Just passed my salesperson exam! Advice?

Question

Hi BP community,

Just yesterday I passed my MA real estate salesperson exam! I just want to say that with effort and determination, anything is possible.

Now, I am also reaching out to the BP community for tips and advice from people who may be or have been in my shoes at one point. Looking for all input and stories from personal experience, particularly in eastern Massachusetts.

A little about me: I am in the market of buying, holding, and renting residential units (there really is no limit on # of units). A big reason why I went for my RE license is to become a more independent investor, and eventually become a broker/investor. Do I want to sell houses to/for strangers? Well, no. I decided that getting my RE license was the next step to become more independent (touring properties on my own schedule, not relying on a broker to walk me through properties on their time, writing offers, eventually saving on commission when selling, and so on).

I understand that I have to work under a broker for three years in order to become one myself. Has anybody had experience trying to explain to a broker that you are only interested in hanging your license under them in order to buy and sell houses for yourself? I know every broker is different, but how did yours react? What was your outcome? Did they like the idea that you only wanted to buy and sell for yourself or did it completely turn them off from hiring you? What are some pros you can offer them if they hire you? Did you reach out to large or small brokerage firms?

Again, I decided that this was the next step to become more independent. What do you guys think? I'm very open to feedback and would like to hear what the BP community thinks. If I can provide any more information about what I am trying to achieve don't hesitate to ask!

Thank you all in advance,

-Steve

Steve Porcello · Answer

@Rick Santasiere I appreciate the post! Your message was definitely not interpreted as negative by any means. You made some great points. I will definitely take your message into consideration, even if it means making changes to my approach to this whole thing. I definitely do not want to come off as "only in it for myself", because I know with involvement and giving back to the community it will only help everybody in the long run. Like you said, if I want to be completely "in the know", I may have to discuss with a broker my intent and find the right amount of balance. Again, I appreciate the alternative response!

-Steve

Rick Santasiere · Answer

congrats @Steve Porcello!  Getting licensed is great, but I would caution you on just holding it for reasons of "self interest." In my experience, people who are not interested in "helping others," typically never get really "good" at being a decent agent. This impacts how well of an agent you are to yourself (because remember, you are representing yourself as a buyer, right?).  My point is this:  If you got licensed just to get in to properties, that is only a small fraction of what it takes to go through a purchase.  You could, in fact, lose $$ not knowing some things that a seasoned agent already knows.  I know this message is ultra-contrary to everyone else' message, I just wanted to offer a different viewpoint.

One last thing to ponder. I am a broker.  I am also an investor. I have a hard time deciding to allow an agent to just "hang their license" with me when they are not interested in helping the community. It can be viewed as not wanting to "give back," which (in some instances) makes me not want to take them on as an agent.  We, as brokers also are required to carry E&O Insurance.  E&O Insurance not only costs $$, but it allows us to take on only so many agents.  When my agents are not performing (or performing for themselves), I am less likely to want to keep them on (not just about the $$ either). Consider this:  If you are NOT helping buyers and sellers, you are also not "in the know" with what is happening in the realtor world. This will make your broker nervous because your limited exposure to sales actually increases his/her risk to liability and getting sued.  This is one of the main reasons why "Big Box Real Estate Co's" don't take on part timers (or investors). It just opens up the door to more risk for being sued.  My $.02

Again, congrats on the test, and good luck finding the right spot for you.  I hope this message is not received the wrong way, just offering a different viewpoint (but an extremely valid one for others considering the same thing)

Justin Benster · Answer

Steve,

First, congratulations on getting your license!  I went through this same situation about a year ago.  I went through the classes and got my license in a week.  Once I had my license, the next step was to figure out where to hang it.  I decided to put together a list of things I wanted from the relationship and then approached it like any other employment opportunity.  I was hiring a broker, not the other way around.  So, I began interviewing brokers looking for the right fit.  I wanted support, education and training, even with over a decade of Real Estate experience.  However, I wasn't willing to pay desk fees or compromise the value that I brought to the firm.  A few questions I asked the brokers I interviewed; What did they bring to the table?  How seasoned were they?  How connected were they with the local industry?  How seasoned were they?  How seasoned were their agents?  How many full-time?  Part-time?  Did they have any nontraditional investor agents?  What education, training and support did they offer?  What were they looking for from a nontraditional agent relationship?  It took me over a month, but I found a broker who had everything I was looking for and saw the value of having a nontraditional agent as part of their organization.  Happy to share how I presented the value I brought to the brokerage, negotiated terms and what the relationship looks like now.  Please feel free to reach out with additional questions.

Cheers and congratulations again!

Steve Porcello · Answer

Thank you @Brad Kelly. Everyone does seem to know at least one real estate agent these days.

@Tim Wilkinson Good luck on your exam! Don't overthink it and just read the questions carefully. I found that there were a lot of double negatives, ex. "Which of the following is not illegal" (aka, LEGAL). Look out for silly things like that. Also I hear you on the KW and Coldwell, they could potentially provide me with leads and opportunity to work with sellers directly. I do plan on working with a broker and getting my 25 hours a week in, as long as I am getting a decent amount of networking.

@Justin Benster Great approach, Justin. I really need to compile a list of quality questions to present to a broker stating what I want, what they offer, and ultimately decide who is going to be the best fit for me. I think one thing I am mainly after is seller leads before they go public. If you held onto any sort of list that you used as a tool when interviewing, I would highly appreciate it if I could give it a look-over, and of course with your permission apply anything to my own case.

@Doug Seabury Thanks for the feedback, Doug. If you have any golden, particular questions that you think I should ask a broker I would love to hear them!

Again, thank you all at BP for the feedback! Hopefully other members in a similar situation read this and can benefit.

-Steve

Amy Kendall · Answer

@Steve Porcello @Brad Kelly

Yes, you guys will want to check what it is for your state.  Every state is different!

Utah requires 60 points, a 60 hour course, and the exam. It's closely tracked here  :)

I am sure you will have no problem covering your costs just doing your own deals! I think it is worth having just for that!  As I stated I started just like you! I think you will be just fine, without selling or helping others buy!

Doug Seabury · Answer

I agree with what has already been said. There's brokers out there that won't mind if you are under them for the purpose of investing, and if your broker has a problem with this the easiest thing you can do is leave. Again, brokers aren't your employer they are your business partner. There's plenty of brokers out there where you can pick and choose which one is the best for you. Again, asking the right questions is essential to being in a beneficial situation with a broker. Hope this helped. Best of luck!

Michael Gosselin · Answer

@Tim Wilkinson and @Steve Porcello give me a call or send me a private message here and I'll discuss with you. I think I might have advice for you.

Tim Wilkinson · Answer

@Steve Porcello congrats!

I am taking mine next Wednesday. I am in a similar quandary. The difference may be that I blew through savings in two years of wholesaling and attempts to capitalize fix and flips/condo conversions.

As an ex-GC in two states, I thought it would be a breeze to partner up with folks with a little more stomach for risk. That isn't the case, and I likely won't do my first deal until I capitalize it personally.

I have a couple property management contracts for cash flow (need 25 more to sustain), but am now in the situation to make a decision like yours.

I have a small broker willing to do a 90/10 split on anything (rentals-sales), but I'd be on my own 100% to market,  but now that I'm cash poor, I'm struggling with this decision.

If I go with a KW or Coldwell, I have a shot at leads and opportunities to network with buyers by doing other folks' open houses and showings.

It could be worthwhile for you to put in the 25 hrs weekly required to get brokers license with a known brokerage. The networking alone can't hurt, and as a buy/hold strategist, having extra capital to leverage your income/debt ratio can't hurt.

My two cents. Best of luck to you on the south shore.

Brad Kelly · Answer

@Steve Porcello, congrats on the license!

What I would suggest is interviewing as many brokers as you can until you find what you're looking for. (Yes, you interview them!) Pretty soon, you'll start seeing your mailbox fill up with packages and flyers from local brokerages practically begging you to come work for them. Not all brokers necessarily care about what your goals are, but don't think that when you are doing your own deals that they won't take their cut of that commission. Every office is different as far as whether they charge desk fees, whether you're required to join the National Association of Realtors® (NAR - about $500/year), who pays for MLS ($87/quarter with NAR discount), etc. Keep in mind all of these expenses are tax deductible. If you're a good at negotiating then maybe you can even convince them to reimburse you for the costs you've already incurred for the license!

As long as you pay whatever office fees you're expected to pay, keep your license active, and act within the bounds of the law it shouldn't really matter that you're only in it to buy and sell your own properties because they are still making that, let's say, 30%-50% off of you. I do agree you should probably try and get some experience by working some deals, which is easier said than done. Many people try to avoid beginner agents and EVERYONE knows an agent in some way or another. Unless you're a ruthless savage on the phone or down to bust your ass door-knocking (or just have really good friends and family like I do), then it takes some time.

In order to get your brokers license, I don't think you need points as @Amy Kendall said. Pretty sure you just have to take another 40 hour course, work under a broker for 3 years ("25 hours per week" last time I checked although this is not really trackable), and take the brokers exam. Follow this link to mass.gov for the FAQs on this and best of luck!

Brad

Just passed my salesperson exam! Advice?

Most Popular Reply