Is getting your real estate license really worth it?

Question

Hey BP I hope you are all having a great and successful day!

I'm sure that this question has been posted a million times (and honestly I neglected to type this in purposefully) but I wanted to perhaps revive/start a new conversation on something that I have been contemplating. I'm sure I will get a "this has already been posted, check out this thread" reply but let's take a fresh look at this and see what people are going through right now or have gone through!

What are your thoughts on this? Is taking the time to get your license worth it? And what are the pros and cons you have seen in pursuing/having your license?

Also, if you do have your license, tell us your experience (how long it took you, did you have to go with a broker etc).

Thanks!

J Scott · Answer

Technically, this is correct in most states.  Until you're associated with a broker, you're not an active licensee -- you are credentialed but inactive.

Will Barnard · Answer

and the answer in all threads should be: It depends on each circumstance and goals of that investor. Having a license has many advantages and only a small handful of disadvantages. Education in RE investing is NOT one of the advantages, so don't think by getting your license you will have a better understanding of RE investing.

Onan Dumas · Answer

yep.... I'm thinking the yearly cost in Dallas according to those fees mentioned would be saved and more by being your own buyer and seller's agent if buying multiple properties for for rehab or buy and hold.. Plus all the tools tools available!!

Zach Schaar · Answer

How else can you gain MLS without being an agent?

Zach Schaar · Answer

Even me being a newbie, I know by now this is extremely common. I took all my pre-licensing courses (took about 3 weeks going 40 hours a week full time, cost about $1300 in Ohio). After that, you've got application, test, and board fees assuming you pass your exams on the first try. Again, this is in Ohio.

My point is, you can make any market work for you. Being new is the hardest part. It is for sure worth the investment, even if you start out part time. And besides, if you get into investing having access to the MLS is a BIG help.

Good luck! It's a tough road to getting licensed but if you set your mind to it you ll do fine.

Account Closed · Answer

@Chris Feltus is right.  And expect to pay about $1,300 just to get started (education, NAR membership, supra key, etc).  Most brokers won't take you on unless your are a "Realtor", although I am sure you could find one who would.

Chris Feltus · Answer

@Onan Dumas If you want to be an "active" agent here in the Dallas - Fort Worth area expect to pay $2,500 or more annually. This includes monthly brokerage sponsorship, annual membership dues, quarterly dues, MLS dues etc.

Onan Dumas · Answer

@willbarnard I guess the issue for many people is is finding that holy grail...

@davidbeard thanks for the detailed response and a peek into a RE agent's world.. You do bring up up a good point about it impeding with your RE investing if being an agent is not your full time job...

David Beard · Answer

In my state, averages about $100-120/mth with a no-frills fixed $ commission brokerage for:  realtor fees, MLS fees, E&O insurance, and continuing education.  Initial class was $1,000, cost of exam itself was fairly minimal.  So very cheap in the context of a viable and ongoing real estate business.

Bigger issue is:  will the license impede your wholesaling activity?  Some have dropped their license to avoid disclosures and liability ("higher standard") concerns.  Whereas, many other wholesalers swear by having their license, though the relationship with your broker can potentially get tricky (thus might want to target becoming a broker yourself down the line).

Will Barnard · Answer

Certainly a perk, but not the only way to gain MLS access.

Is getting your real estate license really worth it?

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