Where is a real estate licence valid?

Question

I am VERY new to all of this and any help would be greatly appreciated! I was looking at getting a real estate license. I was listening to BiggerPockets Podcasts and they said if you are licensed you are able to look at more properties that the unlicensed can't.  I saw that getting one wouldn't be that hard for me but the problem is I move between 3 different states (Virginia, Minnesota, Wisconsin). I am currently in VA but am wondering if I got one here would it not be valid in the other states. Like I said I don't know much about this and ANY help is appreciated. Thank you for your time!!!

Keith Linne · Answer

@Adam Marley - I have a MN Real Estate license, and it is valid state-wide (meaning I can use it to represent myself or others in property transactions anywhere in MN). I'm guessing VA and WI would be similar state licenses. On a different note, MLS access/coverage is more localized. For example, I live in and have access to the Twin Cities MLS system (the MLS is what you can access, if licensed, to browse properties listed for sale, etc), so I have great coverage of active/pending/sold properties in the Twin Cities and surrounding areas. As you get further North (Duluth, for example), the data is less complete, as those listings are typically input on the respective regional MLS system. As such, I typically use an agent from that area when interested in local listings. Hope that helps!

Shane Hedeen · Answer

@Adam Marley,

There is a lot of great stuff that has already been replied to your thread. @Keith Linne and @Reid Thompson pointed out great and valid points. I think too many investors are misled by the "low initial cost" to obtain a license. In speaking to MN, it's around $1000 to obtain your license. Some states have reciprocity, like @James Austin mentions. That said, your license alone in MN isn't valid without hanging your salesperson license with a broker. Brokerages are all different, and all have varying costs to hang your license with them. Some very low and investor friendly, but the flip side is that those places won't offer you much of any assistance. Others have monthly dues, and offer you a set cut of your commissions. Some brokerages let you waive certain charges on your own transactions, other's won't. All vary.

By far, the bigger cost of a license is paying dues to the Realtor association. Most brokers in MN are Realtors, and if they are a Realtor you must be one as well. Several hundred dollars per year to be part of your local, regional and national Realtor Associations.

Then, there's the thing investors "need" which is the MLS access. MLS is regional, so if you're bouncing to three states and areas you are talking about having a primary MLS membership, and multiple secondary memberships. They all vary in cost, but are all several hundred dollars per year. If you're curious which ones you would need, just look up MLS regional areas on Google and start calling a few of those offices to ask some questions.

There are other costs as well like E & O insurance, which helps protect any errors you might make in paperwork as an agent. Good to have to help limit legal things coming your way.

Don't want to scare you away from a license, but my honest opinion is this would be tough if you are looking to gain access in all those places you would need to be doing several deals in each area per year to make all the work and money you spent worthwhile. Make sure you do your homework before paying for the coursework to get licensed, and you are positive that doing it will benefit both your bottom line and business plan. Best of luck Adam!

James Austin · Answer

http://work.chron.com/can-real-estate-agent-hold-licenses-multiple-states-9344.html

Hopefully this helps answer your question!!

Jenifer Levini · Answer

Good question. My understanding is that since real estate licenses are issued by individual states, the license is good only for that state. It would be interesting to know which/if states have reciprocity in respecting each other's licenses. Or, if each/every state makes you go through the educational and testing procedure to get your license.

For law licenses (lawyers) some states have reciprocity and some dont. A lot of the east coast states honor each other's licenses. California doesnt have reciprocity with anyone.

Reid Thompson · Answer

Well, @Keith Linne summed it pretty well, a VA state license allows you practice in the business of real estate, statewide. As Keith stated, I too, would use my contacts when looking for properties outside of my MLS, such as in Richmond, Va Beach, or below.

The search ability for properties presently on the market, depending on locality, is becoming more and more public. We, as licensed agents, retain easy access to more of the historical data, however I can grant anyone access, through my portal, to all property currently listed in our MLS system, which covers the northern section of the state. Just simply ask me, and with a couple of simple pieces of information, I can set that up for just about anyone.

I can not speak for the other states, but the costs of obtain a licensing in VA is minimal and a little misleading. The larger, reoccurring costs are associated with maintaining a license, insurance and affiliation with an association and MLS service that provides you access to the information.

Best of luck. Feel free to reach out to me anytime.

Simone Warmolts · Answer

Check with DPOR on reciprocity. As far as searching for more properties, you can search for properties direct from MLS through most real estate agents websites...feel free to reach out and I'll be glad to provide you with a link. I think that getting your license as an investor will save you more money in the long run, and at the very least taking the classes definitely open your eyes to the principles, practices, and law to help you become a stronger investor! Either way you win!

Adam Marley · Answer

@Keith Linne, @Reid Thompson, @Patrick Devlin, @Jenifer Levini, @James Austin, @Shane Hedeen: Thank you VERY much for all of your input. This helps out a lot so much and I am grateful to everyone that contributed. Considering everything said I I probably will just research houses on my own and not depend on getting licensed especially in 3 states. I will probably focus on looking and possibly getting licensed in WI because that is where I will spend next summer/school year since it will be easier to focus on that than 3 states. An idea that comes to mind is possibly House Hacking but I have time to decide that later. Again thank you to everyone!!!

Patrick Devlin · Answer

This is great info, thanks guys!  I've heard opposing opinions on the idea of having the RE license as an investor.  I think it's absolutely valuable if you (or someone on your team) have it, the big question is, is it worth the time and money to get it yourself or should you just use an agent and start investing?

I'd love to hear some more opinions on how willing agents are to working with investors.  As I see it, they have the potential for a repeat customer, which is awesome.  But they also have the risk of needing to do a LOT of work before closing a single sale.

Where is a real estate licence valid?

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