Have you ever considered becoming a licensed real estate broker? There are several good reasons to get licensed, even if you don’t want to actively practice real estate.
If the thought has crossed your mind and you’re still on the fence, consider these reasons to get your license.
1. It’s easy to get your license
When it’s easy to accomplish a goal, you have every reason to pursue that goal. When it comes to getting your real estate license, the process is easier than you might think.
Don’t want to leave the house? You don’t need to set foot outside to get licensed in the United States. For example, in North Carolina, you can get licensed online from RealEstateU after taking a professional course. You’ll learn everything you need to know to earn your license, and once you pass the exam, you’ll be a legal broker.
You can get licensed online in any U.S. state. If you’re only holding back because you don’t want to leave the house, now you know you can have your cake and eat it, too.
2. You want to be a real estate agent
Do you want to be a real estate agent? Naturally, if you want to make a career out of being a real estate agent, you’ll need to get licensed. This is the best, most obvious reason to get your broker’s license.
Practicing real estate without a license is illegal and if you get caught, you can be fined and spend time in jail.
3. You buy and sell properties
Do you buy and sell properties on a regular basis? If so, you’ll benefit from getting your real estate broker’s license. Buying and selling properties with an agent will add up in commission fees over time.
The average commission is 5%, which is split between both agents. When you represent yourself, your commissions will amount to the following (approximately):
· $2,500 commission on a $100,000 home sale
· $6,250 commission on a $250,000 home sale
· $12,500 commission on a $500,000 home sale
· $18,750 commission on a $750,000 home sale
· $25,000 commission on a $1,000,000 home sale
Why a license gets you off the hook for commissions
Imagine saving a minimum of several thousand dollars each time you buy and sell a property. Just ten transactions can equal more than $100,000 in savings.
When you have a license, you can legally represent yourself as your own agent, which is something you can’t do without a license. For example, when you buy your next property, you can act as your own agent and you won’t have to pay anyone a commission. The same goes for when you sell your next property – you can act as the seller’s agent and skip paying out a commission.
If you already buy and sell, or if you plan on buying or selling more than a couple of properties, it makes sense to get your real estate license. You’ll recover the cost immediately. The cost of taking a course and getting your license is far less than just one commission you’ll payout to an agent.
4. Real estate investing is your ideal side hustle
If real estate investing is your ideal side hustle, you’ll need to get your license. Not only will you save money on commissions from your own transactions, but you’ll legally be able to generate commissions by working for other people.
Whether you represent buyers, sellers, or both, you’ll have the opportunity to earn generous commissions just by helping people buy and sell their homes.
A broker’s license is the key to earning income with real estate
If your goal is to make money, real estate is a great industry to get into, especially when you have the patience for long-term investments. Ultimately, real estate builds long-term wealth more reliably than any other type of investment.
You can make money in real estate without representing buyers and sellers, but the money isn’t as good. Without a broker’s license, your options are limited and you’ll need to work much harder to earn the same amount of money.
Regardless of why you want to get into real estate, make sure to get licensed. Getting your broker’s license is a small investment toward big payoffs in your future.