Is this a requirement for a real estate agent license?

Question

Hi Everyone,

I am working hard on educating myself on all things real estate before I take the plunge on purchasing some investment properties. My interests are purely investment by ways of rehabing and rentals to create my own portfolio. I see the big advantage in having a real estate license, however, my understanding is that after you take the course and pass the exam, you will need to get sponsored by a broker. My intentions with my license would be purely for personal investment and not general sales. Is getting sponsored by a broken a requirement in getting your license? If it is, would brokers be ok with sponsoring me with those intentions? I would use my own license to purchase the properties, and most likely to sell them as well. Also, I am in New York.

I just need a little clarity on the whole being sponsored situation.

Thank you!!

Scott Wolf · Answer

In New York, you need to be sponsored by a broker to use a RE sales license.  There are many flat fee or 100% commission models that may work for what you intend to do, but you must be sure to disclose your license and intentions to collect a commission at the outset of any transaction.

Jaimee Martin · Answer

@Scott Wolf Thank you for the info! I certainly believe in always being upfront and honest with all information.

Jaimee Martin · Answer

@George Hermann Thank George!

George Hermann · Answer

Hi Jaime, in New York a licensed agent (called a salesperson) must have their license held by a licensed broker. Brokers typically charge their agents a monthly fee and a percentage of any transaction (buy, sell, or rent) that the agent participates in. You will have to shop around to find a broker that will be best for you. Good luck.