Hi everyone, What is entailed in becoming a realtor? Is this a good idea for someone wanting to invest in rental real estate? What happens after I pass all the tests? Can I sell real estate part time or is it worth while to do it full time. How do you get paid? Is it straight commission or is there a steady paycheck starting out? How much does it cost to become a realtor? Should I just stay in my own profession and leave the realtor to the professionals and hope I find a good one? Any in site will be appreciated thanks.
A lot of good questions. I'm not much farther along than you (I am about to take me real estate exam next week) but what I do know:
1. Depending on your state, as the education requirements differ, you will need to complete an approved real estate sales associate course either online or in person. ($130-$250 for a FL course online)
2. Get fingerprinted ($50)
3. Pass your state's sales associate course ($30 in FL)
4. Find a broker to "place" your license with. You technically work for the broker and they will either get a cut of your commission and/or you will pay them a desk fee.
4. Most brokers require you to have access to the MLS which I believe is about $1200 with an annual renewal fee. I could be slightly off here however.
As far as compensation, it is straight commission. My personal goals are to begin selling real estate and transition to also buying properties for myself once I build up more capital. From what I have read, a lot of investors become agents to gain access to the MLS and also as a way to get connected in the real estate community.
Hope this helps and best of luck in your endeavors.
You should definitely make sure you have money coming in and a pipeline of leads and deals before leaving a job that is paying your bills. Do a good amount of reading on the profession and talk to people who are doing what you want to be doing. Hang your license with a good broker that will train you to become a top notch Realtor. Study the art of sales and negotiation, the skills that seem to get overlooked when people come from other professions. Have a plan, then start taking steps to bring the plan to fruition. Good luck!
There are advantages and disadvantages to becoming a broker or agent. The advantages include the fact that you will learn about a variety of real estate related topics when you take the required classes, some of which can help you with your investing. Also, if you are an agent, you can work for or become affiliated with a broker. This may afford you access to the MLS and enable you to earn commissions when you buy and sell properties. Also you might receive more respect from other agents and brokers you deal with in your investing. It's an interesting fact that if you should ask a broker or agent to cut their commission when buying the property, they're against it or offended. However,if you're a licensee yourself and ask to split the commission, they are willing to do so.
The disadvantage of becoming a broker or an agent include the time and cost of attending classes, and the fact that ,by law, you will need to identify yourself as a licensee when you are trying to buy or sell property, This usually is not a problem, but it can make some unsophisticated sellers wary of your professional investor.Finally, you might be restricted in the real estate forms you are permitted to use.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing