Hey, guys! I'm a 19 year old aspiring fix and flipper, but I have low capital and no experience. I've taken J Scott's advice (from "The Book on Flipping Houses") and I'm getting my salesperson's license. However, I'm going to the University of North Texas, and if I minor in RE, I believe I can skip the other requirements for a broker's license, since I'm taking my classes at a university. My question: Should I definitely go for the Broker's license? Or should I focus in programs that would supplement my license, like Economics or Finance?
Any help is greatly appreciated. Thank you for your time.
You'll want to check with your state's licensing laws. I know in many states, like Minnesota, you need to be a salesperson for some number of years before you can get a broker license (it's 3 years here).
From a practical standpoint I would advise you to just start on the salesperson side anyway. There is a lot of value in working under a broker who can mentor you through your first transactions. In addition, being a broker brings a lot more liability to the table and you need to have a lot more things in place like banking, escrow and insurance.
No need to rush it in my opinion.
Thank you @Bill Wallace for your time and response. I'm not very eager to become a broker at all, however the university I will be attending has a RE program (that I'm interested in anyway, because of my desire to invest). I learned that if I major in RE at North Texas, I could be a broker right out of college. I'm just wondering if there are any pros to being a RE broker as opposed to salesperson, strictly in the realm of RE Investing. Any thoughts on that?
The only potential advantages I can think of -
- You get the whole commission and don't split it with your broker
- It's possible in rare occasions that you'd run into a deal that didn't want dual agency which could preclude an agent with that firm from writing an offer. I ran into this once when my company was listing agent for a type of Fannie Mae property and they wouldn't let anyone from the brokerage to write an offer on it for some reason.
That said, I think the disadvantages would outweigh the advantages.
Hi @Omar Naguib
It's true that a college degree will satisfy the 630 related course hours required by TREC to get a broker's license. It's not true that you can become a broker right out of college unless you satisfy the experience and number of transactions requirements.
TREC requires four years experience as an active salesperson, and also requires that you perform a certain number of transactions during the five years before your application. They have a point system which seems a little complicated. You are awarded a certain number of points per transaction, depending on the type of transaction. The last I checked you need 3600 points to qualify for a broker's license.
You'll still need to take the qualifying courses which include 180 hours to get your initial license, plus an additional 90 hours in the two years before your first renewal.
Okay, that makes sense. Then I'll probably go for other interests that could supplement my investing career, instead of Real Estate. In that case, it seems it might be useless for me at this time, but I'll also talk with my counselors to make sure it's the right choice.
Thank you guys for your time, I appreciate the help!
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