Corporate investing
As someone looking to invest, or already investing, in real estate, you don’t need to get a real estate license and become an agent. A license gives you the ability to help others buy and sell real estate, but anyone can buy or sell real estate on their own without being an agent themselves. Just because you don’t need to have a license, doesn’t necessarily mean that you shouldn’t. Ultimately, the choice is yours, but here are some pros and cons of obtaining and holding a license that you should take into consideration.

Pros

Speed

In a competitive real estate market, the early bird often gets the worm. As a real estate agent, you can be the first to know of real estate deals that are listed.

Access

A licensed real estate agent can get into almost any property that is listed for sale with a special key and lockbox. In other words, you don’t have to wait for someone else to go see a property.

If the home is vacant, you can head over anytime, assuming the home has the special lockbox present. If the home is not vacant, you can set up a time to view it without having to fit into another agent’s schedule.

Commissions

When a home is sold, the seller usually pays around 6 percent to the agents who made it happen. This fee is typically split 50-50 between the agent who listed the home and the agent who brought the buyer.

Therefore, as a real estate agent, when you buy a property, you can represent yourself and use that commission toward your down payment, or repairs.

Cons

Classes

Becoming an agent is not as easy as signing a document. You have to take an extensive class (depending on the state, the class could be up to 120 hours in length), and you must pass a difficult test, which may require long hours of studying. This takes away time from actually investing in real estate.

Cost

Then, there is the cost. And once you become an agent, you’ll find yourself paying several thousand dollars in fees each year just to hold onto your license. Of course, if you’re making money as an agent, maybe this isn’t such a big deal.

There’s also the increase in paperwork. As an agent, you’ll find yourself responsible for additional paperwork and disclosures in every deal. If you are representing yourself, you can’t simply let your agent do all the heavy lifting—because you are the agent.

Distraction

Some investors may just want to focus on just that….investing.  When you take on the additional responsibilities of a real estate agent, it can certainly be a distraction from time spent researching new investment opportunities, or simply focusing on those already at hand.

Successful investors may prefer to let their agents do what they are good at doing, while they continue to maintain success in what they are good at doing.

To learn about partnering with CIVIC for your real estate investment financing needs, call our experts today at 877-472-4842.

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