Do You Need a Real Estate License to be Successful in Real Estate Investing?

by David Gerlitz on June 21, 2011

Do you need a real estate license to be successful in Colorado real estate investing? The answer depends on your goals.

Real Estate License Investor

If you plan to invest in only a few properties and stay in the market over the long haul, there is probably no need to look at many properties – a benefit to having a license.

Long term investors can take time to find profitable markets, do the necessary research, perhaps find other investors and make offers. If an agent works in an area that does not meet their investment criteria (i.e. cash flow, appreciation, etc.), then there obviously is no pressing need to become an agent just to locate investment property.

But if you like the idea of investing in one or two single or multifamily properties a month, or flipping, and do it close to home, then a license might be a good idea. This would give you access to all inventory on the market, and to the many “insider tips” on upcoming listings. In fact, in this buyer’s market, you could turn a potential listing into an investment purchase, creating a win-win for the seller and the agent.

As many Realtors will tell you, it is not an easy job. You have to work when everyone else doesn’t, which means a lot of nights and weekends. People will want to negotiate your salary. You may play tour guide instead of agent if you’re not good at pre-screening clients. And now, in a down economy, you may find yourself with very limited income.

So should you become a realtor just because you’re investing – not unless it’s a job you really want to do and finding great properties is just icing on the cake!

People generally think they need to have an extensive education in real estate before they can invest. This is simply not true. There are so many ways to get experience without taking risks that it is not worth it to spend months obtaining a real estate license before you made your first investment.

Certainly, education is very important, but if it delays your ability to take action, it can be a problem. Talk to seasoned investors. Find a mentor. Weigh the pros and cons.

Do you need a real estate license to be successful in real estate investing? The answer depends on your goals! David Gerlitz of Investment Property Colorado specializes in helping investors in the Boulder, Longmont and Denver, Colorado metro areas. Give him a call for more information at 720-306-8017!

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  4. Top Ten Reasons Investing In Colorado Properties Makes Sense
  5. Colorado Debt Investing or Equity Investing – What Is The Difference

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