5 Benefits To Transfering Your Real Estate License To A Holding Company
As a real estate agent, there may be times in your career when you're not actively practicing real estate. It doesn't matter if it's due to family matters, working on a new business venture, or just traveling around - putting your license in a holding company might be the best option for you.
A real estate license holding company is a business that holds real estate licenses on behalf of agents. Essentially, it acts as a legal "placeholder" for your license when you're not actively using it. There is a handful of reasons why an 'inactive' agent would want to transfer to a holding company, many being financially related.
Here are 5 reasons why you may want to consider using a license-holding company:
Maintaining Your License
Keeping your real estate license active requires ongoing education and continuing education credits. If you're not actively practicing, it can be easy to fall behind on these requirements. By using a license holding company, you can keep your license active without having to worry about fulfilling these obligations.
Protecting Your License
Real estate licenses can be revoked or suspended for a variety of reasons, including ethical violations, criminal charges, or even bankruptcy. By using a license-holding company, you can help protect your license from these risks. If something happens to you personally, your license will be safe within the holding company.
Save Money On Dues & Fees
Real estate agents who aren't actively practicing may still be required to pay certain fees or dues to maintain their licenses. Many realtors taking a break from practicing will transfer their licenses to avoid the Chicago Association of Realtors membership dues, monthly MLS fees, insurance fees, and various other business expenses. By using a license holding company, you can eliminate these costs, saving you money in the long term
Earn Commission On Referrals
As a licensed real estate agent, you can earn income by referring clients to other agents. By using a license-holding company, you may be able to earn referral fees without having to actively practice yourself. Chicago Real Estate License Holding Company offers a competitive spilt on referrals to allow a comfortable cash flow while taking a step back from practicing real estate.
Career Flexibility
One of the perks of being a realtor is the flexibility in your career. If you’re planning on traveling, starting a new business, or just simply taking a break then transferring your license to a holding company is your answer. If you're not sure when or if you'll return to the real estate industry, using a license holding company can give you the flexibility to do so on your own terms. You can maintain your license without having to commit to a specific brokerage or practice area.
Of course, it's important to note that a real estate license holding company is not a substitute for a broker. If you want to actively practice real estate, you'll still need to work under a licensed broker. However, a license-holding company can be a useful tool for agents who want to maintain their license while taking a break from the industry. Just be sure to do your research and choose a reputable holding company that will protect your license and interests.