There are a lot of different jobs in the real estate business, and professional licenses are often required for positions such as buying and selling agents, realtors, and brokers. One job that can be a little trickier to understand is that of an independent real estate investor. These businesses allow homeowners to sell property without a realtor and without listing, but the question remains, are real estate investors required to get a license? As a professional real estate investment business, we’re here to provide an answer.
What is a real estate investor?
Real estate investors, also called professional homebuyers, are individuals or businesses who buy, sell, and rent homes to make their profit. These investors each have unique goals and methods that cover a variety of skill sets, financing options, and business models. For instance, while one investment business might profit from acquiring rental properties and acting as landlords, other companies might prefer flipping and reselling homes.
The main unifying feature of these businesses is the convenience that their method offers. When selling to a real estate investor, you don’t have to list your property, pay fees, or wait for showings, appraisals, and offers. Everything is handled through a direct sale, meaning that only you and the buyer are involved, so you can usually close on your house within a month and walk away with a cash payment. This is especially convenient for homeowners across a variety of situations who want to avoid costly repairs, potential foreclosure, or the overall hassle of listing.
Does an investor need a license?
In short, no. Real estate investors usually work independently, so they are not required to be licensed to invest in real estate. It is a matter of personal preference if the investor wants to get certified, which can provide certain advantages in their work process.
What are the advantages to having a license?
The biggest advantage for our founder, Jimmy, when he first obtained his license and began investing was the ability to view listings quickly on his own schedule because he was granted access to the MLS (the Multiple Listing Service, where properties are listed by licensed agents). This way, he didn’t have to coordinate with buying agents when he was looking for an investment, and he could make the offers more quickly on his own. Because of his training, he was also more prepared for negotiations with listing agents, which is super important in getting the best deals on properties.
To summarize, a real estate license can offer an investor a lot more knowledge about the housing market, and this can improve how they do business. That being said, a license still may not be right for everyone.
How can an investor determine if getting a license is right for them?
If you are an investor thinking about getting licensed, here are a few questions to ask yourself:
Do you have time?
Depending on the requirements or your state, it can take about 120 hours of training to get your real estate license. There will also be additional training and education in order to keep your license in the years to come. It is definitely a time-consuming process, so you to make sure that the pros outweigh the cons in your situation.
Is it worth paying the fees?
It will cost money to take the courses necessary to get your real estate license. Then, after completing your training, you have to place your license under a broker for a few years before you can try to work independently. This broker will over see your work and charge you monthly fees for MLS access and E&O Insurance. They will also keep a portion of the commissions that you make.
Are you interested in being an agent?
If you are interested in being an agent alongside working as a real estate investor, then obviously getting a license is a must. If you are not really interested in being a real estate agent, then it might be better to find a good agent in your area to work with and focus on your investing as you build a name for yourself.
Licenses and Credibility
It can be tricky to navigate the world of real estate investment as a home seller because there are so many scams. A real estate investor having a license is a good indicator that they are familiar with the selling and buying process, as well as the local market. This can help you pick out which investor might be the most credible, competent, and experienced. However, it’s also important that you do your due diligence to make sure that whatever investor you consider selling to is legitimate, no matter if their have a license or not. Make sure to look over their reviews, ask about their professional history, and maybe try to reach out to their past clients.
Summary
In short, real estate investors do not need licenses for their business. However, the right training and certification provides advantages in any field, real estate included. If these advantages are greater than the disadvantages, such as the time and money required to obtain the license, then getting a real estate license might be right for you.
We Buy Houses In West Georgia is a local homebuying company that makes fair cash offers on properties as-is. No matter your situation, we can help you offload your property as quickly as possible. Our process eliminates the hassle of the traditional home-selling process, allowing you to sell your house and move on, worry-free and with cash in-hand.
If you want to learn more, we invite you to visit our How It Works page. Here, we offer full transparency about our homebuying process, including details about exactly how we calculate our offers. You can also check out Our Company page to get to know our team, our credentials, and our experience. Fill out the form below to get a no-obligation cash offer started now!