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Who says that?!
Lol, it may not be. But it depends on the individual.
Investors acquire homes from over 100 ways. The MLS is only 1 of those ways. On the other hand, having an agent who is knowledgeable about the market and can tell you pretty exactly how much you can get for a property once you renovate it is priceless. That’s what agents do.
that is their whole purpose.
Now, if you want to INVEST a bit load of your time and effort to study and get that license, and learn and keep up with all the markets you tend to do business in, then yes, you should get your own license. You can say there is a benefit to when you sell (and buy on the MLS), you keep a percentage of the commission. The agent who you decide to work with actually works hard to get you the Very BEST selling price because they want you to succeed. If you thing that trade off is worth keeping the commission, that may be another reason for getting the RE license yourself.
I have my license because I am both, an investor as well as an agent in CT and MA. However, I don’t have a “day job” so RE is all I DO.
Hope that helps, GL!
Absolutely.
Even with only one sale or purchase a year, financially you will break even. So don’t fret on the cost of the RE license as much. Only look at your time and effort you’ll need to invest to acquire it and the time you need to invest to learn the markets.
You can have a license and work with a Realtor as well. Just need to come to an agreement.
Investing into real estate is risky still, even if you look at the data. Some accomplished Realtors know the market like the back of their hand. You can point out one home and they don’t need to look at data or comps, they straight out tell you how much you’ll sell it for on the low or high end, depending on the quality. That right there some investors find very valuable.
The main factor is cost/time. Also, the fact that you need to do additional disclosures as a broker and the potential for additional liabilities.
The fees to maintain your license - brokerage, continuing E&O insurance if not covered by your brokerage- in addition to MLS, keys etc may not be worth your time and effort. Vs just having a relationship with someone who can help you with access as needed etc.
If you don’t plan to sell or actively invest in multiple properties, I’m not sure the fees make sense.
For CT, Fees with eKeys and E&O cost around $1,200 to $1,500. For MA, these are closer to $2,000.
These are recouped with one good deal (primarily in CT). A good deal in CT is a home sold or bought for 200k+, leaving your broker with $5,000 commission. Depending on your split, You’ll take home anywhere between $2-3,000. MA market is a bit stronger, near the boston metropolitan area and some surrounding counties.
PS. As an agent, leave 33% of all 1099 income into a separate “DO NOT TOUCH” bank account. This is money you don’t own. An agent may get bulk payments, but they get taxed double time, as an employer and employee.
Subject Expert
Just a decent property or two would cover your fees. The rest is if you see benefit in MLS and property access and not paying out commission. We buy a couple properties a year personally and worth it.
Subject Expert
Get an online broker. Much lower percent. Doesn’t matter of additional support if only doing sales for yourself