Getting real estate license NOT to become a realtor

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Getting real estate license NOT to become a realtor

Account Closed
Flipper/Rehabber · Tampa, FL · Member since 2017 · 47 posts · 19 votes

I plan to get my real estate license NOT to become a realtor, but to aid me in writing multiple offers to buy properties to flip. Anyone have experience in Florida doing this? Do you have to sign on with a broker just to buy properties?

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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y

Having an active realtor's license isn't a cheap date; the fees to the local and national associations as well to a broker firm with splits won't get you the value and performance you're hoping to achieve with your flips.  There are a lot of strategies that investors use in making offers on flips that are worth exploring.  My recommendation would be to work with a broker/realtor who has experienced professionally and personally in real estate investing. It will make a huge difference in your results and provide you with a trusted adviser.  

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  • Bob Okenwa
    Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    @Account Closed

    You'd have to sign on with a broker to activate your license.

    3Reply
  • Nick C.
    Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
    7y

    The short answer is yes, you will need to hang your license with a brokerage. 

    0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    7y

    Having an active realtor's license isn't a cheap date; the fees to the local and national associations as well to a broker firm with splits won't get you the value and performance you're hoping to achieve with your flips.  There are a lot of strategies that investors use in making offers on flips that are worth exploring.  My recommendation would be to work with a broker/realtor who has experienced professionally and personally in real estate investing. It will make a huge difference in your results and provide you with a trusted adviser.  

    7Reply
  • Account Closed
    OP
    Flipper/Rehabber · Tampa, FL · Member since 2017 · 47 posts · 19 votes
    7y

    @Patricia Steiner thanks Patricia for the detailed response. Approx how much are those fees?

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Account Closed:

    @Patricia Steiner thanks Patricia for the detailed response. Approx how much are those fees?

     I  dont know in Florida, but where I am it is between $3,000 to $5,000 per year to maintain your license.

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    1Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    @Account Closed.  He's licensed in FL and is also a hard money broker.  I think he'd be a good contact for you.

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    7y
    Originally posted by @Charlie MacPherson:

    @Account Closed.  He's licensed in FL and is also a hard money broker.  I think he'd be a good contact for you.

    Charlie....let me try to win you over on being a Realtor. Do you enjoy the 20% pass through/qbi deduction? NAR, with our money, with our connections on the hill, with our voices made sure our industry was not exempted from receiving that like many industries were. 1 year of that deduction will likely pay far more than you will ever pay in your entire life as a board member.

    Without a strong NAR (as well as strong local boards here in the capital region), our industry wouldnt have gotten that extremely valuable deduction. $50k in tax savings for me personally. (Im on the public policy committee, so I see first hand the great work, and the great ways our money is spent strengthening our industry)

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    6Reply
  • Autumn RankinPro Member
    Rental Property Investor · Bandera, TX · Member since 2017 · 148 posts · 56 votes
    7y

    @Patricia Steiner

    Exactly!!!! My husband did this in Texas and it’s expensive $$$ mls fee, local & state dues, signing with a brokerage.

    1Reply
  • Josue Vargas
    Real Estate Agent · San Antonio, TX · Member since 2017 · 814 posts · 466 votes
    7y

    @Account Closed

    I took the Realtor agent courses just to learn the process, didn't took the examination basically because I knew my full time W-2 job is enough, plus I have to pay professional licenses for my trade anyways, and becoming a Realtor will be an extra expense for me to keep-up.  

    Only licensed brokers are able to make the deal, not just selling agents or buying agents.  

    If you are an investor, why will you ever want to become an agent if you are not actively representing buyers/sellers for additional income?  Use a good broker that represent you.  That's what I'm doing.  The broker or agent will be able to put as many offers as you want, and it cost you nothing (in most cases).  Keep in mind to have a good relationship with your broker and that he understands what you are trying to accomplished with multi-offers at once.  

    2Reply
  • RJ Reynolds
    Realtor · Westwood, MA · Member since 2015 · 145 posts · 67 votes
    7y

    @Ryan Saldanha

    You can have a real estate license and NOT be a realtor. REALTOR is an organization created to hold agents to ethics because at the time there were no laws. It is voluntary to join BUT many agencies require that you join.

    You can have an inactive license if what you are after is the information in the training.

    As an agent you have more strict legal obligations/rules by which you must adhere varrying state to state. I’ve heard investors say they did not get a license for that very reason.

    0Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    7y

    It takes about $2500 to get started (course work, exams, finger printing, Association Dues, etc.).  Then a Big Box Broker will charge a 6% franchise fee on every transaction plus a split on the commission AFTER that assessment (65% to the realtor).  Then there's the $70 desk charge (whether you use one or not) to the broker each month in addition to their charges for classes, business cards, signage, etc.  I started my own firm after realizing very early on that the fees kept adding up yet offered very limited value.  If flipping/rehabbing is your niche, stay in that lane and leave skid marks everywhere.  

    1Reply
  • Account Closed
    Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
    7y

    @Patricia Steiner perhaps he does not need to join a "Big Box Broker". He is just looking to write offers and perhaps get MLS access.

    Maybe they don’t have them in FL, but here in CA we have several online/no desk brokers. I get a 100% split and just a $595 per transaction fee, which covers EandO, etc.

    No desk fee, no fees at all. But also no training, no hand holding. Just a broker to hang your license with. I don’t suggest using these types of brokers for those looking to list, sell, or get any kind of training. Paying the 35-50% split to a broker is well usually worth it just for the training and mentorship, especially with the “Big Box” ones.

    I'm a NAR, CAR, local association member. But only to get MLS access, zip forms, and docusign. Well worth the $1500/year for the few buyer commissions I get yearly.

    1Reply
  • Tyler Rusomaroff
    Flipper/Rehabber · Jacksonville, FL · Member since 2015 · 58 posts · 7 votes
    7y

    Hey @Ryan Saldanha I just wanted to jump in after reading some of the other comments.

    I have my RE license and I am apart of NEFAR in Jax, I suggest at least getting your license. The only reason I got my license was to flip houses.

    Also I have worked for 3 different brokers with 3 different companies and I have never paid a desk fee or any other fee for that matter other than a portion of my commission. But the portions were tiny.

    Broker x :35%

    Broker y : $250 per transaction

    Broker z : 0.00

    0Reply
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    I got mine specifically to have MLS access. I have never sold a retail piece in 10 years on the MLS.

    0Reply
  • Account Closed
    OP
    Flipper/Rehabber · Tampa, FL · Member since 2017 · 47 posts · 19 votes
    7y

    @Tyler Rusomaroff thanks. Since you’re in Florida, can you recommend no desk brokers?

    0Reply
  • Tyler Rusomaroff
    Flipper/Rehabber · Jacksonville, FL · Member since 2015 · 58 posts · 7 votes
    7y

    @Ryan Saldanha No probelm. I would reach out to local investors and talk to them about it. I don't know the Tampa area that well other than the Bucs are going to win the Superbowl next year.  Just network like crazy and tell everyone what you're trying to do.

    Wish I could help more

    0Reply
  • Brandon M.
    Agent / Investor · Clearwater, FL · Member since 2014 · 573 posts · 281 votes
    7y
    @Ryan Saldanha- I am with one of those brokers and wouldn’t have it any other way. Send me a message and we can talk in more detail
    0Reply
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