Become an independent broker without experience in IL?

Question

Hi guys,

I work a full-time job but would like to get a RE license to save on commission on my future personal + rental properties. I don't mind the study grind, paying dues, and doing my own paperworks, but I really don't want to work for another broker. The money I'd save on a 2-3 flat in Chicago is totally worth the 100 hours or so of coursework. Even at 300 hours of work it's still very decent return. I read on illinois realtors website that to become a broker, experience is not needed. So I am wondering if this is true, that I can do my own deals without first gaining experience at a brokerage?

Thanks.

Account Closed · Answer

Yes @Allen Li you are correct in that you need to have your license for 2 years out of the last 3.

I believe you are misunderstood that when you pass the licensing test in IL you do NOT receive your license. You actually receive a 45 day sponsor card which you MUST take to a brokerage and sign up in order for you to get your actual license. If you do not hang you sponsor card with a brokerage. You are not officially licensed and cannot practice RE or do any transactions.

The purpose I believe is to have a more experienced managing broker audit your contracts written over the 1st 2 years. Once you have experience of 2 years then you can upgrade your license to managing brokers and open your own shop and work strictly on your own.

Chris Mason · Answer

(Quick note for lurkers:

In Illinois they say broker. In your state the term commonly used would probably be real estate agent.

In Illinois they say managing broker. In your state the term commonly used would probably be broker.

They've inflated all the titles a notch.)

Brian Ploszay · Answer

There are some brokerages that charge very minimal fees and don't mind if you only do a couple of deals per year.  That should be your target.  However, you will not get any mentoring and few resources with such a group.  In order to get your managing brokers license, you have to be actively licensed - which means your license needs to be hung with a firm.  The managing brokers license is 3X as hard as the standard brokers test.  I have my managing brokers license.

Account Closed · Answer

@Allen Li

I believe your on the right track and I believe its a no brainer to get your license as an investor. The benefits FAR outweigh any negatives that I am sure others will try to bring up. Also to your point the amount of time invested to get your license and cost will pay for itself in your savings with one deal.

I hear your concern you don't want to work for another broker and want to be independent. But like @Brian Ploszay said you cannot at this time qualify to be your own managing broker and run your own brokerage of 1.

I would recommend finding a brokerage that does not have set workload requirements or expectations. Also if your not planning on producing a lot and only using license for personal use I would make sure you find one with low montly fees if non at all.  Therefore you can just enjoy the benefits of having your license and not feel like your working under someone.

Brian Ploszay · Answer

Well,  if you get your real estate license, you will have to hang it with a managing broker.  Since you are new, you will not qualify to be a managing broker.

Having your license will allow access to the MLS.  Nowadays, most of the listings are easily accessible online.  But some of the recent comparables are valuable data and they can be retrieved from the MLS.

I know you want to save money not using a broker.  But a good broker, can possibly deliver you a level of service that will be of value to you.  Experienced ones will know the neighborhoods, cite flaws in buildings, give valuable opinions on layouts, help you with contractors, etc...

Allen L. · Answer

Thanks @Brian Ploszay and Account Closed. I read on the site that to become a managing broker, one needs to have their broker license for 2 out of the last 3 years. It does not mention anywhere about having experience at another brokerage house. But from what you guys said, it sounds like experience is needed. Am I missing something here?

Linda Carretero · Answer

I have my Illinois brokers license.  It is inactive unless you have it hung at a sponsoring brokers office.  I have plans to be an investor as well.  I realize that having my license and taking the required licensing classes is bare minimum education for being a broker.  Once you have your license, being under a sponsors supervision, while getting your feet wet is when you will get the most value for your license.

Brie Schmidt · Answer

@Chris Mason is correct, the entry level license here is a broker's and the highest level is a managing brokers.

Either way you cannot work an agent right out of schooling without having a managing broker sponsor you

Allen L. · Answer

Thanks guys for helping me understand the process!

Become an independent broker without experience in IL?

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