps weeks.) The MLS is the most accurate, timely and comprehensive source, but again, you need a license to access it. ADVANTAGE: PROFESSIONAL EDUCATION Another benefit to getting a real es- tate license is the overall education you receive when earning your license. Real estate is a complicated industry with a lot of rules, procedures and forms.
imagine many real estate investors who are new, part-time or just thinking about investing ask this question after doing their due diligence: Do I need a license to buy real estate? This is a great question, regardless of the scale of investing you plan to do. I know it was a question for me when I was in that stage, and here I am, more than 10 years lat- er, a real estate investor in Dallas. I’ve met a lot of people who are very successful with— and without—having a real estate license. There are different schools of thought about whether an investor needs a real es- tate license to become successful. So I want to explore the question, perhaps shedding some light and insight on the subject. And hopefully for those of you who are consid- ering real estate investing, it will help you decide whether you want to get a license or not. Let’s explore the advantages and disad- vantages to acquiring a real estate license. One reason why many get a real estate license is the desire to list their own in- vestment properties for sale. The Multiple Listing Service (MLS) is the place to sell retail real estate in the United States. Typi- cally, for an investor to sell a property on the MLS, you will need a real estate agent, and you will have to pay a commission to that agent for his or her services in listing the property for you. In general, it will cost the seller of the property 3 percent of the sale price to have a licensed agent list and sell the property on the MLS. Many investors would like to keep that 3 ADVANTAGE: ACCESS TO THE MLS
percent for themselves. And that’s why some acquire their own real estate license, so they can “be their own agent.” The same holds true for real estate inves- tors who are buying-and-holding for rental purposes. The MLS gives them a place to list their rental properties. So, you can see there is a monetary ben- efit in these situations also, but at the same time, you may determine it’s not right for you. Even with a license, you may not want to go through the work it takes to manage and execute an MLS listing. You might rather pay a listing fee to another licensed agent who will do the work for you. Again, this is your decision, and you must choose a direction based on what makes sense for you as an investor. MLS: DATA, INFORMATION AND COMPS Many investors choose to get a real estate license for no other reason than to simply get access to the MLS. The MLS is a huge database of every single property that is for sale in your particular market. And there is a wealth of information and data on the service. It may be a great avenue for you as a real estate investor to find deals. It sure is nice to have direct access as a licensed agent versus having to depend on a licensed agent to search the MLS to find those deals for you. It also can be very beneficial, from an investor’s standpoint, to have access to the MLS so you can run your own comparables, quickly and accurately Keep in mind, to get access to the MLS’s data and information, you must be a licensed agent.
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Kevin Guz is a Dallas, Texas-based residential real estate investor with more than 10 years of investing experience. He owns a HomeVestors (or “We Buy
Ugly Houses”) franchise as well as the Clear Key companies, which focus on residential real estate wholesaling, rental property management and self- storage leasing. He also is a licensed real estate agent in the state of Texas. He enjoys sharing his ongoing personal experiences, perspectives and learnings from his start as a part-time or “weekend investor” and full-time corporate professional through his ultimate transition to a full-time real estate investor and business owner. You can listen to his podcasts at www.blogtalkradio.com/kevinguz.
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