Is it a good idea to get a real estate licence?

Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes

I'm wondering if it's better to get a licence just to have my own personal access to MLS. How long does it usually take? I'm getting kind of tired of having to ask a REALTOR every single time to pull comps for me, also you never know about these free sites. Is it worth it to get your own licence just so you can use it for your own personal comps etc..? If not than how do you pull comps and get a decent estimate of the house (ARV)? Also, let's say I am licenced, does that mean I have to work FOR somebody to have access to MLS or once you are licenced you automatically have access? Because I don't plan on actually being a "REALTOR/broker/agent" I just plan on getting licenced to have access to MLS? Good idea? Any suggestions?

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James Vermillion

Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes

15y

In my state there is an agent license (96 hours of coursework) and a broker license (way more hours and 2 years of experience as an agent required). I am a licensed agent; therefore I have to be associated with a broker. I have found and closed on several properties that I would not have been able to close on without being my own agent...and I have saved thousands is the process. My classes cost me $600 plus the $100 to take the exam, $18 for an FBI background check. Our MLS also charges a fee for membership, but I saved well over my costs in just one deal alone. The education is bonus!

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Rusty Thompson
Real Estate Investor · Salem, OR · Member since 2011 · 422 posts · 149 votes
15y
I don't know about were you live... but here the MLS is available to everyone. I.E. WVMLS & RMLS. I cant see everything a realtor can, but I don't think the cost is worth it. Personally I use Zillow as it shows everything on the MLS & I can compare to similar homes sold in the area.

As far as getting a license. The two very successful real estate investors I know (one is buy and hold, other is a commercial wholesaler) both told me not to get mine. One said it handcuffs you on what deals you can do.

I'm sure you will get many other opinions
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
I believe it is a great idea to get a real estate license. It took me about 2 months of online classes to finish the coursework and I passed the test on my first try. Not only did I learn a lot of the basics about real estate, I save thousands on commission, and have access to the MLS. Also, I can submit offers as quickly as I can write them up, preventing me from having to contact a realtor and rely on anyone else. I say if you have the time to do the coursework, do it! You can learn and save thousands of dollars.
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Matthew J. T.
OP
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
Originally posted by James Vermillion:
I believe it is a great idea to get a real estate license. It took me about 2 months of online classes to finish the coursework and I passed the test on my first try. Not only did I learn a lot of the basics about real estate, I save thousands on commission, and have access to the MLS. Also, I can submit offers as quickly as I can write them up, preventing me from having to contact a realtor and rely on anyone else. I say if you have the time to do the coursework, do it! You can learn and save thousands of dollars.

James, that's exactly what I was thinking, I am in New Mexico, and here they offer Associate Broker program (not sure how long but less time than a broker), and also a broker program (2years). Did you take course for associate broker licence? I have the time, I need to look into getting into it. I am tired of having to go to a "REALTOR" for comps, and these free sites just aren't doing it for me...

This is what they offer: http://www.cnm.edu/depts/bit/programs/business/re/

But do associate brokers have access to MLS? Because I notice you said you only did it within a couple of months, so that's what I am thinking you got certified in..
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
In my state there is an agent license (96 hours of coursework) and a broker license (way more hours and 2 years of experience as an agent required). I am a licensed agent; therefore I have to be associated with a broker. I have found and closed on several properties that I would not have been able to close on without being my own agent...and I have saved thousands is the process. My classes cost me $600 plus the $100 to take the exam, $18 for an FBI background check. Our MLS also charges a fee for membership, but I saved well over my costs in just one deal alone. The education is bonus!
2 Reply
Matthew J. T.
OP
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
So once licensed as an agent or an associate as I referred, you MUST work for a broker in order to have access to MLS?
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
I am not sure of NM rules but I believe the associate broker would have full access to MLS; you just would not be able to have your own brokerage (ie you would have to work under a broker and pay him/her a % of your commission).
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Matt James:
So once licensed as an agent or an associate as I referred, you MUST work for a broker in order to have access to MLS?

I believe so, although the word "work for" is tricky. As an agent you will in most cases be a contractor of the broker, meaning you set your own hours, etc. However, his/her office will "hold" your license. Every deal you make will be done under that broker and his/her office, and they will get a % of the commission. Once you pass your test you can elect for you license to go into escrow or inactive (at least in KY) until you are ready to use it. If you take this route, you will not have MLS access as your license is not "active". Again, this is how it works in KY. You can call they state real estate commission and they can answer specific questions.
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Shanequa J.
Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
15y
At my REIA, the investors advised against getting a license. I'm not going to get mine because I already have a job and don't want to work for anyone else.
2 Reply
Rusty Thompson
Real Estate Investor · Salem, OR · Member since 2011 · 422 posts · 149 votes
15y
James Vermillion
From your website it looks like you flip. Were do you find your deals? whole salers, MLS, direct marketing, word of mouth?

The major concern I was given is that if a seller has no representation & they sell you a property. Then find out how much profit you made. Can come back and sue you for "not dealing in their best interests". Because you are a real estate agent. Any thoughts. I really would like to know.
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Shanequa Jones:
At my REIA, the investors advised against getting a license. I'm not going to get mine because I already have a job and don't want to work for anyone else.

Did they give you any reason as to why the advised against it? I already have a job too, but I save thousands of dollars on my real estate purchases, so I donâ€™t see what that has to do with it. Also, like I said you do not "work" for a broker, you are associated with their office and pay them a %. So, what are the reasons to not get a license?
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Rusty Thompson:
James Vermillion
From your website it looks like you flip. Were do you find your deals? whole salers, MLS, direct marketing, word of mouth?
The major concern I was given is that if a seller has no representation & they sell you a property. Then find out how much profit you made. Can come back and sue you for "not dealing in their best interests". Because you are a real estate agent. Any thoughts. I really would like to know.

We have found all our deals on the MLS, all have been REOs except for one short sale. Because of this we have not had to worry about an "un-represented" seller.
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Shanequa J.
Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
15y
Originally posted by James Vermillion:
Originally posted by Shanequa Jones:
At my REIA, the investors advised against getting a license. I'm not going to get mine because I already have a job and don't want to work for anyone else.

Did they give you any reason as to why the advised against it? I already have a job too, but I save thousands of dollars on my real estate purchases, so I donâ€™t see what that has to do with it. Also, like I said you do not "work" for a broker, you are associated with their office and pay them a %. So, what are the reasons to not get a license?

I don't remember the exact reasons, but it came down to not being able to do certain deals. I want to do creative financing and from what they said, that is the area (example: subject to) where agents messing around is frowned upon. Maybe if I would buy more than 2 houses off the MLS per year, the license would come in handy; but since I don't, I don't see how it would help. One of the reasons of doing RE is so I can be my own boss. I don't want to have to answer to a broker. Hence, a second job.
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Shanequa Jones:
Originally posted by James Vermillion:
Originally posted by Shanequa Jones:
At my REIA, the investors advised against getting a license. I'm not going to get mine because I already have a job and don't want to work for anyone else.

Did they give you any reason as to why the advised against it? I already have a job too, but I save thousands of dollars on my real estate purchases, so I donâ€™t see what that has to do with it. Also, like I said you do not "work" for a broker, you are associated with their office and pay them a %. So, what are the reasons to not get a license?

I don't remember the exact reasons, but it came down to not being able to do certain deals. I want to do creative financing and from what they said, that is the area (example: subject to) where agents messing around is frowned upon. Maybe if I would buy more than 2 houses off the MLS per year, the license would come in handy; but since I don't, I don't see how it would help. One of the reasons of doing RE is so I can be my own boss. I don't want to have to answer to a broker. Hence, a second job.

How many deals have you done...I noticed in another thread that you are having problems getting responses on your creative financing deals...have you considered another avenue in real estate investing? Why did you choose that method to begin with if you don't mind my asking?
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Also, I would be careful about making decisions based on what other people tell you...it is always good to listen to opinion, but try to understand why people are giving advice and try to do some additional research.
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Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
15y
You do not have to deal in a sellers best interest when you DO NOT represent them.You do have to fully disclose as a buyer you are a licensed broker/agent.The reason is you might be seen as having an advantage over the seller because of your training.

You check you are not representing them in the contract.If they decide they want representation or a lawyer to look everything over that is up to them.

Now if you are licensed and a REALTOR you have to look at Ethics in the deal.

If you are simply licensed by the real estate commission then ETHICS do not come into play.Meaning they can't file an ethics complaint with your local board where your license might be subject to a sanction.

Investors say not to get a license because license agents are held to a higher standard as they are trained inc contract where as investors like to play dumb.

Having a license helps because I get insider deals and contacts of properties hitting the market.I can also check my MLS with updates by the second on when a new property hits.

So for me as a broker owner I enjoy having the license.
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Shanequa J.
Realtor · Houston, TX · Member since 2011 · 916 posts · 296 votes
15y
Originally posted by James Vermillion:
Originally posted by Shanequa Jones:
Originally posted by James Vermillion:
Originally posted by Shanequa Jones:
At my REIA, the investors advised against getting a license. I'm not going to get mine because I already have a job and don't want to work for anyone else.

Did they give you any reason as to why the advised against it? I already have a job too, but I save thousands of dollars on my real estate purchases, so I donâ€™t see what that has to do with it. Also, like I said you do not "work" for a broker, you are associated with their office and pay them a %. So, what are the reasons to not get a license?

I don't remember the exact reasons, but it came down to not being able to do certain deals. I want to do creative financing and from what they said, that is the area (example: subject to) where agents messing around is frowned upon. Maybe if I would buy more than 2 houses off the MLS per year, the license would come in handy; but since I don't, I don't see how it would help. One of the reasons of doing RE is so I can be my own boss. I don't want to have to answer to a broker. Hence, a second job.

How many deals have you done...I noticed in another thread that you are having problems getting responses on your creative financing deals...have you considered another avenue in real estate investing? Why did you choose that method to begin with if you don't mind my asking?

I only have 3 houses. I'm trying creative financing because I don't want any more houses on my credit report. My plan was to get about 5 seller financed houses and then get a blanket loan. I'm looking to buy and hold. The problem is that alot of the seller's in this small town aren't educated about these types of deals. 3-4 hours over in Charlotte (a big city), it's advertised on Craigslist all the time.
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James Vermillion
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
15y
Originally posted by Shanequa Jones:

I only have 3 houses. I'm trying creative financing because I don't want any more houses on my credit report. My plan was to get about 5 seller financed houses and then get a blanket loan. I'm looking to buy and hold. The problem is that alot of the seller's in this small town aren't educated about these types of deals. 3-4 hours over in Charlotte (a big city), it's advertised on Craigslist all the time.

It sounds like a license isn't in your best interest, and you are right, it may not be for everyone. But for the original poster, it seems like it aligns well with his business plans and goals.
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Matthew J. T.
OP
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
If I were to get licensed, as an associate broker, that doesn't necessarily mean I have to work for somebody to have access to the MLS does it? I'm just looking to get licensed and have my own access to MLS, I do not care for working for somebody else..is that possible? Or do you need to "work under somebody" in order to have access ?
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
15y
Matt -

In most states, you get licensed as an agent first, and then after a few years as an active agent, you can qualify to become licensed as a broker or associate broker.

As a licensed agent, you generally work as an independent contractor for a broker, not an employee. The broker is ultimately responsible for making sure you don't stay within the law and complete the necessary paperwork. That said, some agents are full-time or part-time employees of a brokerage instead of independent contractors.

Some brokerages require you to spend a lot of time in the office, answering phones, doing deals, etc; other brokerages don't care if you never come into the office and if you don't do any deals for the next 5 years. It really depends on the brokerage.

My wife and I work for a brokerage that has about 3500 agents. If we never went into the office and never did a deal, they wouldn't care (as long as we're paying the monthly fee). We are independent contractors, so we do what we want and when, and only ever interact with the brokerage when we're doing deals (and even then, it's mostly submitting paperwork online). I can't remember the last time we actually talked to a broker when it wasn't a discussion that we initiated (like getting questions answered).
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Steve Maloney
Commercial Real Estate Broker · Alamo, CA · Member since 2011 · 6 posts · 5 votes
15y
Looks like you've gotten plenty of feedback on your question so I'll just add a quick comment. One time, a while ago, I asked myself the same question. I decided to go ahead and get my Broker license. In CA, if you want to have access to the MLS you need to be either a RE Agent who's "hung" their license with a broker or be a broker.

The upshot is this, to get access to the MLS in the bay area requires you join a local board. To join a board you must either be an independent Broker or be someone who is working for a Broker.

Don't listen to anyone who says that internet sites are better than the MLS, they're not. The MLS offers so much in terms of historical data, search capability, property analysis - its just nuts. You want to know the complete buy/sell history on a property, not problem. You want to go deep in terms of comparing properties, its all there.

You simply can't/ won't find an internet site that can replicate the amount of date the MLS has - its not available.

My recommendation, budget about $2k, knuckle down and get a good online real estate license provider, (I did Allied Schools) and bite the bullet. At the end of the process, you'll be rewarded with access to the holy grail of real estate information your competitors won't have.

Good luck
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Lance Dellogono
Real Estate Investor · Fitchburg, MA · Member since 2011 · 6 posts · 1 vote
15y
Hello,

I started off with my licence got a lot of the contacts and experience needed and let it go after 5 years.
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Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
15y
Get your license. Join a Brokerage firm, become a member of the local board, get MLS access. Using Zillow is a waste of time and worthless. It also gives you more credibility then the people who cant afford it or dont take this business serious. The barrier of entry into this world is very low but the ones who take this serious will be around. There is no downside to having your license. If your broke then there is your only downside.
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Tim Smith
Homeowner · Gore/ Winchester, VA · Member since 2011 · 7 posts · 0 votes
15y
I've been in the same state of mind as yourself, and I have made the decision to take the class and get my real estate agent license. Once i take the class personally i hope it will give me a better understanding of not only the basics but put me in touch with other investors. However i am very very new to investing unlike yourself.
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Matthew J. T.
OP
Real Estate Investor · Albuquerque, NM · Member since 2011 · 156 posts · 20 votes
15y
If you are in a disclosure state why not just get services such as Real Quest Pro or Site X data?
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
15y
Originally posted by Matt James:
If you are in a disclosure state why not just get services such as Real Quest Pro or Site X data?

Those sites get their data from public records, which sometimes take weeks/months to get updated. So, it's quite possible when you look at the data from those sites you're not getting the most recent (and most important) information...
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