Investor Brokers License - Worth it?

Question

I am considering getting my broker's license in the state of Indiana. The cost is $599 for the online self-paced course, $60 for the test, and $60 to apply for licensure. I may already have a managing broker willing to take me on board. I would be doing this part-time for side deals and deals of my own.

It seems like it would be easy to break even if I achieved my license. I'm curious to hear from other investors who have completed or considered it and all your recommendations.

Jake Kellerhals · Answer

Absolutely worth it. I did it because I got tired of waiting on other agents to get back to me or write up offers for me. I never intended to be an "active realtor"….. only to do my own deals. Then I started having a few friends use me here and there, and after a year I actually quit my day-job to do real estate full time. I get 100% of my living expenses from realtor commissions, and let my investment money stay separate and keep rolling over.

One point that I haven't' seen on here yet, it has also allowed me to meet other investors and bankers that I might not ever have met if I wasn't a realtor. They heard about me, as an active investor, and reached out to me to help them get started. The relationships have been invaluable….. not to mention I get a piece of their deals in the form of a commission!

The deal I have with my partners on the investment side is that when we buy a property that pays a commission, I get to keep it. When we sell something on the MLS, I don't charge any commission. We all win and I do all of ground work/contract work for them.

Gary Bailey · Answer

Evan,

Speaking as an investor who had my license, then didn't have it, and now have it again; I can tell you that having a license puts you at a huge advantage as an investor.  Here are just a few benefits that come to mind:

1.  MLS Access

2.  Not being dependent on an agent to list your deals or make an offer

3.  Ability to schedule showings and be there by yourself

4.  Ability to list your own houses, if you choose

5.  Ability to submit your own offers

I could name many more but those are the top reasons that I decided this past spring to reactivate my real estate license in Ohio.  It has been well worth it and I have earned far more commission than the cost of reactivating my license.

Good luck with your decision!

Drew Wiard · Answer

Thx @Mike Knowles

Mike Knowles · Answer

http://www.recp.org/ seems to be the big provider.  I went through them and had a good experience.

Jake Kellerhals · Answer

Another thing to consider, if you get your license and you do work with some buyers and sellers, it really does give you a different handle on your market. I feel like I know much more about what is going on in my area simply because I'm talking to more people and visiting homes that, as an investor, I'd never go check out.

Charmaine M. · Answer

@Evan Manship....here in NYC, there is always deals for classes on Groupon, which cost between $99 & $150.  Check to see if any is available in your area...ya never know.

Good luck!!

Drew Wiard · Answer

@Evan Manship  - That's considerably more affordable than I thought for the course!  Do you (or anyone in the thread) have a link to said Indiana course?

Thx!

Shawn Holsapple · Answer

Well, if you can't do at least 1 deal in 6 month in Indianapolis - you shouldn't be in the business - LOL!  This market is very active and you should be able to do 20-30 deals your first year.  [I did 28 my first year, then over 100 the following and over 150 this YTD]

Also, ALL licensees are Brokers in Indiana now.  There are no agents, just "associate" brokers and Principle Brokers.

Bill Gulley · Answer

Yes, if the deal is valued at 36,000 or more (3%), but you'll have other fees, not sure what In. requires, continuing education, BOR fee, MLS fee, office fees? E&O coverage might be there, co-op advertising and your ads, office party, flowers for the agent in the hospital having whatever, tips at luncheons, get in a large office and you'll have something you could give to almost daily. But, yes, get the license! If you can, get the broker's license, you'll be a broker-agent. Many states require years on the job or other requirements before you can sit for the broker exam, so get it if you can, it could change. Only difference, in reality, is that it's on your business card and you're perceived to have greater knowledge (and you do). :)

Evan Manship · Answer

Thanks for the feedback everyone. Looks like I am leaning that way. @Shawn Holsapple

the $1200 fee was the same piece of advice that one of my mentors gave me. It seems steep but if I only run a few deals I am still breaking even.

Even if I only write 1 deal every 6 months, I still should be good, right?

Investor Brokers License - Worth it?

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