Should I get my Realtors license - Posted by Brian

Posted by JamesL (Ohio) on February 09, 2002 at 13:30:24:

YES. Get your license.
In this business, you keep learning constantly. The information that you would receive while studying for your agent license will help you see more opportunities while you’re investing. Knowledge is power. In addition, how would you like to keep an extra 3.5% on every deal you make??? If you are your own agent, YOU get to keep your commission!
Finally, I have spoken with many investors who decided to get their license just to save money on commissions. Later on, they found that being an agent was making them even more money by being involved in other deals!
Happy investing…and LEARN LEARN LEARN.

Should I get my Realtors license - Posted by Brian

Posted by Brian on February 09, 2002 at 12:57:21:

I am just starting out investing in real estate. I have immediate family who has done this for years pretty succesfully.

I am trying to find out if there are any advantages to taking the NYS 45 hour course ($200) and taking the agents exam. Will it give me an inside line to properties? Or will it be more trouble than it is worth?

I do not have a real interest in selling properties for others. I have found a broker to sponsor me and allow me to sell as much or as little as I want. One realtor told me he does not think it would be a wise investment. That he does not think that it would give me any advantage, unless of course I wanted to be in the real estate sales business.

What do season fellow investors think?

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.


Re: Should I get my Realtors license - Posted by Rudy

Posted by Rudy on February 09, 2002 at 13:48:53:

If you are going to take any courses, then take the GRI courses. I took the GRI, I, II, III, IV courses sponsored by the local R.E. Board in 1972. The knowledge has been invaluable even though I did not get a license. I would also recoment the CCIM Courses.

By the way, a license is very useful. My corporation has a R.E. License and a MLS membership. I get more info from agents on listed properties.