West Chester is one of the most sought after places to live in all of Chester County and the current real estate market here is extremely competitive too. Besides being one of the hot spots for
The Agent Investor
Dated: January 26 2019
To be or not to be? That is the question.....
Many people who have an interest in real estate investing think it's a good idea or even necessary to invest in real estate.
What are my thoughts???
Well for sure having a license isn't necessary and I question if it is even beneficial. Hear me out before jumping to any conclusions. As an investor and a licensed Realtor since 2006, Damn has it really been 12 years. Anyways back to what I was saying. See the biggest detriment that I see with real estate investors getting started and they go to get their license is that what they are probably thinking is this:
"I'll have direct access to the MLS and get to make offers on properties right away."
"I'll be able to save money on the commission when I buy and potentially when I sell."
"I'll learn about real estate investments and have a better understanding of what's a good deal."
ect, ect, ect.
Although these things may have some truths I have seen some of the most successful real estate investors rise to the top without a license. I will actually say that I think by someone getting their license this is more likely what will happen and it won't help them accumulate wealth.
They will start going the easy route, looking on the MLS.....
Hate to break it to you but the good deals never hit the mls, they are scooped up by savy investors who are door knocking, sending massive direct mail campaigns or some that may have huge online marketing budgets. So by trying to take advantage of the MLS, you are fishing in a small pond with a ton of sharks and YOU are highly unlikely to find a homerun deal let alone a double or triple, at best case you are getting onto first base.
The next problem I see investors who start off by getting their license for the education......
Now I'm not saying there isn't value to understanding the real estate industry and the laws but what you learn in pre-licensing is about as valuable to real estate investing as a hammer is to a dentist. They are teaching the "Conventional" methods of investing in real estate if at all. I call this get rich slow, so slow that you may die before you get to realize any of it. The real difference being when you start attending a REIA, Real Estate Investing Association, this is where you learn from the real players making deals happen. The knowledge that you obtain in these groups will never really be taught in the real estate licensing courses.
If you know you want to invest and not be a Realtor for the purpose of selling houses but strictly for your own investing, let me share this concept with you. By the time you spend the 60 hours in class, pass the test, interview brokers, set up your cards, signs and website you now are going to already be heading in a direction. I'm not sure about you but when I took geometry the shortest distance between two points is a straight line, so if you know you want to be over there then why are you going in a different direction. If you really get what I'm communicating here this could potentially save you 5-10 years off of your time spent in determining your path.
Now, with all that said I do truly believe everyone is different and anything is possible so don't let this stop you from getting your license but if you have no intention of creating an income through real estate sales, then I personally believe getting your license is a disctraction and you would be twice as successful if you focus 100% of your energy into real estate investing.
That's my 2 cents.
Call me if you want to have a converstation with this. I consider myself a relatively successful investor and real estate broker. Looking back I know I could have been immensely successful as either but not both.
Steve - VRA (484) 880-1236
Steve Seymour- Broker/ Owner Vanguard Realty Alliance is a licensed real estate brokerage in Pennsylvania, at the forefront of connecting buyers and sellers. My clients range from first-time home buye....
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