How Hard is it to Become a Real Estate Agent?

Ferguson Team

04 Nov
How Hard is it to Become a Real Estate Agent?

Please Share...Share on Facebook0Tweet about this on Twitter0Share on StumbleUpon0Share on Google+6Share on LinkedIn1Pin on Pinterest0Share on Reddit0Email this to someone

Becoming a real estate agent was one of the best decisions I ever made. Real estate has provided me with a great income, a flexible schedule and incredible investment opportunities. There are many ways to make money as a real estate agent or a Realtor, but while it is not hard to get your license, it is difficult to become a successful agent.

I specialize in listing REO and HUD homes, but I also fix and flip houses, run a team with buyer and seller agents, complete broker price opinions (BPOs) and I buy long-term rentals. I am also planning to start a property management business and expand my retail sales team. Here is a great article on just how much money real estate agents can make.

How I save money by being a real estate agent?

One of the biggest advantages to being a real estate agent is the money I save on my investment properties. I have saved at least $70,000 in the last year on properties I have personally bought or sold. The savings on commissions on my investment property is why I think it is vital that real estate investors should become real estate agents. I save money on fix and flips when I buy the flip and when I sell it. I save money on my rental properties when I buy them and I get more deals because I am an agent. For more information on my long-term rental property strategy and how having a real estate license saves me so much, check out my complete guide to investing in long-term rental properties.

How hard is it to get your real estate license?

If you are thinking of getting your real estate license, you need to know how hard it is to get your license. That is a difficult question to answer, because each state has different licensing laws and requirements. However, a good friend of mine just passed the real estate test in Colorado and I have some great information from him on what to expect when getting your real estate license in Colorado. This information may not be state specific for where you live, but it will give you an idea of what is involved. Some states have less requirements and some more requirements to get your real estate license than Colorado. I have had my license since 2001 and it was not easy for me to get my license; things have become even more difficult over the years. Colorado is one of the most difficult states to get a real estate license in; here is a list of the requirements for all 50 states.

How long does it take to get your real estate license?

In Colorado you must take 168 hours of real estate education before you can take the Colorado real estate exam. That is over four weeks of classes if you went to school full-time for 40 hours a week. Most people don’t have the time to devote 40 hours a week to real estate school. It took my friend 8 months to take the classes and pass his real estate test. He had a full-time job and was forced to take classes after work and on the weekends. He took his real estate classes online so that he could have a flexible schedule. In Texas you need 210 hours of education, but in California just three courses are needed. In most states it takes much less time to get your real estate license.

If you are interested in getting your real estate license I suggest Real Estate Express, which offers classes in all 50 states and has some of the lowest prices on real estate classes.

What do you have to do to become a real estate agent?

There is more to getting your real estate license than taking classes and passing a test. Real estate is a highly regulated industry and here are some of the other requirements in Colorado.

  • You must pass a background test, which involves being fingerprinted.
  • You must pass tests and quizzes to go along with the 168 hours of education you take. The education required for a Colorado real estate license  is not a breeze through the park. A quote from my friend: “Reading dry material at night after work and after family time. I was usually tired. The tests at the end of each section were flipping impossible. They would ask about minute details that had little to do with comprehension. My school didn’t even try to make it interesting or add commentary. They pretty much copy and pasted out of the Colorado legal documents on the topics.”
  • You must hang your license with a broker once you pass the exam and the background check to activate your license. Each brokerage has different costs; some take part of your commissions and some charge base fees.
  • You must buy E and O insurance and most likely will want to become a Realtor, join a local board and join local multiple listing service (MLS). It is not cheap to become an agent.
  • Once you have your license you must take 24 hours of continuing education every three years to keep your real estate license active.

For more information on how to become a great real estate agent, check out my E book: How to Make it Big in Real Estate, From a Millionaire Agent available at Amazon as a 125 page E book or in PDF for only $9.49!

Learn How I

* Made $70,000 from rentals in 2014

* Flip 10 to 15 houses per year

* Plan to retire early with real estate

Plus, updates when new articles are posted.

 

How hard are real estate classes?

You can take the real estate courses online or in person in a school. My friend took the classes online to work with his busy work schedule. In my experience and my friends taking real estate classes online is extremely boring since staring at a computer for 168 hours is not easy to do. Here is what my friend had to say about his experience with the real estate education.

” If I could do it over again I would take the classes in person if it fits your lifestyle. In person would have been way more engaging and exciting. Online is good for flexibility of hours, but that’s about it.  The material is pretty dry, so it’s exhausting reading that much on a computer screen for that long. You are probably fully familiar with this. Some online schools are starting to do video based instruction.  I personally would put this in last place. With written material, you can move at your own place and easily copy/paste, and review sections as needed. Video would be at their pace and you’d have to manually take notes. I’d avoid online video like the plague.”

I took the classes online 11 years ago and I struggled to get through the courses. I had been around real estate my whole life and I still had a hard time reading all that information online. The material that is covered in the classes is very dry. If you are hoping to learn how to invest in real estate or learn advanced techniques in selling homes, think again! The material is about technical laws, rules, settlement sheets and case history. Very little is covered on material that will help people sell houses or help you personally invest in real estate. The material is meant to keep people from going to jail for committing fraud or misleading buyers and sellers, not to actually help you succeed. Here is a great article on some misconceptions about being an agent.

How hard is the Colorado real estate test?

The Colorado real estate test is not easy! To tell the truth I failed it twice myself even though I thought I would breeze through it. Many of the questions on the Colorado test are very tricky with double negatives and wording meant to trick the test takers. There is also a ton of memorization needed and you need to be able to do math for the settlement sheets!

The test is about memorization and your ability to take tests. The test itself takes up to four hours, is conducted in a high security test center and you aren’t allowed to bring notes. My friend passed the test on his first try, but as he says he is used to taking exams like this. He has his MBA and has taken many similar professional exams in his previous corporate career.

If you are thinking of becoming a real estate agent I have developed a system to help you make more money. Two of the members on my team used this system and made over $100,000 their first year as an agent. The Six Figure Real Estate Agent Success System teaches you how to start building your business even before you get your license.

Agent Product Banner

How much does it cost to get your real estate license?

In Colorado, the real estate courses vary widely in cost. Some online schools cost as little as a few hundred dollars, while classroom school courses can run into the thousands. The exam itself costs $80 and you must also pay an accredited company or a law enforcement office to fingerprint you. Once you get your license you will have continued costs like board dues, MLS dues, operating expenses and fees or commission splits to pay your broker.

Here is an article on how to make $100,000 a year as a real estate agent.

Getting your license is the first step of becoming a real estate agent

Once you have your license you will not magically start selling houses without a plan or hard work. Here are a few articles to help you understand what it takes to be successful.

Conclusion

If you want to become a real estate agent, make sure you research what is involved in your state. Some states have easier requirements than others, but it is not difficult to get your license in most places. It costs a lot of money to become a real estate agent, but it is well worth it in my opinion. Becoming a real estate agent saves me a ton of money and allows me a better opportunity to buy properties below market value. I consider those bonuses on top of the incredible income you can earn from real estate.

Related Articles

How much money can you make as a Real Estate agent

Signup Today and Receive

* Free eBooks to propel your investing

* Free videos to help you learn to buy great deals

* Your email will never be shared

 

Please Share...Share on Facebook0Tweet about this on Twitter0Share on StumbleUpon0Share on Google+6Share on LinkedIn1Pin on Pinterest0Share on Reddit0Email this to someone
39 Comments
  • Bob
    Posted at 19:24h, 04 November Reply

    Great post. I love this blog, keep it coming :)

  • weston
    Posted at 23:59h, 05 November Reply

    Interesting, insightful article. It got me thinking about pursuing a real estate license myself, although I’m more interested in real estate investing. In looking through the requirements I found that you must have an employing broker to actually get the license. Is there a way around that if working for a broker is not the ultimate goal? Or is it not worth getting a license if I don’t expect to be a real estate agent long term? Thanks!

    • investfourmore
      Posted at 05:45h, 06 November Reply

      I have had a lot of questions about having to work under a broker when you get your license. The short answer is yes, in most states if not all you have to hang your license with a broker. I am writing a new article now with more details.

  • Eric Bishop
    Posted at 02:09h, 06 November Reply

    Thank you for your article. I have just begun investing in real estate and was researching the requirements in my state for becoming a an agent for the same reasons you state. I am unsure about the requirement of being affiliated with a broker. How does one find a broker that takes in agents that primarily get their license to support their own REI business?

    • investfourmore
      Posted at 05:44h, 06 November Reply

      I have had a lot of questions about having to work under a broker when you get your license. The short answer is yes, in most states if not all you have to hang your license with a broker. I am writing a new article now with more details.

      • Bruno C.
        Posted at 19:49h, 06 November Reply

        Mark, I’m really excited for when you decide to write that article. I’m a newer investor and I got my license 2 months ago (mostly for educational purposes) but I want to use it and don’t know how to! Looking forward to it. Your articles are awesome, keep them coming!

    • investfourmore
      Posted at 22:46h, 06 November Reply
  • Harry
    Posted at 01:09h, 12 November Reply

    Is 50-year-old too old to start this career? Thanks!

    • investfourmore
      Posted at 13:52h, 12 November Reply

      No, I think you can start at any time. It does not take a lot to start making money.

  • Celine Crotty
    Posted at 18:04h, 26 May Reply

    Licensed Realtor
    Thanks Mark, your Articles are very informative. I have learned a lot.

  • Brit
    Posted at 16:57h, 03 June Reply

    Hi Mark,
    It sounds like I’m taking the same Colorado online course that your friend is. I want to throw my computer against the wall. Although I will say I cannot thank you enough for posting about how hard it is to sit and read 70+ slides that are, in my opinion, poorly structured, and then regurgitate it for the test when zero anecdotal information is provided. I was beginning to question my level of intelligence.
    That said, is there any exam prep course you (or your friend) would recommend? I don’t want to take the test multiple times if I can help it and I can confidently say that I am not currently prepared despite being nearly finished with my online classes.

    Thank you!

    • Mark Ferguson
      Posted at 20:28h, 03 June Reply

      Hi Brit, I do not know of a course myself and my friend only used the course info. I found some course prep stuff for other states but not colorado.

  • Jacquelyn Long
    Posted at 21:19h, 08 June Reply

    Hi Mark,

    Thanks for your article. I’m thinking about pursuing my license as well, but wanted your opinion on the best school to do it as there are a lot of options. One of the links off of your article lead me to an online option for Colorado called RealEstateExpress.com. What are your thoughts here?

    Thanks!

    Jacquelyn

    • Mark Ferguson
      Posted at 16:49h, 09 June Reply

      Hi, I have not done the classes in so long that it is hard for me to give personal experience. I have never used them and I do not know how good or bad they are. Part of the problem with the Colorado license is the material is so dry and hard to retain.

  • Rosa
    Posted at 02:59h, 27 July Reply

    Hi, I have been inquiring about real estate for quite sometime now… in your opinion, how much would you have to invest in order to get licensed?

  • anthony.taing@stmartin.edu
    Posted at 23:50h, 23 September Reply

    Is it possible to be a real estate agent only during the hours of 5pm to midnight and weekends? I am a full time engineer and do not plan to leave my job but I enjoy real estate very much. I’d like to do it on the side and be deeply involved for investment purposes.

    • Mark Ferguson
      Posted at 22:25h, 24 September Reply

      Its possible but tough. Some people want to see houses during the day and many agents work during the day who you will have to work with. It is best if you have a partner or someone who can help during those hours.

  • Ray
    Posted at 15:05h, 24 November Reply

    If one is interested in real estate, I strongly suggest taking the course at a school/college. I give your friend a lot of respect for completing the course online. With that said the information is very dry, usually leaving the first 5 chapters about all the fun stuff in real estate, and the 18 remaining chapters in dry cut law and contracts. (In IL). I took the night class route, had a very outgoing teacher and having the option to ask questions was a plus. To sum it up, it honestly felt like a course in law school besides the option to add language to a contract.

  • Ankush Charaya
    Posted at 04:45h, 05 January Reply

    nice blog!

  • Harcourts Grenadier Accommodation Centre
    Posted at 09:11h, 18 February Reply

    I hope people reading this will find inspiration in what you do as a real estate agent. Getting a license can be tough but the benefits are all worth it!

  • First National Real Estate Bennetts
    Posted at 05:44h, 19 March Reply

    Thank you for this great information on how to become a real estate agent. Once passed, the challenge now is how to become a great real estate agent just like you Mark. Great post!

  • Peggy Benamon
    Posted at 01:30h, 24 March Reply

    Thank you for all the helpful real estate information, I’m really looking Forward to receiving email updates. Thank you for all your hard work and years of dedication.

    • Mark Ferguson
      Posted at 17:05h, 24 March Reply

      Thank you Peggy!

  • Fountain Property Group
    Posted at 09:08h, 03 April Reply

    Great article! Becoming a real estate agent takes a lot of hard work. Becoming a GREAT real estate agent is another story. I hope to read more real estate information from you. Keep blogging!

    • Mark Ferguson
      Posted at 15:29h, 03 April Reply

      Thank you!

  • John Miller
    Posted at 19:28h, 03 April Reply

    Hey Mark, great stuff on here, I am gaining more and more knowledge of real estate. Can I pick your brain by any chance? Just a few questions I promise I wont bombard you or anything. Can you just send me an email? jpmiller887@gmail.com

  • Stanley Okazaki
    Posted at 22:34h, 11 May Reply

    I’ve spoken with a number of REO assest managers and as I expected, none of them are willing to spend much time directing me in the right direction.

    Some have said they get all their agents from a 3rd party website like riogenisis.com & others say they have a list of agents they go through in the order that they applied. Is it worth signing up on these 3rd party websites?

    Also, I noticed that a lot of asset management companies, tend to want their agents to carry E&O insurance. Is this something that you were required to get before you could list REOs?

    • Mark Ferguson
      Posted at 16:47h, 12 May Reply

      Yes, it is worth signing up everywhere. The REO companies tell that to everyone. That is one way they weed out applicants. They don’t go through in the list they applied. They use the agents they know first and then look at qualifications. You will have to have E and O to work with any REO company.

  • Ricky Anderson
    Posted at 11:40h, 22 June Reply

    YOU SHOULD KNOW THE MARKET VALUES OF YOUR AREA, SHOULD HAVE GOOD COMMUNICATION…MUST HAVE STRONG RELATIONSHIP WITH CLIENTS.

    • Mark Ferguson
      Posted at 15:18h, 22 June Reply

      All true

  • Adam herzog
    Posted at 01:45h, 23 June Reply

    I loved this post and lots of information that I was looking for. I’m only 19 and I was wondering if that is to young to start. Also any tips before and and after I could do to get a good start in my career.

    • Mark Ferguson
      Posted at 22:06h, 23 June Reply

      You are not too young to start, but state laws do vary on when you can get your license. I would look into those. Also check out my real estate agent article category. A lot of great info in there.

Post A Comment