Real Estate License as my first investment

[Luiny Tavares]

Hi, my name is Luiny Tavares, I have always considered myself an investor, I have Real Estate Investments overseas. I am officially launching my Real Estate investment career in the US, by getting a New Jersey Realtor License. I am looking to buy a multi-family in northern Jersey. I can obtain a real estate license for about 250 dollars plus, I figure I'll invest 100 hours in doing the course and taking the test. If I can get 2.5 percent of the 350,000 purchase price that's almost 9 grand at 90 dollars an hour I like the initial investment. Plus then I can have full access to the MLS, where 98% of real estate sales are posted. The investment strategy I'm aiming towards is the BRRR. I've been listening to Bigger Pockets podcasts for the last three weeks and I've been inspired to start my Real estate investment career today. I have a lot to learn but I feel that I have a great community here at Bigger Pockets.

[Nathan Gesner]

I think you need to educate yourself on the cost of being a REALTOR before jumping in because it sure can't be done for $250. The course probably costs $400 or more and the exam is another $50 (per try). Then, and only then, can you pay for your first-timer license ($160 in New Jersey). You also have to purchase E&O Insurance ($150 or more). Then you have to join a board to get access to the MLS. The MLS may have start-up costs and monthly fees. The Board probably requires you to be a member of the New Jersey Association of REALTORS and the National Association of REALTORS, both of which will require dues.

I pay over $2,000 a year in dues, insurance, licensing, continuing education, etc. If you throw in business expenses, the average agent spends about $5,000 a year.