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Posted over 12 years ago

Want To Become a Realtor?

I'm going to 'try' to make this short & sweet! Its been a long time since my blog fingers got any work so its about time to warm them back up.

 

A lot of investors toss the idea around of getting their license. I was one of them. Mostly, I see a lot of new investors without much knowledge and or financial resources to successfully navigate their first deal also take the route of getting their RE license. 

Most of the time, you never hear from these people again as they get trained for traditional resale transactions. Its unfortunate but it is what it is. 

I wanted to make those aware who might be considering the idea of getting their RE license, while it may seem like a great idea, you really need to be ready for a few things. These things I can speak of from experience as I recently added the RE license to my investing career resume. 

First and foremost, congratulations! You just became licensed to get sued! That's right, when something goes wrong, who's going to get sued? You are! If you're aware of this fact, a lot of things in your beginning licensed career will make sense. You will spend a lot of time going through classes training you to be a professional. This, while it is helpful, is the very same reason why you are automatically at fault! 

Don't let it completely scare you away from considering getting your license. Just be aware of the higher standard you will be held accountable at. If anything, it certainly will keep you honest :)

 

One other quick topic to discuss is the surprise fee's that spring up out of nowhere. If you thought you just needed to pay for a class to get your license, please be aware, its not that easy. Here in Arizona, where I received my license. I literally had no idea what nickel and dime fees awaited me. 

Once you pay for tuition, expect some things like 3rd party testing fees, state licensing fee's. I even had to pay $20 to the state just because I got hired onto a brokerage and in effect activated my license. Hence the $20.... I know, it seems silly but true. 

You'll also need to be aware of possible association fee's lockbox code fees, brokerage office fees, MLS acces fees. This list literally seems like it goes on and on! 

We haven't gotten to the point where you're are paying for marketing yourself as a Realtor yet and you're damnear fee'd out aren't ya? I understand your upcoming frustration. 

There are some silver lining among the dark clouds and some helpful things I'll bring to you readers considering taking the plunge in the coming weeks. These will cover some effective tools that you will hopefully have at your disposal whether you're a investor or a Realtor, even both for that matter. 

Thanks for taking the time to read this! You can friend me on facebook.com/motiv8td and if you have any interest in chatting about the Phoenix market, by all means, connect with me. 


Comments (10)

  1. Probably not worth it then right Carlos? I wouldn't blame you. Its already a lot of work. I can't imagine only being an agent for the sole purpose of being an agent. Realistically, if you can find a great agent, its certainly not worth it, just be loyal to that one agent.


  2. @ Nick - It's more than the fees. I had a license in the late 80s so I know the time commitment to get one. With f/t job, small used car dealership, REI, church, family, free time (what's that?), I just don't have time for realtor classes and studying. I already checked on reinstatement. It's been over 6 years so I'd have to do everything all over again.


  3. This doesn't interest me at all. Showing homes, no shows, paper work ugh


  4. I have had a RE license for several decades and I'm now retired - just let my license go back to the state in June. For most investors a RE license is a waste of time and money. Having said that, in 2007 my tax returns show an income of a little more than $400,000 in RE fees I collected as a buyer. I was one of the highest paid realtors in the state and I didn't do a traditional real estate business. Having a license is a double edged sword and as such the Realtor/Investor has to be very careful - it can be a minefield. I used one standard clause that helped free me from lawsuits: "The buyer is a licensed real estate broker and is making this offer to purchase for the purpose of making a profit. He recommends that the seller seek professional legal and tax advice regarding this transaction." In many ways, a license is an obstacle. But, if used properly it can be a gold mine.


  5. I'm with ya Dwayne. I personally have absolutely zero interest in showing homes on Saturday mornings. I don't mind picking up a listing and doing some work to get it marketed. Then, the buyers agents will sell the house for me :) I'm not letting the 'listing agent' responsibilities consume my time to the point where I lose the focus of why I even got it to begin with but I'll take some commissions here and there and be plenty happy with it ya know.


  6. Got my license in May just for the reason of investing. Wasn't even interested in being a realtor and selling houses for someone else. But now have kind of changed my mind and have decided to get into being an agent also .


  7. Great read, lets have part 2!! I have gone between getting it and not. I have a great friend who is a broker/realtor and says he would love for one of us to get ours so we could get in with him. I know REI companies that has a family member that is a realtor so the money stays in the family, that was one thought of ours.


  8. @Carlos, certainly don't let the fees keep you from getting a license. The cost of the fees don't compare to the benefits of being licensed. Just be aware of what you're looking forward to. Budget it out if you have to but certainly don't let that be the sole reason why you chose not to get a license. @Emy, I'll have some more to come. Biggest suggestion I can give is to ask a bunch of questions. Get it planned all out ahead of time. Find out what you should have in reserves once you do go through all the red tape just to get the license. Once you finally have a license, now you have to market yourself.


  9. I considered getting a license in Texas, but decided against it due to the fees.


  10. What good timing as I was considering going this route! Will definitely look forward to your follow up posts on the topic.