Online Classes

[darthvadersmum]

I am at the very beginning of a possible Real Estate Career. Been doing a lot of research lately. Someone mentioned to me the other day that there surely must be an online session that people can opt to take to become a Real Estate Agent. From what I can find there are just about 5 states where it is currently permitted & Kentucky isn't one of them.

I have requested a book that Huff offers. One of the giants here. They have a seminar coming up the end of July. Then in addition there is a school pretty close by where I would pay about $800 for a 6 week session or there abouts.

What I'm interested in knowing is how other people went about getting their license? What did you pay....Does it vary from state to state or school to school? How long did it take you?

Jumping ahead.....Once you become a Realtor what fees are you expected to pay? I heard that you pay for an office space even though they are rarely used & it can get pretty expensive.

This is my first post here so please any info would be most helpful! Thanks in advance....

[Falcon Living]

There are all types of classes: from weekend only to week long concentrated, to online, to self study. Your local realtor website should have a few referrals about these classes. Your local papers should have ads too. After being a realtor, your costs are mainly to Realtor organization and the MLS monthly fees.

If you are a beginner, unless you have lots of clients lined up already, investigate more realtors. There are high commissioned real estate offices with office fees and lower commissioned realtors with no or minimal fees. It depends entirely on where you are. Take your time and do your homework on the realtors. Get referrals.

[scrizzzgirl]

I recently obtained my real estate license in WA state and am still in the process of getting to know the ropes. I went through a fantastic online company called Rockwell Institute. It cost about $400 for a 6mo course (60 hours). I could have finished it earlier, but we moved in the middle and that completely threw me off. After completing the course, the State Exam cost approx $140. Then I paid another $150 for my license. I chose to work with EXP Realty which has been a fantastic decision and the initial startup cost for joining was only $99 and that included my $50 / month tech fee and my business cards and presentation folders. I still have yet to pay for the MLS class, test, key, key insurance ($25/year) and membership fee. I was told to expect to pay another $450 for all of that. Keep in mind these prices are for WA state and will vary state by state. When you're ready, I can put you in touch with someone closer to you who can mentor you through this process if you'd like. Feel free to contact me for further info @ mynewhomere@gmail.com and look us up at exprealty (dot) com Good luck to you.

[Dallas Broker]

I would recommend taking at least the basic required courses in a classroom environment. Training, interaction, and networking you receive cannot be matched with online or any type of homestudy course.

You can take all req. courses in Dallas, Tx for around 800-900. Annual fees vary but average around $1,000

[mcubstead]

Also start figuring out what kind of broker you want to work with. The way they charge for letting you work varies considerably. From commission only splits, to you keep all the commission, put pay monthly and per transaction fees. Then the level and quality of access to the broker(s) are another issue to us who are new.

[lylej]

I agree with Urban Realty. You may be able to take the classes online, but it is a poor substitute for the classroom. I first met some of my best friends in the classes I took for my Salesperson's License.

[Phoenix Real Estate Guy]

Darth - Fees and requirements for licensing vary wildly by state. So me telling you what I spent and how long it took in Arizona would be meaningless. I suspect most schools in Kentucky are about the same -- they compete with each other and couldn't be terribly far apart in cost or they wouldn't survive.

Real estate licensing schools have one primary purpose -- to get you to where you can pass your licensing exams. They won't teach you much (if anything) about how to be successful in a real estate career. But taking the classes live will go a long way toward that major first step -- passing licensing exams.

Fees after you get a license?

A lot.

Depending on what brokerage you go with, commission splits will probably be your largest fee. They can vary from 50% (Yes, you pay your broker half your commission check) to what some claim is 0% (also called a 100% commission brokerage). Be careful with that as some 100% shops can really pile up the fees -- desk fees, "technology fees", transaction fees, Errors & Omission insurance fees, and more. Trust me, there is no such thing as "100% commission". I'm a broker and I can assure you no broker takes on all this liability for free. They will get paid one way or another, regardless of what they call it.

Then there are association fees -- local, state and national.

MLS fees.

Lockbox fees.

Business cards, signage, you'll need (in my opinion) a website. Possibly training classes. Don't forget gas for the car. Maybe increased auto insurance. Quarterly income tax payments. Continuing education class fees.

I'm sure I'm missing a lot. I don't mean to scare you, but I've seen an awful lot of people jump into a "real estate career" because they think a real estate license is an open ticket to vast riches. It's a boat-load of hard work, and it's not cheap to get started.

The most important decision you'll make is deciding which broker to hang your license with. Talk to SEVERAL. Get a good understanding of their fee structure, and what's most important for a new agent -- the training they offer. There is a LOT to learn. Finding a broker and mentor is critical for success. Most agents make very little money in the first year or two. Something like 80% quit within the first year. Find someone that will TEACH you and help you succeed in this business.

[mcubstead]

Ditto: PhoenixRealEstateguy

and add:

There are several reasons why there is an 80% quit rate.

You need to understand them.

Time to get paid:

Even if you get a listing the first day out, It can take 3-6 months to receive a contract, then 3 weeks to 2 months to close. While it's possible to list a property an get a cash offer and close in two weeks, it is extraordinary rare, even in a great market. You can expect to get paid Four to Six months after you list a property, IF IT SELLS.

Leaping to Far:

Starting self employment is a leap of faith, but don’t over leap. You will be slammed with all kinds of offers for business services, training programs, lead generation and marketing suggestions from your broker and team members. Many agents spend themselves out before they even have a listing.

Tax man:

The average agents FIT/SE is about 33% and could reach 44%. Hint if you don’t know what FIT/SE and personal business prop terms mean, go and find out before you practice realestate. If you plan to buy computers, signs and stuf off the internet(out of state) you'd better know what usetax is as well.

Finding your own mythology:

I'm in that phase. to succeed in any self employment endeavor you need a scheduling, client interaction, and service delivery method that fits your personality and life choices. If you don't look at successful things other agents have done and ask yourself, "Do I, or can I do this daily and NOT be miserable?", you will fail. To say it a different way, if you pursue realestate in a method you are unhappy with, your potential clients will pick that up and you will not convert those leads to business.

Failure to exploit free offers and discounts:

Realtor open houses:
I've gone to quite a few, ok there’s usually only snack food, or DIY buffet’s. I tell them I'm new and just checking out how things are done. An example of how this is helpful: I've noticed the older agents give me useable advice and are very outgoing to me, and there are always three or four other successfully agents in the house (that have clients). The younger agents that give me the "Why are you here eating my food if you have no clients" look of disdain, are alone, I'm the only one there. I don't see other agents, despite the fact the hosting agent has bought some fairly nice food.

Association discounts:
Running a business and self employment is the same thing. One thing that many of my fellow rookies don't do is look for SE/ SB discount programs. I am shocked at how many agents I've talked to at Realtor events that don't know there are cell phone discounts through realtor associations, or that many stores will put you into their SB (small business) discount programs if you have a Sales/usetax permit or a DBA.

[WATTS17]

The couses available vary from place to place...could go with a quick and easy $70/class online (that can be completed in2.5 weeks) or take classes at a college ...but in all honestly (from my experience) you are just studying for a test and thats it...real learning begins when you start working.

[abcharlton]

Wow! Some great answers, but they probably would have served this guy better 5 years ago when he asked them. He probably felt dejected by the lack of response at the time and went into the medical field. By now I'm sure he's a doctor.