Getting A Real Estate License in Michigan

I just posted this in the forum in response to someone who was asking about getting their real estate sales license in Michigan. After I posted it, I realized it might be a good bit of info for other people, so I'm reposting it here.

Keep in mind, this isn't standard for everywhere, just my experience in my area, with my broker, so YMMV!

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I'm a licensed Agent in MI. I'm with the Keller Williams in Royal Oak. I can help you out with a license.

Basically, you take a 40 hour course, and then take a test with the state. There are online courses, but I'm telling you, take it in a real classroom. There's so much material that you don't need to learn, because its not on the test. In a classroom, the instructor will tell you only the parts that matter. If you try to learn all the BS they want to you in the online classes, it will take way longer.

I took an online course first and got overwhelmed with all the occupational code BS. I'm pretty academically astute, but after about three days struggling with the online course, I ended up taking a second course in an actual classroom, and a week later I was done. I passed the test the first time pretty easily. It's mostly bureaucratic and technical stuff, and information about fines, RESPA, and renewing the license.

You don't use much of anything from the test in the real life business of real estate (except RESPA, before someone bites my head off). Once you join a brokerage, you'll have to get actual training in the real business of real estate.

After you pass the course and the test, you get your license. You have to hang it with a broker. My broker is Keller Williams. You also have to join the boards - National Associate of Realtors, Michigan Association of Realtors, and a local board. For me it's Metropolitan Consolidated Area Realtors. There are several in metro-Detroit. It depends where you plan to work.

There are costs for each of these steps, obviously. Getting into real estate isn't cheap, I won't lie to you. Expect to spent about $500 to get licensed, and another $500 to join the boards. Then expect to pay MLS fees for access to one (or more) of the MLSes ($100 - $200 a quarter) and office fees ($50-200/month at KW, I've heard there are considerably higher, and lower fees at other brokers). Also expect to pay into your business to get it off the ground. There will be marketing costs, and potentially training costs.

Also expect that you won't actually see a check for several months when you start out. On average, I expect that, from the day I meet a new client, to the day I get some kind of check from a deal we do will be about 90 days out.

You will also split your commission checks with your broker until you "cap" (hit a specific $$$ in sales). For me, I get a 70/30 split with my broker until I hit $2 million in sales each year. My fiscal year is August-August, but yours may differ. I typically cap in two months, then I get to keep 100% of the commission, minus some marginal fees to KW International.

Be under no illusion, when you get into real estate - whether as an investor or an agent - you're starting a business, not getting a job. Expect to need a war chest of capital to get anywhere with it.

If you'd like to get the name of a team leader at a KW near you, drop me a message, I can hook you up with someone.