Considering FL RE License - What fees/expenses should I expect?

Question

Hello!

I've been interested in real estate for some time, specifically for investing and potential new career (full or part time). I've read other posts here discussing the pros/cons to having your own license as an investor and can see the benefits in becoming licensed. My concern is in regards to recurring fees (mostly the ones you must pay to remain active - ie not personal marketing/advertising or other optional fees/services). I've researched a few brokers in my area and have seen broker fees ranging from $80 to $400+ a month. Not a big deal when closing sales, but as a new agent I realize it may take some time for that to happen.

Before moving forward in taking the course, I wanted to see if I could get as much information about what to expect as far as expenses and fees. I'm in Florida (Tampa), and realize it varies by location and whichever brokerage you're with, but if I could get a rough idea it will help prevent any future surprises. I just want to prevent from getting in over my head... I'd hate to go through the time taking the course and exam to only discover the monthly costs are more than I initially expected or that there is a service fee I didn't take into account. I've contacted a few broker groups, but naturally they don't want to disclose specific fees until I've passed the exam.

If anyone wouldn't mind sharing some rough numbers, I would greatly appreciate it! I'm also open to any of your own thoughts or suggestions as well. Real estate interests me enough to go for the license (I've been thinking about it for years), but again I'd like to know all that I can beforehand.

I appreciate the help!

Jake E. · Answer

Thanks for all of your answers and input! I appreciate the guidance and help.

I have since begun taking an online course towards getting my license. Bottom line, I feel it will help in the long term and might lead to a potential career or side income too. I also watched Brandon's 90Day Webinar the other day which only confirmed this is the direction I'm looking to move towards! As I said, RE has always interested me especially the investment/income aspect of it.

You're insight helped me feel more confident in moving forward. Basically, I didn't want any surprises.. It'd be such a disappointment to complete the course/pass the exam and then find out I'd need to spend $$$ to reach the next step. I'm all for a few grand a year, especially when I could make that back with a single sale. It's a worthy investment in my opinion.

Something else I've been wondering too - How does one get a lead? I'm assuming through marketing, lead generating sites, and maybe some luck? Or do some brokers provide leads to their agents as well?

(Sorry for the delay.. I just happened to see my email about receiving a reply to then log in and see all your helpful responses. Thanks! I'll address each below)

@Share Ross thanks for sharing! Oddly, Exp is on my radar. Their lower monthly fees and being an online company caught my attention. But I agree, everyone is different, so it's worth researching the available options.

@Edgar Rodriguez great to see those comparisons! It goes to show how each broker can vary. It's definitely worth searching around to find the best fit then. I've done some research into KW and have them as a contender along with a few others, so thanks for that insight.

@Colin G Murphy I agree, it's definitely an investment. Ultimately, I would like to sell/buy for others, but having access to the MLS for earlier research possibilities seem like the best perk when getting into RE investing.

@Wes Eaves The main drive is for investment, but selling for others would be a great way to build up additional cash to put towards investing. I did consider skipping the license (since it's not needed for one's own property) but as a newbie to the RE world, it seems like a good starting point. Plus, MLS access seems like a large advantage. Thanks for the tip on checking how sales are entered/logged.. I never knew about that. I'll definitely keep that in mind!

@Charlie Cameron I agree, the course prices I've seen online are very surprising! I ended up picking a mid/higher tier course for the added benefits and included post-license course. In the end, $50-400 for a course isn't bad at all considering it can lead you on a new career path. I've paid far more for college courses that (sadly) didn't offer as much... Thanks, glad to hear it's worth the time and investment!

Thanks again everyone!

Colin G Murphy · Answer

Hi @Jake E.

Paying for a decent online course in addition to exam and application fees should cost about $500. Once you´ve activated your license, you should budget $1000-1200 per year for MLS access and local board dues (add another $200-250 per year if you want a SUPRA key). Then you have the recurring broker fees (which vary a lot as you know). The transaction fees and commission splits are deducted from commission on closed deals, so they´re nicer "problems" to have.

It is a chunk of change and takes 70+ hours of study, but if you can back yourself to just get a single deal done, then it is a worthwhile investment. That "single deal" could include buying a property for yourself direct on MLS, selling one of your own homes direct on MLS or just acting as a regular agent to collect 3% on a client transaction.

It is best (and correct) to think of the money and study as an investment rather than a cost.

Share Ross · Answer

Hey @Jake E.... already based on your thoughtful and well written response... I KNOW you will do well no matter where you land as a realtor. Best of luck to you! Hope to see your listings soon in the MLS! ;-)

Charlie Cameron · Answer

@Jake E. You can take a online license course for $50 in Florida (yeah, stupid cheap!).  You'll have registration, fingerprint, testing fees as well, so budget $500 initially.  Then you'll have initial fees with REALTOR association (if you join) and local MLS.  Budget another $1000.

After that, monthly fees will include your continuing MLS/REALTOR memberships, monthly broker fees, and Supra/lockbox fees.  For me that averages out to $191 a month.  Not bad considering the lowest commission check I've netted is $3K!

Best of luck to you.  Totally worth the cost in my opinion!

Wes Eaves · Answer

@Jake E. I'm a real estate broker in Brandon.  Are you wanting to become an agent to help clients (buyers & sellers) with traditional real estate or are you looking to be an investor on your own?  If you're looking to buy/sell your own real estate, then you do not need a RE license.

As far as brokerages go, you are right...there are a TON of fees, costs, etc. structures and vary greatly from brokerage to brokerage.

As others have mentioned, some of the large "big box" brokerages make substantial money off the backs of their agents with monthly fees and set up fees.  Its a similar model to a gym membership, they provide some resources, but you are charged whether you utilize the weights & treadmill or not.

A lot of brokers, such as myself, don't charge "junk" monthly fees to their agents.  You'll also want to ask if listings and solds go in your name or the name of the broker or team lead only.  You'll want to make sure that they go in your name, otherwise you will have nothing to show if you ever leave for a new brokerage.

Make sure to interview multiple brokerages and see what is the right fit for YOU!

Edgar Rodriguez · Answer

@Jake E. hey Jake. If you're question is in terms of actually getting licensed, that is on the DBPR website. Here's a quick link I found.

https://www.floridarealtors.org/education/how-to-get-your-florida-real-estate-licenseIn terms of brokerages, they will vary A LOT. Most big brokers have monthly office fees, transaction fees, and commission splits up to a cap. When I was with KW in New Tampa, you paid $50 per month office fee. Then, you would charge your client a $295 transaction fee or you would have to take care of the expense yourself. The split was 64/36 up until you hit a cap of $15,000 paid to the brokerage. You also have upfront set up fees that I do not remember but they were not much more than a couple hundred dollars.

My new broker charges a one time set up fee and then an 80/20 split up until you hit $12000 paid to the broker. No monthly fees but there is a $395 transaction fee but that is paid for a transaction coordinator to bring your deal from contract to close, essentially do a lot of clerical work.

Share Ross · Answer

Oh meant to add, for monthly stuff... there will be an initial startup with any brokerage. So plan on that too. Then yes, it depends on the company. I'm with Exp so it's $85/month for me. You really have to do your research and see which broker fits you and your needs! Hope that helps and good luck!

Share Ross · Answer

Hey good question! Like any business, you'll have some startup costs. If I remember correctly, the MLS board was the biggest chunk. (It's annual) However, you can usually do that with monthly payments! Then, it will depend on which brokerage etc etc. If you want an actual number... I'd say plan on around $1500 all in to get going. Which isn't a lot considering it's a bona fide business where you can build an empire. :-)

Khalid Bryan · Answer

Check out my youtube channel on the topic. Khalidsoldit. Link on my profile. I show how to get your license online and what to expect as a new agent.

Considering FL RE License - What fees/expenses should I expect?

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