BiggerPockets

Hello,

I am looking into getting my real estate license, but I heard through the grapevine that all realtors are required to become brokers now, that you just can't get your real estate license to be just a realtor? Does that make sense and does anyone know if this is true? Thanks alot.

My suggestion would be to skip the license part and get some in-depth schooling on real estate investing. Realtors are not doing so well right now so another newbie in the field would not really help matters any unless you have a sphere of influence of 5000 close friends to use as buyers and sellers to do business with you.

I agree with Curt. As an investor, having a license can give you an edge when talking to lenders, title companies, other realtors, etc. Also good to be able to make a referral to an agent in another area. Since we work nationwide, I find it very useful.

Hi, that's a great deal of trouble and expense to go to just to peek in the MLS. If that's really all you want, spend some time with the family Realtor and peek in the MLS listings. You can take notes, view properties alone if you like (from the outside) and work a deal on the commission if you want to buy.

OTH, having a brokers lic. can be a big plus, but you'll need to really be buying properties for it to pay off IMO. I think you will be required to have an office, a phone number, bond and insurance...so if all you'tre going to do is look in the MLS, well, just not worth it.....but if you want to be active, like Curt, work both sides of the street, then go fo it.

BTW, your friend may have been speaking of his/her office, some agencies are made up of only brokers, here we have one named "House of Brokers" so no agents are admitted.

I have heard too, that some states may be going to one test and you may choose to be a broker/agent, just phasing out the agent license, maybe that's what your friend was talking about, but that rumor has been around a long time....be safe and enjoy the weekend! Gotta go get the boat ready! Later, Bill

Originally posted by Realtyman:
While I had a license our state went through the changeover also. All agents are required to pass the brokers exam and are issued a brokers license. They then work for a managing broker for a period of 2 years before being able to open their own office. After I had my license - we got interested in commercial so access to the MLS was just an additional expense. Paying fees to the political fund to elect crooked politicians who sell their votes to the NAR lobbyists and then the way many conduct business drove me to turn it in! I no longer wanted the stigma associated with the term "realtor".

NOW I understand why you're so against getting a RE license. I think I'm going to buy deals on wheels instead of getting my salespersons license...it's just that working a PT job for $15 an hour does NOT really give me enough cash to start working on RE deals yet Realtyman. I know in the military you said you were earning enough to put 40-50% aside in savings for your first residential deals. Well that makes sense.

I'm trying to figure out how I can earn money while in college so I can go in and start getting cash flow myself. Thoughts?

***Sorry for the triple post***

Originally posted by Realtyman:
While I had a license our state went through the changeover also. All agents are required to pass the brokers exam and are issued a brokers license. They then work for a managing broker for a period of 2 years before being able to open their own office. After I had my license - we got interested in commercial so access to the MLS was just an additional expense. Paying fees to the political fund to elect crooked politicians who sell their votes to the NAR lobbyists and then the way many conduct business drove me to turn it in! I no longer wanted the stigma associated with the term "realtor".

NOW I understand why you're so against getting a RE license. I think I'm going to buy deals on wheels instead of getting my salespersons license...it's just that working a PT job for $15 an hour does really give me enough cash to start working on RE deals yet Realtyman. I know in the military you said you were earning enough to put 40-50% aside in savings for your first residential deals.

I'm trying to figure out how I can earn money so I can go in and start getting cash flow myself. Thoughts?

Originally posted by Realtyman:
My suggestion would be to skip the license part and get some in-depth schooling on real estate investing. Realtors are not doing so well right now so another newbie in the field would not really help matters any unless you have a sphere of influence of 5000 close friends to use as buyers and sellers to do business with you.

Just as another perspective, my business earned/saved over $40K in additional profit last year because one of our employees (my wife) has her real estate license.

In addition to the extra profit, we also had much more control over every aspect of our deals...

While maybe not for everyone, to make a blanket statement that people shouldn't get their license seems a little one-sided...

Jamie,
Jason has a good point. Besides the $$$, control and being in the "inside loop" can be a great benefit. Also, the networking aspect can be of benefit. Realtors flock to anything with free food (and drinks). That's a good time to introduce your self and let them know what you are doing and how they may be able to work with you. There is always some outing or 5:01 party going on.

Not sure about Illinois, but in Michigan you can just get a salesperson license and work under a broker.
Bill

Yes license requirements vary by state.In my state of Georgia you start out as an agent and then have to hold an ACTIVE ongoing license for a period of 3 years before you can get your brokers license.

You can take the test for brokers requirements at 2 years but have to wait 3 for the license.Our mls's do not require a REALTOR membership.

Where people get confused is some states mls's are owned by NAR and they dictate membership for access. Your local state real estate commission cares nothing about the NAR and just if you have committed a license law violation or not.

NAR is subscribing to a code of ethics and that is all and paying to belong at the county,state,and national level.

Another item to consider is if you are an investor only you are given more leeway on what you get away with in contracts.If you are trained in contracts and licensed there are some tactics you cannot do like an unlicensed investor could.

On the residential side I could see you getting licensed to access properties,etc.

On the commercial real estate side you are paying for expertise and contacts not access.

Originally posted by Edwin Brown:
We buy a lot of our properties from REO agents. I've always been hesitant to get my license because they might see me as competition rather than a buyer.

Not sure why you say that?

In my experience, REO agents love that fact that we have a licensed agent on our team. Basically, what I tell the REO agent is:

- We will let ourselves into the property (we have an agent key) to view it

- We will write up the contracts and make all counter-offer decisions quickly (don't need to go through another agent)

- We will let ourselves in the property during due diligence

- We will manage the closing process

- We will pick up the selling agent's check at closing and drop it off to him/her at their office

Basically, all the selling agent does is submit to the bank the contact we send her, and then once it's accepted and the addenda are signed, all she does is sit back and wait for us to drop off her commission check.

Oh, and we always drop off part of OUR commission check as well...as an added little bonus...

If you were an REO selling agent, would you want to work with us? :wink: