Should I let my real estate licenses go?

Vallejo, CA · Member since 2019 · 13 posts · 18 votes

I've had my license coming up on 4 years and I'm debating if I should renew it or not. I'm not so confident in sales nor do I feel that I've given it my best shot either. It is pricey to keep up the license and I have to work to support it. What I've discovered is my interest for REI. Would my license benefit me or hurt me in REl?

Yes access to the MLS is great way to shop for deals but there are similar sites as well. Should I keep my license just to have this accomplishment when not exercising it? Or should I give it a go and maybe move location where I see that a market is thriving in inventory of homes? Your insight would be greatly appreciated it!

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Patricia Steiner

Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes

If you're not using your license and your interest has been redirected, why not place it on inactive status. In my state, "inactive" does not mean forever but it will give you time to pursue REI and save money on all the expenses that realtors/brokers incur just to be one. Inactive is a nice middle ground if you state supports that.

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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
If you're not using your license and your interest has been redirected, why not place it on inactive status. In my state, "inactive" does not mean forever but it will give you time to pursue REI and save money on all the expenses that realtors/brokers incur just to be one. Inactive is a nice middle ground if you state supports that.
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Account Closed
OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Patricia Steiner
Hi, thank you for your feedback! My state does offer inactive status. Which I currently have my licenses in but my renewal is coming up it expires every 4 years. So I’m not sure if I’m able to leave it inactive when it come time to renew it.
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Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Account Closed suggests.
Good luck Charleszett!!
8 Reply
Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
@Bevla Reeves
Thank you for your mention but I gave my opinion based on what Charleszett said she enjoyed and didn't. Inactive doesn't mean quit - it means giving yourself enough space and time to explore options while keeping your license in place. While I appreciate your recommendation, I'm not the one seeking it. Charleszett deserves to hear from all sides on this issue and she can decide her own path. Let's keep this focused on Charleszett...
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7y
Do you enjoy being a real estate broker? Often people get into the business for the money. You can take almost any profession that pays good money but if you are not passionate about the field you are in then it becomes heavy work that little to no enjoyment comes out of it. In that way people can get burned out fast and quit.
I love being a commercial real estate broker and investor myself. Of course as with any career even that you are passionate about there are days where you are like ( Why am I doing this and not at the beach today?.. lol)
When I first started out over 15 years ago it wasn't easy. Lot's of ramen noodle meals for the week as bread was too expensive..not kidding. Bread was a few bucks and ramen I can get 10 to 12 packs for a dollar. To be successful at the top echelon you have to be able to make sacrifices that most of the population would say is too extreme in the beginning. That is why 90% of the population lives hand to mouth day to day. They see what multi-millionaires have and want that level of success. Often they are shocked when they hear what it took to get there. You have to have an unrelenting passion to learn everyday to be not just average but always working toward the top of your field. When that happens potential clients tend to seek you out because they want to work with the best.
If brokers and agents are average they tend to make average money and have average success because they have to sell themselves to try and get any businesses instead of having a reputation and track record that customers naturally gravitate to.
If money is soo tight that you can't pay for license renewal for keeping inactive status then might need to look at your overall financial picture and plans. You might consider going to work for an investment company in your particular asset class of interest to see what it takes to succeed on a big scale.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Account Closed:

@Patricia Steiner
Hi, thank you for your feedback! My state does offer inactive status. Which I currently have my licenses in but my renewal is coming up it expires every 4 years. So I’m not sure if I’m able to leave it inactive when it come time to renew it.
you have 4 years then a 2 year grace period to do your CE... I keep mine active for referral fee's etc .. I have not used it in over 25 years as a full time gig.. but I am a broker so I don't need to be paying any other fee's than CE and registration for the state so less than 500 bucks every 6 years..
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Anna Newman
Investor · Member since 2019 · 1 post · 2 votes
7y
@Bevla Reeves
I am a new investor, with a couple of deals under my belt.
I have recently signed up to get my Real Estate License hoping to use it to help me find more deals than I'm already finding.
The deals I have found have been off market and I'm concerned when I approach people to purchase their property once I have my license it will be a turn off for them.
Any input on this would be greatly appreciated.
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Account Closed
OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Bevla Reeves @Patricia Steiner @Joel Owens @Jay Hinrichs
Thank you all for your feedback. My found interest in REI has me eager to get the ball rolling. I'm impatient and impulsive when I get excited about a new venture. My life change in an instant when I was let go from my bartending job. I was bringing in fast cash and was on the right track to buying my first property at the end of the year. Now that I am on pause I find myself using my savings that I wanted to purchase the home with as a means to pay my bills.
My old boss who is a broker offered me my job back as a property manager with exercising my license to do real estate. The job is commissioned base only. So finding landlords and finding RE clients may slow down my process of wanting to become an real estate investor. I'm not sure if the job she offered me is what I truly want to do. I am considering it because I may surprise myself and become good at it. I give up to easily when things get tough and start to question myself is this what I want to do. I've had many career changes but my goal always remained the same, which is to achieve financial freedom. I want to get into REI quickly because I see a location 2 hours away from me where the market is thriving and the inventory of homes are going like hot cakes.
So do I start off slow and build with the job my boss offered me. Or do I find another bartending job to bring in fast income to purchase a home. I have a fear of if I put off buying property for another year or few years from now the market will change. Maybe try and do both options. Work for my boss and learn from her and get a part time bartending job.
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Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Anna Newman
I had the same concern as a wholesaler after I first got my license. But surprisingly, I still received lots of calls from motivated sellers after receiving my yellow letters.
The wording you use is EXTREMELY important and I think if you're honest with people and show that you're actually out to treat them fairly and not cheat them, they respond favorably.
But I did almost give up my license over my "perceived" dilemma until I figured out the best way to approach potential deals ethically and with integrity.
Good luck Anna! ;)
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Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Patricia Steiner
Hmm, I'm very confused by your unnecessary confrontation. And your very weird way of making this discussion about YOU over @Account Closed whom it's clearly intended for since she posted it.
Either you don't comprehend clear and concise use of the English language or you're just disingenuous.
Either way, I'm sure it's the best you know how to do. And as Maya Angelou always said, "...when you know better, you do better."
I'm sure (I hope) you have "better" in you, try sticking to it! ;)
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Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Account Closed
I'm very impressed by your self-awareness!!! You're going to succeed because of it!
I say find another bartending job where you'll have more freedom over your time and bring in more cash to continue pursuing your REI goals.
Can you possibly partner with another investor on your first deal? Perhaps the one you're tracking now?
Do you have a family member or friend who can co-sign for you to purchase that deal?
Can you use your license as an agent to help another investor purchase that deal with the expectation that they'll use you on future deals until you can save enough to fund your own acquisitions?
Where there's a will, there's a way and you have the will girlfriend!!
Don't give up, you're definitely on the winning track!! ;)
Cheers to your prosperity!
4 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7y
Property management hardly pays anything at all. I find maybe 10% of the people in that field actually enjoy that aspect of real estate. It takes a special personality type to thrive in that environment. It certainly in most situations would never come close to what a bartender with tips makes per hour.
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OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Bevla Reeves
Thank you so much for your feedback and taking the time to read this and respond. I truly appreciate it. It is just me, I have no family. I know first things first is finding a bartending job so I have put some applications in the past two days. I believe I will try to do both property management and bartending on the side. I will give it a shot!
First step get a job. I thought about seeking out an investor. Just wasn’t sure if I wanted to bring one in so early in the game with it being my first property. I believe the only way I will consider an investor on my first property is to help with the down payment. Then when I take equity out I will cut them a check with interest added but the purpose is that the property would be solely mine. I would like to partner later when I’ve reached my max of borrowing potential.
Thank you for your words of encouragement. When something's going well and your on the right path to potentially succeed life throws you a curb. Then you feel like your starting from the bottom again when you almost got to taste a piece of the pie. Then you question yourself will I ever get there? But your advice is telling I'm doing just fine. It's just the matter of should I dump my license if not using it and jump all in on REI.
You expressed that having a license is beneficial. Access to the MLS for deals yes. Do you pay for closing cost when purchasing your own property? Or how would it benefit me if I want to sell me own property? Would my license benefit me in REI if I do not want to be an agent?
1 Reply
Account Closed
OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Joel Owens
I agree that's why I don't know if I desire to do property management or be an agent. Which brings me too if I should let my license go and purse REI all or nothing. Or keep my license because I've worked so hard to get it and keep it as an accomplishment. The only benefit property management will give me is an insight of knowing the in and outs of a home and it's day to day operations, networking and staying in the loop of the real estate market. But it's not going to help me get into REI faster.
1 Reply
Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
@Account Closed
I like your chosen strategy, I think it's a solid one!
...as a deal maker, I believe both parties should pay their own closing costs.
I don't believe it's fair for sellers to have to pay buyers' closing costs and why that's even expected!
Plus, it can be a trap for sellers if an appraisal is required and that appraisal comes in low. If the sellers still want to sell they feel compelled to lower the asking price and then they're still stuck paying the buyer's closing costs! NOPE! Not for my clients! ;))
I believe in negotiating a fair market price for the property, period. Then both sides feel treated fairly.
Your license will be a HUGE advantage when you start buying properties with it because you can collect commissions on your own purchases!
That means you collect the 3% buyer/broker commission!!! Whoo-hoo!!! ;)) And you can use that $15k (or whatever the amount is) towards your downpayment!
And as a seller, you'll save by NOT having to pay out 3% commission to a listing agent! You can use that $15k towards your next acquisition! ;)
Plus access to the MLS for evaluating deals (and finding deals) is still invaluable, in spite of all of the online websites claiming to have accurate market information.
Hustle to make enough money to reactivate your license and use it to make and save you money! ;)
You worked hard to obtain it...it will pay off!
Good luck Charleszett, I'm rooting for you!!!
2 Reply
Bevla Reeves
Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
7y
Originally posted by @Joel Owens:

Property management hardly pays anything at all. I find maybe 10% of the people in that field actually enjoy that aspect of real estate. It takes a special personality type to thrive in that environment. It certainly in most situations would never come close to what a bartender with tips makes per hour.
Amen brother!!
0 Reply
Account Closed
OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Bevla Reeves
Alright I’ve made my decision I will keep my license. From these conversations I’ve learned that it is valuable and beneficial to keep it even if not exercising it for the time being. There is still so much to learn. It is going to take some time but, a lot can also happen along the way. Thank you all for your responses. I will look back on these conversations from time to time and reflect if I ever get stuck or need a reminder again.
Thank you, Happy 4th of July everybody!
3 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Joel Owens:

Property management hardly pays anything at all. I find maybe 10% of the people in that field actually enjoy that aspect of real estate. It takes a special personality type to thrive in that environment. It certainly in most situations would never come close to what a bartender with tips makes per hour.
it only does if you can scale.. a friend of mine here in Portland has over 8,000 doors.. he does just fine.. of course its all A and B class minimum 50 units.. that have on site managers.. so his job is really making sure the on site manager does not steal the owner blind..
And a fishing buddy of mine is a commercial PM in Denver and has a pretty thriving business.... Plus the perks for these guys is much like you Joel.. all their clients are multi millionaires or very successful REITS etc.. lots of percs there
but your right doing PM on SFRs is something you really want to do especially in low value asset areas were rents are under 1k a month.. NO thanks.. But even that if you scale it to 2 to 4k doors yo can then sell for about 1000 a door.. so can be some good up side at the exit.
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OP
Vallejo, CA · Member since 2019 · 13 posts · 18 votes
7y
@Jay Hinrichs
I was considering both part-time in PM and part-time bartender. Here in California the rent is obnoxiously high yes 2k - 4K in rent it is crazy. I was also considering management in commercial properties. I will have to do some homework on that since my broker doesn’t offer the commercial side to her business. Thank you for your point of view and not giving in to totally throwing the idea out of the window.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
7y
For me PM work is just not my thing. You can make a living at it but really isn't going to make you rich. Some will do PM work and put in a clause that they eventually get the listing when it sells.
So it really is the ancillary benefits that become the payoff.
I have a friend also that owns 9 million sq ft of retail and manages 15 million sq ft. It basically keeps his employees working through the cycles. The money is made with lease renewals and new leases for commissions not really the PM fees. Another benefit is they know how the property operates so when the owner wants to sell they have first dibs or they can sell it and get paid that way.
With me I focus on 2 out of 4 items:
1. Property management - not me
2. Leasing commissions - not me
3. Brokering commercial transactions - me
4. Being a syndicator as a sponsor - me
I find 3 and 4 make me the most return per hour and I enjoy doing them. The other 2 I do not care for. Some people love that stuff but not me.
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Caleb McFarland
Real Estate Agent · Louisville, KY · Member since 2016 · 13 posts · 2 votes
7y
@Bevla Reeves
I’d love to here about how you changed your niche before giving up your license. I’m currently fighting the same battle! Send me a message if you don’t mind!
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Joel Owens:

For me PM work is just not my thing. Youc an make a living at it but really isn;t going to make you rich. Some will do PM work and put in clause that they eventually get the listing when it sells.
So it really is the ancillary benefits that become the payoff.
I have a friend also that owns 9 million sq ft of retail and manages 15 million sq ft. It basically keeps his employees working through the cycles. The money is made with lease renewals and new leases for commissions not really the PM fees. Another benefit is they know how the property operates so when the owner wants to sell they have first dibs or they can sell it and get paid that way.
With me I focus on 2 out of 4 items:
1. Property management - not me
2. Leasing commissions - not me
3. Brokering commercial transactions - me
4. Being a syndicator as a sponsor - me
I find 3 and 4 make me the most return per hour and I enjoy doing them. The other 2 I do not care for. Some people love that stuff but not me.
I hear ya Joel.. that's why I sold all my rentals.. much rather work in the construction selling to home buyers who are excited.. developing dirt.. buying in the path of progress and let the city come to me.. and of course just financing deals for flippers and others help them build their business by providing a reliable source of capital
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Joel Owens:

For me PM work is just not my thing. Youc an make a living at it but really isn;t going to make you rich. Some will do PM work and put in clause that they eventually get the listing when it sells.
So it really is the ancillary benefits that become the payoff.
I have a friend also that owns 9 million sq ft of retail and manages 15 million sq ft. It basically keeps his employees working through the cycles. The money is made with lease renewals and new leases for commissions not really the PM fees. Another benefit is they know how the property operates so when the owner wants to sell they have first dibs or they can sell it and get paid that way.
With me I focus on 2 out of 4 items:
1. Property management - not me
2. Leasing commissions - not me
3. Brokering commercial transactions - me
4. Being a syndicator as a sponsor - me
I find 3 and 4 make me the most return per hour and I enjoy doing them. The other 2 I do not care for. Some people love that stuff but not me.
PS its astounds me how many people on this site want to wholesale houses and never talk of becoming a top producing commercial broker .. you put your time in on commercial brokerage build a clientele base your set for life.. just like what you have done.. I have not seen anyone on this site even ask you how to do it or how you did it.. they simply miss the message and where the real money is made ..
Just networking in that arena has such value.. to use a Cardone one can 10X it if they just move out of the low rent district
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Lee Bell
Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
7y
I see the decision is already made. But, I would consider how much time, effort, money would it take to get it back if you let it go, then changed your mind.
When I got my CA RE agent license circa 1990 it was easy as a drivers license test.
So, super easy. One class and take the test, iirc. I let it go when it came renewal time, since I never used it. Not sure if I had the appraiser license by then. But that license is hard to get, and I will do the CE and pay the fees, and renew that as many times as I think I might need to, plus a few.
1 Reply
Kian Tajadod
Member since 2018 · 35 posts · 8 votes
7y
@Bevla Reeves
Thank you for your input on this post, it's very insightful! I have a question and would appreciate it if you could help me out. I have my license but also want to invest. The "roadblock" I've hit is that I'm not sure how to do the deal since I'm licensed.
I've heard we need to treat everyone fair, but what is considered fair? Is under market offer considered not fair, even if the owner is in distress? Questions like these confuse me and ultimately lead to my in action unfortunately.
I was also recommend by another BiggerPockets member to get a lawyer to offer and do negotiations for me to protect me. This has gotten me to think I should maybe not continue with my license. I'd appreciate your thoughts, thank you!
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