Author Topic: Real Estate Agent license a good investment?  (Read 5208 times)

cheeselover91

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Real Estate Agent license a good investment?
« on: November 19, 2013, 12:00:37 PM »
I have some extra money and time this winter and am thinking about taking the required prelicense course (if I'm reading correctly, it's good for 3 years). If I do decide to become licensed w/ a broker, are there requirements of selling X amount of houses per year?

I want this to be something in my toolbox that I can pull out if needed, not another part-time job. It sounds like this is the case for Mrs. MM, and I just want to make sure before I plop down the $200.

Thanks!

MKinVA

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Re: Real Estate Agent license a good investment?
« Reply #1 on: November 19, 2013, 02:04:09 PM »
This may depend on what your state/market requires for ongoing licensure. In Virginia, you would be paying a couple of hundred bucks a month to the brokerage for access to Multiple Listing Service. And you have to or they won't let you hang your license with them. In a lot of places these fees and others make it too costly to just have a license in your back pocket.

Mississippi Mudstache

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Re: Real Estate Agent license a good investment?
« Reply #2 on: November 19, 2013, 03:58:42 PM »
I just finished the pre-license course in MS. It was $225, and it will cost another $110 to take the licensing exam. After that it's only about $30 a year to maintain my license. Two expenses that I didn't consider, however, are another $200+ per year for E&O insurance and $200+ per year to be a member of NAR. I have a friend who is a licensed broker, so I am getting my license under him with a very informal agreement. I figure it will only take one commission as a buyer's agent to cover my expenses, and it'll be a nice to have something to fall back on if, heaven forbid, anything should happen to my job.

paddedhat

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Re: Real Estate Agent license a good investment?
« Reply #3 on: November 19, 2013, 04:28:01 PM »
Don't care where you are, if you are talented, hardworking, honest, and driven, you can make a metric shit-ton of case in the business. I built homes before, during and after the recent recession from hell. I built them in a second home market in an area that got hit like Berlin in the war. During that time I made a real decent living building spec. houses, and did business with a real estate power couple that made a ton by working their butts off. During that time frame, the majority of builders and realtors did everything from failing in  spectacular flaming financial death spirals, to slowly fading away.
  If you do have all the attributes I listed, and jump in the game, it will only take but a few months till you look around a typical office and ask yourself, how can so many idiots have gravitated to this place? I really believe the old claim that 20% of the agents do 80% of the business. The other part of this claim is that 20% of the agents really should be given a job app. from MacDonalds, as they are doing the walk of shame, heading for the door with their box of personal belongings.

KingCoin

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Re: Real Estate Agent license a good investment?
« Reply #4 on: November 20, 2013, 08:52:30 AM »
I'd ask yourself, if you had a real estate license for the past couple years, how many times would it have resulted in money making opportunities? If the number is 0 or close to it, it's probably not worth it.

I suppose it could be worthwhile if you're socially very well connected amongst peers who are commonly buying and selling real estate, and that you're respected enough amongst these people that they'd want to employ you rather than a dedicated professional to handle their real estate matter (would you want to hire a hire a friend with a license in their "back pocket" instead of someone serious about their job?).

I think the Mrs MM experience, if accurately represented, is a very unusual case. If would be interesting to see a breakdown of precisely who is seeking to employ her and why. When you have tons of dedicated professionals eagerly seeking out business, the notion that opportunities are just going to fall into your lap is a little far fetched.

Mississippi Mudstache

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Re: Real Estate Agent license a good investment?
« Reply #5 on: November 20, 2013, 09:19:14 AM »
I think there are many people who worry about getting screwed over in real estate deals (and rightly so). I think it's reasonable for someone to trust a good fried to better represent their interests as a buyers' agent in a real estate deal rather than some random agent who earns a greater commission if they pay more for a house.

I've bought 2 houses - with the first, I was with an agent who was a good friend of my aunt. He listened to my needs, showed me what I wanted to see, and helped me negotiate what we thought was a great deal (of course, that was in 2007...neither of us were prepared for what happened the next year). The second time, I was represented by an agent that I didn't know. She kept showing us houses that were $40,000 over our price range and making mountains out of molehills when she saw "issues" on houses that were at the lower end of our price range. In the end, we bought a FSBO home on our own.

I don't see much opportunity for part-time real estate agents as selling agents. Even if I never help buy or sell a single property, though, being able to sell your own real estate will save you shitloads of money in the long run.

KingCoin

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Re: Real Estate Agent license a good investment?
« Reply #6 on: November 20, 2013, 10:13:51 AM »
I think there are many people who worry about getting screwed over in real estate deals (and rightly so). I think it's reasonable for someone to trust a good fried to better represent their interests as a buyers' agent in a real estate deal rather than some random agent who earns a greater commission if they pay more for a house.

I'll agree with this. It probably helps a lot to have a couple transactions under your belt.

Johnny Aloha

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Re: Real Estate Agent license a good investment?
« Reply #7 on: November 20, 2013, 11:05:38 AM »
I've also considered this, but decided against it becuase I would become frustrated by showing a couple 30 different houses and hearing complaints about each one and why they don't want to put in an offer!

I generally have a relatively low opinion of RE agents (although I have met a couple good ones) and I think if you actually look out for your client's best interests, you can do very well.

arebelspy

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Re: Real Estate Agent license a good investment?
« Reply #8 on: November 20, 2013, 11:40:25 AM »
Quote
Real Estate Agent license a good investment?

Depends on the person.

For the vast majority, I'd say an emphatic "no".
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
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Simple Abundant Living

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Re: Real Estate Agent license a good investment?
« Reply #9 on: January 11, 2014, 02:43:32 PM »
I was wondering about this for my DH. He has some free time and was thinking about going back to school (already has one masters). We are interested in investing in real estate, and I thought it would be great to have one of us be an agent- both in seeking properties and saving on fees. His dad is a large ranch/farm appraiser, but he also has his real estate broker license, so there may be an opportunity for DH to work with him as he gets started. If we did that, the long-term goal would be living in Hawaii with me working as a PA and him managing properties/selling real estate semi-retired.   What do you guys think?