Real Estate License to Purchase Buy & Hold

[Lisa Henrich]

I currently have a great day job and do not want to give it up for a career as a realtor. My passion, however, is being a buy and hold investor and creating passive income. I need my already established high paying job to purchase these properties.

My question is...is it possible to get a real estate license and use it to purchase properties (and save the commission) without working for a real estate firm? Will my license stay active if I just "have it" to use to purchase properties on the side? Can I partner with a broker to do these deals?

I'd like to retire with a total of at least 20 properties. Over the long run, having my license would save me tens of thousands of dollars, as well as cut out the hassle working with a buying agent to gain access to properties.

Thanks,
Lisa

[Brandon M.]

@Lisa Henrich- The simple answer is you have to have the license ACTIVE with a broker in order to get paid any commissions earned. You can take the test without hanging your license with a broker, but you can't get paid until you find a broker. Commissions must be paid to a broker who will then pay you the commission. 

What it sounds like you are looking for is a 100% commission broker. You will get minimal training but get to keep 100% of your commission. I hang my license with a broker like this, this is my specific structure: 

$149 - one time set up fee

$49/month- charged whether I do zero deals or ten that month. 

$300 contribution twice a year- Goes to pay for your E&O insurance (errors and omissions insurance, protecting you and the broker in the event someone sues you or your broker for negligence, etc).

$395- paid per transaction whether I am the buyer, seller, buyer's agent, or seller's agent. If I am the seller or seller's agent I can take the $395 from the buyer's agent commission. For example, the commission offered to a buyer's agent is 3% minus $395. 

Now this does not include any MLS dues or realtor association dues for your specific county.

My suggestion is to Google 100% commission brokers in your area and figure out their pay structure. They are everywhere now so you shouldn't have much of an issue finding one in your area. 

But what you said about having your license WILL benefit you, you can get a 3% discount by being your own buyer's agent, you will save yourself 3% on any properties you sell, and you don't have to ask anyone to show you a house you want to look at. 

Hope that helps.