Becoming a real estate investor-agent in Chicago?

Question

Hey -

We are in the early stages of looking to purchase our first house hack and I am considering becoming a licensed real estate agent. Not looking to actively sell real estate more focused on the education and having access to the tools that an agent would have. We plan to still use an agent for our purchase and let them handle that side of the transaction.

Any thoughts on whether obtaining the license here in Chicago is worth it while we gear up for our first house hack?

Looking forward to any thoughts/advice.

Crystal Smith · Answer

If you don't plan on being an active agent you may consider becoming an unlicensed assistant. There are limits regarding interaction with the public, but with the right agent sponsoring you will have access to many of the tools. There's still a cost for going this route, but its much less expensive and time consuming than getting your license.

Jonathan Klemm · Answer

@Jeff Davis - I'd say it is totally worth it if you are getting it for the right reasons.

I initially got mine just to have access to the MLS as an investor, but have also enjoyed helping my friends and family find their houses.

I never got my license to work full time as an agent so I found a small investor-friendly brokerage that didn't charge any sitting fees.

fyi - The test and fees aren't easy or cheap, but honestly the education has been superhelpful.  I say get it!

Henry Lazerow · Answer

If your licensed and buying lots of deals or brokering for other people worth it but not if using another agent. There is a lot of time sitting through agent course 75 hours and the stuff you sit through is not at all applicable in real life. You also have annual license fees, cont. ed courses, etc.

Spend that time instead going to real estate investing meetups and building your network. I have found partners, contractors, etc. this way. Your network will help you rehab affordably (which is crucial to make investing profitable) and give you experienced people to review your numbers on deals.

BiggerPockets event section has many.

John Warren · Answer

@Jeff Davis the realtor courses have just about zero to do with investing. The managing broker who ran the course I took years ago told the class that wholesaling was not legal lol. The tools are also somewhat over rated. The access is nice, yes, but 80-90% of the data is out there already. In addition, your agent can get you the data for free.

I have loved having my license and I have loved being an active agent and building a sales business. I would not recommend the license just for fun though.

Forrest Williams · Answer

Hi Jeff, I did a similar route to you. Started with house hacking, learned a lot, decided I wanted to learn more. I took the agent class and am now a full time real estate agent, after doing it part time for a while. I would echo what people in this thread have said - unless you want to be an agent, it's not worth it. The MLS access is nice, but it costs about 1000 a year and you can get lots of that information freely on the internet. Your agent should send you those listings anyway so you'll get that info for free if you're a client. You'll have plenty of better things to spend your money on if you're house hacking.

House hacking is one of my favorite topics, so feel free to reach out if you have any questions about the process!

Eudith Vacio · Answer

@Jeff Davis - a very highly asked question and I totally agree with Henry, John, & Jonathan.

If you want to learn more about investing and house hacking, I would consider speaking with a realtor that is knowledgeable on that topic and pick their brain. IF you are only planning on doing one to two deals a year, it might not be worth the money unless you are planning on tapping into the sales side.

Jeff Davis · Answer

Appreciate the information and perspective @Henry Lazerow @John Warren

Becoming a real estate investor-agent in Chicago?

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