Real estate agent license classes in Chicago

[Joseph Montes]

Hi, I'm interested in obtaining a real estate agent license as a first step in furthering my investor knowledge outside of BP and, of course, for the practical benefits: MLS access/being able to do my own deals. I have two questions for the community:

1) Is there a school/course in Chicago (where I live) that people recommend? I've done some Googling and there are some decent looking courses out there, but I'd like to hear opinions. I work traditional hours so evening/weekend would be ideal.

2) The market I actually invest in is in Michigan. I know you have to get licenses within the state you want to work in and I've read up a bit about Michigan's requirements (http://bit.ly/1gQudcp). Would a course give me most of the general knowledge I need and then I could then pick up more of the state-specific knowledge on my own?

Thanks for your help with my inquiries! Happy hoidays.

[Brie Schmidt]

@Joseph Montes I can answer a few of these, I am a licensed broker in IL.

1. IL is a broker only state, which is a license that requires 120 hours of classroom followed by a in person recorded test. Really, all schools offer the same coursework so it doesn't matter what school you go to as long as it would fit in your schedule.

2. Once the 120 hours are completed you have to take a proctored test and a authorized facility. They take it very serious and record the entire thing on a webcam to check for cheating.

3. The test consists of a National exam and a state exam. When we say Michigan does not reciprocate that means a IL license will do you no good in MI. To get your MI license you can probably find classes online but may need to take the test in MI.

4. Once licensed you have to find a managing broker. Large agencies (ReMax/Century21/ect) charge you to have their name. The managing broker will also take a part of your commission (maybe 20% - 30%) I have found independent agencies offer more flexibility with these terms.

5. MLS access is about $800 a year. Note sites like redfin or realtor.com give you the same access for free, minus agent remarks and documents.

6. Make sure the costs are worth it. It cost me about 2 - 3k to get licensed and with CE courses every 2 years and MLS dues it costs me about 1k a year to maintain my license. with the average 2.5% commission and the average 70/30 broker split you would need to buy about 60k in RE a year to earn the $1k to cover your expenses.

7. The RE license process teaches you NOTHING about buying/selling/making money in RE. It is 100% legal processes and you are now subject to state requirements. Like it will now be illegal to be behind on student loans or child support and you will be subject to additional fines and rules.