Real Estate License: yes or no?

[M Aron]

Many people say taking a real estate license course is recommended but taking the test and receiving the license is unneccesay.

What are some advantages of having the license?

Are there any drawbacks?

Thank you.

Mathew

[Dan Auito]

Mathew, I'm going to put it to ya here. Please get the book that is offered on this site, it details this question and probably 100 more that will help you make the correct and wise decisions along the path to growing in the right direction. If you are not happy with the book I will refund your money and let you KEEP the book. That is how much I feel this book can help.

Please consider this as it will save you years of trial and error and give you insights that you may never yourself find. :SM144:

[M Aron]

Thanks Dan. I am been really excited about entering the REI world that I have become a little anxious. I am getting ahead of myself. I have decided to take a RE Principles course at the local community college, buy certain RE books (yes, Dan, yours too) and become more knowledgable in this exciting field.

Mathew

P.S. Thanks Karlpie for your response.

[Dan Auito]

knowing what I know after having two real estate licenses, I would have taken an appraisal course first as it helps much more to be able to evaluate property and make wise buying decisions that result in big paydays when you sell.

Real estate sales commissions pale in comparison.

[Aldo]

I agree that a course in appraisal may be helpful, but not necessary. It's not hard to get a feel for the value of a property without a formal education. Check assessed values, recent sales, current listings, FSBO ads and the one thing formal education doesn't offer - common sense. I truly believe you would gain more by taking classes in Home Inspections and get that license, if you like, for some additional income.
With due respect to those who disagree, I would never get a real estate license for more reasons than I will cite here. Suffice it to say that with that license, you are bound by certain legal, moral and ethical requirements than you would be without it. Let me cite an example. Bear in mind that I did provide a 100% accurate condition report. I recently sold (privately) a nice little SFH. When showing the property I could legally and semi-morally/ethically place myself between the prospective buyer and, say, a cracked window or stained countertop so they might not see it. I would never attempt to conceal anything substantive; but, if a buyer misses something (with help?), I'm not going to lose sleep over a $10 repair.

[brian-gibbons]

I think it depends.

Some states frown on CREI.

For instance, doing a sub2 (Jim, chime in here http://www.reimentors.com/ ) involves taking a Deed on a kitchen table. A new licensed agent doing that? If I were his broker-manager, well.... :SM026:

And Rent to Owns do not add any money to the agents' nor brokers' pockets, at least right away.

Wendy Patton is a licensed agent and she trains in Lease Purchase. I love her material. She presents to agents' Mon meetings for "about to expire" listings and basically buys the listing, 100% cash now in Sellers markets, 33% now, 66% later in Buyers' markets.

I like her material. www.wendypatton.com :SM123:

so, the short answer is....
See a lot of brokers. Ask a lot of questions about Sub2 and Lease Options.

My 2 cents, anyway.

Best Wishes,

Brian

[Just Information]

This type of question comes up often. It is simply a matter of choice!

The choice has its upsides and downsides.

Upsides

Commission income
Access to MLS and Market information
Use the lockbox key or code to go look at a home without setting an appt with an agent
Limited financial risk selling vs buying.

The upside may look a little thin, but they are huge.

Downsides

Long hours and a lot of weekend work.
The "do not call" rule.
Office, MLS, advertising and licensing fees.
You must disclose to every buyer, seller and tenant that you are a licensed real estate agent
Paying brokers commission
Local, state and national dues
In some States, you have to work as a salesperson for a broker for a number of years along with other requirements before you can open your own office.

The above is just some majors I could think of.

Becoming licensed as an investor can cause problems if you plan to utilize creative investing but for out right cash purchases it should cause no problems. Understand as a licensed agent you have many governing bodies that will dictate what you can and can not due based upon their own belief of rules and regulations.

I personally have not seen the need to become a licensed agent, as the only benefit would be to have direct access to the multi listing system.

Plus I am too independent to allow any 3rd party to tell me what I can and can not do.

Selling as an agent and investing are two different professions.

Concentrating on a specific area of investing is vary suggestive so that you can master the area of investing and than move on to another strategy of investing. By taking this approach, you will increase your level of success as a real estate investor.

Good lord Brian - How about some substance - You claim to be a teacher - Where is the beef son? - We are starving for knowledge.
:SM129:

[Just Information]

What it takes to become a real estate agent

By: BRADLEY J. FIKES - Staff Writer

By June of this year, 425,000 people in California are expected to have real estate licenses, according to the state's Department of Real Estate. Keith Badiner plans to be one of them.

A loan officer at Lending Executives, a Solana Beach-based based real estate lender, Badiner stepped into the real estate world almost a year ago. The 37-year-old Carlsbad resident had grown tired of his job in corporate sales at AT&T Wireless and had long been considering real estate as a career. Badiner, who has an MBA in international business from San Diego State University, had previously worked as a marketing analyst for international markets at Qualcomm. He was laid off at the end of 2001.

Badiner took the plunge last February when he started at Lending Executives. Badiner doesn't need a real estate license to be a loan officer. But he's been busy studying all aspects of the profession, and a license will lend him more credibility. He's talking to real estate agents and taking a self-study course in real estate principles from Anthony Schools. The course takes about 45 hours and costs $300.


This spring, Badiner plans to take the exam for a real estate license. Offered by the California Department of Corporations, the exam costs $25.

Getting into real estate has been an intense experience for Badiner, who over the last year has juggled his current job, part-time gigs including a long-time stint as bartender at such places as Coyote Bar & Grill in Carlsbad ---- along with being a husband and father of two children. He and his wife, Mary, have two children; Kyra, 6, and Davis, 1.

"Sweat equity was probably the largest part of it," Badiner said of his self-training, including late-night sessions stretching into the wee hours finding answers for loan customers. "I worked so hard at getting all the knowledge I can. When I find an answer for a customer, it not only helps the customer, but it helps me."

Harder than it looks

Newcomers to real estate frequently find the job takes more education and work than they anticipated, said Sara S. Patterson, editor-in-chief of The Residential Specialist, a Chicago-based trade magazine. It is published by the Council of Residential Specialists, a not-for-profit affiliate of the National Association of Realtors that provides extra training for Realtors. Realtors are real estate agents who are members of the National Association of Realtors.

Patterson wrote an article in the magazine's November/December issue about the experiences of three "Rookie Realtors" in learning the laws and mores of the real estate business.

"Some of the agents told me the paperwork is more complicated than they thought," Patterson said about her experience writing the article. "A lot of work has to be done for the closing with the attorney, a mortgage lender, home inspector ... all these people are involved and in the end a good Realtor will make everything come together."

To be truly professional, real estate agents need to know more than what the laws require them to do, Patterson said. Agents must also learn social skills and etiquette in dealing with clients and others involved in home sales.

"They want to know, how do you get clients to come back to you?" Patterson said. "They want to build their referral base and keep in touch with these people without annoying them. It's a fine balance between being a pushy salesperson and a salesperson you want to work with."

Agents get known with the up-front method of advertising, Patterson said, or in "more subtle ways" such as taking part in clubs and volunteer organizations that boost their community standing.

Building Brand Badiner

As a newcomer in the real estate field, Badiner lacked the extensive network and reputation that real estate professionals rely on. And he also knew it would be some time before he got that coveted real estate license. So Badiner did two things: he studied and he networked.

Badiner got help from a mentor, Jason Katz, his boss and a senior loan officer at Lending Executives. He said it was Katz who got him interested in a job at Lending Executives.

"I liked what he did, what he was about, what he could do for people," Badiner said.

To advertise his expertise, Badiner adopted the phrase; "Just Ask" as his calling card. It's on his business card, on his e-mail signature, and on educational materials he hands out.

To network, Badiner takes part in weekly real estate "caravans" in Carlsbad and Oceanside. In real estate lingo, a caravan is a group of agents who visit houses newly listed for sale.

The transition to Lending Executives was exhausting. Badiner didn't leave AT&T Wireless until April of last year. During that transitional time, he also taught at the California School of International Management in San Diego and bartended weekends.

"For two months I was doing all four jobs," Badiner said.

A people job

Badiner said he's putting himself through all the effort because a real estate job gives him contact with people and responsibility and control over how his clients are treated. As a business-to-business sales representative at AT&T Wireless, Badiner said, he had the responsibility, but not the power to fulfill the company's obligations.

While Badiner had control of getting contracts, key services such as billing and coverage were not controlled by him. Dissatisfaction in any area could cause a company to cancel its contract. When that happened within a few months of its signing, Badiner lost his commission. That's not the case with real estate, he said: When you make a sale, it's done.

"With what I'm doing now, I have much larger control and responsibility for making sure my clients are satisfied," Badiner said.



Real estate license how-tos


Those wishing to become real estate salespersons in California must pass a written examination that costs $25 and apply for a license, which has a separate $120 fee, with the state Department of Real Estate. Other qualifications are:


The applicant must be at least 18 years old.


A legal resident of the United States.


Conviction of a crime or failure to disclose a criminal violation or disciplinary action may cause denial of a license.


Educated in real estate by taking three college-level courses.

The first, in real estate principles, must be completed before applying for a license. The second, in real estate practice, must be completed within 18 months of getting a license. The third is one of 12 courses listed by the department, such as real estate appraisal, legal aspects of real estate and escrows. This course must be also completed within 18 months of getting a license. A fuller discussion of the requirements is at (tinyurl.com/59xj8)

The courses can be taken at the University of California and most California State University campuses. However, it's less expensive and often more convenient to take them at a community college.

In North County, MiraCosta College and Palomar College offer the required courses. A statewide list of community colleges offering them can be found at (tinyurl.com/5ta2r).

Real estate brokerages and other groups such as the San Diego Association of Realtors also offer courses. The association can be contacted at (858) 592-7171. To see whether a brokerage offers the courses, it's best to contact the brokerage in question.

Contact staff writer Bradley J. Fikes at bfikes@nctimes.com or (760) 739-6641.

Just received the article this AM - will provide some great insight without all the fluff.

[Jim FL]

M aron,
Hello, nice to meet you.
Brian was kind enough to alert me to this thread, and after reading it, I decided to respond.
Frankly M, I get asked this question all the time, and hear folks asking it all over the place.
Should I become a licensed agent or broker before becoming an investor?
My response usually goes something like this?
WHY?

So, tell me why you think being an agent is an idea worth entertaining?
What are the benefits as you see them?
Yes, I know you are new, and looking into becoming an investor, so I do expect a few of your answers or concerns to be washed away with some experienced responses.......perhaps they already have, with what has been posted by others?

I look at it this way......
When I began, I was introduced into my uncles favorite past time, buying houses to hold as rentals.
When I expressed a desire to become an investor, everyone in our family, (none of which are investors by the way) directed me to speak with my uncle.
He does that, and can show you how.
He did, and I learned a few things.
One of which was, I'm younger than he, and have less patience.
Buying one house per year was not my idea of a good fast track investment plan.
My uncles first advice was to build my credit up, and become an agent.
He said, you find deals on the MLS, for below market value, use your license and commission to get into the door, with conventional funding, then fix and rent.
After holding for a while, either refi or get an equity line for cash to buy more..wash, rinse, repeat.
Now, first let me say, I love and respect my uncle, he does what works for him, so this is not a slam on his ideas or techniques for becoming rich slow.........like I said, he's happy, and that's all that matters in the long run.
Anyway, my uncle told me once, 'I'll retire from my full time factory job when I have 20 rental units."
He had like 10-15 at the time, I don't remember exactly how many.........but, bottom line, he still had YEARS to go before his real estate would support him, in his mind, with his plan.
Good for him, but not my pace, thanks.
He always pushed the fact that he was a broker at me, and basically said I'd NEVER be a good investor until I had a license.
He also said, 'no money down deals don't exist'.
Remember, I love my uncle, but man, what a bummer to be so stuck in that line of thinking.
Anyway, I learned some cool tricks about landlording and maintaining property on the cheap from him, and for that am grateful.
I did however completely blow off his guidance about becoming an agent, or broker.
My first year investing, I did more than 3 times the number of houses than my uncle had planned to acquire for retirement.
Apparently becoming an agent or not, had no effect on my investing plan.
And yes, EVERY DEAL that year was no money down.....so much for that not working where we lived. :-)

I know, you are wondering, what does this have to do with my posted question?
Simple, ask yourself what benefits you will get by being an agent, and whether or not those same things can be accomplished other ways, with less restriction.
i'm like John Micheal who responded to you.
I cannot stand having someone else tell me what to do........I don't play well with others most of the time.
I cannot imagine finding a seller who wants out now, with tons of equity, and just listing the house, hoping to make a measley 3% commission, minus the brokers cut.

Ask yourself this......
How many agents/brokers do you know that are millionnaires, and live a comfortable free lifestyle, where they work very few hours per week?
I'll give you a hint.......it ain't that many.....a few, but the ones who make a decent buck, work their behinds off for it.
Nothing wrong with that, if your into it...........I'm not.
Now, take a look at how many full time investors are living a nice lifestyle without working a whole lot.
Sure, there are some, like me, who do work a ton of hours.........but for most of us, its a labor of love.

Bottom line, taking the class, sure, that might help you understand state and local RE laws, and perhaps terms.
But to me, terms can be read in a book, and laws, well, that's what we pay lawyers for.....to handle that.
Your time is better spent in my opinion, learning to invest, and taking action.........thusly making money from the effort.
Real money too, not just a paltry commission......which cost you fees to be able to collect, and hoops to jump thru.

The call is yours, but I'd suggest you not become an agent.

Also, I'll address the pro's or was it upsides?.... list from another post here.......

Upside: Commission income- Sure, sounds nice. BUT, I know you could make more helping some of those same people out with CREI techniques. Earning commission also takes work, and time.

Next:
Access to MLS and Market information- Okay, sure, uninhibited access to the MLS is nice.........BUT, you don't need to be an agent for this. If you network and look around, developing a relationship with a local broker and/or agent, or appraiser can get you access to this, as well we another perspective on what the info means, from the person granting it. I'm lucky, my local broker friend allows me to use his MLS at will...and I list some things with him here and there when I sell.......doesn't cost me a dime to get this access, and I'm not governed by some licensing board just because I want to read it.

Next:
Use the lockbox key or code to go look at a home without setting an appt with an agent-------Sounds nice, but againt, a good solid relationship with a local agent or broker can help you get this too. I used to have HUD keys on my kind ring from a local broker in my other state, and his MLS which had key box codes on it. I only went to vacants of course, but again, no license needed for that.

Next:
Limited financial risk selling vs buying--------okay, I'll bite. mmmmmm.......well, if you utilize creative techniques and methods to buy and sell, this can also be handled to minimize your risks.......and in fact, becomes easier in my opinion, because YOU control things.

By the way, as Brian said, yes, many creative deals are just not in an agents ways of thinking, let alone most seasoned brokers, so using them as you work in an office to cover license fees etc, might not be accepted by your boss.
I know one local broker who everytime he meets me, chuckles, because as he put it, 'for the first 30 years I had my license, I NEVER thought it was legal to buy subject to the existing financing without assuming the mortgage......and in one week, my agents sold three that you bought that way......amazing."

When we first met, he told me my type of deals could not be done and were illegal.
He now gets some of my listings, because my favorite agent works for him.

Anyway, enough rambling......just don't become an agent because your not sure what else to do, or don't understand REI enough to take action.
There are better ways to get into this business, and this forum and its resources is a GREAT place to begin.

Good luck, and take care,
Jim FL

[Aldo]

1) Due to time limits, I rarely reply more than once to a thread.
2) Being a late evening participant, I won't even read a thread that I'd otherwise still be reading when it's time to get up.

[Dan Auito]

1) Due to time limits, I rarely reply more than once to a thread.
2) Being a late evening participant, I won't even read a thread that I'd otherwise still be reading when it's time to get up.
We all know your not going to be a real estate agent Aldo, you'd scare all your clients away! :cussing: