how long/how much $ to become agent - Posted by jim

Posted by Cork Horner, San Diego on February 18, 2002 at 10:01:28:

Terry WHO? —Just kiddin’ Senor. I agree with your comments about agents and brokers in general. I deem myself qualified to comment on agents and broker as I was licensed Many years in Minn—eeee—zo—TA.–Doncha know.
Throw in General Contracting INSANE DIEGO and that completes the loop.

I was a broker in Minnesota ’ a few decades ago’ but I specialized in closing deals that fell out of bed from other ’ brokers’. I worked niche markets then as I do now. Like, buying and physically moving houses. Rehab. Conversions. Etc. That is where I made significant gains. The brokered deals merely paid for gas and golfing every friday.

So are agents and brokers useful? They COULD be if ALL of them were required to read these posts every morning. In St Paul/Mpls [ twin cities] I made some of my best buys from " creative brokers". I wonder what PARRANTO BROS are doing there these days.

One last question [ comment]…Is the inimitable Mr Garcia the host in the after hours semimnars in Atlanta? ;-]! I noticed in the lineup he is ‘hanging back’.

how long/how much $ to become agent - Posted by jim

Posted by jim on February 17, 2002 at 19:21:26:

I was wondering if any of you agents out there could tell me how long it would take, and how much it would cost to become a real estate agent. And once/if I become one, what is the least amount of time I could spend working at it?

I have a small business which keeps me busy about 50 hours a week already.

But if I were to quit the business and sell houses full time, what kind of money would I make. The commissions around here are 6% (3% after split with broker), and the average house sells for around $225,000.

Any input is greatly appreciated. Thanks in advance.

Why work for tips??? - Posted by Terry Vaughan

Posted by Terry Vaughan on February 18, 2002 at 03:10:16:

Most of the real profit goes to the “principal” not the agent!

Every successful investor, who was an agent or broker, realized there was more money in doing deals for themselves than turning properties for other people.

Read what one broker had to say after I showed him a new twist:

The only really important license you’ll need is the one that “education” on how to do deals gives you to make more money then a whole town full of agents!

Another point of view.

Re: how long/how much $ to become agent - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on February 18, 2002 at 24:48:05:

Takes a couple of weeks or so as a minimum (60 hours) and I think our state (WA) only allows 7 hours maximum of study credit per day.

Agent licensing is about $90 or so.

You can spend as much, or as little time, as you want.

Input? Well there are a few things I can say, so I will briefly state a few. You can check with your state for the rules of licensing for details and check with a broker whom you would like to work for.

Most brokers here split the commissions with their agents 50/50 as a new agent. This means if you were to receive 6% on a listing, you would get 3% and the other broker would get 3%. Then you get to split that 3% with your broker so you would get 1.5%. As you make more for the broker, you may move up to 60/40, or 70/30, or whatever you and your broker decide on. Some brokers require a certain level of profit before you can get all of the commissions, where you might be on a 70/30 split up to the first $30k or something, and then 100% after that.

Or you can go to work for a desk fee type broker. This is where you would pay a monthly fee, and possibly some other extras per month and/or deal. I have heard some offices charge $1k a month to hang your shingle. I work for a company where I pay $300 a month to hang my shingle.

There is another company here recruiting that for only $5 a month (YEP, Five Dollars), you can hang your shingle up there; but they do a 70/30 split if I remember correctly.

Another company I know of only takes 7% total of your side of the commission and you have no monthly fees. So if you had a $200k list/sale; and you would receive 6% on it; you would receive 3% minus 7% for your broker. Not bad really if you are low volume, and there are not other fees involved; but they have a $1500 signup fee to join. So if you were doing no business for 3 months during the winter, you would have no fees with them.

If you want to be an agent, you will have to look at the local companies to see what suits you and what your broker wants of you. They may not want to hire you, hang your shingle there, if you are not producing income.

Oh, don’t forget you are will have monthly dues to different organizations that you might want to join. The local MLS is one that you would want for sure. :slight_smile:

Re: how long/how much $ to become agent - Posted by Brent_IL

Posted by Brent_IL on February 18, 2002 at 24:17:40:

Check with the local community colleges and see if they offer state RE training courses. At COD, a local school, the cost is under $100.00 plus books. Your state will have fees to take the examination, and fees for the license.

Recall that there is a learning curve in any new business. Three percent of $225,000 sounds relatively good, but you have to make a sale first. I think I’m slick. Someone could offer me a 90% commission for selling Cray computers. I’d starve.

Re: how long/how much $ to become agent - Posted by rentvent

Posted by rentvent on February 17, 2002 at 22:48:16:

It’s like $350 in GA. the 6% is split between the buyer and seller agent. then those agents split their commision with the broker.


Re: how long/how much $ to become agent - Posted by EWest (MI)

Posted by EWest (MI) on February 17, 2002 at 21:03:47:

Well, I am not an agent or a broker but I have checked into and it varies by state. Here in Michigan (from the top of my head) you need to spend 40 hours taking a class and pass an exam and 6 hours yearly of continueing education. To be a broker you need 3 years of experience, 90 hours worth of class time. I may not be 100 percent on those figures but close enough.

that is the link to Michigans requirements, there may be a link to other states as well, I didn’t check into that.

As for how much money you can make? Depends mainly on the individual. for an example, my girlfriends mom works as an agent(she owns her own business) and clears 100K a year and the houses she deals in are not in the price range you mentioned.

Best of luck