If you are just buying for yourself, then there is no advantage – there is only the drawback that you are held to a higher standard in your relationship to unlicensed sellers and tenants. You have the obligation in a transaction with an unlicensed person to treat them as if they were your client.
What Are The Advantages Of Getting A Real Estate Broker’s License In California If Want To Buy Rental Props?
I am thinking of purchasing real estate investments like commercial or residential properties
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2 comments - add yours
sdmike
July 3, 2009
JD
July 3, 2009
There are two advantages. First, the process of getting your license may teach you something about how to correctly value properties (for example, don’t even think about buying a rental property before you understand how to calculate cap rates, NOI, and internal rate of return). Second, the best properties are snapped up very quickly by established real estate players. But since most seller are willing to list with multiple agents, you may be able to find out about properties you wouldn’t have otherwise by becoming an agent yourself.
Nonetheless, most successful real estate entrepreneurs do *not* have a broker’s license.