Should I get a real estate agent license

Question

I would like to start as a real estate investor and going through material available on this web site as well as book Millionaire real estate investment. As suggested by many and since I have very limited experience in real estate, I thought I should go for real estate agent license. When I looked at the time and investment required to get the license, it seems almost $600 in MA plus I do have to pass the exam. Could you please give some guidance on how much time is required for preparation for exam and how tough the exam is?

Also I talked to a real estate broker to list with them on part time, she was not enthusiastic about me doing it on part time. Would I be able to list as a part time real estate agent if I pass the exam? Also how beneficial it would be get a real estate license for spotting deals and becoming an investor.

Thanks

Also I talked to a real estate broker to list with them on part time, she was not enthusiastic about me doing it on part time. Would I be able to list as a part time real estate agent if I pass the exam? Also how beneficial it would be get a real estate license for spotting deals and becoming an investor.

Thanks

Brian P. · Answer

I had one reason only for getting my license. To make money on the deals I said pass on as an investor. I would rather say lets list it as an agent, then pass as an investor.

I was an investor for 10 years before I got my license. I was sitting at a bar with a bunch of agents watching a football game and they were discussing their volumes of business to date that year and  I started to calculate what the agent I was passing my passes on to was making off me, plus the deals I put on the mls and bought off the mls. My conclusion was what an idiot I was. Next day I started getting my license. And no regrets.

Annette Hibbler · Answer

My husband and I are in the midst of getting our REA license in Michigan.  We paid $250 each through Keller Williams.  They have a very good reputation for excellent training and work well with investors.  Call on brokers in your area and ask who they recommend and how much they charge.  $600 seems a bit extortionate.  Also check your state's REA association as they will often recommend a training program.  Shop around first before you pay a dime.

We decided to obtain our license because of we needed greater specialized knowledge and access to MLS information not readily available to the public.  REA agents are often privy to new listings before they hit the MLS, owner information, new listings and most of all easy ACCESS to investment properties.  REA agents are the only ones able to bid on HUD homes where you can get a very good bargain.

In my humble opinion, the benefits outweigh the cons.  However, it doesn't stop at just getting a license.  In most states, you must be associated with a broker in order to work as a licensed agent.  Broker's will often charge you a monthly office fee for use of their facilities and equipment sometimes this is optional but other times not so much. Commissions vary from one broker to another, so keep that in mind as well.  On behalf of brokers, they take on a huge responsibility and risks for each of their agents.  They can be held legally responsible for each agents words and actions.  So, it's in their best interest to teach you well after you've passed the exam.  Yes, that means even more training is involved.

I love real estate so this was the logical choice for me.  I've already learned a great deal about different types of contracts, legal terms and laws that affect investors that I was previously ignorant of.  Ignorance doesn't hold up in court, by the way.

Hope this helps!

Prasoum Dane · Answer

Thanks everyone...

The real reason I was thinking of becoming an agent is to get access to MLS and to spot the deals. Is there any other advantage of becoming an agent? How you can do the comps on your own to know the value of a property.

Jon Huber · Answer

@Prasoum Dane   I got my RE license in NJ. It was about the same in money, and 80 hours in a classroom. I had the option to spread that out over 2 months, but I opted to do 8 hours a day, 5 days a week for two weeks. I was an active realtor from '04-'07, and didn't have the clientele at 25 years old to withstand the market crash. Luckily, I continued to pay my dues and still hold my license. It paid itself off when I bought my primary home alone. That being said...

I have gained a lot of information from the classes. They do not teach you strategy, but more along the legal aspects and basically how "not to get sued". They won't teach you how to find good deals. They will teach you how to legally and morally represent your clients. I was happy that I got my license and I feel like it benefits me, however, I have stated this before:

There are many people much more successful than me that did not get their real estate license. Having a real estate license will not make you a savvy, successful investor. It is just another means to gain education... education that you can also get on this website. I hope this helps you...

NA Jones · Answer

I just got my license although not in MA.  When it was all said and done, I paid $2500 to get started and it took nearly 80 hours of online class, 10 hours of exam taking, and so far already 8 hours of orientation, training, and classes and I've got alot more training to do.  The brokerage I went with accepts part timers, but it's not easy.  Also two brokerages before that told me no, they want full time agents only.

It's not easy or cheap but there are alot of benefits.

Jennifer Lee · Answer

hi

Please read my post. Just went through your decision.

But I'm inventor. I started my first flip in Boston.

I just got my license.

Like with anything you get in return what you put in. So oart timing as new agent isn't ideal.

Pm me if you have question. Sorry for short reply, in between meetings