New from Texas

[Dona Lontok]

Hello BP I'm am new to real estate investing so I'm both excited and scared! I live in north of Dallas, TX and I'm looking to sell our home in the spring to downsize and get some capital for investing. I've thought about getting a real estate license for my own education and save a few bucks when buying and selling. Do you think this is a good idea? I have a steady 9-5 job in IT so this will be part-time for now. At first I'm interested in house flipping because it seems like the quickest way to make a profit, but I could venture in other options as well. Need all the tips I could get to help me get started! Thanks.

[Dawn Oishi]

I'm going to just jump straight to the question about becoming a real estate agent for education and to save a few bucks.  I am a full-time Realtor at a large brokerage.  I spend easily 5-15 hours a week training investor agents and part-time other career agents how to do things, write up contracts, use the various compliance programs and much more.  Mostly because they are unable to attend any of the training provided by the brokerage due to their other career commitment.

Texas is one of the hardest states to get a license in.  You are required to pass 90 hours of training before your exam. Then you have another 90 hours to finish within two years.  Less yearly after that. None of those hours include any of the day to day training hours you need to run your own business within your brokerage.  

Next comes the fees just to stay an agent. You have brokerage fees monthly. Brokerage splits on your transactions. Mextrotex Association of Realtors or any of the other local Realtor Associations in the DFW area that you must be a part of. NTREIS MLS fee. Keycard fees. E&O...all before you can write an offer.

If your plan is to sell a lot of investments, then becoming an agent might be beneficial.  However, if you are buying and holding or buying with an occasional sell...leave it to a Realtor you have made a good rapport with.  1. You are not paying any commissions when you are buying.  2.  Your Realtor friend might be willing to work a commission rate deal with you.  Why spend all of that time and money to dabble as an agent?