RE investor has just passed the RE exam. Question about the fee

San Diego, California
Real Estate Agent
4yFollow

RE investor has just passed the RE exam. Question about the fee

Wai Chan
Rental Property Investor · San Diego, CA · Member since 2014 · 80 posts · 44 votes

Hello, I have been a RE investor since 2014 (Own 8 SFRs in DFW and 3 triplex in San Diego) I have just passed the RE exam. and plan to use my license to do my own deal or friends. I have found a one guy brokerage who is fine with me hanging my license under him and won't charge me anything (No monthly fee, no commission split). However he told me that I need to pay around US1300/yr to join different realtor association and to get MLS access and the Sentri.

Sorry for all the dumb questions...:

1. Is it compulsory to join those realtor association as a realtor? 

2. I have been using redfin to look at the deals and I feel like the interface is even better than the MLS page that my previous realtor has sent me. What are other benefit to get MLS access?

3. Sentri key is the most important thing I want to get. Can I skip the two things above and just get the Sentri access? Does it have any dependence on other stuff that I need pay?


Just trying to keep the expense low given that I don't think I will do transaction actively with my license...

0Reply
10 views

Most Popular Reply

Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
4y

@Wai Chan

1. If you want access to MLS you will need to pay the association who has the rights to manage the MLS in your area. In my area, a new agent gets licensed and then they also need further accreditation as a Realtor, and then they get access to MLS. We all need to pay for ongoing access too and we need to keep up our state license and our Realtor affiliation as well.

Basically you pay to become an agent, then you pay to become a member of NAR, then finally you become a member of the local association of Realtors then you pay for the MLS. Talk to a local realtor to ensure your process is the same as the one I described

2. My local MLS has private agent notes and way more search filters than Redfin. I can book showings and review historical listings of a property and check closed rental comp data, and there are other features within it as well.

3. Not sure how that works in San Diego

Remember that the being an agent and everything that goes with it was designed for agents. You're looking at it through the lens of an investor. If the fees are going to hurt you and you're that worried about them, then don't get your Realtor designation. 

I think you need to change your look at the situation to a 'glass half full' mindset. Don't think of what you're spending, think of what you'll be earning and the information you'll have access to and how it'll make you a better investor. I lived in SD for two decades and still have friends and family there, some of which are Realtors. Literally one sale of an average-priced home at 3% commission will pay your dues for over a decade.

2Reply
See this reply in the discussion

6 Replies

Jump to latestLatest
  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    4y

    @Wai Chan

    1. If you want access to MLS you will need to pay the association who has the rights to manage the MLS in your area. In my area, a new agent gets licensed and then they also need further accreditation as a Realtor, and then they get access to MLS. We all need to pay for ongoing access too and we need to keep up our state license and our Realtor affiliation as well.

    Basically you pay to become an agent, then you pay to become a member of NAR, then finally you become a member of the local association of Realtors then you pay for the MLS. Talk to a local realtor to ensure your process is the same as the one I described

    2. My local MLS has private agent notes and way more search filters than Redfin. I can book showings and review historical listings of a property and check closed rental comp data, and there are other features within it as well.

    3. Not sure how that works in San Diego

    Remember that the being an agent and everything that goes with it was designed for agents. You're looking at it through the lens of an investor. If the fees are going to hurt you and you're that worried about them, then don't get your Realtor designation. 

    I think you need to change your look at the situation to a 'glass half full' mindset. Don't think of what you're spending, think of what you'll be earning and the information you'll have access to and how it'll make you a better investor. I lived in SD for two decades and still have friends and family there, some of which are Realtors. Literally one sale of an average-priced home at 3% commission will pay your dues for over a decade.

    2Reply
  • Emy Bernardo
    Investor · San Diego, CA · Member since 2017 · 112 posts · 92 votes
    4y
    @Wai Chan   - Unfortunately, agents in California have to join the local board, CAR, and NAR.  The costs add up.  In addition, there is a quarterly MLS ($159)and annual Sentri Key fee.   You need access to the MLS so you can see the agent only remarks, showing information,  list properties, use "Zip Forms" transaction management to have access to all of the CAR forms so you can conduct transactions/e-signature, etc.  If you don't like using Paragon for search, I highly recommend Homesnap - there is a  desktop version and mobile app..  There are also a lot of good tools you will gain access to for getting mailing lists, CMAs, tax information, market information, legal information. These tools can help you find investment properties. You will be able to deduct these costs once you start showing income, so keep track of your expenses. CAR members have free access to an income/expense tracking program called Hurdlr that is valuable.   I suggest giving SDAR a call to verify all of these costs.  I attached a breakdown of the annual dues (not including MLS or Sentri)..
    1Reply
  • Wai Chan
    OP
    Rental Property Investor · San Diego, CA · Member since 2014 · 80 posts · 44 votes
    4y
    Quote from @Bob Okenwa:

    @Wai Chan

    1. If you want access to MLS you will need to pay the association who has the rights to manage the MLS in your area. In my area, a new agent gets licensed and then they also need further accreditation as a Realtor, and then they get access to MLS. We all need to pay for ongoing access too and we need to keep up our state license and our Realtor affiliation as well.

    Basically you pay to become an agent, then you pay to become a member of NAR, then finally you become a member of the local association of Realtors then you pay for the MLS. Talk to a local realtor to ensure your process is the same as the one I described

    2. My local MLS has private agent notes and way more search filters than Redfin. I can book showings and review historical listings of a property and check closed rental comp data, and there are other features within it as well.

    3. Not sure how that works in San Diego

    Remember that the being an agent and everything that goes with it was designed for agents. You're looking at it through the lens of an investor. If the fees are going to hurt you and you're that worried about them, then don't get your Realtor designation. 

    I think you need to change your look at the situation to a 'glass half full' mindset. Don't think of what you're spending, think of what you'll be earning and the information you'll have access to and how it'll make you a better investor. I lived in SD for two decades and still have friends and family there, some of which are Realtors. Literally one sale of an average-priced home at 3% commission will pay your dues for over a decade.


     Thank you Bob. You are right. I have been thinking from an investor perspective 100%, i.e. my goal is to make sure every penny I spend will have some return. Need to change my mindset a bit since I have got the license even though I don't plan to practice

    0Reply
  • Wai Chan
    OP
    Rental Property Investor · San Diego, CA · Member since 2014 · 80 posts · 44 votes
    4y
    Quote from @Emy Bernardo:
    @Wai Chan   - Unfortunately, agents in California have to join the local board, CAR, and NAR.  The costs add up.  In addition, there is a quarterly MLS ($159)and annual Sentri Key fee.   You need access to the MLS so you can see the agent only remarks, showing information,  list properties, use "Zip Forms" transaction management to have access to all of the CAR forms so you can conduct transactions/e-signature, etc.  If you don't like using Paragon for search, I highly recommend Homesnap - there is a  desktop version and mobile app..  There are also a lot of good tools you will gain access to for getting mailing lists, CMAs, tax information, market information, legal information. These tools can help you find investment properties. You will be able to deduct these costs once you start showing income, so keep track of your expenses. CAR members have free access to an income/expense tracking program called Hurdlr that is valuable.   I suggest giving SDAR a call to verify all of these costs.  I attached a breakdown of the annual dues (not including MLS or Sentri)..

    Thank you Emy. Very good details. So US1300/yr sounds about right for these "mandatory" fee

    0Reply
  • James Tasso
    Member since 2022 · 32 posts · 21 votes
    4y

    @Wai Chan@Bob Okenwa Bob replied greatly! The MLS is required to share their information with the Zillows of the world. MLS gives you the most up-to-date information. I pay around 500 for the year for the NAR, CAR, and Association Dues.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    4y

    You also need to purchase E&O insurance, something most agents overlook. Many have E&O through their brokerage that protects the broker but fail to have their own policy that protects them. 99% of agents have never read their policies and dont realize this. Make sure there is technology coverage, as the #1 claim currently involves technology issues, such as your email being hacked and your clients information being stolen. This is usually the quick way to understand what the policy covers from a quick quote as the ones without technology coverage are under $500 typically while the policies with tech coverage are more like $1000 a year.

    Youll also need to update your auto insurance to reflect that you are an agent which many agents also overlook. Get in a car accident and your insurance company realizes your an agent using your car for commercial use with out the appropriate coverage theyll deny the claim.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free