Real Estate License

[Ricky Plemons]

Hey Everybody! Quick question, just want to pick y'alls brain for a minute. I'm new to Bigger Pockets and new to Real Estate investing, haven't bought any property yet since I'm still in the learning process...ANYWAY..I'm curious about getting my real estate license for the access to MLS and not having to schedule visits with agents to be able to see a house, BUT I'm not thrilled about having to work for a broker..is that something I have to do to be licensed? Can I not just go through the process to get it and only use it for the reasons I want? I don't really have an interest in being an agent, but I do want some of those agents perks. I'm wondering if I need to just bite the bullet and do it, or find an agent that wouldn't mind helping me out.

[Richard Balsam]

I'm an investor that also has an agent license. To answer your question- it is mandatory to have a broker "employ" you. This has nothing to do with a standard employment agreement. In fact-you sign an independant contractor's agreement with the company. By getting a license- the state understands that you know more than most people and are held to a higher standard that the general population regarding everything you say, and the actions you take regarding real estate. But...you do not know everything - and a Broker is responsible for all actions you take, how and when you deposit escrow funds, your paperwork (listing agreements and sales agreements- and how they are filled out, etc) basically- everything regarding state law in handling all aspects of a real property transaction. ( can you tell - I was a broker years ago in a different state!)

Now- just because a broker is "hiring" you- doesn't mean the old commission agreements are the same today. Years ago- there were 50/50 splits, down to 70/30 splits. Today- many smaller companies are paid a small amount per month to keep you "active" and sponsor you. ( I pay $45/month) with a token $300 or so per each transaction you do ( a closing taking place) - and you keep the rest. So - you take a listing worth $5K when it sells, you hand the closing check to the broker, he/she deducts the $300 fee ( or whatever your agreement is with him/her), a tiny % to the MLS, and you get paid the rest. No deals - no closing fees - just the monthly amount due. Speak to your accountant- it is a business expense - and is tax deductible.

Is it worth the $45 monthly fee I pay? Some companies charge less, others a bit more. It's called a 100% split plan if you're interested. BTW- if you do get a license, one listing that sells,  one time, pays for a lifetime of these monthly payments... worth thinking about! Do you know anybody that owns a house- either now or in the future- that will list their house - and give it to someone? Thought so!!