I'm new to RE investing. So far I've got one property but isn't that where everyone starts? I have a general question: Should I be considering obtaining my real estate license? In my state (NJ) and from what I've heard if I obtain my associates license I need to work with an realtor to keep it active or to have access to the MLS.
What's the scoop. Go for the license or wait? Do I have the rules for a RE associate mixed up?
Thanks Nick. Immediately after asking the question I saw how popular it is on the site and started reading. I think your advice is spot-on with what I've read.
I think its worth getting your licence if you can go straight to broker and work on your own and not have to split your commissions. In Wisconsin its not longer an option and the state requires you to work with a broker for a certain amount of time.
Here is my breakdown of annual cost in WI:
E&O insurance: $500 (I only broker my own deals any only buying and selling 4-6 properties a year. This cost will increase with the quantity and price range of deals you broker)
MLS Access: $720
Dues (Local, State, & National): $700
State Filling Fee: $25 (When your a broker you will need to create some sort of business entity as well. WI has an annual filing fee.)
These are the cost once you have your brokers license. In WI I think the cost to take the Agent and Broker classes where ~$400 each. Then ~$75 each to take the test.
Your also going to have continuing education cost. WI requirement is every 2 years you have to take continue ed classes. What classes and where you take the classes is going to effect the cost.
Once your up and running I have found I need to buy 1 property ($100K+) a year and the licence pays for itself. Keep in mind these cost above are brokers cost I never acted with my agent I went straight to broker.
It took me years of studying real estate, personally buying, rehabbing, managing contractors and tenants, running costs, forecasting, borrowing $$$$$$$ and making lots of mistakes.... before I could get a real estate license and with a straight face buy or sell property for someone else.