thinking to get a realtor license

[my_tang]

Hello,

I'm a beginner investor.  I'm thinking to study and become a realtor myself.  I just want to be able to save on commission when buy/sell also have access to view houses on my own and run CMA, etc.  At this time, I don't plan on being an agent for other people.  

Does it worth it to get a license?  Study and exam do not bother me, how about getting sponsor at a firm, fee etc?

Thank you for your input.

[kdhastedt]

Did you search for this topic...it's been discussed ad nauseum!

Keith

[SpaceAce]

IMHO you should get your license. It certainly can't hurt. I just got mine and will put to use for reasons similar to yours after the holidays.
I don't know if any would sponser, I have never heard of them doing so. You could find out fairly easy just by calling.

[jasonbshepard]

Yeah  this certainly has been any interesting discussion topic, even since the little time I've been on this board.  

You will never get a correct answer... the answer will come from the way you take opinions....

[kdhastedt]

There is no "correct answer", it's very individual and very regional...there are pros and cons...

As I said, all of this has been covered many, many times and in great detail...

http://www.reiclub.com/forums/index.php?board=;action=search


Keith

[JaredfromIndiana]

My reason for not getting a license is the disclosure issue.  Every transaction you do you have to tell them you are a licensed realtor.  To some sellers this may be intimidating, and since nobody wants to get taken advantage of, they may wall up.  My two cents.  

[henryinma]

My reason for not getting a license is the disclosure issue.  Every transaction you do you have to tell them you are a licensed realtor.  To some sellers this may be intimidating, and since nobody wants to get taken advantage of, they may wall up.  My two cents.  

Actually I've made several offers as a Realtor and never had anyone say no. About the only drawback is that some banks (Wells Fargo) won't allow bids from real estate agents. Basically if your offer is the best offer, it doesn't really matter if part of that commission is yours or the brokers. Also my deal was pretty smooth as I'm quite familiar with the drill and didn't make any unreasonable/irrational demands.

As to the answer, you have to figure out how much it's going to cost you to get the license and how much money you're going to save. That varies from state to state. Then go ahead and do the math and you'll get your answer. It's like changing the oil in your car, you could do it yourself for about $10 in materials, or you could take it someplace and have them do it for $20. Is it worth your time and energy to save $10?

[fadi]

My reason for not getting a license is the disclosure issue.  Every transaction you do you have to tell them you are a licensed realtor.  To some sellers this may be intimidating, and since nobody wants to get taken advantage of, they may wall up.  My two cents.  

I actually think sellers trust agents more than investors. After all, they bought their house through an agent not an investor. I have told multiple prospects that I am an agent but I am looking at the property as an investment and none had a problem.

[SpaceAce]

I agree Fadiz. There is a certain trust element when someone is licensed. That said- it can work against you in that the other party may feel they have you over a barrel. They can easly lodge a complaint and jeopardize your livelyhood. I think the good outways the bad though.

[fadi]

That is so true, and that is why you have to make as much disclosures as you can and stay above bar when working with clients.

At first I thought it would be a disadvantage to have the license, but the more I thought about it the motr I got convinced that I am not in the business of defrauding people or tricking them to steal their homes. They call me because I am an investor and they know I am planning on making a profit. I even have them initial and sign one of my disclosures which states so. I also base my price on comps or their asking price keeping in mind that the ARV is price opinion and not something set in stone.

Any business has its risks... having a license will make you more liable in the court, but you should be upfront with what you do regardless. There are thousands of licensed investors who never get in trouble. And like you said, the advantages out weigh the risk.

I think people need to be honest, and truely try to help sellers. This is a true business not a get rich quick thing as some think it is

[henryinma]

I agree Fadiz. There is a certain trust element when someone is licensed. That said- it can work against you in that the other party may feel they have you over a barrel. They can easly lodge a complaint and jeopardize your livelyhood. I think the good outways the bad though.

On average, people don't complain as much as you think. Also just going through the list of actions by the State board, they're for real misconduct, missing funds, criminal convictions, etc., not much of that is likely in a regular transaction.

Sellers are just interested in selling. I wouldn't say that getting a license puts you at a disadvantage, it actually gives you advantages and the disclosure just makes sure it's a level playing field. Advantages such as negotiation skills, research, etc., are still yours as a licensed agent.

[Allen Properties]

IMO, it depends on the type of investor you plan on becoming. There are some creative ways you can sell your prop and/or assist your buyer that you can't do as a Realtor.

[henryinma]

IMO, it depends on the type of investor you plan on becoming. There are some creative ways you can sell your prop and/or assist your buyer that you can't do as a Realtor.

Can you explain some of them? Off the top of my head, I can't seem to think of any that you can do that that you can't do as a realtor. The only ones you can't do are the ones that would be illegal and then it wouldn't matter if you were a realtor/licensed real estate agent or not.

The only thing I can think of that you may be thinking of is how the office gets their commission if you do a lease option, but in that case, you just pay the office the commission. As the owner, the office split isn't that much and you could always sell your own property as a FSBO without using the office so there'd be no listing agreement and you wouldn't have to owe anything for a commission. Same difference as not being licensed.

[BS3488]

The original poster said  

I just want to be able to save on commission when buy/sell also have access to view houses on my own and run CMA, etc.  At this time, I don't plan on being an agent for other people.  

Does that mean that he will have to get a job with a broker to have access to the mls and such?  Anyone can get a license, but you need to get job for it to be effective right?

[henryinma]

I'm not sure how the laws work in every state, but usually you need to be a licensed real estate agent and you have to work for a broker before you get access to MLS.

Getting a job with a broker is usually not a problem, they're always trying to recuit because it doesn't really cost them much if anything for you to work for them and they get a cut of your commissions. You're a 1099 so you don't cost anything in terms of payroll and if you work from home, you don't even take up a desk. Some places like Keller Williams or RE/Max even charge you a desk fee just to work there so they're always happy to get new agents.

Typically new agents will sell to their friends, family etc., as there's usually a reason they got into the business so the more agents you have working for you, the more money you as the owner of the brokerage can make. Actually most of the time when I'm in a co-broke situation, they always try and recruit me. I tell my boss about them too and I think sometimes he's worried I might jump ship, but I think he's used to that happening to him. I have a pretty good relationship with him and he gives a decent split so I'll stick with him for a little while.

The only thing is that in this state it takes about $1000+ in fees and classes in order to get your license and be a realtor. If you just do one deal that year, it's questionable how much money you're really saving as you do have to go to class, take the test, do some on the job training (they don't teach you how to fill out the forms in our state, the broker is supposed to do that). It'd be like working a second job.