3 Slam Dunk Reasons Why Investors Should Get Their Real Estate License

One of the cool things about investing in real estate (besides creating passive income and generational wealth) is that you don’t have to have a real estate license to do it. You can learn the basics of investing and how to get started online, and plenty of that information is free. 

As soon as you have some cash or access to a line of credit, you can get started on your first deal. It’s a lower barrier to entry than most people think.

So why are so many investors opting to go through the formal process to get licensed?  Despite having to take classes, an exam, and pay the fees, there are 3 amazing reasons why getting your license as an investor is a slam dunk!

You are leaving money on the table

If you have ever purchased a property, you might have noticed the size of the commission check that the agent received at closing. Depending on the sales price and the commission offered, the amount can vary, but it is usually a sizable amount. Most agents work hard for that money-the hardest part is finding clients, so sometimes they subject themselves to long stretches of time with no income. They also have to pay expenses and split that amount with their broker, so I am not implying that they don’t deserve that cash. What I AM saying is that is if you are an investor and you are going to keep on buying property, why not grab that cash for yourself?

Well, in order to legally earn a commission for a sale, you need to have your real estate license.

PA requirements the other 49 states.

It makes sense to get licensed in the state where you plan to buy property so you can represent yourself and earn the entire commission, but you won’t be limited to just one state!  Your real estate license also entitles you to earn a referral fee in any other state. So let’s say you live in PA and decide to buy a rental property in Las Vegas. You hire an agent out there and charge them a referral fee for doing the deal for you. Referral fees are negotiable, but tend to range in the 20% to 30% range. That equates to about $1,200 to $1,800 on a $200,000 sale. 

Get access to the MLS

The MLS is an essential tool to conducting real estate business, and you need a real estate license to get access. Once you can log onto the MLS, you will be able to gather data, do property searches, and access insider information. You will also be able to schedule your own showings without having to first call an agent and get fit into their schedule. 

Many investors consider this the most important benefit of being licensed. I overheard one agent proclaim that she would pay any price for access, and they would have to pry it out of her cold, dead hands before she gave it up.

Get your license and get access to the most powerful real estate database, the MLS.

Get Educated

The internet is virtually unlimited with access to information about real estate investing. It is everywhere and at your fingertips. It is sexy and intoxicating, but it isn’t regulated and it won’t keep you out of trouble.

Real estate is complicated, and the investing strategies you learn online teach you how to make money, but they do not show you how to stay out of trouble. 

When you go to real estate class, you get to learn about the law and how to stay on the right side of it. It is required by law that you are taught and tested on the basic principles of real estate transactions in your state.

Having this knowledge will put you miles ahead of the investors who don’t have it. You will have a rock solid foundation on which to build your successful investment portfolio. It might not seem exciting, but it’s the secret weapon that will catapult you into success without having to learn the hard and expensive way.

Are you ready?


If you are truly serious about your investing career, take the plunge and sign up for class today. Make a commitment to invest in yourself, your business and your future. 

We offer live classes for PA in our Philadelphia location, and online hybrid learning in the other 49 states.

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