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Should an investor looking to buy pre foreclosure get licensed? why? why not?

So I know it has been asked before but there seems to be a lot of opposite thoughts. Here is why I ask I am not licensed. I have a seller in pre foreclosure whcich is willing to sell to me at any price I can negotiate with the bank. I would love to get a short sale price, I am guessing tops 80% since it is move in ready and no issues or anything needs to be done to either a. sell/flip or b. rent. I have heard that if I was licensed I could not do this or I can get in real trouble. What if i disclose and give more time than the usual? I ask because i have been wanting to start my R.E. career and I have had no luck obtaining either an investor to buy my deals, a mentor or a solid answer/help. So I decided to sign up for the CA R.E. course 2 days ago. Now I am having 2nd thoughts. My goal is not really to become a realtor, but to become an investor. Maybe start flipping or wholesaling, but eventually I want to buy, and buy at a discount. License or not? Thank you. Luis 510 342 8789 cell I can find motivated seller, but I need to put the rest of the pieces to the puzzle together. Can you help?

Posted by wideawake
from CA

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1 Answer

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You are right, there are definitely conflicting opinions on this. Having your license will give you access to the MLS, and if you also join the association you'll have access to the California Association of Realtors legal hotline and other resources. As an investor, I personally felt those benefits made becoming an agent, and later a broker, worthwhile. Note that just being an agent requires you to hang your license somewhere and if you go that route make sure you find a broker who is willing to take you as an agent on terms you can live with. On the other hand, being an agent adds some complications. You'll need to maintain the license, hang it with a broker if you are an agent, pay fees, take ongoing education, etc.. As a licensee you should also expect to be held to a higher standard in a dispute. If you are running your investment practice like a real business, and staying completely above board with everyone you deal with then I personally think you should consider moving forward with your license. Hope that helps.

Answered by Sean

Mon May 14th 2012 at 11:00am

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