Why Real Estate Investors Must Get Their Real Estate License in 2009



As many of us know, or will soon find out; the real estate industry has become a very fluid industry.  It changes constantly.  It requires that we change almost daily in order to ensure success into the future.  As much as we might enjoy our comfort zones, it is necessary to keep our fingers on the changes that occur, or else we won’t continue to be successful.  Due to the recent tsunami of foreclosures, there has been a huge legislative push by the National Association of Realtors for real estate investors (especially pre-foreclosure/short sale investors) to become licensed real estate agents.  It is only a matter of time before they get what they want and every state in this country will require any real estate investor that deals in the short sale/pre-foreclosure business be licensed!

Now, I hear a lot of grumbling from non-licensed investors (I am not disagreeing), but the question remains…do we want to stay in the real estate business and make money or complain about not making money and get out of the real estate business? My answer: stop complaining and get your real estate license!

We know the real estate industry is moving in that direction so let’s talk about what that means to our real estate investment business if we have to get licensed (More profits and more money!). As an investor with a real estate license versus an investor without a real estate license, you will open up many more pathways to getting paid on your short sale deals; such as in the form of real estate commissions or referral fees (this is a great tool to use as a fall-back position to your wholesale short sale deals if you can’t get your wholesale offer approved!).  For example: how many of you pre-foreclosure/short sale investors have had a short sale deal where you offered a certain price and found a retail buyer, only to have the bank order a BPO (Broker’s Price Opinion) or an appraisal and have their value come back so inflated that it kills your wholesale deal? And because you are a caring investor and want a happy seller, you finish the short sale despite the fact that the only one who gets paid is the realtor!

If you had your real estate license you could have used that license as a fallback position and gotten paid! Now…don’t you think that having a real estate license would have almost guaranteed that you got paid for your hard work? By the way, if any of you are listening to the so called “gurus” tell you that you don’t need your license to do this business, STOP reading that crap! They either are not in the business or don’t know what they are talking about. If I would have listened to that statement, I would not have enjoyed profits to the tune of $75,000 in 2007 and $82,500 in 2008, on referrals alone!

With the economy in its current state, and the huge push by well funded lobbyist groups to require investors be licensed if they want to play in the short sale/pre-foreclosure world, don’t you think it is a wise idea to stop swimming upstream and get your license? I did and it created an extra $82,500 for my office! Glad I didn’t listen to that guru!

If you have any questions you’d like to ask about the preforeclosure industry visit www.AskBobLachance.com and send them in!