Should I become a realtor?

Question

Brandon L. · Answer

Account Closed do not take this the wrong way but you are saying you do not want to invest the time to develop a mutually beneficial relationship with a real estate agent. So my question is: since you don't have this time to waste developing relationships, are you also going to become an appraiser, home inspector, general contractor, accountant, lawyer, title company, landscaper, and lender as well?

My comment is not intended to be sarcastic, but to get the point across that time invested in building relationships with many people is not a waste.

I have written a blog that might help you sift through agents so that you find the right one. click the link below to read it. Let me know what you think :)

https://www.biggerpockets.com/blogs/5868/52724-im-...

If you have any other questions feel free to connect with me.

Dakoda Spencer · Answer

Account Closed Hey! I just wanted to follow up and give you some more info that I have acquired! I went and met with a family owned RE company to discuss me joining them. After looking at all the costs for them particularly, it would cost me about $1,500 per year. Yes there are training and classes you would have to sit through. For me, I have decided to move forward and get my license. I have bought an online course for here in WV that will give me the credits and education I need to pass the test. I've just started the course about a week ago and I really like it! It is teaching me a lot of fundamentals, and that is what I need!

I hope this helps! God bless and good luck!

-Dakoda

Dawn Brenengen · Answer

Account Closed If you want access to the MLS, you will need to hang your license with a broker. You don't necessarily have to have a broker to sell your own home, but you won't be able to list them in MLS.  Once you are under a broker, they will likely require you to sell your own homes through their brokerage.  No, you don't have to work full time.  There are plenty of part time agents.

Dakoda Spencer · Answer

Hello Account Closed,

I'm in a similar situation. I would love to access to the MLS and the ability to go look at any of those houses when I choose, so I have been doing some research myself.

There are some great resources here on BP, and I will share some links to them at the end. I'll tell you what I know:

1. Do you need to be sponsored under a broker? Yes, you will need to be under a broker. After you get your license, you will have a certain period of time (I think 6 months) to "hang" your license under a broker.

2. Do you need to be sponsored by a broker just to sell your own houses? Yes, even if it's your own properties.

3. Do you have to work full time? No. I don't think so. I have heard of a lot of people that are part time real estate agent while they are doing a different full time job. I plan on being part time myself. I have a job working on computers and I wouldn't be able to make it if I had to jump into being an agent full time.

Have you done some research for what it takes to become an agent for your state? I live in WV so I'm sure it's not the same. For me, it takes 90 hours of class work (which I will be doing online, in my free time and will cost me about $500), I have to pass a test ($75 to take the test, I think), then I have to get under a broker.

It depends on what broker you choose, but you will have to pay a certain amount to sign up with them, then you will have to pay a monthly fee, and I think you have to pay them each time you sell a house. I once heard a local agent say they pay $40/month for access to the MLS.

I'm going to be meeting with a local RE broker here Dec. 6'th to talk to them about me potentially joining their team. So, I'll be able to message you and give you more details. I just put a sticky note by my computer so that I can remember to message you and give you more info.

I'm still learning about all this as well, so I may be wrong on things. If I am, please someone correct me!

I hope I helped!

-Dakoda

PS. Some additional links:

Here's a guide that BP has to getting your license: Link

Here is a great blog on why to get your license: Link

Mark Langdon · Answer

Definitely get your license. I did here in NJ and glad I did. I too was frustrated in the time it took for other real estate agents to get back to me on potential deals. That said I still use a network of real estate agents who constantly look for deals for me and if they find one; I pay them the commission even though I am an agent. Keller Williams tends to be a investor friendly broker here in NJ even though I am with someone else but interview after you pass the test on the best fit for your. 90% of the real estate agents are part time so don't worry about that. Its nice to get a commission when I list a fix and flip or list a rental that I own but that said I don't always do it myself and give to other agents depending on the area and how much time I have as my time is better spent doing more productive items. I never see a downside that I have a license. Always disclose on your sales contract that you are licensed and tell sellers if you do direct mail. They tend not to care that you have your license if you are buying it on your own. Best of Luck and go get it !

Russell Brazil · Answer

I'd weigh the cost/benefits to becoming an agent. In my market it costs about $4k to $5k per year to maintain your license. There is also the time commitment of having to sit through CE classes and sales meetings/trainings at your brokerage. Then there is the liability issue....if you do something incorrectly, it can cost you large fines from the various government agencies that may have authority over you as an agent.

I'm an agent, and it's great....but you should be aware of the downsides as well as most people gloss over those things.

Page Huyette · Answer

I was a real estate investor before I got my license.  Now I am a full-time Realtor.  They are two completely different things.  One important point to remember is, once you are licensed, you are held to different standards even if you are doing an off-market transaction.  This can complicate things.

Don't underestimate the financial and time commitment to getting your license.  From what I've seen, unless you are taking it seriously as a career, you are better off putting in some time to find a good agent who can help you.  There is a chance you'll get your license and then not use it to your advantage fully, and then  may go inactive.  This ends up being money wasted.

A good agent is out there  that can  help you - compile a list of questions to ask to determine how knowledgeable they are about investments, as a lot of agents have no idea how to evaluate an income property, and will just give you a cap and tell you it cash flows.

Should I become a realtor?

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