To Get Real Estate License In Illinois... Or Not?

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To Get Real Estate License In Illinois... Or Not?

Casey Blakely
Marietta, GA · Member since 2013 · 53 posts · 4 votes

Hi BP community. I was wondering if anyone else has experienced something similar to this.

I just finished my first day of class for getting my Illinois Real Estate Broker license. So far I'm loving it, and I already learned a ton from my first day. My goal with getting my license is actually more to learn the technical knowledge, vocabulary, and background of real estate before jumping straight into investing.

My issue is that in Illinois (maybe in other states too) in order to receive the actual license, you need to be sponsored by a Managing Broker. I'm open to the idea of becoming a practicing Real Estate Agent, but again, that is not my main goal.

My question is, has anyone gone through the Real Estate license classes purely for the knowledge, but regretted not taking the test/being sponsored by a Managing Broker in the end? Is it wise to "go all the way" even if I might not actually practice at all?

Any advise or input would be much appreciated!

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Bryan L.
Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
13y

@Casey Blakely - Casey, you said something like "whether I would actually have to work for them (broker I assume)".

You don't understand. Realtors don't work for their broker. They work for themselves (for the most part). The broker is not your boss. You work as much or as little as you want to. The broker's job is to supervise you and to make sure that you don't break the law. Not to tell you what to do or when to do it.

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  • Jeremy Zindel
    Rental Property Investor · Decatur, IL · Member since 2012 · 82 posts · 30 votes
    13y
    Hi Casey, I have been trying to force myself to commit the time to get my license in Illinois for some time now but it just hasn't happened yet. My reasons are a little different than yours and may be something you should weigh in your decision about whether or not to "go all the way." My main reason for wanting to get licensed is three-fold: 1.) MLS access. 2.) View properties on my own time. 3.) Submit my own offers. Right now I just work through a realtor to facilitate these things but I know that I could be much more efficient and effective if I was licensed myself. If your end goal is to ?learn about the investing side of real estate, I think there are much better ways to go about getting an education than from the real estate licensing classes. However, if you do decide to go through the class I would definitely recommend taking the test as I think it would serve you well in your investing career for the reasons I mentioned above. One final note, I would send @Brandon Turner a PM and ask him to take a look at this post and comment as I believe he has taken the classes a couple times without taking to test to get his license. He would probably be able to answer your question more directly.
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  • Account Closed
    Real Estate Investor · Chicago, IL · Member since 2008 · 1k+ posts · 218 votes
    13y

    You can hang your license with a broker. The issue probably would be the fees you have to pay to be part of a realtor board a get access to the MLS.

    The other thing is you have to disclose a ton more, not that you shouldn't disclose stuff, but you have to if you are a licensed agent on a deal. So you would want a managing broker that understands what your goals are.

    I would take the test if I were you.

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    13y

    Thanks for the response Jeremy. I forgot to mention that I definitely want MLS access as well and basically cut out the middle person when looking and buying my properties.

    For you personally, when you do get your license, are you looking to work for a Brokerage? My thing is that I would like to have the license more for my benefit, and not to actually make it my new profession and have to show/sell houses to clients. And they way it was presented to me was that in order to actually have the license in IL, you need to be under a Brokerage...

    Kind of a catch 22, but I'm trying to see if there is a loophole somehow.

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  • Jeremy Zindel
    Rental Property Investor · Decatur, IL · Member since 2012 · 82 posts · 30 votes
    13y
    I am in no way looking to work for a brokerage but as *********** mentioned, you do have to hang your license with a company that has a managing broker's license. That doesn't mean that you have to actually work for them in the traditional sense, just that any offers you make, earnest money deposits you put up, or commissions you receive would funnel through them. That's just the way the system is set up. Different brokerages have different levels of accpetance/openness to this and you would just need to find the right fit for you. Be upfront when you talk with them and let them know your plans. Also, as Ryan mentioned, make sure to discuss what fees you might have to pay to hang your license there.
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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    13y

    Ok, thanks Ryan and Jeremy. That was the part I was a little confused about. Whether I'd have to actually work for them. And I will definitely look into the fees as well.

    Thanks again!

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  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Thanks for the shout out @Jeremy Zindel ! Yeah, @Casey Blakely I took the class twice and never ended up taking the test. I regret it every day of my life :)

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    13y

    Lol, alright I'm convinced. I'll definitely take the test and go for the license.

    Oh, and I listen to your podcasts on the way to and from work @Brandon Turner . Good stuffs!

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  • Brian K.
    Rental Property Investor · Buffalo, MN · Member since 2010 · 511 posts · 92 votes
    13y

    @Casey Blakely I haven't heard of anything about being sponsored by a broker before to get you license. Its your time and money in the end, but if you go through the trouble why not just get your license. Im totally with you on wanting to get educated about RE.

    @Brandon Turner third times the charm!!

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  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    13y

    @Casey Blakely -> good luck obtaining your license

    tip : maybe sign with brokerage you can transfer your license

    when you move to New York.

    Example :

    real estate brokerage Top Reo has office in Bartlett Illinois and New York

    Here in Wisconsin you can transfer to a different brokerage

    currently for a ten dollar fee.

    just my .02 cents

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    13y

    Thanks @Ramon Jenkins

    And man, I'm learning a lot today. I didn't know you could transfer your license so easily. I'll definitely be on the hunt for that type of brokerage!

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  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    13y

    @Casey Blakely - Casey, you said something like "whether I would actually have to work for them (broker I assume)".

    You don't understand. Realtors don't work for their broker. They work for themselves (for the most part). The broker is not your boss. You work as much or as little as you want to. The broker's job is to supervise you and to make sure that you don't break the law. Not to tell you what to do or when to do it.

    1Reply
  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    13y

    I see. I was under the impression that there would be certain percentages and sales goals I would have to reach while working with a brokerage.

    That's actually great to know. I'd like as much autonomy as possible.

    Thanks for the info @Bryan L.

    0Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    13y

    @Casey Blakely - There are some who will charge you a "desk fee". There are some who will charge you a "transaction fee". And there are a lot of brokerages who will not charge any, and will simple take a % of what you earn. But for the most part, there's usually not anyone telling you how much or how little you must do. I only have two listings right now (and one of them is a finished rehab of my own). And I'm not working with any buyers at all right now. And I have a really nice office with a window, and nice desk, a nice chair, and two visitor chairs. Now, if I don't do a certain amount of production and another agent with more sales wants to come into the firm, I may lose my office, but I will get a desk in the "bull-pen". But I could totally do zero Realtor work and still keep my license hung with the firm. There's almost no cost to them.

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  • Holly Lehman
    Bartlett, IL · Member since 2013 · 7 posts · 3 votes
    12y

    @Casey Blakely I'm curious - did you go through with this and get sponsored by a broker? I am considering this, too, but I wanted to hear your outcome.

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  • Sean Kuhn
    Minooka, IL · Member since 2013 · 353 posts · 85 votes
    12y

    I'm in the same boat as well. Can you tell me what kind of topics were covered in class? Where did you attend? How was it? @Casey Blakely

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    12y

    @Holly Lehman I did go through the process, and I did pass the state exam a few weeks ago. For me, I mostly wanted to gain the knowledge and get another point of view on the real estate industry. I also wanted access to the MLS. I'm not too interested in selling real estate (I'm open to helping friends/family buy) and I am not looking for a 100% commission brokerage to hang my license.

    But I am about to hang my license with a referral/holding company. This keeps your license active for a smaller fee each year. Specifically, I am zeroing in on the company Realty Associates Network Inc. (RANI).

    Let me know if you have any questions on it. I thought the process was well worth it.

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    12y

    @Sean Kuhn I attended the Real Estate Pre-Broker License classes at Harper College in Palatine. It went pretty well and worked out with my schedule, since I work a 9-5.

    The topics were pretty broad. We learned A LOT of real estate terms and laws pertaining to real estate specifically the laws in Illinois. We learned about financing options, contracts, zoning laws, disclosures, and a host of other topics.

    Each person is different though. The whole process has helped me out tremendously, and I feel more confident moving forward with my future deals.

    0Reply
  • Sean Kuhn
    Minooka, IL · Member since 2013 · 353 posts · 85 votes
    12y

    @Casey Blakely

    Where did you sign up? What company hosted the class? What were your hours and days per week? I'm very excited about getting mine, I'm just having trouble figuring out where to take the class.

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    12y

    @Sean Kuhn - I am a broker in IL and have been for 10 years - though I have not taken on clients in 8. I found a local managing broker through networking. I told him I only wanted my license to get paid on my own deals. He doesnt charge me a desk fee or anything like that. MLS access is $880 a year. I call him when I am under contract and he gets 20% I keep 80%

    I could probably find a better split but he is so easy to deal with and helps me out if I ever need it. I would suggest looking at your local independent brokers. They should be willing to do something similar.

    FYI - I thought RE school taught me nothing about selling RE. Except for Fair Housing which you can get for free from reading a book

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  • Buddy LaRue
    Involved In Real Estate · Palm Springs, CA · Member since 2011 · 144 posts · 78 votes
    12y
    Originally posted by @Ramon Jenkins:
    @Casey Blakely -> good luck obtaining your license

    tip : maybe sign with brokerage you can transfer your license

    when you move to New York.

    Example :

    real estate brokerage Top Reo has office in Bartlett Illinois and New York

    Here in Wisconsin you can transfer to a different brokerage

    currently for a ten dollar fee.

    just my .02 cents

    Be careful with the above statement. Most states require that you pass their real estate courses and licensing exam. A few have reciprocating agreements with other states. Just because you get a license in Illinois, does not necessarily mean you can just transfer the license to another state. I'm licensed in three states, had to go through the courses and examinations in each of them.

    In every state you can transfer your license to a different brokerage by filling out a form and usually paying a small fee. Transferring to a different state is a completely different thing.

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  • Sean Kuhn
    Minooka, IL · Member since 2013 · 353 posts · 85 votes
    12y

    @Brie Schmidt

    I honestly figured it would be a lot of regulation type stuff but that's okay I guess. My broker I use now is a managing broker and she is kind enough to let me hang my license with her. I really only want it for my own deals and perhaps friends/family as well as MLS access. I actually just signed up for the Baird and Warner class in Chicago in March. I'm nervous!

    0Reply
  • Ebe Chinweze
    Denver, CO · Member since 2012 · 39 posts · 20 votes
    12y

    Hi @Casey Blakely,

    I recently obtained my brokers license in Illinois this summer to help build my business in REI. I think it's totally worth it! I get direct MLS access but most importantly I get to set my own appointments and I'm not dependent on my broker's, who does not understand investing by the way, time. I can put in low offers on properties for myself and not feel bad. I've signed up with Charles Rutenburg Realty, they charge you a $35/month fee to hang your license. Additonally you have to become a member of one of the realtor associations that convenient to where you are located(i.e. I'm in Chicago, so I'm signed up with CAR). Hope that helps! -Ebe

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  • Casey Blakely
    OP
    Marietta, GA · Member since 2013 · 53 posts · 4 votes
    12y

    @Sean Kuhn I took my classes straight through Harper College, and it was pretty simple to sign up through their online registration forms.

    I work until 5pm Monday - Friday, and my classes were from 6:30 - 10:00pm twice a week. So it worked out great.

    One thing that helped me retain the info and really helped me have fun with it all, was that one of my coworkers/friend took the classes with me. We both have very similar professional goals, and it was nice to have someone to go through the new material with.

    But good luck with your classes in March! I hope they help you reach your goals as well!

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  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    12y

    I still trying to figure out why I was sucker punch in this thread.

    Anyway, I totally agree :

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    " Most states require that you pass their real estate courses

    and licensing exam. A few have reciprocating agreements with

    states. Just because you get a license in Illinois, does not necessarily

    mean you can just transfer the license to another state. I'm licensed

    in three states, had to go through the courses and examinations

    in each of them "

    0Reply
  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    12y

    @Ebe Chinweze and @Casey Blakely :

    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

    Keep moving forward obtaining your real estate agent goals.

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