Becoming a realtor

[Ja Rhule]

So I got a new job and there is basically zero chance I will be working weekends so I’m thinking about using this opportunity to get my realtor license just because I always wanted one.  What is the best way to go about studying and getting real estate license in NC?  

[toldozer]

Not sure,  but when I sold my house a monkey could have done it. Listed and had an offer in six hours.  Sold in 2 days for over asking. 

[thefuzz]

11 hours ago, ARSEN said:

So I got a new job and there is basically zero chance I will be working weekends so I’m thinking about using this opportunity to get my realtor license just because I always wanted one.  What is the best way to go about studying and getting real estate license in NC?  

Are you planning on trying to make money at it, or waste money?  It's not free to hang your license, and there is no reason to have a license unless it's hung.

Also, real estate isn't a Sat and Sun part time job, it may seem that way from the outside looking in, but that assumption would be wrong.  You would need to take quite a bit of time away from the "day job" if you wanted to make any money in RE.

Long class to start with, then 90 hours of post licensing courses.  Then comes the work.

Say your buddy asks you to help put in an offer on a house he saw online.  No problem.  Couple hours of paperwork, submit the offer to the listing agent, negotiate back and forth for a couple days...always needing to be able to pick up the phone, answer a text or e-mail, or be able to drive across town to deliver a check at a moments notice.

Then you get to schedule inspections, be there to open up the door for said inspection while possibly staying in the house during said inspection.  Review inspection report, sit down with buyers and go over what the sellers either need to fix, or start negotiating the price once again...for a couple days.  Hopefully in there you have advised your buyers of everything that the lender will need, along with helping them gather said "BS".  Then the appraisal, backup offers, buyers getting nervous, buyers wanting to see the house again to confirm their "huge purchase" and measure for furniture.  Help them find movers.

Then if you make it through due diligence, the inspections, the appraisal, the re-negotiation...you get to review the closing disclosure, explain it to the buyers, and attend closing and hope that goes well.

 

That's for 1 sale.  1.

Now let's look at commission.  400k house is paying 5% commission.  2.5% to the buyers agent, 2.5% to the sellers agent.  So that's 20k in total commission...then you get to split it with your brokerage...likely 50% because you wouldn't be an income generating agent, and you would be just starting.  So your portion is $5,000.

Now take out your time, milage on the vehicle, your MLS dues, Realtor fees, taxes (it ain't the same as your paycheck), and time away from your "day job".  

Not saying don't do it, but it ain't all rainbows and unicorns in real estate.

 

[Ja Rhule]

25 minutes ago, thefuzz said:

Are you planning on trying to make money at it, or waste money?  It's not free to hang your license, and there is no reason to have a license unless it's hung.

Also, real estate isn't a Sat and Sun part time job, it may seem that way from the outside looking in, but that assumption would be wrong.  You would need to take quite a bit of time away from the "day job" if you wanted to make any money in RE.

Long class to start with, then 90 hours of post licensing courses.  Then comes the work.

Say your buddy asks you to help put in an offer on a house he saw online.  No problem.  Couple hours of paperwork, submit the offer to the listing agent, negotiate back and forth for a couple days...always needing to be able to pick up the phone, answer a text or e-mail, or be able to drive across town to deliver a check at a moments notice.

Then you get to schedule inspections, be there to open up the door for said inspection while possibly staying in the house during said inspection.  Review inspection report, sit down with buyers and go over what the sellers either need to fix, or start negotiating the price once again...for a couple days.  Hopefully in there you have advised your buyers of everything that the lender will need, along with helping them gather said "BS".  Then the appraisal, backup offers, buyers getting nervous, buyers wanting to see the house again to confirm their "huge purchase" and measure for furniture.  Help them find movers.

Then if you make it through due diligence, the inspections, the appraisal, the re-negotiation...you get to review the closing disclosure, explain it to the buyers, and attend closing and hope that goes well.

 

That's for 1 sale.  1.

Now let's look at commission.  400k house is paying 5% commission.  2.5% to the buyers agent, 2.5% to the sellers agent.  So that's 20k in total commission...then you get to split it with your brokerage...likely 50% because you wouldn't be an income generating agent, and you would be just starting.  So your portion is $5,000.

Now take out your time, milage on the vehicle, your MLS dues, Realtor fees, taxes (it ain't the same as your paycheck), and time away from your "day job".  

Not saying don't do it, but it ain't all rainbows and unicorns in real estate.

 

Part time gig for now but maybe full time gig down the road.  I have a lot of connections for new home builders.  I also know multiple execs for Remax and etc.  I kind of want to get my feet wet.

[PanthersBigD]

16 hours ago, ARSEN said:

So I got a new job and there is basically zero chance I will be working weekends so I’m thinking about using this opportunity to get my realtor license just because I always wanted one.  What is the best way to go about studying and getting real estate license in NC?  

A guy I know did the same thing and he rarely has time to actively work as a realtor. I think he's only used it when it was a property that would sell itself and his friends threw him a bone. Like Fuzz said, it's a lot of hard work. You're not going to make any real money without busting your ass, and you won't build a name for yourself without busting your ass. Why would your connections use a green as hell realtor like you that just works weekends over a full time realtor with a great track record? I'm sure if you dedicated the time to it you could be great, but let's be real, you're looking for a hobby. Just play the market on your off days instead. 

[Ja Rhule]

9 minutes ago, PanthersBigD said:

A guy I know did the same thing and he rarely has time to actively work as a realtor. I think he's only used it when it was a property that would sell itself and his friends threw him a bone. Like Fuzz said, it's a lot of hard work. You're not going to make any real money without busting your ass, and you won't build a name for yourself without busting your ass. Why would your connections use a green as hell realtor like you that just works weekends over a full time realtor with a great track record? I'm sure if you dedicated the time to it you could be great, but let's be real, you're looking for a hobby. Just play the market on your off days instead. 

Why they would use me?  Because they are my old coworkers.  I never done real estate itself but I was deeply involved with realty business.  I have done mass analysis and acquisitions of land/old communities for the company I used to work.  Sometimes I flipped it.  I might don’t know real estate itself but I know all the little things that go into it which most realtors have no clue about.

[Zaximus]

Fuzz hit on most things.   I never really knew till my mother became a realtor a while back.    It's a lot of work.    You get some really demanding clients.   You run into a lot of scenarios that you don't expect.    You need to be a good negotiator but not too bad to where people don't want to work with you.  

Also, starting out is rough because you haven't built up clientele.   Maybe you'd have some connections like you said, but most people have to inch their way forward.    My mom's listings and buying agent stuff is mostly friends or families of people she's been helping for years and years.    She's sold and bought houses for people every 3-4 years etc.   You'll have to get under the wing of someone else that throws you scraps and takes a big cut just for doing that, someone that has a lot of years and business setup.

The test isn't a cake walk either.  I've known like 5-10 people that thought this was "easy mode" on making money and never get through the test or the classes.    There is a lot of stuff you have to learn.    Lots of due diligence.     

Then of course, no benefits since you're a 1099 or whatever.      Even if you pay fees to say "I'm remax", which, really doesn't mean anything other than a business card because you still aren't really an employee, yet they still take money/fees.     You have to be smart for when tax time comes, etc.  

My wife has a cousin who does house flipping.   He thought he didn't need a realtor, tried the first one like that, learned pretty fast he needed one.    Ten houses or so later he's still using my mother and trusts no one else.     So it's not easy mode, at all.    Even though in Charlotte the market for selling is crazy, it won't always be like that and you'll still run into issues like fuzz pointed out.    If you're a buyer's agent, it's a crazy market to put offers in, because houses are getting like 10 offers in the first day.     Also if you're a buyers agent, you have to screen homes that fit what the buyers want so you don't waste time.     So you sit on MLS a lot looking up stuff.    You learn school districts, if it's a good investment ,etc.   

[PanthersBigD]

2 hours ago, ARSEN said:

Why they would use me?  Because they are my old coworkers.  I never done real estate itself but I was deeply involved with realty business.  I have done mass analysis and acquisitions of land/old communities for the company I used to work.  Sometimes I flipped it.  I might don’t know real estate itself but I know all the little things that go into it which most realtors have no clue about.

That's not a good enough reason when actual money is at stake. 

[cookinbrak]

If you want to be a successful realtor, get implants. DD or better.

[Ja Rhule]

1 hour ago, PanthersBigD said:

That's not a good enough reason when actual money is at stake. 

My ultimate goal is commercial realtor for a bank.

[The Pieyed Piper]

better than becoming an iguana.

 

[Anybodyhome]

Got this from a ReMax person:

First, A RE/MAX agent has more power over their commission splits than any other business model. Most Home Services of America (Warren Buffett is the principle owner) bring new associates in at a 50/50 commission split, KW brings people in with a 70/30 split, and most Realogy firms do a 65/35 with a 6% franchise fee per deal, Exit Realty does a 70/30 with a 10% override to the recruiting associate.

RE/MAX brokerages all are independently owned and operated. I am one of those. I will speak only of my office model, but it's modeled off the RE/MAX International plan. At my office, we charge each agent a monthly co-operative advertising fee. 100% of that amount is paid to our RE/MAX region which uses it to purchase national, regional, and local advertising. Those great RE/MAX TV advs. come from that funding.

We then bill agents a set of fixed amounts. For example, there is a Broker Management Fee which covers the costs of brokerage including broker profit margins. Another fee is the shared office expense. Lets say we have 20 agents in the office and the rent, staff payroll, phone, etc is $100,000. That would mean we have a $ 5000 per agent share of the office expense. If we have 40 agents and the total costs are $160,000, then we have only $4000.00 to share amongst the agents. For associates who have joined RE/MAX since 2004, there is a 5% transaction fee also.

So, lets say the total cost to an agent is $15,000 per year plus the 5% transaction fee. If that agent only sells $50,000 Gross Commission Income (GCI) per year, they still have a 65/35 split, while at $75,000=75/25; $100,000=80/20; $150,000=85/15; $200,000=87/13; $300,000=90/10; and $400,000=91/9%.

 

[Ja Rhule]

The reason I want to become realtor is to eventually get into fund investment management.  They like people who have done realty on a side.