Getting a real estate licence as an investor?

Hi All,

I'm new here and I'm not sure if what I'm about to ask has already been discussed - if so, I'd appreciate links to the threads (I tried to search on google and within this forum and it seems to only come up with American or Canadian articles and no luck with searching within this forum).

I am curious to know if anyone has become a realestate agent or got a realestate licence along their property investment journey? If so, what are your thoughts, experiences, pros and cons in getting this licence as an investor?

The pros I seem to read (on US articles) are: Access to multiple listing service (which I think is the equivalent to RPData here - which I found I can still access without being an agent of any kind), networks and contacts to be gained (again which I think you can do without being an agent), further tax deductions as you run as a business, commissions savings.

Cons I've read are (against US articles): full clear disclosure must be done to buyers/sellers that you are a licensed agent (I'm guessing this applies in Australia also?), Initial and on-going cost of education and upkeep of licence, lack of freedom as an "investor" due to audits, liability and compliance required of a licence real estate professional.

What are your thoughts?

 

Hi @ad1980

It sounds like the main reason you're thinking of licensing is to get access to advertising platforms and research platforms? You don't need a realestate license to get access to these things.

There are ways of getting an ad onto the likes of www.realestate.com.au without having a realestate license these days. There are mobs such as "Agent In A Box" that will basically let you sell the place yourself and leverage their advertising arrangements.

It's also possible to get an RPData license without being a licensed agent. There are groups that have mobbed together via these forums to get access to cheaper rates than going it alone. Some folks also get RPData licenses through groups such as "Renovating For Profit".

Licensing requires upfront and ongoing training and of course upfront licensing and annual license renewals. So unless you literally plan to open an agency it is an unnecessary expense.

 

Among the american investing circles im part of you hear of lots of people getting their RE license. This is because they then get access to the MLS (for sale listings database) and can sell your own props without paying commission.

Here in Australia however, different story. Firstly there's nothing agents have access to exclusively. Secondly, it prevents you from ever being involved in a related party transaction without a lot of hassle. This would be a lot simpler sans license.

 

If you're the owner, dealing with your own assets you don't require a licence. However you will require one if the property is owned by a trust or other vehicle.

 

Thanks everyone for your input, it's all good to know!

 

I got one because I could. Benefit has been zero thus far, but at a cost of a few hundred a year I am sure one day it will serve me benefit.

 

Cornflakes packet or Weeties?

 

Cert IV... but RPL for 90% helps that I have been in development and realestate for 10+ years.
I shouldn't say zero benefit. I should have used the word tangible.

 

I don't think a licence would be required if the owner is managing its own property.

 

Isn't a trust a different entity?

 

A trust isn't an entity. If the trustee owns the property it could manage the property without a licence as it is the owner. But it could not manage your personally owned properties.

 

Get a lic. if you want to work as an agent, not to invest.

 

Similar to cactus I completed my education for the licence a few years ago, the bulk being prior learning. I learnt very little (if anything) from an investor point of view, maybe gained a few insights into the property management business. I agree, zero tangible benefit to date.

Im wondering if one day these businesses that run airbnb listings will need a licensee...

 

In terms of learning about real estate starting out it is great to be in sales (or possibly a valuer). Of course you have to be good at sales and listing to earn the money to then be an investor

 

Probably not - you can't airbnb a place that you don't own or rent.

 

What about businesses like this one? Home
(Sorry its a bit unrelated to this thread)
I think from a Fair Trading pov they're meant to be licensed.

 

@Richard Sterling - it raises a few issues in my books:

Model 1) No, they are either acting as a sub-lessor ie they need to enter into a lease with the owners with subletting rights but as they aren't actually occupying the property and they are accepting rent on behalf of others they are subletting to they are are acting as agents and will need to operate an agent's trust account.

Model 2) Risk is shifted to owner but has not changed the agency arrangement.

 

So maybe theres licensee jobs out there for those of us with RE licenses but no use of them to date..

 

Yes - people 'hire' your licence. I have seen some advertisements in the past for people wanting to start some sort of real estate business but need someone to get the licence to run it for them. Some want the licensee to do nothing other than be the figurehead - $25,000 pa was the going rate before.

Highly dangerous though.

 

Pretty sure the BLA looks down on this, the OIEC is supposed to to be In Effective Control after all.