Passing the Real Estate License Exam

[Jonathan Villanueva]

I am on the fence as to whether I should get my real estate license as a newbie REI and I've read several pros and cons about getting the license but some of the information I read is implied or not clear. I have attempted a search on BP and on Google but I was not able to obtain clear answers to the below questions.

Do I need to work for a broker once I pass my exam?

What would happen if I do not work for a broker? 

Would I still be able to get access to the MLS or access to properties posted on the MLS if I obtained my license but didn't work for a broker?

You're shared expertise is greatly appreciated.

[Steve Milford]

Jonathan, 

You might look at this a little differently. What are the costs of doing business? 

The regs of your state hold the answer regarding how long you have to operate under a brokerage. For me, I have to operate FT under another broker/brokerage a few years before I can go out on my own. 

Do the interviews, and find out what you need/want versus what is provided. Each brokerage is "responsible for you" until you go out on your own so recognize that there is some level of control on your activities. And ask, does that brokerage regulate investing? Also what kind of access do you have to your principal? 

Next consider: 

Does it help build your confidence to have someone to "train you" or are you good with a mentoring relationship and the School of Hard Knocks? Some brokerages require attending "company training".

Do you need someone to feed you leads? How are you going to build your business after you extinguish your initial warm market? For example, I have no problem providing referral fees, and I keeping finding more and more less-active agents that don't really want the "hassle" of working with people, though enjoy getting paid nonetheless. 

For me, prior to signing onto one, as I interviewed more and more brokerages, I also didn't like amount the fees that were associated with it all. Remember to consider co-commission (the amount that brokerages get paid for your efforts), co-commission cap (if there is one), and desk fees (monthly charges for whatever the brokerage wants i.e. transaction fee, e&o insurance, etc). Most brokerages have policies on how much you charge, etc. 

I have talked to many that love the classroom training and hand-holding piece - personally not for me. My perspective is that I could potentially go broke before I even get 2 years experience if I did it that way - and that doesn't help me at all.

Then there are the basic costs of doing business and marketing materials. These include access to forms (i.e. zipforms), Docusign, business cards, flyers, sign post rentals, MLS access fees, and Realtor associations. The costs of schooling are different for each provider.

After considering all that, look at all the costs - the only things you really can control (in my book) are brokerage-related and schooling fees. 

Personally, I chose an online school for licensing, the School of Hard Knocks and a mentoring relationship with my principal broker/brokerage (when I have a question I ask it), and as a reward I am learning really fast. And I get to charge my own fees.

There is no better or worse, just what you are comfortable with. Let me know how I can help.

Steve