Becoming a Real Estate Agent without working for someone else

[Jonathan Rojas]

Hi, I am starting my real estate investment journey. One of the steps in my plan is to become a real estate agent in North Carolina. I want to go through the pre-licensing and post licensing courses but I am hesitant on sharing commission with a sponsor or broker in charge. I want to be independent and represent myself on personal real estate deals. I was hoping to get advice or a way around this if anyone experienced the same thing.

Essentially becoming a real estate agent for the following:

1. To find listings before others

2. To be able to view homes on my schedule and not having to coordinate with a real estate agent

3. To save on the commission of any sales

Any advice helps. Thank you

[Chris London]

@Jonathan Rojas In NC to be an active broker you will need to hang your license with a BIC that has a firm license. This can be an online/virtual company (there are now plenty). This can be a brick-and-mortar company like a Keller Williams. Or you can find a BIC w/ a firm license that is a one-person show and ask to work directly with them. You can negotiate whatever deal you can work out (like maybe you only give them a small % of your commission in exchange for value you provide back to them). There, unfortunately, is not an option of passing the exam, getting your license and collecting sales commission on your own.

Do this for 2 years and you can be eligible to apply for your own firm license and be your own 1 person show. See the NCREC website for details or feel free to DM me.

Keep in mind a few things in regard to your bullet points:

1) Finding deals before others: The MLS updates almost instantly on Zillow/ Redfin etc. So, no timing advantage. You also have to pay for MLS access. The biggest benefit as an agent of the MLS in regard to buying your own properties is that you can see the agent notes, you can receive updates through 'showing time' and you can use the official Realtor forms (Offer to purchase and contract 2-T) that make an offer look better than non-agents who write their offers on less familiar forms they find on the internet. You are more likely to find off-market deals through a wholesaler or your local RIA.

2) Touring homes on your schedule. Yes, this is a big benefit IMO. You need to pay for the SentriKey app to be able to access many lockboxes.

3) Make commission. Yep, this aspect changes everything! It's a lot easier to find deals that work when you get a 2.4 +/-% commission check at the end. 

4) One thing to note is the annual fees for being an active real estate agent. You can expect to spend north of $1K between some of the fees I mentioned above as well as continuing education and association fees. After you take that 90-hour class and work so hard to get your license if you are not making a lot more than these fees in income you will find yourself in a predicament between paying the fees to stay active or going inactive. It's a lot of work and many find the NC exam particularly challenging so make sure you ask lots of questions before you begin. Good luck!