I'm curious to hear from anyone who has done this or has any insight.
I am interested in obtaining a license as a real estate salesperson in the state of Maryland. This would be used to facilitate any investments that I may be interested in and allow me better access to the marketplace. I am currently working with an agent on finding a place, but I do not think he would be interested in working to find some of the investments I am looking for(sub 50k).
In the state of Maryland, licensing requires 60 hours of classroom time as well as the passing of a licensure exam. However, there is another stipulation I've read as follows,
"All applicants need to submit with their application a written commitment from a licensed real estate broker stating that the salesperson applicant will be affiliated with the broker after becoming licensed."
So, the question is, how do I get that written commitment. Why would a real estate broker ever want to "sponsor" me if I am primarily in business for myself. Is this a case of needing to know someone, or is this something you can pay a few dollars for? I would assume a broker in sponsoring a sales person for licensing assumes some risk, is this true? Is it also true that you must work "under a broker", assuming that is true how can I make that arrangement work for me?
Lots of questions! Thanks in advance.
I believe the general practice is that only real estate brokers can enter into a contract to buy or sell a home for a commission. Real estate sales agents are working under their sponsoring broker's license. The broker gets a cut of the commission earned by any of the agents working under the broker's license
There are many agencies that are happy to have investor agents work for them. My understanding is that Keller Williams actually encourages their agents to invest in real estate. One local broker that has a lot of investor agents is Douglas Realty. Many members here like @Tyrus Shivers and @Nancy Roth as well as my business partner are associated there.
Also check out Denise Uhrin who is a broker and an investor herself but I do not believe she is on BP.
@Brian Greeson you can obtain your license and work with several different brokerages without necessarily having to do "retail work". What I did was talked with the Brokers and let them know exactly what my intentions were to do with the license. So even though you may not have any intentions on "retail" the Broker will still be compensated from your own dealings. If you want 100% commission you will likely pay a monthly fee. Yes, they do assume risk over you and will check your contracts to ensure you are in compliance.
I simply run everything I do by my Broker and ask is there any issue with it. If he is comfortable I move forward, if not then I do not. Because my goal is to complete transactions, not do anything shady or around the law.
So yes, you can get a Broker to sponsor you, yes they assume risk, and you can get it to work for you by detailing your plans and being prepared to either pay some percentage of your deals that you find and buy from MLS (commission splits) or a monthly fee if you go 100% commission.
Wow, I'm surprised and thankful for all the responses!
I'm gad to hear others have taken this path and that there are brokers amenable to the situation that I want to pursue.
I think, for me, it would make sense to try and arrange a situation where I split commission as opposed to a monthly fee, since I will be doing very few deals initially.
That is what I did. I took the 85/15 split without a monthly fee. Once I start doing several deals and where it make sense to take a monthly fee with 100% then I will.