Online courses VS school in my city

[PygmyChants]

Guys,
I want to invest in Real Estate. I was recommended to be licensed as a real estate agent or a brocker to buy and sell investment properties. Obviously there are many benefits in earning my license.
The question is should I use Online RealEstate courses or go to RealEstate school in my city? What are the pluses and minuses of both? Are Online courses less effective and productive than regular RE schools?
Thank you!

[ResaleBroker]

IMO, go to a reputable school in your area. If for no other reason, this will give you the opportunity to ask questions and hear examples that would not be possible sitting in front of a computer outside of the classroom.

[kensmith]

Interesting thought for you. Do you think that by having an experienced agent that knows about investment properties you might end up making more money in the long run than trying to start from scratch? Investment properties are more work, require more skill, and way more contacts for the good deals than a newbie will have.

Unless you plan on making real estate a full time career higher a pro. Plus make sure to check into ALL of the fees before getting started if this is going to be "only my deals" type of thing. They add up very quickly into the thousands.
__________________
Schaumburg Real Estate Palatine Homes Arlington Heights Real Estate

[2savvy]

I took my renewal hours online and I liked that better than sitting in class and listening to ummm the same question asked a dozen ways.

But if your just getting your license I would recommend going to school. More substance, Better way to network and you get to ask questions from someone that has been there and done that ( usually).

If you are only doing investment properties for yourself there can be benefits to not getting your real estate license.

[PygmyChants]

ResaleBroker, 2savvy,
Thank you for your suggestions regarding RE classes

In general, I like the idea of online classes better but I also see the other important benefits of RE classes in my city:
- I can ask questions
- I can meet other people in RE business and establish contacts.
Unfortunately the next RE semester/class starts May 23rd and I wouldn’t like to waste my time.

If you are only doing investment properties for yourself there can be benefits to not getting your real estate license.

What are the benefits to not getting my RE license?

Interesting thought for you. Do you think that by having an experienced agent that knows about investment properties you might end up making more money in the long run than trying to start from scratch?

kensmithkw,
Thank you for your input.
As a newbie, two weeks or researching are not enough for me to form an opinion. I was/am going to find experienced agents. The reasons I was suggested to receive a real estate license were:
- Educate myself further about RE (gain a deeper understanding of how agent and broker responsibilities are split; become more comfortable with RE terms, contracts and law etc)
- I will gain access to the MLS
- I will save on both the purchase and sale of RE (as the licensed RE agent I would be acting as a selling agent even though I am representing myself. This would entitle to a 1.5% commission on sale)

Please remember, I am a RE virgin: Please feel free to dispute the benefits above.

[kensmith]

What are the benefits to not getting my RE license?

A big one would be liability and expeses. As an agent you will be held to a higher level of accountiblity than an average person is. Plus there are a lot of expenses that go along with having your license.

kensmithkw,
Thank you for your input.
As a newbie, two weeks or researching are not enough for me to form an opinion. I was/am going to find experienced agents. The reasons I was suggested to receive a real estate license were:
- Educate myself further about RE (gain a deeper understanding of how agent and broker responsibilities are split; become more comfortable with RE terms, contracts and law etc)
- I will gain access to the MLS
- I will save on both the purchase and sale of RE (as the licensed RE agent I would be acting as a selling agent even though I am representing myself. This would entitle to a 1.5% commission on sale)

Please remember, I am a RE virgin: Please feel free to dispute the benefits above.

- The education is good, sort of. It is enough to keep you legal, not enough to train you on investing or anything like this. You can learn the RE terms and contracts by checking the licensing books out at the library and reading them for free.

- Access to the MLS is nice, but it isn't the end all. You can sign up for VOW access to the full MLS as a client of an agent with VOW access.

- The commision on the sale going to you and you finding an experrienced agent to work with don't go hand in hand. If you work with another agent they will get the commision not you. You can ask for a referral fee, which might cover your licensing fees if you are lucky, but I really doubt it. As a new agent the commision split you will have with your broker will be low, and even lower if you are part time only doing your own deals. This will really limit the amount money that you will get to keep from any buys and sells.

Personally I used an experienced agent when looking to relocate to Vegas a few years ago even though I had my license in NV. The reason for this was that the local agent would know of things I could never find out without costing myself money.

If you do go for the license I wish you the best of luck. If not find someone that specializes in investment properties.

[PygmyChants]

kensmithkw, I appreciate your time answering my questions.

Plus there are a lot of expenses that go along with having your license.

What are the average expenses to having your license?

As an agent you will be held to a higher level of accountability than an average person is.

Are the any real life examples for better understanding? In my mind... If you are responsible for some wrong doing, you ARE responsible regardless of your titles or status.

The commision on the sale going to you and you finding an experrienced agent to work with don't go hand in hand. If you work with another agent they will get the commision not you. You can ask for a referral fee, which might cover your licensing fees if you are lucky, but I really doubt it. As a new agent the commision split you will have with your broker will be low, and even lower if you are part time only doing your own deals. This will really limit the amount money that you will get to keep from any buys and sells.

I don’t get it...

The commission to list and sell a house through a real estate company is generally 6% of the total sales price.

Breakdown of real estate commission:

$100,000 * 6% commission = $6000 (Paid by the seller)
Listing Broker (1.5%) = $1500
Listing Agent (1.5%) = $1500
Selling Broker (1.5%) = $1500
Selling Agent (1.5%) = $1500

Now if I want to sell my own house, as a licensed agent myself, why would I need another “experienced” agent to so? Ordinary people with less knowledge do “Sell by owner” every day. The signs “Sell by Owner – Agent “are not rare either. Right?
Here is the question:
As an agent yourself, would you ask another agent to LIST your house for you and pay him 1.5 %?

To BUY the investment property is another story: I can see how an experienced agent can do something I will not be able to do as a newbie.

[kensmith]

Expenses will run you well over a thousand a year, more like 2k.

Can't think of anything this second for a detail, but you will have higher liabilty as an agent. the seller doesn't normally get sued its the listing agent.

I would (and have) use an agent to sell my own home and investments. The reason is that I know the value of having an unbiased opinion in the middle of the transaction. Now I do arrange a discount on the listing as I will do all the backend work, but the pricing and negotiation is left to the other agent. Savings is about 1% or so and yes the 1.5% is well worth it in my eyes.

Don't work with the 6% figure unless you know thats what most listing go for in your area. It will more than likely be less than that.

As for FSBO, you don't need a license for that. Most Fsbo's end up costing themselves lots of money in the long run. They also spend a lot of time doing things that the agent would have. NAR figures it takes an average of 100 hours per transaction. What's your time worth? Most fsbo's don't price their home correctly either which costs them money in the end.