Those of you that invest, has it helped you alot to have your RE license? Im sure it has been easier to locate deals wether it be for rehab, rentals, cashflow ect. Im young (20) and want to be an investor obviously and already have a LLC set up and a line of credit in the works at a bank that my family has done business with for years. Now im thinking about getting a license to have a "insiders advantage" to locating good deals. Good idea? thoughts? thanks alot!

License is required to transact real estate between two parties. You don't need a license to get an "insiders advantage".

What types of RE investments are you thinking about?

Rehabing, flipping and eventually alot of owner financing deals to create cashflow.

I know investors in my area that are doing what you have stated and are not licensed. I also know of agents who got 100% involved in real estate investments and let their license go inactive.

wow, I really thought that people who were licensed would have a huge advantage over someone who isnt as far as locating deals and such since they would have unlimited access to MLS, accurate comps, go view any property whenever they want with supra keys and key lock box codes. Thanks for the insight.

"...I really thought that people who were licensed would have a huge advantage over someone who isnt..."

They do.

By far...the most successful investors I know are real estate agents.

"I also know of agents who got 100% involved in real estate investments and let their license go inacitve."

True

Because, they've become so successful...they no longer need to work.

XJoker,What does LLC stand for?

Thanks
Clint

Is that a trick or quiz question? LLC= Limited Liability Company.

Thanks XJoker, It was a legitimate question. I wanted to look it up on google but didn't know what LLC stood for.

Thanks
Clint

No Problem Clint, sorry about that I thought you were trying to be smart with me becuase im young and a beginer in REI. Thanks for all the replys people!

Investors don't necessarily have to purchase properties that are listed. A good investment may be in the form of a business, real estate etc.
An investor may purchase a property from a seller who doesn't trust the investor because he has a real estate license and knows more about real estate than he does.

An investors goal is just that, investing. If having a license is getting in the way of negotiations they'd drop the license. There is a lot more money in investing in real estate than selling it.
You don't need a license to have access to the info you need, MLS etc.

An LLC is a limited liability company

"If having a license is getting in the way of negotiations they'd drop the license."

This is not the first time I've heard this argument. It's often put forth by Investment Guru's.

However, I've never known an Agent to have difficulty investing because, he/she had a real estate license (it's an ole wives tale in my opinion). I invest & I work with a number of Agent/Investors. In fact...the most successful investors I know are real estate agents (or former agents now retired).

Case in point; I work with an Agent who's net worth is 14 mil over 8 years (thanks to investing). He's only made $30k thusfar this year in sales. I'd say he's had no problem finding people to sale him property...despite having a real estate license.

It's rare that someone would sell their property to someone without a real estate license, but not to an Agent. If anything...I think the general public has less trust of non-agent investors who're earning themselves a reputation and making the news with greater & greater frequency.

Well it looks like alot of you think that getting a license is the way to go. Since it is my dream to be one of the best or if not the best at whatever I do in life I will leave no stone unturned to achieve what I want. Im going to look into getting a license at a couple local real estate schools. Thanks again!

I'm a licensee and an investor. Yes, I think having a license will benefit you.

Couple of tips:

LLC= Limited Liability CORPORATION (not company).

You should be working under a broker with no fees since real estate sales won't be your primary goal. You might even find a solo broker who will let you "hang paper" with him/her for free (I did that for a while instead of going inactive).

In at least one previous purchase of an REO property, the seller would not pay a commission if the selling agent was also the buyer.....we had to purchse in my spouse's name only. Have a back-up plan for that; I've had other agents tell me they have had the same issue.

Be SURE to disclose to any potential buyers or sellers that you are a licensee....most states will hold you to a higher standard if you have a license; most also require this disclosure.

Learn where the good REO sites are and visit them regularly; you'll be surprised at how often listings are entered incorrectly in MLS. My most recent purchase was a house that had been on the market for months....it was listed under the wrong area in MLS so none of the local agents even knew it was there. We got a GREAT deal on that one.

If you don't have a good CPA, get one.

Best of luck to you.

I think im going to go ahead and get a license. I have a aunt who is going to be a broker in the next few months and start her own Realty company. I told her my situation on wanting to invest and she says that I could work under her if I got my license and not have to pay her anything in commisions. Sounds like a good deal to me!