should I get my real estate license. Bakersfield market

Question

New to real estate investing but I know it's a great way to build wealth. I'm interested in learning more and diving right in. Bought my first house in Nw Bakersfield November 2016.  wish I would of house hacked and got a duplex or multi unit but I had my fiancee to move in and my realtor kinda advised otherwise. oh well.  I have been working a lot of overtime and trying to save up for my next purchase. I would like to use the brrrr strategy but kind of don't know where to start.  Would you guys recommend getting my real estate license to learn the business first hand. If so, whose a good company to go through. thanks.

Account Closed · Answer

Being an agent and being an investor are opposing forces. Agents make money off investors and buyers and sellers. Investors use agents to find properties. Do you want that as a job or do you just want to build a small portfolio? Figure out your long term goals and the answer will appear. If you want to step it up a notch do both. Being an agent gets you in the deal flow, meet other investors, buyers and sellers and gives you a day to day and insider vantage by a large magnitude. I was a top agent[then broker] in Hollywood for awhile and did well, but when I started buying and fixing and flipping I did really well.

I have been out for a few years and just getting back into it but its much more competitive because prices are up thus commissions. Every market in CA is over valued but I am finding deals every day. Always fixers and such coming about.

One thing regarding a house vs duplex, you can still do that and even with an FHA loan as owner occ on 2-4 units move up property. Keep or sell your existing property and you get your home owners exemption up to $500k for couples tax free.

Another thing is look for ADU law in CA, you can add a unit onto a SFR very easily, the zoning laws changed statewide. You can turn a bedroom and bath, add a kitchen and separate egress and you have a rental.

Account Closed · Answer

Jonathan,

It never hurts to get your real estate license.  It will help you become more knowledgeable and give you some options.  Allied is a good company that allows you to take online courses.  First Tuesday is another option.

Remember that to use your license for any real estate activity, it must be hung under a broker licensed in California.  PM me if you need more specific help or advice.

Amber Smith · Answer

Hi Jonathan, I’m in Bakersfield too & I can relate. I started buying properties in 2016 & now have 2 rentals & have flipped 2 homes. I just got my real estate license and am working with a broker now, but not because I wanted to save money on my deals; I did it because I’ve always wanted to be an agent & have always been interested in real estate.

Studying for & passing the test is not easy. It’s also expensive & once you get your license, you’ll almost certainly have to join the board of realtors, which gives you full access to the mls & costs about $1000 a year.

I think you’d be just as well off continuing to save, buy properties 1 at a time & learn as much as you can about rentals, single family, multi units, etc.

if you have any questions, you can message me anytime!

Dylan Mathias · Answer

@Jonathan Santiago

Hi Jonathan,

I got my real estate license not because I want to be a real estate agent right now but I wanted to have access to the MLS and learn the ropes. It is a good thing to have even if you are not using it to sell houses.

Kevin Moules · Answer

@Jonathan Santiago, first off, welcome to BP. I encourage you to ask as many questions as possible and to read as much as possible. I have only been a member for 2 months and have messaged or connected with at least 20 people. It is fantastic!

I am with @Amber Smith on this one. You don't necessarily need your license although to have more access to the MLS would be nice. I think what folks forget are the yearly costs of keeping your license current. If you want to sell RE as a job that's one thing but as a beginning investor I would hold off. Maybe once you get some deals going and a couple years under your belt you will be better able to answer this for yourself.

Nathan Gesner · Answer

Getting a license is a great way to learn the ropes, but odds are you will fail at it.

87% of agents quit within five years

Unless you plan to dig in and hustle, it's not worth the money, time, or effort. If you plan to succeed, it's a great option.

Amber Smith · Answer

@Kyle Marek

Sorry I didn’t see your response earlier!

As far as my thoughts...if the passion and interest is there in real estate, you can’t go wrong with getting your license, but it IS a lot of work to get clients and business.

Part time isn’t a bad idea, I would recommend trying to find a bigger agent who is looking for a buyers agent. Basically you would work under someone who is so busy, they give you extra clients they have and you split your commission with them. This can give you some security knowing you will have some clients and money coming in while also giving you someone to work under and learn from while also trying to build your own client base.

Good luck!

Frank Wong · Answer

Hi Jonathan,

I used Californialicense.com  for all my pre-requisite courses.  Its low cost and you can go at your pace online.  Don't stress too much about the test once you pass you are in the game.  I suggest finding a good brokerage to work for.  A big name helps (Keller Williams, Coldwell, etc) and work for a large top producing team.

The most important thing for new agents is making money.  So in the beginning when you don't have any clients you have time.  Go do all the open houses for the top people in your office.  This will allow you to gain experience and also get buyer leads.  Never know when a buyer walks in and wants to buy the house.

Don't rely on people in your office to teach you everything.  If you don't know, try to find out and learn yourself.  Most agents are too busy with their own work to help.  Don't worry about that.  It's part of the business.

Hope this helps.

Sheeva R. · Answer

What online courses do you recommend to meet the requirements for the license exam?

Also what are the yearly fees to stay active?

Kyle Marek · Answer

@Amber Smith

Hi Amber, thought I'd use this forum as a platform to take you up on your offer to message you about questions!

I'm a 25 year old teacher in the Bay Area. I've long been interested in real estate, specifically rental properties. I've completed a 135 hour salesperson real estate course. but real estate investing has since captivated me much more than working as an agent ever has.

My original plan was to work part time as an agent after getting my license, and hopefully network, make connections, get investment advice from professionals, and have access to the MLS.

This sentence from your post really caught my attention: "I think you’d be just as well off continuing to save, buy properties 1 at a time & learn as much as you can about rentals, single family, multi units, etc.".

I'm not doubting whether getting my real estate license is worth it after the MLS fees and the fact that I am not chomping at the bit to sit at a desk and make calls for hours. I like to be active and interactive with people! I've been reading a bunch and listening to podcasts on BP, and it seems to maybe be enough of a resource itself.

Any further advice about whether getting the license is worth it would be great!

should I get my real estate license. Bakersfield market

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