Sales Agent License vs Brokers License: For getting 3% discount?

Question

Hi,

I am interested in buying about 500k worth of real estate, and my father is looking at selling his 1.5m place in California, and relocating to an income-tax free state and buying a home.

I was scared out of real estate sales, due to the fact I would have to become a sales agent (paying my boss to work) instead of being self-employed.

What state will allow me the quickest access to become a full blown managing broker, or allow me to work for myself and possibly hire a sales agent?

Max Spellman · Answer

Would a 4 year degree let me avoid the 2 years of experience?

Nathan Gesner · Answer

Most states require you hold an active sales license for at least two years before you can upgrade to a Broker license. I don't know of any states that are faster than two years.

I think you're putting the cart before the horse. Without sales experience, how do you know you want to be a Broker or that you'll be successful? Get your license and try it out. Over 80% of agents quit within the first couple years so prove you're capable of making it before breaking out on your own and incurring the costs of working for yourself.

Account Closed · Answer

@Max Spellman

Are you looking to actually work as an agent or just get the license to save money with your family’s transactions?

Account Closed · Answer

Expect you could find a broker that would take a flat fee per month and per closing file from you, rather than a big chunk percentage, many here in IL, would bet dollars to donuts, even more in CA.

Jonathan Minerick · Answer

@Max Spellman You can't avoid it in California - you need to have 2 years of full-time licensed salesperson experience to be able to apply for a broker license.

For your father's sale, you can just get a flat fee MLS listing to get it on the MLS, which is a much cheaper and less time consuming way to go about it (for example, we do this for $95 in CA).

For the purchasing, you might want to find an investor friendly broker who can rebate a large portion of the commission earned - naturally, in that case, you'd be expected to do much more legwork yourself.

Here's a breakdown of the costs of being licensed in CA, just to give you an idea of what a headache/time sink it is: https://www.biggerpockets.com/blogs/9561/55035-what-are-the-costs-and-steps-to-a-california-real-estate-license

Sales Agent License vs Brokers License: For getting 3% discount?

Sales Agent License vs Brokers License: For getting 3% discount?

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