Becoming Licensed Agent Without Actually Practicing

19 Replies

Hi everyone,

I'm looking into getting my RE license in Michigan in order to further my investing career, access the MLS, better negotiate with selling agents, etc.

I know that I will have to find a broker to hold my license, but I'm not sure how to go about that? I am fully aware that there are a lot of fees (MLS, office, Association) that come along with brokers and I was wondering if any non-practicing REI agents have had experience finding a broker to hold their license?

I have no idea how to go about finding a broker that will discount the fees since I have zero interest in actually selling or listing homes. I just want to do it for my personal gain. Can anyone offer any advice?

@Sarrah Fanny

  very simple.. google  flat rate brokers they are the rage these days.. on the west coast you can get them for as cheap as 199 a month they don't care what you do... they may charge you a small transaction fee on your deals.. but they have to eat to.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

There are also brokers that only charge a fixed amount when you do a transaction, rather than a monthly fee, and will not require joining the realtor assoc. Ask around at your local investor clubs, you'll probably find others that are licensed but not working with clients.

Medium team zen logo vJean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com

@Sarrah Fanny Hello. I am a Realtor with Keller Williams Realty in Novi. I got my license to help further my investing career also. There are monthly fees, board fees, mls fees and a percentage split until you reach your cap. In the past year I have learned alot and have taken classes about hud, short sales & foreclosures, REO's and many others. If your goal is to help people and to make money don't let the fees scare you away.

Originally posted by @Jay Hinrichs :

@Sarrah Fanny

  very simple.. google  flat rate brokers they are the rage these days.. on the west coast you can get them for as cheap as 199 a month they don't care what you do... they may charge you a small transaction fee on your deals.. but they have to eat to.

 I took your advice and did a search for flat rate brokers in Michigan, but everything that came up was related to listing homes.

Originally posted by @Jean Bolger :

There are also brokers that only charge a fixed amount when you do a transaction, rather than a monthly fee, and will not require joining the realtor assoc. Ask around at your local investor clubs, you'll probably find others that are licensed but not working with clients.

 I will do that, thanks.

Originally posted by @Al Neal:

@Sarrah Fanny Hello. I am a Realtor with Keller Williams Realty in Novi. I got my license to help further my investing career also. There are monthly fees, board fees, mls fees and a percentage split until you reach your cap. In the past year I have learned alot and have taken classes about hud, short sales & foreclosures, REO's and many others. If your goal is to help people and to make money don't let the fees scare you away.

 Hi Al, I am actually not interested in practicing real estate. I just want my license for myself. I'm not interested in listing or selling homes for other people.

@Sarrah Fanny

I just did the same thing and after some searching was able to find a discount brokerage.  I recommend just calling and talking to some realtors with listings.  Over time the good, high volume realtors tend to migrate towards the cheaper brokerages and they will usually be more than willing to give you a few companies names.  Also look for some groups on facebook, etc. locally for realtors and chat with some folks there.

Even though you may not plan to help other folks with your license, I recommend building a network of contacts with similar investors.  Should you come across a deal that has good numbers but you are not in a situation to jump on it yourself, pass it along to them.  You would be surprised how many deals that you can put together without having to do any additional work and also help build a tight group of followers.  Representing other investors on half a dozen deals a year can make you enough in commissions to put a down payment on another rental property or two for yourself every year.

I got my license for myself as well. I havent listed or sold homes either. As you begin your investing career you are going to meet other investors that will need your expertise. The training is invaluable.  

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I am in Texas. I had my license for 6 years, and let it lapse last year. I was a listing agent that specialized in REO properties. I got tired of that side of the business, but now that I am doing investing I am very happy that I learned that business for those years. That experience is invaluable. I would recommend if you go to the effort of getting your license, that you actually do some deals and transactions, if nothing more than to learn contracts, negotiations, working with lenders, escrow officers, etc. It is a side of the business that will help you in investing above and beyond just having access to MLS.

I would suggest using an on-line broker. I posted earlier and mentioned a name but my post was deleted as self-promotion, which it was certainly not. Some on-line broker sites will charge a small fee and give you 100% commission. Most importantly, they hold your license. That is what my wife is doing.

Best of luck,

Brian

@Brian Tremaine Can you PM me the name of the online broker you mentioned? My wife might be interested in going this route in the future. Thanks!

My suggestion sent out in PM's to several people turns out to be doing business in CA only, sorry. 

Originally posted by @Sarrah Fanny :

I was wondering if any non-practicing REI agents have had experience finding a broker to hold their license?

 Sarrah - Did you ever have any luck finding a broker in Michigan to work with? 

Thanks!

Joe

@Joe Semifero I am a Realtor and most small offices don't charge anything to house your license. They will take part of your commission upon a purchase or sale of a home. You will pay all your own fees which are MLS and Association fees, my yearly expenses for being a Realtor are roughly $2,000 because I have to join 2 MLS and 1 association but that can be made up with 1 deal a year.

Originally posted by @Richard Ball :

@Joe Semifero I am a Realtor and most small offices don't charge anything to house your license. They will take part of your commission upon a purchase or sale of a home. You will pay all your own fees which are MLS and Association fees, my yearly expenses for being a Realtor are roughly $2,000 because I have to join 2 MLS and 1 association but that can be made up with 1 deal a year.

Thanks, Richard. When you say, "small offices," do you mean small independents or small offices associated with the larger RE companies? 

I'm seriously considering this but not ready to let go of my current day job, so that means part time at best. Any suggestions on AA area or Western Wayne RE brokers? 

I was looking at the training sites available and I thought the programs offered by Claudia Cauley looked pretty good. How did you get your RE license? 

Joe

I am referring to independent offices, typically places like Reality Executives charge $50 a month which isn't a lot but they also expect you to sell which takes marketing dollars and more importantly time. If you go to a local independent branch with a couple Realtors they won't typically charge monthly fees they will just split commissions with you. Normally those splits are 50/50 or 60/40 depending on the brokerage. When you go talk with them just let them know you are an investor and you will primarily be using your license to purchase properties for yourself. Give them the number of homes you are projecting to buy this year and next year. That projected number may be more then some of the other "full-time" Realtors in there office so they will be happy to have you. Also after you start doing this you end up finding more deals then you yourself can purchase and / or deals that are out of your criteria for one reason or another and you start sending them to other investors.

As for getting my license check Groupon, they always have deals. I took the week long class through Real Estate One for $80 plus $50 for the book on a deal Groupon had. Matter of fact I took it twice, the first time I did it was for continuing education in the real estate field as I thought it might help my investing career (it will not).