4 Reasons Why a Real Estate Investor Should be Licensed
Published Thursday, May 27, 2021
I mean, you can hire a real estate broker to handle your property investments (less networking, more steps before finding properties, more working with a middleman) but when you become one yourself you receive all the benefits without the hassle of relying on another person with your assets. Whether you want to fix and flip, buy, and sell or buy and hold, you will be able to preview available properties yourself, network your own deals and profit from the commission.
Access to the MLS
When you are a licensed real estate broker, you can gain access to the Multiple Listing Service (MLS). The MLS is a tool to help listing brokers find cooperative brokers working with buyers to help sell their clients' homes and acts as a database of available properties for sale, or possibly about ready to be available for sale in an area. As an investor, you can pursue those properties and negotiate your own deals at the best rates. Real Estate classes would give you the insight you need to navigate sales legally, without having to consult a middleman.
Additional Source of Income
In Illinois, the real estate broker must be employed by a sponsoring brokerage firm. If you have a license and invest in properties, it is possible to earn a commission on the properties that you buy and sell. The earned commission is split between the sponsoring broker and sponsored broker. You also can help unlicensed investors buy and sell property and earn additional commission providing you with an additional source of income. By getting your real estate license, you are not only setting yourself up for success in the world of real estate investment. A real estate license would allow you to have other streams of income. An additional benefit of a real estate license is called referrals. Referrals can come from any number of connections, the biggest one being from one’s own network.
Real estate is a people business. The larger your personal network, the more opportunities you may see come your way. Being a licensed broker with a licensed brokerage firm will introduce you to the real estate professionals in your area. It will give you the opportunity to meet people in and associated with the industry that can help you in one way or another. If you are already licensed, do not let this opportunity pass by; tap into the network you already have. Realtor classes are another great way to increase your network. Your peers in the class can be excellent referrals for future sales, and because you would need to be sponsored by a broker, you will be given the opportunity to have ongoing mentorship and direction even after your real estate classes are completed.
Investors who represent themselves (and their businesses) have control over the transaction. They can negotiate directly with sellers when purchasing a property and with buyers when selling a property. There is no waiting for an agent’s phone call or contact. Why wait on someone else when you can negotiate intelligently and professionally? Real estate investors are motivated people.
If you are passionate about real estate, interested in investing in real estate, or just looking for a new career with growth potential, a real estate license could be the right move. People can get started in real estate investing without a license and do ok. But those who want to take their investments to the next level, have control of their assets, build their network, and have direct access to the MLS need to get realtor training and get their real estate license. Does this sound like you? If so, give us a call at 630-844-0222 to get started in real estate today and build your new career now!