Welcome to the Young Entrepreneur Forums

entrepresooner · 05-30-2008, 09:03 AM

When I first joined the forum, I spent many hours trying to find investors for Real Estate investments I have found. I never found anything, and ending up pushing them off to the side. I have now discovered that I can get my Texas Real Estate license by taking only 4 courses (12 semester hrs). All the other requirements are met because I'm already a Jr in college. I could complete the courses online, in about 1 month, for $600.

I DO NOT want to become a realtor. I AM looking to gain credibility to help in my search for investors.

What do you guys think? If I came to you and asked for you to invest $100K with me, would that license make a difference to you?

I have also secured an internship next semester at a commercial RE firm in OKC.

Gaulkin · 05-30-2008, 10:21 AM

Yeah, i find that most, but not all know little to nothing about real estate. They know how to say this house has this and that but they dont know how to make any money in real estate.

entrepresooner · 05-30-2008, 10:44 AM

So do you think the license is a good idea or a bad one?

Gaulkin · 05-30-2008, 11:03 AM

It will always be a good idea but only to those who already know what they are doing. Become an investor first and then a realtor not the other way around.

entrepresooner · 05-30-2008, 11:16 AM

I don't want to EVER become a realtor. I want to use the RE license to gain credibility with investors, and help get me started.

JLeezer · 05-30-2008, 11:23 AM

My sister-in-law became a realtor because she thought it would be fun to do as a side job. Turns out she's an introvert that knows nothing about real estate. I've found it useful because I can access mls information available only to realtors and I can tell her exactly what she needs to do to close a deal for me, and she actually does it. But as far as credibility goes, her having her RE license didn't give me confidence in her as an agent. And I've met other agents who also knew nothing about RE. Anyone who thinks a realtor must be knowledgeable about the RE market should have their head checked. I agree with Gaulkin that experience as an investor (or even just an observer of the markets) will prove to much more valuable than the RE license. However, the RE license will provide you with some information that you might not otherwise have available to you.

Plus it never hurts to be able to take some of the 3% standard buyer's agent commission when buying a property for yourself. My sister-in-law got 60% of the 3% buyer's agent commission on our properties. Two sales resulted in $6500+ in her pocket.

ADVERTISE HERE! · 05-30-2008, 11:52 AM

If you're considering it for the purpose of gaining credibility in the eyes of investors, I am of the opinion that it will not help you at all. There is an incredibly large number of people out there who have a real estate license but know nothing about investing. The license is not difficult at all to obtain and the knowledge necessary to attain it does not translate into knowledge and skill in investing. A better bet would be to find a successful real estate investor, convince him or her to take you under a wing, and really learn how to do it properly rather than just try to add a few more things to your resume to create the impression that you know what you're doing. I think you'll find this to be a much better route, especially as you begin to work projects with the mentor.

entrepresooner · 05-30-2008, 12:22 PM

This is what I was thinking. But I decided to look into on the advice of a
family-friend /Realtor/RE Investor.

JLeezer · 05-30-2008, 12:42 PM

Also, you may want to look into the IRS classification of Real Estate Professional prior to engaging in the classes. I'm not sure if it would make a difference to the IRS, but if it does, your tax basis will change. You may be on the line for more or less taxes depending on how it works out. Just one of a ton of different things to consider.

entrepresooner · 05-30-2008, 01:07 PM

Doubt I would be classified as a RE Professional, because I would not be practicing RE. The license just means its legal for me to practice if I get a RE Broker to sponsor me. In Texas brokers are the only ones allowed to practice by themselves. Becoming one requires 36 out of the last 48 months practicing RE and additional coursework.

nocci01 · 05-31-2008, 10:42 AM

That sounds weird...you don't ever want to become a Realtor but you want the license for credibility? Why wouldn't you ever want to become a Realtor? If you don't then don't get the license. If you have some kind of negative perception against Realtors...then how could getting a license give you more credibility?

Anyhow, getting a license isn't how you gain credibility. If you want to talk to people about investing $100,000 into your ideas, my best recommendation is to get more knowledge...you don't learn much in real estate school...I had a license for 10 years...let it expire last year. People who have $100,000 to invest are getting hounded all the time with business ideas. Your best bet is to learn some attraction marketing techniques to bring these people to you. If you're chasing them...they'll run away. Don't get a real estate license unless you really want one. Sounds like you don't because you keep mentioning that you don't ever want to be a Realtor.