Real Estate Licensing
Hello, this is my first post and I'm just hoping to get some opinions on the pros and cons of having your real estate license. I am just getting started in REI and have an idea on the path I would like to take (owner build SF and Duplex homes to rent and resell later) and am considering getting my real estate license to make this easier on myself and to also do some part time listing(just for freinds & Family, etc.). I currently have a great full time job that I want to keep for the time being and was wondering how others have handled getting their licenses to help in their REI ventures and still handled a full time job till they were on their feet. How do RE companies compare and how do they handle part time associates? What are the fees involved and is it still beneficial? I took the pre licensing classes two years ago but didn't follow through to get my license. Any suggestions or opinions in this area would be greatly appreciated. Just curious what others have done in their REI careers as far as getting started and if this is the best way to go or a waste of time and energy. Thank you in advance for the advice.
I have found that having my RE license is kind of neutral.
One argument for having a license is that as a REI you want to be as professional as can be and being professional includes having a license. I don't know that I buy this argument. Certainly, the process of obtainiing and maintining a RE license is educational and helps with networking.
The argument against having a RE license is that you don't legally need one to be a REI so its a waste of time and that the disclosure requirements may hurt you as a REI. I have never earned much in terms of RE commision, so from that stand point I guess my RE license is a waste. Disclosing that I am a RE agent has never hurt me in a deal, so that part of the argument against does not stand up.
Bottom Line: If you need the education and the networking help then pursue a license. If you don't need that help spend your time and resources someplace else.
[ Edited by pspiers on Date 02/27/2004 ][ Edited by pspiers on Date 02/27/2004 ]
Hi Remington:
Well, here's the scoop. If you get your real estate license, you'll have to hang it somewhere, and that'll cost you monthly office dues. I am unfamiliar with your state, but in MI this ranges from $75 to $ 400+ monthly.
Also, don't expect to do very well as a part-time Realtor. Trust me- I worked for 8 months as a part time agent, (30-45 hrs a week on nights and wknds), and I was struggling to make business. I've been full-time for 3 months, and I've got more free time and as much business as I can handle.
Bottom line, as a part time agent, you will most surely spend more on maintaining you licence than you will make from it. It would probably be better for you to make friends with a couple of local Realtors who are hip to creative strategies. G/L
Thank you for your replies. It's great to hear how things have worked out for others. The reason I am only willing to do part time is because my father is a home builder who builds 3 - 4 houses a year and has also been developing land/subdividing and selling off parcels. My whole family seems to build, live in their home and then sell after two years to avoid the capital gains. I just thought it may as well be me getting the listings and reaping the commissions rather than the other realtors they are listing with. I thought this would also be extremely beneficial in finding property for myself and others as well as being able to list my own properties when I sell. I just wonder how many deals a year would make it all worth while?!?! That was my thinking but I'm still trying to decide what to do. Thanks again for your thoughts, keep them coming!
Part time 45hrs a week? How many hours a week do you work now, and do you have a life outside of real estate working those hours? [ Edited by wpruett on Date 02/28/2004 ]
Hi wpruitt:
I called the 45 hr weeks part-time only because it was not my day job. I was working at the University 40 hrs m-f, and mostly all of my off-time was real estate time. I'd take 1-2 evenings off per week, and pull a 24hr shift from Friday evening to Saturday evening to make it up. I really wanted to make it work, and since 80% of agents wash out within 12 months, I figured that I'd work harder than 80% of my competition, and be safe.
Still, without having those most valuable daytime hours dedicated to real estate, it wasn't going strong, and after 5 months, I was starting to get exhausted.
Since becoming a "full-time" agent, business has been incredibly busy. I currently work 50-70 hours per week as an agent and a loan rep.
My social life is occasional, but that is only temporary. As my practice gets established, I will not have to spend so much time prospecting and developing processes marketing materials.