Laid off - a good time to get my RE license?

Question

Hi Everyone!

I was recently laid off from my FT job because of COVID-19 - my husband and I are newbies who are ready to buy our first investment. We've listened to a ton of BP podcasts and feel like we have a good strategy and had always planned on me getting my RE license, more to give us access and opportunities for investing, not so much to be an active agent. Since my layoff, I thought it might be a good time for me to just dive into it. With that being said, I have a couple of questions:

1. Since we're in a pandemic and quarantined, what are some good online resources where I can learn and take the test? (I live in PA)

2. Since I have a lot more time on my hands these days, would be it worth it to take a stab into being a realtor? My background is in staffing, so I have a lot of experience in sales but have never really envisioned myself being a realtor, and have really focused on learning and developing skills to be a RE Investor. Our goal is for both of us to be able to quit our jobs in the next 5-7 years, however since I'm already unemployed and the job market is a little bit bleak right now, maybe now is the time to go all in and use the license to also generate income??

Sorry for the long winded question, I appreciate any help or guidance you can provide!

-T

Kobe Xin · Answer

@Trish Dunn

Hey Trish. I’m sorry to hear about your job. This is no question a difficult and stressful time for everyone. Being a real estate agent can be a great way to learn and network with industry leaders. Now it’s true that a lot of agents don’t earn their first commission within their first six month in a “normal” market, but there are also success stories you will hear from time to time that an agent crushes it within their first year. It just depends on what your plan it and whether you have a solid plan in place for lead generation, marketing, lead conversation, etc...I think it can be a good time to start exploring different options and learning more about what it takes to be a realtor and how it might be able to help you in your long term goals. A lot of people don’t understand that being a real estate agent is like running your own business as opposed to a job. I think you should look into online licensing courses and the opportunity being licensed can bring you, there are some cheap courses on Groupon so you won’t be making a massive investment just for the courses.

Hope I was able to offer some value!

Jaysen Medhurst · Answer

I'm sorry to hear about your job. I was laid off during the financial crisis in 2008. It sucks. No two ways about it.

To answer your question: No, I don't think this would be a good idea, @Trish Dunn.

• You don't really want to be an agent.
• It will cost you money and time to become an agent. Money you should be saving and time you should be using to either find a new job or your first deal.
• As an investor there are a few advantages, but there are also disadvantages that you should be aware of. David Greene did a good job covering these at the last BP Conference. Look for the podcast with the roundtable discussion at BPCon.

You wrote, "...go all in and use the license to also generate income." How likely do you think that is, now, with a slowing and uncertain market? Do you think buyers and sellers are going to choose you as their agent (with no experience) in these times when there are a bunch of rock star agents out there with a whole bunch of extra time on their hands? It can take 6+ months for a new agent to earn a commission in good times. How long do you think it would take you with nothing but headwinds right now?

Alex Deacon · Answer

@Trish Dunn anytime is a good time to get your license. Its inexpensive to obtain and doesnt require a lot of effort. In Pennsylvania I believe its 75 hours of courses and then a two part test. Then you are licensed. Even if you decide not to use the license you can always put it in referral for future use and just refer business to other agents and get paid to do so.

Eudith Vacio · Answer

Hi@Trish Dunn, sorry to hear about your job loss but this could turn out to be a blessing in disguise. I agree with everyone to soak up as much information as you can. Attend virtual meetups and start networking with people. Get on the phone with them and start building relationships. There are always new investors coming on the market that need help. That of you can help yourself get your first deal!

Best of luck! While it may not be easy, it is still possible.

Alison Wise · Answer

I'll second what Brendan said on becoming a notary signing agent. I've gone this route and while it definitely has its ups and downs, it's definitely worth the effort. The only issue with starting now is that it's likely that you can't take the test during the shelter-in-place. (every state is different, but I'm in CA and know people who want to take the test but can't until things reopen). And then it's a few weeks after taking the test to get your commission in the mail. But it's still a small startup cost and you're able to make money within a few weeks instead of in 6 months.

Brendan Markle · Answer

@Jaysen Medhurst is 100% right.  I'm an agent/ investor.   I make good money as an agent, but it took years to get to the point where I really, truly have consistent income.  Unless you get lucky, you won't see a commission for at least 6 months.  It will cost about 2-3k just to get started between classes, the test, mls access, broker fees etc. and after you get your license, generating leads is pretty much a full time job.

If your serious about becoming an agent, save up at least 6 months of expenses, and be prepared not to make a cent for a long time, while working full time.

If your just looking for a way to make more money during the pandemic, look into becoming a notary signing agent.  Much easier to get into, and you can start making great money very quickly, only spending about $500 to get started.

Laid off - a good time to get my RE license?

Most Popular Reply