Becoming a Real Estate Agent

[Nicholas Mills]

I'm hoping I can find some help here.  I have been listening to the BP podcast for quite some time and am currently working on paying off some debt, at which point I want to begin investing in real estate.  Until I reach that point in time I have been considering becoming a real estate agent.  My belief was that this would get me educated in how the real estate market works and give me a general understanding before I actually become an investor.  Also, any extra money made through being an agent would only shorten my timeline to becoming an investor myself.  

So my question is should I become an agent or just stick to reading and gaining knowledge through BP?  I work a 40 hour-per-week job and would have weeknights and weekends to devote to being an agent.  Any help would be greatly appreciated.

Thanks in advance,

Nick

[Russell Brazil]

I was a part time agent for 10 years before becoming a full time agent.  So Ive got no issue with being a part time agent....the question though is best use of your money.  Being licensed carries a descent amount of costs that people often overlook.  Im going to use some very basic estimates to just give you an idea...these of course vary from market to market.

MLS - $1,000

Board Dues - $1,000

E&O Insurance $1,000

Licensing fees - $250

Continuing Education - $300

Sentrilock/Suprekey - $250

Brokerage Fee  - $100.

So just to maintain a license you might be into it for $300 a month or more.  Now if you are actually using the license, then that cost is not very much.  My overhead on my agent business is 10x that amount to actually run my business, which is well worth it.  Within 5 years of getting a license, 87% of people do not have a license...and I think a large part is because so many people overlook the costs of maintaining when they dont actually use.