Should You Get a License for Your Own Investing?

This question is common among many beginner investors. It’s a question we get a lot from students taking real estate salesperson courses at the Real Estate Training Institute. Well, the simple and direct answer to this question is maybe.

The Pros of Getting Your License

Getting a license for your real estate investing is undoubtedly worth it. First, a license will give you better access to more opportunities for purchasing properties and deals. That aside, you’ll also get more networking opportunities with like-kind thinkers.

The Cons

In the state of Mississippi, if a licensee working under a broker errs in a personal transaction, the responsible broker of that licensee may be found in violation of Mississippi Real Estate Commission Rules and Regulations. In this case, a licensee may find themselves at an office where their broker micro-manages a licensee’s private family real estate transactions.

Either way, a good Real Estate School can help you identify which choice is right for you. For example, the Real Estate Training Institute in Mississippi is the best place to find your calling. A pre-salesperson course will allow you to explore your license and investing options with other students and instructors.  

The Real Estate Training Institute offers methods of learning that include classroom, Livestream and online self-paced. The three modes of education may be “mixed and matched” to complete your courses. 

As a startup investor, you need to understand the “ins and outs” of buying and selling real estate that fits the most important factor for investing. The number one factor is YOU.

1. To be successful, determine what is essential. For example;

a. Are you looking for monthly cash flow?

b. Are you willing to sacrifice monthly cash flow for long-term capital gains?

c. How about positive cash flow and long-term capital gains?

2. No money issues? Are you starting with an owner-occupied property with a no or low-down payment?

a. If so, look for 2-4 units. Up to four units historically qualify for FHA, VA, other low-down-payment programs, and some grants (based on individual credit situations and lenders). Always seek professional advice.

b. Think about someone else (your tenants) paying your mortgage. Not paying your mortgage will allow you to continuously, month after month, save money. Eventually, you may find yourself with a 20 to 30% down payment for more significant or non-owner-occupied investments.

c. Remember, the higher the down payment, the lower your bill.

3. If you have plenty of money to invest, how do you?

If you earned that money yourself, you might be more cautious than if someone gave it to you. Either way, ask yourself, what are my short-term and long-term goals?

4. This brings us back to where we started.

a. Are you looking for monthly cash flow? For example, are you allowing yourself to save?

b. Are you willing to sacrifice monthly cash flow for long-term capital gains? For example, are you selling the property in four years to pay for your child’s college?

The ultimate goal is positive cash flow and long-term capital gains. But, if you can only have one, which one?