The American Education Institute

A good question to consider is whether or not you yourself should become a real estate agent.  The best answer, of course (like a lot of good answers, is that it depends.  It depends on your goals and your state’s requirements.  If, for example, you are only planning on using this course to learn how to buy your own home for a permanent residence–and invest no further– then you probably won’t need to expend the time and effort it takes to become a licensed real estate agent.

But if your plans are to make a career out of investing in real estate, then you certainly should give this your careful consideration.  Being a licensed real estate agent has many advantages, such as being able to access multiple listing services and earning commissions on real estate sales that either you broker or else buy yourself.  However, in most states you will have to attend at least one class before you can take the state real estate examination to become a licensed agent.  Some larger real estate brokerage companies offer these classes themselves, or you can enroll in a class taught at a nearby junior college.

If you pass the examination, you will then need to become affiliated with a licensed real estate broker if you intend to earn commissions.  In order to become a broker, instead of just an agent, you usually also need to be affiliated with that licensed broker for a lengthy period of up to one full year and then pass your state’s real estate broker’s examination.  Each state has different rules and regulations relative to securing a real estate license.  But before you decide on this course of action, you should, as always, consider both sides of the plan–both the pros and cons:

The Pros:

1.  The classes yo are required to take may prove to be a great benefit to your real estate investing activities.  You will learn many things about real estate, and about topics related to real estate, that you might never have expected you needed before.

2.  Working or becoming affiliated with a real estate broker will:    

a.  enable you to work with his or her multiple listing service.                  

b.  enable you to earn commissions whenever you buy and sell real estate.

c.  enable you to earn commission whenever others, for whom you are brokering, buy and sell real estate.

3.  As a result of being a licensed real estate agent, you could earn even more respect from other real estate agents and real estate professionals whenever you buy and sell investment property.

And Cons:

1.  It will cost you time and money to attend a real estate course.

2.  You are also legally required to identify yourself as a licensee wherever you attempt to buy or sell real estate.  Usually there is no problem doing this, but then some sellers who are not very knowledgeable may regard you, as a professional investor, with some suspicion.

3.  It’s possible that you can be restricted in the types of forms you are legally allowed to use in negotiating your real estate purchases.

Dr. Eric T. Martin / 100% Financing When Buying Real Estate / 4-30-09