Five Reasons for Earning a Real Estate License
Pursuing a career in real estate has many benefits, including the opportunity for personal growth, business ownership and wealth building
When considering a career in real estate, you should consider the opportunities and benefits associated with the privilege of being a licensed real estate sales associate or broker. In addition, there are many brokerages that seek new entrants into the real estate industry and licensees can quickly begin building their book of business. And as the US Real Estate industry continues to evolve, the possibilities for continued growth are seemingly endless.
Here are the top five reasons to earn a real estate license:
- To Sell Real Estate and Profit from It: Real estate is a regulated business that requires a license for handling the sale and purchase of property on behalf of a customer. A real estate sales associate license is the first step in creating a foundation for a rewarding career. Working under a real estate broker, a sales associate can learn the ropes of the business with virtually unlimited earning potential.
- To Own Your Own Real Estate Brokerage: Actively working in the real estate business for a number of years as a licensee can lead to the opportunity of becoming your own boss as a real estate broker. A real estate broker can hire agents to work under your leadership and increase your earning potential. And a real estate broker can lead multiple real estate companies, further multiplying the income sources as a business owner.
- To Become a Better Real Estate Investor: If you have made a vested commitment to generating revenue by investing in real estate properties, then you should consider earning a real estate sales associate license. While you are not required to be licensed to invest in real estate, the fact is that a real estate education can provide you with knowledge and insight to help you make better investment decisions.
- To Manage Properties on Behalf of Others: Property management is a specialized field within real estate that allows you the opportunity to generate ongoing revenue. A licensed real estate agent who manages multiple properties may not have to help anyone buy or sell properties since the income from this type of transaction is tied to a contract and the more properties you manage, the higher the income potential can be.
- To Help Others Buy and Sell Businesses: Earning your real estate license is a first step in building a career where you can sell real estate properties and also business entities. As a business broker, you can help investors and companies purchase or sell a business entity or franchise, allowing you to profit from the transaction.
Now that you have discovered the top five reasons for earning a real estate license, you should also consider the cons for not having one. First, engaging in real estate business—such as helping sell or buy a property—without a valid real estate license is considered a felony under most states’ real estate laws. In fact, you may not receive compensation in any way or form for your involvement in a real estate transaction.
You may only profit from real estate transactions without a license when you are the legal owner of a property being sold—and for that, you should retain a licensed real estate agent who will in turn earn a commission for his or her services. And if you are interested in learning about more benefits, regulations and opportunities for licensees, start with the 63-hour sales associate course online.