Re: Should I get my Realtors license - Posted by ShermanDC
Posted by ShermanDC on February 09, 2002 at 15:16:12:
Depends: If this is just a, kinda sorta thing - May not be the best use of your time. If you are committed to the long haul - Absolutely
Got my license (agents) sixteen years ago then went through the GRI, then got into another industry. Later decided I did not have the same passion about that industry (information technology), but unfortunately, since my licensed lapsed I had to start over again as an agent and have two continuous years before sitting for the Broker’s exam.
Assuming you are in this thing for the long run, you should make your ultimate goal to get your Broker’s License. Most states require that you spend at least 2-3 years as an agent, then have an additional 120+ classroom hours, then take the Broker’s Exam.
Best way to get the Broker’s license is to get an agent’s license and join up with a large firm. Most large firm’s have better resources, and it is easier to “get lost” in a big firm, i.e. less intervention by the Broker in how you conduct your business. I mention this because most Brokerage firm’s have a Principal Broker, and then an Associate Broker who actually manages the office. While the laws and ethics of how you practice your trade are dictated byt the National Association of Realtors (NAR) and are therefore, similar across the country, many Brokers go on to impose their own rules over their agents. (RE Brokerage, and the practice of law are the last bastions of Feudelism). Therefore, one Brokerage house may allow its agents to use the MLS/MRIS as active investors, while another may not - has nothing to do with what is “legal”, has everything to do with the Broker’s attitude, etc. If you know of a small independent Broker that will allow you the flexibility you need to be successful, then go that way.
So, once you find the right Broker to hang your license with, you should make your goal(s): 1 - make some money ASAP; 2 - Do what you need to do as quickly as possible to “Become a Broker”. Best way to do this is start the GRI process as soon as you become an agent. In most areas of the country, the GRI counts for at least 120 of the 120-140 credit hours you will need to sit for the Broker’s exam. The CCIM is nice, but it does not give you as many hours towards the number of hours required to be a Broker. Because, in most jurisdictions, you are going to be licensed to sell ALL Real Estate, not just commercial, so they want you to have plenty of hours of stuff that has everything to do with “Fair Housing” etc. and little or nothing to do with successful investing.
So concurrent with getting the GRI (what you need to be licensed as a Broker), continue to make good use of CRE-Online, which has 99.9% of the information you need to be a successful investor (the other .1% comes from the knowledge gained by doing).
So, finally you may ask, why should I want to be a “Broker”, simple: “He who Makes the Rules, Keeps the Gold.” It’s the Broker, not the firm that holds the keys to the kingdom, and if you are looking out long term, you have maximum control of your destiny when you hold THE License. Also, in many jurisdictions, you need to hold a Broker’s license (or be an agent for a Broker) to: Be a Fee Property Manager; Form Syndications to invest in real estate; Collect a Fee for placing debt or equity (Mortgage Broker), and all kinds of other cool stuff that you will want to do in the future as you move up the real estate food chain.
Hope this is helpful.