Having a Real Estate License: Does that make you an Agent?

[Account Closed]

I was wondering about something for a little while now. When you get your salesperson license you will then have access to the MLS, and you need to find a broker to "sponsor" you. So, does this technically make you an agent? I was thinking, if I could start off working as an agent listing and marketing properties for sellers and then bringing them buyers and collecting a 3%-6% commission for each transaction it would be a great way for me to raise capital for investing. Would it be possible to be an agent and an investor at the same time or is being an agent a full time job that would make it difficult to invest as well. Would appreciate it if anyone could answer my questions or give me advice on this matter. It's something I've really been thinking about.

[Bill Gulley]

Edited, two posts beat to it. Yes, you act as an agent individually under a broker or if you have a broker's licensee then you can have a company under the brokers company. You could have a company in your name to invest, but you better clear that with the broker and the state authority, depends on what that company is doing.

Terry, there are several options, being a licensee does not mean you're an agent until you enter into an agency relationship with a broker. Technically you represent the broker in providing representation to the public. A broker or agent does not need to be a Realtor, that is a professional organization but since the NAR sponsors the MLS, you may not get access, you'll find many commercial brokers are not Realtors.

Your broker, as a Realtor will be a member of the local board of Realtors and they govern the relationships between brokers, in doing so they set a co-brokerage fee to be divided for commissions, but each broker is free to set thier own fee structure, but, if a property is listed on the MLS as a condition to do so, that board may require a fee being split under the co-brokage agreements, but some may allow an exclusive listing without fees to others, which means others won't be showing or mentioning such a listing.

It's highly unlikely a broker would allow you to do only such exclusive listings trying to get 6% or full commission and there is also the split with the broker to hang your license under them. SInce they want sales (and listings that sell quickly) the broker is motivated to use the MLS on the co-brokerage agreement in that board area. If I were your broker, I wouldn't allow your scheme as it really hinders the owner in providing the best marketing path to get thier property sold.

You can be a Realtor or an agent under a broker and invest for yourself, you can read here on BP about thos issues and the requirements to disclose your being a licensee or agent.

As far as a way to earn, yes, being an agent probably has advantages over trying to go out on your own, especially with limited capital as an investor. There are brokers who provide additional training, they can generate leads and business for a new agent that an investor starting out just would not get. But, you'll be spliting commissions not hauling in full commissions on every deal but it is possible.

Study well! :)