Make sense to get Brokers License?

[sstark]

Hi All!

So many of you in here have good advice about so many different things.  I was hoping to get your thoughts on something I am considering doing.  

I am one course away from being able to sit for the CA RE Brokers Exam.  I thought I would get my own broker's license so I could buy properties on my own.  The commission I would earn would help towards the down payments on any properties that I might purchase.  

Can anyone think of any disadvantages to having a broker's license?  I should also say that I have a regular full-time job and that I would only use the license for the purchase of my own properties.  

I look forward to hearing your feedback.

Thanks,

Steven

[BlueStarHomesInc.com]

A realtor/broker has a certain set of rules/guidelines to follow.  Disclosure can be a problem.  If I was in financial problems I would not want to deal with a realtor, but would be okay dealing with an investor.  "I am not a realtor" has been seen in quite a few ads for a reason.

[NancyChadwick]

Steven,

A broker's license is a higher grade of license. What I think you want is a sales license. Don't know about CA, but in PA, there's a whole long list of requirements before you can get a broker's license.

As for your question (and I'm not an investor), I think getting a RE license could be beneficial to people (aside from having access to the MLS) because they'd get "plugged" into a network, maybe come upon properties they wouldn't otherwise have found, and get a broad-based education in the fundamentals of real estate. Yes, you can buy books, but it's just not the same as having hand's-on experience. The flip side is that it's a highly regulated industry, and agents and brokers are held to higher standards that those who aren't licensed. And, yes, you'd always have to disclose your licensed status in any real estate transaction.

Nancy

[kimdrake]

There is a lot of debate back and forth over this issue, but I totally disagree that disclosure is a problem. Motivated sellers don't care who buys their property, as long as their problem is solved. What they may object to paying a commission, and many sellers relate agent with commission. When I buy an unlisted property, I never charge a commission to the seller. If I buy a listed property, I don't take a commission either--Let the seller's agent have it all, and bring me more deals in the future! Letting sellers know you are a licensed agent may even give them a  bit more comfort, knowing you are held to a higher standard, have at least a minimal amount of training. I've never lost a sale because I am licensed, and probably gained more credibility because of it with wary sellers.

[moke]

hi

just a comment.

hope i dont hurt anyones feelings.

you DONT need a licence of any sort to buy and sell

r/e in california. all you need is the ability to sign you name.

a licences is just a TAX on the person who wants the licence.

if you want one get one, if you dont want one dont get it.


good luck.

moke

[niravmd]

i'm in the process of getting my CA brokers license.
the only advantage is gettnig a commission when selling
a property thats owned in a partnership.
otherwise there's no real help when investing.
its actually detrimental. after u get ur license always sign
contracts with the following clause
"i'm buying this as an investment and i expect to make
an obscene profit from it".
that should cover your behind incase u ever get sued by
someone.