MN real estate license requirements?

Question

What's the best way to get licensed in MN? Everything I've looked up all seems to have programs to become an agent, but I have no interest in selling homes. I really just want the information but why not get the license for my real estate journey as well?

Any info would be great, thanks in advance!

Account Closed · Answer

The plan, eventually would be to buy, flip and hold. As for now, I am focused (and stuck) on the education part.

Considering my income will not change significantly at this point, lateral moves and opportunities aplenty across property management while any major advances typically require higher formal education or more years of service. There are definately higher paying jobs out there, but my network and free education in the industry are incredibly valuable, not to mention PTO and benefits making it more worth my time to work my 40, and then work directly for myself.

Crap, I kinda forgot where I was going with that...So the intent of the real estate license would be to have the same baseline information my realtor has. Much like I have the same basic certifications or education my HVAC, plumber, electrician, mechanic, pool guy and home inspector have.

90 hours and a couple thousand could open more opportunities than buying the Real Estate for dummies book on Amazon, why get all the information without putting the extra effort in and being licensed as well?

Maybe it doesn't make sense at this moment, but maybe I do it now while I have the resources (time and money) so I don't have to worry about it when I have the resources to pursue more real estate purchases.

Not to say I wouldn't considering representing, but I don't think theres a large enough clientele out there that values a socially awkward realtor showing up in a multicolored Accord, ripping cabinets down and chasing roaches around with an air nailer. But there is always hope!

Thanks Evan!

Evan Kraljic · Answer

Account Closed Gotcha. Yeah I think if you're planning on flipping homes it could definitely be a value add to have your license since you're saving on the buy and sell side which is obviously a major expense for flippers. With that being said, you're also opening yourself up to greater liability as a licensed professional. But you mentioned that you have the same basic certifications as a lot of those trades workers so if you can pull permits yourself then that shouldn't be a problem.

To your point about having the same baseline info that your realtor does... there are some pretty decent perks that the MLS portal has and access to data if you like to dig into the numbers too, but it's not like it used to be and the Redfins/Zillows are pretty good at getting maybe 70% of the relevant information? That's just a ballpark as I'm a newer agent and more focused on my recent project so I'm not super well versed with all of the MLS portal, maybe a more experienced agent could chime in there. I think the biggest benefits of being an agent would be having the control to move extremely quickly if you're on top of your ish, and then obviously saving on the commissions.

Your last paragraph resonates with me as someone who got their license recently. I'm an engineer, definitely an introvert and I don't have the natural charisma you think of when you picture a good salesperson. But I'm really passionate about real estate and want to help others get into investing, or even just homeowners who want to get the best value on their biggest purchase in their life. I think there's a niche for people like you or myself, maybe it's not the biggest market because most people don't want to deal with your specialty of fixer uppers, but glad to hear you're not ruling it out.

I don't think I've given a super direct answer to any of your questions but I hope that helps a bit. I used The CE Shop for my prelicensing courses and thought they were pretty good, although I don't really have anything to compare them to haha. Good luck and let us know how it goes!

John Woodrich · Answer

If you are experienced in the buying/selling process, contract law, and real estate terminology you could consider a limited broker's license.  It isn't for everyone, people who don't know what they are doing can get in trouble and may get taken by an experienced realtor but with the license you are essentially an agent for your self only.  Can buy and sell on your own, get access to the MLS, receive a buy side commission, etc.  Not a lot of information on it as there aren't many consumer protections out there for "protecting yourself."  If you get the license you may not legally be able to be represented by a realtor so that is something to consider.  Some may debate this but it is written in statute.

Evan Kraljic · Answer

Just so I can try to give a better answer, what exactly are your goals Nate? From what I can infer with your post, it sounds like you would want the license to save on commissions when buying/selling your own properties. If so, an option for you would be a limited broker license, which you can use if you're the principal in the transaction, so you couldn't represent others but it sounds like you have no interest in that so no big deal there.

But I think a more important question is does it actually make sense for you to get your real estate license? Have you bought or sold any properties yet outside of your primary residence yet, or are you just looking to get into it? In my opinion, getting the license is a pretty big time (90 hrs pre-licensing courses + exams) and money (between courses and MLS access expect close to 1k startup, maybe less for limited broker) commitment if you haven't gotten into real estate yet. It's kind of like the classic "Should I get an LLC before buying my first rental?" question. It's not really helping you on your main goal, if anything it's distracting you and taking time away while you could be educating yourself on analyzing deals/property management, or making money as a handyman to fund that first deal!

Edit: I had a much longer response written out but then I looked at your profile and it looks like you've done some flips, so you're probably more serious that just an average newbie starting out. Still not sure if it makes sense for you to get your license without hearing your goals though. If you already have the capital ready to deploy and general knowledge of the industry, plan to purchase multiple properties per year, then yeah it may make sense.