Real Estate License: Worth it w/ full time job?

Question

Im Currently working a full time job and investing in Real Estate on the side. I like the allure of having a real estate license for the obvious perks as far as information goes, and the extra cash that it can bring. My question is this; Is it worth it, or even possible, to get your real estate license and practice real estate while also having a full time job? In Pennsylvania i noticed that it is necessary to work for an agency for 2 years.. is that really necessary? Any info or insight will help! Thanks, Kevin

David M. · Answer

@Kevin BotjerIt’s certainly possible. Many people have their license and work full time jobs. There are always pros and cons. The benefit is it let’s your start while already having steady source of income. Usually barrier to entry is pretty low. Normally a pre-licensure class and a state exam. I’m assume the two year PA thing is to be eligible for a brokers license (agents work for brokers). Depending on which brokerage you sign up with, your annual costs in fees/dues will be around $2k I’m guessing (I have no idea where you nor every fee structure around the country)Is it worth it? I suppose that’s up to you. You state you are already doing rei. Have you ever felt your agent, if you use one, isnt providing the service you want or is in the way? Or does your agent ‘gotcha covered’ so you can focus your efforts elsewhere to make money?Hope that helps

Doug Crenshaw · Answer

Hello Kevin!I have been a Realtor for almost 20 years now. I will tell you to be successful as a Realtor...it is a full time job! If you want a RE license just to be able to say you have one... it may not be worth your time or money. To maintain a RE license takes not only time, but money as well. I don't know what it takes for the PA license just to keep it, but here in Florida it takes about $1500-$2000 per year to maintain a license in current active status. To just hold your license as a Real Estate Agent you still have continuing education and fees to keep it involuntary inactive. To be able to do MLS searches you will need to be a member of NAR along with local associations as well and the MLS. If you are thinking of getting it for you to be able to do your own comps, reports, etc... you might be just as well off finding a GOOD Realtor that you can trust to get you the right information. Look for an Investor Friendly Realtor that not only understands the regular transactions in RE, but also understands the ins and outs of the investment world. BP is a great place to find someone close to home. Hope that helps!

Charlie Cameron · Answer

@Kevin Botjer I just did a YT video on this topic! So you'll get lots of responses, as you see. I'd say this: if you have the time, it isn't a distraction from more important things, and you can do better than break even every year, then why not. You can get training, support, and mentorship without having to go in to an office these days so that's not a factor. You can also take the licensing course online in Penn for under a few hundred bucks (Groupon). As an investor first that then got licensed, I will say I've learned A LOT and have a lot more respect for full time agents. As a part timer, I'll never be a big producer. I got my license to do up to a transaction a month helping other investors, helping military friends moving to and from the area, and for my own use at some point. If you can be a decent investor, you can be a decent agent as well. For me in Florida, my costs to be licensed, MLS, Realtor membership, lockbox fees, and broker fees total just under $200 a month. If I sell one home in my neighborhood, it pays that cost for 3+ years. So for me, it's an easy decision.

Brendan Markle · Answer

hey, unless your going to be buying at least one property a year I would say probably not worth it. It takes a ton of time and dedication to get and keep clients, and while its not impossible to do that while having another job, it is very difficult and you need to be super motivated and organized.

Rich Hupper · Answer

It's very challenging getting clients and keeping the commissions coming in consistently.

Xinhuang Huang · Answer

Hi Kevin, I was a part time RE agent in PA for about a year while I lived there; the expenses are MLS membership cost (quarterly), any fee that the broker office that you're associated with requires, license renewal fee and continuing ed (every two years), fee pay to Philadelphia RE association every time you make a sale (or an annual fee if become a member).

Nick Scapellati · Answer

I am currently a full time teacher and have bought our first investment property. I have also started my school to obtain my license. I don't know if I will use it to represent others but rather as a way to save or make money when buying and selling my own investment properties. The 6 % on the buy and sell of a property is $6000 for every 100k so one property a year and I am in the black as far as investment.

Mya Toohey · Answer

@Kevin Botjer Hi Kevin, I am a Realtor in the Tampa Bay, Florida area. The real question is....Are you getting your license to save commission on your investments or to make extra income? You will need to find an agency that lets you list and purchase for a flat fee. You will lose all your hard earned money if you go with a big brokerage that takes 40-50% of your commission and has office fees. The 2 years, is to be a broker/broker associate, at least here in Florida. If you have questions or need advise, I will gladly help you out! All the Best!

Kevin Botjer · Answer

@Doug CrenshawAppreciate the insight, Doug. Thanks 👍🏼