I have a quick question. I signed up for my pre real-estate license about a month a go; my class begins March 23. Here is my dilemma, I have decided to pursue my entrepreneur instincts and start my own business, what can do with my real-estate license part-time?
What are the benefits of having my real-estate license?
You can sell properties part-time . . .
You can always send referrals to full time agents, too, so that if you're having a conversation with someone who needs an agent, you solve their problem and make a little money too. In reality, though, that doesn't happen as much.
A second use of the license is that every time you buy or sell a home for yourself -- after all, you need to live SOMEWHERE -- you can play your own agent if that's appropriate. This enables you to take maybe 2%-3% back off the sale. Sellers don't care b/c they're paying the commission anyway. On a $500,000 house, you'll get $10k back (less your broker's split). If you do this just once in your entire lifetime, it will probably offset the costs of getting the license, continuing education, and license fees.
you actually learn very little from your real estate classes, just enough to hopefully pass the exam. Real knowledge comes from the experience of doing deals and working under someones who knows the in and outs of real estate. I have had my license for about 9 months now and have used what I learned in class very little, everything I know has come from working with my broker who is also a licensed commercial appraiser. He has about 20 years of experience in all facets of the game. If you really want to learn the quickest and best way is to try and get someone to bring you under their wing and show you the ropes. You'll make less mistakes and always have a professional opinion to fall back on. In return, the more experienced agent will expect dedication and hard work which is more than a fair deal. Part timers can make money as said above, but maybe just enough to justify the expenses (I wouldn't count on anybody giving a $500,000 deal to a rookie agent). Most real estate agents, even full timers, barely make enough their first few years to break the poverty level, and that's a fact. I specialize in Commercial where the deals are larger but they take 2 to 3 times longer. I've sealed only 3 deals over the last 6 months. I don't expect to make any money over my costs of just basic expenses, advertising, networking, etc. for the next couples of years anyway. That's just a realistic expectation for someone who is in it for the long haul, not the quick buck. just my 10 cents.
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