How to be California RE Agent and Keep My Job

Question

I've finally decided to start my training this month so I can get my CA real estate license, but immediately I discovered a problem with my plan. I was told that in CA I cannot sell RE without working for a broker. Is this true?

I understand that after passing the RE test and getting my license, I will still need to be trained on how to actually do the business of RE, including how to do the paperwork and how to research properties. However, I have a well-paying full time job that I do not plan to give up. I want to sale RE and work until I retire, then do it full time.

Someone referred to me Keller Williams for training, but a rep at the KW in my area told me that they require newagents to actually work in theoffice during regular business hours (my current work hours) while training and to do 3 sales in 6 months.

Does anyone have any suggestions of how I can reach my goal of keeping my job, and becoming a CA real estate agent?

Dale Pulliam · Answer

A lot of Part-Time Agents work for TNG with a flat-fee. I may be switching over there soon myself. Meet as many agents as possible and try to co-list with another agent so you can learn the ins & outs of the transaction. Good luck!!

Charlotte Moore · Answer

Thanks @Jesse Sasomsup. I'd heard there was is a delay in getting the license after you've passed the test.

Joel Owens · Answer

Disclosure laws vary by state so you would need to get with your real estate commission. Your local brokerage you join should have this information.

I would not recommend doing residential and commercial. Commercial takes a very high skill level and brokers/agents specialize usually in one type such as retail,industrial,multifamily,office,etc.

You might could do small mom and pop commercial with residential.

If you start transacting 5,10, 30 million dollar deals your client will expect you to do commercial full time.

Charlotte Moore · Answer

@Penny Clark thanks for the insight . I wil give CAR.org and the internet a try to see how much I can learn before going further. Its good to know there are flat-fee brokers. This may be my answer.

@Joel Owens what are the disclosure laws. I would like to research them. I plan to buy property for myself real soon, but I thought I'd wait until after I get my license so I would get to have my own agent fee. Is this allowed?

I was also told agents have to choose between selling residential versus commercial real estate. Is this true? I don't want to choose.

Joel Owens · Answer

Brokers want vanilla type agents and transactions. Anything outside of that is risky to the firm.

Your statement:

"I just want to be an agent and to do my own thing in my own time. I originally wanted to do wholesaling, but after talking to a few people, it seems I would have a better chance of getting sellers in this area to trust me and to enter into a contract with me, if I were an agent."

With being licensed also comes additional disclosure laws that you didn't deal with being unlicensed when you want to buy a property or put it under contract for your benefit.

There are customer roles and client roles as an agent. Being the agent you fall under the control of the brokerage you hang your license with. There is an IC agreement (independent contractor) that you sign stating you will adhere to the rules of the brokerage. If anything conflicts with what you want to do you would need special permission and a revisions to the IC agreement ahead of time.

The listing is not your listing but the brokerages. You just work as a contractor for the brokerage. Your fiduciary duties are different for customers versus clients.

A brokerage generally carries an E & O policy ( errors and omissions) insurance. Anything not a vanilla deal increases the chance of a claim against a brokerage. Brokerages with decades in the business do not want to put the firm at risk with new agents trying risky type of transactions.

That is why those types of transactions one of those investor owned brokerages who make so much fee per closing might work. Those investors the brokerage isn't the lifeblood of their business. If their license is revoked they can simply keep doing investments and they are not as affected as much.

Frankly it sounds like you might not even need to be an agent but work with one so you can just submit offers and do deals on the side while keeping your job.

Charlotte Moore · Answer

Thanks @Joel Owens and @Nabil Suleiman for your quick responses. I thought a broker is realtor management level, which requires a second license in additon to the agent license. I don't want to be a broker, I just want to be an agent and to do my own thing in my own time. I originally wanted to do wholesaling, but after talking to a few people, it seems I would have a better chance of getting sellers in this area to trust me and to enter into a contract with me, if I were an agent.

Even now have I come across people who are causally looking for deals, but I’m not really in a position to help them. For example, a couple of work colleagues have an interest in multi-family units. I think I could probably help them and get them to make the investment now, if I had access to listings and other information agents have.

Nabil, I'm in Pasadena also. Do you know of any local brokers that work with part-time agents?

Penny Clark · Answer

@Charlotte Moore, Joel is right about the leading RE firms not wanting to work with part-time agents. However, many flat-fee type brokers will offer admin marketing and online training. Just do an internet search and check reviews. Most of these big firms training consists of building your base of referrals. But you already have a base - co-workers, and others that run in your social circles. When it comes to listing their house or buying one, most people go with someone they know. As far as training on forms and such, you can get most of that on line through your local and state real estate associations like CAR.org. I would also hook up with a seasoned agent not in your immediate area to help mentor you. Eventually, you may want to go full tilt into real estate. Until then, just use it for purchasing your own investments and helping people you know. Your W2 J-O-B income will be useful in funding your own investments and secure financing.

Joel Owens · Answer

In most states when you first get licensed you are an agent. You must be active and in good standing for a certain period of time ( number of years ) and pass all required tests to become a principal broker. Some get their brokers license but stay as an associate broker for a firm. Principal broker means you are the head person at the company. The principal broker can have a designated broker if they want for office and agent support.

Companies use lot's of different titles but usually is set up something like this.

Charlotte what you are talking about is "selling on the side" where you keep a J-O-B.

Brokers typically do not like agents to do that. The agents have no skin in the game not going full time. The agents tend to be rusty even if trained up and do not generate much business since they are not doing it full time.

This is why many brokerages unless an agent goes full time (all in) they will not take them on or spend time training them.

There are usually some companies where you can do a part time type thing. Do not expect to get a lot of support at those places.

The reality is real estate can give you an awesome career. The bigger reality check is about 90% of people that become agents the first year will fail and leave the business. Of the 10% that remain about 80% of those will be gone in year five. If people get licensed just for the hopes of big money it's the wrong reason. If you truly enjoy real estate and are a people person and can handle high stress and adversity being told no a lot to get to a yes then it might be for you.

I am on the commercial real estate side going on my 13th year and love everyday getting up to see what's next. I am full time though and do nothing else. The specialist tend to make the top tier money but getting to that high level you need to do it full time. If your goal was to get licensed just to make some investments and keep your job there are brokerages out there who might fit the bill.

The Keller Williams place is telling you they do not work with that type of arrangement and want full time agents.

How to be California RE Agent and Keep My Job

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