Should my wife get her real estate agent license?

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Should my wife get her real estate agent license?

Carl Savoca
New York, NY · Member since 2018 · 2 posts · 0 votes

My wife and I are about to start investing in real estate (small multi-family properties), and we are toying with the idea of having my wife (homemaker) get her real estate agent license to represent us as the purchasing party in real estate transactions. The objective is to have her collect the ~3% fee. However, as I do more research it appears that this might not be as simple as I thought. Apparently she cannot work independently and would have to be sponsored by a broker and they would receive the majority of the fees. So now I'm thinking she should go for her brokers license. Does this make sense? we're looking to purchase 1-2 homes per year. Is there a better strategy?

Thanks guys!

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Adeel Makda
Investor · Skokie, IL · Member since 2016 · 43 posts · 15 votes
8y
If you find a a company who gives you 100% commission and all you have to do is pay for the MLS and a desk fee it might be worth it depending on the purchase price. I would do some research on which companies pay 100% commission in your local network and understand their model before your wife becomes a realtor. This way you can run the pros and cons to give yourself a better idea.
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y

    In most states you have to be a real eatate sales person for 3 years full time, and in some cases sell a certain amount of real estate per year before you get your brokers license. You cant just get a brokers license instead of a salesperson license.

    You should also factor in the costs of maintaining a license and measure that against how many peoperties you will realistically buy each year. Just to maintain a license is thousands of dollars per year. MLS fees, Realtor board dues, e&o insurance, general business liability insurance, electronic lockbox dues, broker fees.

    I usually tell people 5 transactions per year is where it makes sense to consider getting a license.

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  • Account Closed
    Downers Grove, IL · Member since 2017 · 366 posts · 165 votes
    8y

    Would not get licensed for the commission. If the MLS access and more direct contact with cooperating agents help you make better decisions, than it's worth all the fees and time, if that data and contacts are not used to your advantage, than the time and money invested in license and fees is pointless. Than there is the golf between an office that takes 50% of your wife's commission and one that takes a grand a year in fees, we literally have those differences in the Chicago market.

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  • Adeel Makda
    Investor · Skokie, IL · Member since 2016 · 43 posts · 15 votes
    8y
    If you find a a company who gives you 100% commission and all you have to do is pay for the MLS and a desk fee it might be worth it depending on the purchase price. I would do some research on which companies pay 100% commission in your local network and understand their model before your wife becomes a realtor. This way you can run the pros and cons to give yourself a better idea.
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  • Adam CherkoPro Member
    Real Estate Agent · New Rochelle, NY · Member since 2016 · 150 posts · 88 votes
    8y
    I think it’s a wonderful idea. I got my license and
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  • Adam CherkoPro Member
    Real Estate Agent · New Rochelle, NY · Member since 2016 · 150 posts · 88 votes
    8y
    Sorry I hit post when I mean to move the curser! I meant to say, I got my license last year and each and every dale has reassured me how great it has been to have it. I started with Sotheby’s and they were taking half of my commission, I’m currently with a small broker where I get 70% and I will soon be with EXP Realty making 80% and have the ability to make 100%, with passive income potential and stock ownership. For the little time it takes to get more educated about process, the couple dollars to hold a license and the fees for maintaining it, one sale in your market will pay for years of those fees! Let’s talk more, I love having a license!
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