Are you a North Carolina real estate investor wondering if it's worth the time and money to get a real estate license? Well, you're not alone. Many investors have asked themselves the same question. While there are pros and cons to consider, the advantages of obtaining a license specifically for real estate investment are undeniable. Let's explore five reasons why it could be worthwhile to have a North Carolina real estate license.
1. Access to real estate investment deals
Getting ahead of your investment competitors is one of the most significant advantages of having a real estate license. As a licensed North Carolina real estate broker, you gain access to the Multiple Listing Service (MLS), which provides you with two invaluable benefits.
Firstly, you can focus on the best neighborhoods and spot new properties on the market faster than relying on a real estate broker to locate them for you. This advantage allows you to seize investment opportunities promptly.
Secondly, the MLS contains a wealth of historical data on every property and neighborhood. This information includes past and present sales prices, comparable properties, and other valuable insights. While similar information may be available on popular websites like Redfin, Trulia, and Zillow, the MLS offers more comprehensive data. With MLS data, you can identify the neighborhoods that sell faster, the types of homes most popular with buyers, and the kind of buyers to target.
2. Networking opportunities
Networking with other real estate professionals is always advantageous, and being a licensed real estate broker opens new doors. By aligning yourself with experienced brokers and brokers-in-charge in your office, you gain access to their knowledge and expertise. They can provide valuable tips that save you time and connect you with competent and reliable lenders, appraisers, surveyors, and other professionals necessary for your investments.
3. Commissions
Earning commissions will save you money when selling your real estate investment properties. Consider this scenario: you buy a $200,000 house where the total commission is 6%. The selling broker's office receives $6,000, and your office gets the other $6,000. If you have a 50/50 commission split with your office, you receive a $3,000 commission. When you sell the house for $300,000 as the listing agent, you pocket a $4,500 commission after all the splits between offices and your broker-in-charge. Even better, if you sell your house without another broker being involved, you earn a $9,000 commission.
4. Control of your deals
Taking control of your deals is another advantage of having a real estate license. Being your own broker when buying properties gives you more control over the process. When selling your own homes, you have full control over setting the bottom line sales price and payment terms, including the option for seller financing or a lease-purchase deal. As the seller, you work directly with the lender, appraiser, inspectors, and closing lawyers or escrow company, maintaining control throughout the transaction.
5. Educational opportunities
Obtaining a real estate license provides educational opportunities that help you understand different aspects of the business. Even if you're an experienced North Carolina real estate investor, you don't have access to the inner workings of a real estate office and how brokers interact with each other. The required North Carolina real estate courses will enlighten you on various topics such as writing contracts, negotiating deals, marketing and advertising properties, preparing for open houses, and more. Expanding your knowledge in all aspects of real estate sales will significantly increase your chances of success in real estate investment.
Convinced that obtaining a North Carolina real estate license is a good idea for investors? Don't hesitate—start your real estate pre-licensing courses today!
