Can I Avoid Becoming A REALTOR? (Indiana)

Question

Hello BP,

I'm not sure if it's just my area or not, but almost all the brokers require that you be a REALTOR to work with them. That's fine and all if the membership and MLS access to get started didn't cost $1,300. I've spent all of my capital on my start up marketing and direct mail, and would like to see how I do as a real estate sales person before plunging another $1,300 toward this option.

Not only that, but this would afford me the opportunity to make a few sales and generate some income so that I actually have $1,300 to spend. In the state of Indiana, you obviously have to work under a broker, and soon you will have to complete a broker transition course.

I was wondering if there was a way around the broker and being required to be a REALTOR. I've heard of the possibility of paying a broker a flat fee to "hang" your license, and I think by going this route I may be able to avoid the REALTOR requirement, and see how I do in this profession (wholesaling/listing/fix-n-flip) before throwing another $1,300 at it. Where might I find a list of these types of brokers and more information on them? Any advice and information is greatly appreciated.

Many Thanks,

Jason Eyerly

James Wise · Answer

There is some confusion here about some terminology.

All Realtors ARE licensed Real Estate Agents.

Not all Licensed Real Estate Agents are Realtors.

You must be a licensed Real Estate agent working under a licensed Real Estate broker to collect a fee to help another person buy & sell real estate.

Lots of brokerages require all their agents to be Realtors. Some do not. Commercial brokerages often do not have their agents become Realtors.

MLS fee's are something that all Real estate agents have to pay. You pay for the access to use the MLS. This is where you sell and buy property. If you don't want to use the MLS them there is no point to obtaining a Real estate liscense.

There are additional fees to be a Realtor but if the brokerage your working for handles residential Real estate they will require you to become a Realtor.

Shawn Holsapple · Answer

@Jason Eyerly all the comments above are accurate.

In Indiana, every licensee must be a broker by June of this year.

The only other way to get access to the MLS is to work at a brokers office as a non-licensed assistant.  They can then set you up with MLS access.  I'm sure there would still be a fee for this.

Like most of the other comments states, I would just bite the bullet and get your license if you plan on being serious investor.  With that said, by doing so, you will be held at a higher level of professionalism - which we should all do anyway.  You don't have to pay for a full year for MLS access up front, you can pay bi-annually.

I would find an investor friendly broker and volunteer there as much as you can. This "free" labor will gain you a ton of knowledge and maybe a deal or two just by osmosis.  You could be the "picture" guy and get to look at several properties a week to get a quick idea of what is out there and how to evaluate them.  I'm sure at some point they would start to pay you for this service... Just a thought.

I buy nearly 100 properties off the MLS a year and that nets a nice income by itself.  Plus, I never have to show the pickett fences to Ken & Barbie on the weekends like my counter parts are doing to just make a living!

I hope that helps.

Duncan Taylor · Answer

Yep, I just went back and re-read the OP. I thought he was asking about getting his license, not joining the Realtor organization.

Duncan Taylor · Answer

Can you avoid it? Sure, no one is going to knock down your door and drag you off to take your license exam.

But, if I were starting out today. I would definitely get mine. It opens doors for you that were open to the unlicensed masses 30+ years ago but are barred, double locked and almost invisible now.

Get your license if you are going to actively invest in real estate.

Can I Avoid Becoming A REALTOR? (Indiana)

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