Updated over 8 years ago on . Most recent reply
Becoming a Real Estate Agent in order to learn investing.
Hello everybody, my name is Trace and I am new to BP. This is my first post so please make suggestions if it would be better placed in another forum.
I live just north of Denver, Co. in Westminster. Although I'm brand new to Real Estate, I know without a doubt that I would like to become an investor and produce passive income as soon as possible. It is definitely a seller's market here, which means price points are much higher than other places in the country. My impression is that it would be a great idea to become a local agent, and take advantage of the market's current (advantages?) to agents. In the mean time I can network and learn my local market for investing purposes while hopefully earning a commission. Even if that proves wrong, I am also under the impression that it is valuable to be able to save on future purchase costs by having a license and have access to the MLS. Additionally, it may present some potential income that would never have fallen in my lap otherwise.
I have several questions about becoming licensed, some of which may be rather unique:
1)Does the source of my 168 hours of classwork matter to a broker?
2)How quickly can I complete a physical class in comparison to an online class?
3)Does a physical class provide worthwhile networking opportunities? Or am I better off finding those through a broker once I have passed my exam?
4)What schools are the best in my area? I tried accessing DORA's website but could not find that info.
5)If I study online, may I still receive physical mentoring (face to face)?
6)How much time am I required to commit to a broker once licensed?
7)How does the hiring process work with a broker once I pass my exam?
8)How soon can I begin to collect either a paycheck under a broker or a commission?
9)How will my hand tattoo (fully covered hand) affect me while looking to tie my license to a brokerage?
10)What happens if I become licensed, but then for some reason pursue investing out of state, and relocate there? Will my efforts amount to a wash, or will I be able to just take their exam and keep moving?
11)Will licensing benefit me for out of state deals? (For example, helping a client relocate).
12)Can I represent myself in out of state investment's for myself, or must I hire an agent? If so, can I do so immediately, or must I stick it out for 2 years under a broker first?
Thank you to anybody who has read up to this point. I would appreciate any input on my approach, feedback on my post, and answers to any questions, even if it's only one.
Most Popular Reply
Short answer: Yes, its worthwhile to become a broker to learn the ins-and-outs of the RE market. There's a lot more than just running numbers. It'll get you familiar with writing and understanding contracts, negotiations, title issues, etc. That's what I did. You get to make money while you learn essentially.
1) No. Just make sure it's approved by DORA so you can sit for the exam.
2) Don't know, I went online to complete ASAP.
3) Don't know for sure, but I don't think so. You're better of networking on BP events and once you become a realtor at your company events.
4) Do NOT use https://www.realestateexpress.com/ (just don't - I quite 1/2 way through because they were horrible). I went with VanEd. I loved them. Definitely recommend.
5) Mentoring for the classes or once you're a realtor? for the classes, don't worry about it. Just make sure you can email in some questions.
6) Just depends on your and the broker. You can make any situation work.
7) It's quick, Not really a hiring process. Interview at least 3. YOu'll be an independent contractor.
8) No paychecks, You're a 1099 independent contractor. How soon can you close a deal? you "eat what you kill" (SO have cash reserves or other income to get you through the startup phase)
9) Depends. Some will care, some will not.
10) Depends on the state. Most are a wash I believe.
11) You need to be licensed in the state you're doing the deal. You can earn a referral fee.