Getting your Real Estate License: Investors guide

If you’re a real estate investor, you might be wondering whether it’s worth it to get your real estate license. After all, you’re already buying and selling properties, flipping homes, or even wholesaling. But what if you could level up your business by gaining access to exclusive deals, more control over your transactions, and even earn commissions on properties you buy? In this guide, we’ll walk you through how long it really takes to get your real estate license, including the steps, state-by-state variations, and, most importantly, how having that license could give you a competitive edge as an investor. Whether you’re interested in flipping properties, marketing through direct mail, or building a hybrid model of agent and investor, having your real estate license could unlock doors you hadn’t even considered. Ready to get started? Let’s dive into the details.

How long does it take to get a real estate license

The time it takes to get your real estate license can vary depending on your state’s requirements, but on average, you can expect it to take anywhere from a few weeks to several months. Here’s a quick look at how long it takes in some popular states:

• California: 4-6 months. You’ll need to complete 135 hours of coursework and pass the state exam.
• Texas: 3-6 months. Texas requires 180 hours of coursework and an exam. 
• Florida: 3-6 months. You’ll need to complete 63 hours of pre-licensing education before sitting for the exam. 
• New York: 4-6 months. With 75 hours of coursework, New York has one of the most comprehensive licensing processes. 
• Georgia: 2-4 months. Georgia requires 75 hours of pre-licensing education. 
• Nevada: 2-3 months. Nevada requires 90 hours of coursework. 
• Arizona: 3-4 months. Arizona requires 90 hours of education and an exam. 
• Illinois: 3-4 months. Illinois has a 75-hour education requirement.
  
  Each state has its own specific requirements, so be sure to check with your local real estate commission for exact timelines and details.

Is It a Good Idea to Get a License as an Investor?

For many real estate investors, getting a real estate license isn’t just about the credentials—it’s about the opportunities it unlocks. As an investor, having a license can be a game-changer, offering several advantages:

1. Access to More Deals: Licensed agents have access to the MLS (Multiple Listing Service), which means you’ll have a broader selection of properties to choose from, including off-market deals that aren’t available to the general public.
2. Save on Commissions: If you’re buying and selling properties frequently, being licensed means you can earn the commission on your own transactions, keeping more profit in your pocket.
3. Better Networking: By working as an agent, you’ll meet other investors, agents, and sellers. This expanded network can lead to better deals, wholesale opportunities, and even potential partnerships.
4. Control Over Transactions: You’ll be able to represent yourself in transactions, which means more control over negotiations, deal structures, and timelines, giving you a competitive edge.
5. Hybrid Business Model: Combining being an agent with your investor activities allows you to pivot easily between wholesaling, flipping, and listing properties—maximizing your flexibility in the market.

While getting a license involves an upfront investment in terms of time and money, the benefits far outweigh the costs, especially if you're serious about growing your real estate business. It can streamline your operations, save money, and even open doors to new revenue streams.

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Should investors get their RE license?

 

The Hybrid Investing Model

In recent years, more and more real estate investors are adopting the hybrid model of being both an investor and a licensed agent. It’s a trend that’s catching on, and for good reason. As the real estate market becomes more competitive, investors are looking for new ways to maximize their opportunities, and agents are doing the same by adding investing to their skill set. For investors, this hybrid model opens up new doors for buying deals directly from homeowners, without needing to rely solely on traditional wholesaling or flipping methods. As an agent, you have access to the MLS, where you can find off-market deals, and you can also list properties you’ve acquired, increasing your chances of a successful sale. One big advantage of being both an investor and an agent is the ability to sell contracts—just like a wholesaler—to your broker or your investor list. This can help you make more money than a typical listing. If a deal makes sense, you can wholesale a property or assign contracts to your investor network, all while earning commissions on top of your profits. It’s a win-win, as long as it’s allowed in your state.

Disclaimer: Keep in mind that in some states, there are specific rules about selling contracts, particularly when it comes to wholesaling or assigning deals. Always make sure to disclose your role properly and check with a real estate attorney to ensure you’re complying with all local regulations. Every state has its own rules, so it’s important to stay on the right side of the law to avoid any legal pitfalls. In short, the hybrid model of investing and being a licensed agent can provide more flexibility, more opportunities, and potentially more income streams. As long as you understand the rules in your state and stay compliant, this approach can be a game-changer for your business.

What Do I Need to Get My Real Estate License?

To become a licensed real estate agent, there are a few key steps you’ll need to follow. While the exact requirements can vary by state, here's a general outline of what you’ll need:

1. Meet the Eligibility Requirements:
   • You must be at least 18 or 19 years old (depending on your state).
   • You’ll need to have a high school diploma or equivalent (like a GED).
   • You may need to be a U.S. citizen or legal resident, though some states have exceptions.
2. Complete Pre-Licensing Education: Every state requires you to complete a certain number of hours of coursework before taking the exam. These courses cover topics like real estate principles, laws, ethics, and contracts. The number of hours varies, but most states require between 60 and 180 hours of education.
3. Pass the Licensing Exam: After completing your pre-licensing education, you’ll need to pass the state licensing exam. The exam typically includes both a national and state-specific portion. It covers topics like property laws, contracts, financing, and ethics.
4. Submit an Application and Background Check: Once you pass the exam, you’ll need to submit a license application to your state’s real estate commission. This often involves a background check to ensure you don’t have any felony convictions or serious legal issues.
5. Choose a Brokerage: In most states, you must work under the supervision of a licensed broker when you first start your career. You’ll need to affiliate with a real estate brokerage, and some states even require you to have a sponsoring broker to apply for your license.
6. Pay Fees: You’ll need to pay for various fees throughout the process, including exam fees, application fees, and licensing fees. These costs can vary depending on your state, but expect to pay between $100 and $300.
7. Take Continuing Education: Once you’re licensed, most states require you to take continuing education courses to keep your license active. This ensures that you stay up to date with the latest laws and regulations in the industry.

Summary

Getting Your Real Estate License: Investor’s Guide

This article explores the advantages of getting a real estate license as an investor, focusing on how it can enhance your business. It provides a quick overview of how long it takes to get licensed, varying by state, and details the basic steps involved, including completing pre-licensing education, passing the exam, and affiliating with a brokerage. The article also highlights the benefits of the hybrid model, where investors become licensed agents. This approach opens up more deal opportunities, helps save on commissions, and provides flexibility in wholesaling, flipping, and listing properties. Additionally, licensed investors can sell contracts to brokers or investor networks for potential extra income, as long as state regulations are followed. Finally, the article covers the requirements to obtain a real estate license, emphasizing the necessary steps, including completing coursework, passing exams, and maintaining ongoing education.