I Need Help Fast on if I Should Get my RE License or Not

I Need Help Fast on if I Should Get my RE License or Not

Member since 2022 · 9 posts · 1 vote

Hello! Can someone please help me make a decision to whether obtain my real estate license or not? I came across real estate investing about six months ago and just fell in love with it. Therefore, I proceeded to get my LLC and I was ready to go! But I've been sitting on it all this time because I had my heart set on wholesaling, but come to find out that it's way too expensive here in the bay area, as we need 3% earnest fee of which I was told an earnest fee would not amount to more than $1000. But since the homes here in the bay area are well over $1 million, this is not something I can afford. I also understood wholesaling to result in a very quick transaction… No more than two weeks, but I've heard just the opposite as well; wholesaling takes a good month just like an actual normal real estate transaction would. Which one is it??Also, I've been trying to find individuals to JV with and it's so hard to know who I can trust. I've already come close to being scammed. I have received conflicting information from real estate licensees and non-licensees as far as if I get my license, there is a lot more liability that comes with that. That's fine because I'm not trying to scam anyone. I've also received advice on that if I get my license, The broker and mentor within the brokerage, will eat up all of my commission. I've heard all kinds of things, as well on the contrary that if I do obtain my license, it will pan out in my favor because I will learn the ropes and have access to a much more cohesive network. I really like this part of it. However, I just don't see myself being an agent. Can someone please help me out here because I don't know if I should continue on as I have, which is solo out here on my own and getting nowhere or get my license so that I can operate as an investor under the DRE umbrella?I'd really appreciate!

0Reply
12 views

2 Replies

Jump to latestLatest
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    It sounds like you're making emotional decisions, not educated ones.

    As a licensed real estate agent, you have to work under a Broker that can supervise you. Every buyer/seller you work with technically belongs to the Broker. If you have a house listed for sale and decide to leave that Broker, you can't take the house listing with you. When you earn a commission it is split with the Broker. How much is it split? There's no standard. I know a local Brokerage that starts at 50/50 and the Agent doesn't earn more than 60% of every commission. In my office, they start at 70/30 and can work their way up to 100% commission. After working under a Broker for the required amount of time and taking the Broker classes, then you can become a Broker and open your own office where you keep 100% of your commissions or you can hire agents and take a portion of theirs.

    The wholesaling operation sounds sexy, but I don't know many peopl crushing it. The ones that are probably don't stay in it long. It's a way of earning money, not investing. It's a rat race, not escaping a rat race. And it's a crap shoot that is more likely to fail than to work. Why not just get a W-2 job and earn a stable living with benefits while saving up to invest in real estate?

    If you want to build partnerships or learn the ropes, you should find some local investor groups. Meet people face-to-face. Find people that walk the walk and build relationships. You're far more likely to learn the ropes or find a partner by rubbing elbows with people living the life daily rather than trying to connect with strangers online.

    The DIY Landlord Book4.7248 Reviews
  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    4y

    Lots of new investors think that they'll save a ton of money by getting their real estate license and buying/selling their own deals. The truth is, if you aren't doing at least 10 deals a year, you can't be proficient and you'll be leaving money and deals on the table. If you are actively working with buyers and sellers, it can be a great way to network and make money while you build your own empire, but don't do it if you just want to do a deal here and there. 

    As for wholesaling- there are no specific rules for EMD or anything else, for that matter. Every deal has whatever terms you can negotiate. It's really a tough thing to break in to without guidance, but you can do well if you are a real hustler.

    Both of those options have a failure rate of about 90%. The people who make it in either have the exact same qualities- grit, willingness to work hard, no fear of rejection and they take extreme ownership of their actions. 

    Best of luck!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.