Questions regarding real estate licensing

[Connor Chatlos]

Hi all,

I am looking to become a new investor in the city of Chicago, as I just moved here! A partner and I are looking to get into house-hacking mid-late next year and are starting the process early. I just have a quick couple of questions regarding my real estate license and was hoping someone could help me out!

1. I have my license in the state of Colorado, and am planning on getting my license in Illinois since its reciprocal.

2. I plan on holding my license under my employer, since they are a managing broker

- Will my managing broker see deals that I complete if my license is held under them? 

3. My new managing broker does not have a transaction coordination team, and with all of the deals I completed in Colorado, I never once had to run through the deal process after signing on a house to get my client to close. Is this process pretty self explanatory if I just follow the correct steps? Does BP have any tools that could help me to make sure that I am staying on top of everything prior to the closing table? (ex title transactions, inspections, earnest money, etc). 

4. I would love to meet to discuss with some BP members either in the Chicago or Denver markets! If anyone has any agent connections that I could get in touch with to discuss best practices, that would be super helpful!

Open to all suggestions - thanks all!

[Riley Poppell]

Hey Connor, I could help you out with this if necessary. Also if you want to connect there are a couple events coming up at my mortgage company. If you are interested add me as a friend on here and we can connect.

[Nathan Gesner]

Quote from @Connor Chatlos:

If your Broker is worth their salt, they will have an Independent Contractor Agreement with you that spells out responsibilities, commission splits, etc. They should be very clear about all the property you sell, including your personal residence or investment property. Why? Because every time you use your license, you are acting under the Broker's license and he/she is responsible. They are subject to liability if someone sues, and their license is subject to discipline or loss of license if you violate rules/laws and get caught.

[Jonathan Greene]

What brokerage are you with in Colorado? Most big box brokerages are independently owned so you would have to join a new brokerage even if under the same umbrella. If you are with a cloud brokerage like eXp or Real, you can just move and stay under their umbrella with a new state broker after you complete whatever Illinois needs for reciprocity.

If they don't have a TC team, you will need to complete and upload all of the paperwork, but they should have compliance videos for you to do. There are also always TCs in the market willing to help inside of most brokerages communication portals.

[Andy Nathan]

Welcome to Chicago, and congrats on starting your journey into house-hacking! Here are some thoughts on your questions:

1. License Reciprocity: It’s great that Illinois offers reciprocity with Colorado, so getting licensed here should be a smoother process for you. Just double-check with the Illinois Department of Financial and Professional Regulation (IDFPR) to make sure you have all the specifics covered.
2. Managing Broker and Deal Visibility: Yes, typically if you hold your license under a managing broker, they’ll have visibility into your deals since they're ultimately responsible for the transactions you complete. However, how much they’ll see can depend on brokerage policies, so it’s worth confirming with them directly.
3. Transaction Coordination: It sounds like you’re used to having a support system in place, so doing it solo may feel a bit different at first. However, many agents find the transaction process manageable if they follow a checklist of key steps. BiggerPockets (BP) does have some tools and templates that can help keep you organized (like checklists for inspections, title, and earnest money). Also, there are affordable transaction coordinators you could hire per transaction if you find you need more help.

Wishing you the best in your new venture, and feel free to reach out with more questions as you dive in!

[John Warren]

@Connor Chatlos I would say the part AFTER a client signs a contract is when the real fun begins. I imagine you may be in for a surprise here in IL with how real estate is transacted. Having the right attorney is a big part of the business, but also understanding how violations, town inspections, zoning certs, transfer stamps, PTAX and other "fun" parts of the closing process work are a huge part of what we do as agents.