Why I Got My Real Estate License (Not to Sell Homes)

I got my real estate license, but I have no intention to practice real estate full-time. In this article, I explain why.

After reading, you will better understand the evolving real estate landscape as well as why you should consider getting licensed.

Getting your real estate license can cost less time and money than getting yoga certified.

To get licensed in California, you need:

• “135” hours of certified study

• 70% score on a big exam

• ~$600

With the right strategy (which I reference at the end of this article), you can complete the certified studying online in as little as 50 working hours for cheap.

If you know very little about real estate and need a crash course, this article explains the incredible power of real estate investing.

In a standard real estate transaction, one agent represents the buyer and another represents the seller.

However, a recent federal ruling caused a significant industry shift.

Until last year, sellers were expected to pay both the buyer agent and seller agent commissions as a percentage of the purchase price.

But due to a class action lawsuit against the National Association of Realtors (NAR), buyers are now required to pay their agent, separate from the home purchase.

For example, if you buy a $200,000 home with an agent, you would now have to pay around 3% of the price to your agent, or $6,000—on top of the $200,000 purchase price. While buyer agents may negotiate with sellers so they pay part or all of this fee, it’s no longer a given.

Despite buyer agent fees now being additional to the home price, home prices haven’t noticeably dropped. Hence, there is a reduced demand from buyers for using a buyer’s agent.

For informed buyers (like those who are licensed), this ruling could be empowering, as they may feel comfortable navigating transactions without an agent, competing with buyers who must factor in paying their agent.

However, this is far from the only reason I got licensed…

Why I got Licensed

1. Access to the MLS – Direct access to the Multiple Listing Service—the ultimate database for houses on the market.

2. Confidence as a Buyer – I feel more comfortable navigating purchases independently because of the education.

3. Organized Track – With clear deadlines and exams, it provided a roadmap that kept me motivated, on track, and knowing the technicals an agent would.

4. Value to My Network – Helping others with real estate transactions makes me more valuable to friends, mentors, family, etc.

Honorable Mentions:

• Possible Referral Commissions – I earn a kickback if I refer prospective clients to my broker.

• Possible Agent Commissions – I can represent friends or contacts and earn a commission. As an investor myself, I offer a unique perspective to clients focused on profitability.

Important Things to Know Before Getting Licensed

Many people confuse the titles of licensee, agent, Realtor, and broker. Here’s a quick breakdown:

• Licensee – After passing the exam, you’re a licensee, not yet an agent.

• Agent – Once a broker sponsors you, you can officially practice.

• Realtor - An agent who pays an annual fee to be part of the National Association of Realtors (NAR).

• Broker – Holds an advanced license and takes liability for agents under them.

A real estate license without a sponsoring broker is practically powerless.

Once you’re licensed, you’ll find brokers eager for you to join their brokerage as an agent. It costs them virtually nothing beyond potential mentorship and liability, and they get a cut of any commissions you bring in.

If you don’t plan to practice full-time, it may take a bit more effort to find a broker willing to “sponsor” you as an agent. But if you explain that you aim to work as a “referral agent,” you’ll likely find one open to the idea.

A referral agent doesn’t handle transactions directly but refers potential clients to the broker. In return, you get a portion of the commission if a sale closes.

Will I Represent Myself

Currently, I have a sponsoring broker but haven’t activated my agent status because I haven’t paid the $2,000 annual insurance. When I’m ready to buy or sell, I’ll likely activate it.

Here’s my thought process on deciding whether I use it:

• If I don’t use my license, I will be an independent buyer, enabling me to give a more competitive offer since I don’t need to account for paying an agent/broker.

• If I do use my license, my broker and I would split the commission. Due to the ruling mentioned earlier, I’d likely have to pay the commission. But working with a broker on my first deal could provide significant value.

By leveraging my broker’s expertise, I can ensure I negotiate effectively and close great deals. The lessons I learn from those transactions will make future independent deals even smoother.

For now, I plan to roll my half of the commission into the closing costs and work with my sponsoring broker on my first buy.

In the Meantime

Without insurance, I’m technically a licensed assistant and referral agent with full Multiple Listing Service (MLS) access. This gives me the ability to view listings before they hit platforms like Zillow and make early offers.

The MLS allows me to spot opportunities such as:

• Urgent sellers

• Price drops

• Pre-foreclosed properties with clear paths to profitability

It’s also a more organized way to track properties compared to stalking Zillow. For example, I recently helped my brother find an apartment to rent using MLS access—it’s a great tool that adds value to those around me.

Depending on market conditions, I expect to buy my first property within the next year. I will likely use the unbelievable house hack strategy which you can read about here.

Is it worth it?

It seems worth it for my scenario since I had the time and interest.

If you have some extra time, a few extra bucks to invest in yourself, and real estate interest, I think there is a high chance there will be great return on investment of this license.

I’ll continue sharing valuable insights from my real estate journey—mistakes and successes. Please share this newsletter with a friend who may find it valuable, it means a ton!!

---

PS: If you’re interested in getting your real estate license, I’ve mapped out a cost- and time-effective path. Respond to this newsletter, message me on LinkedIn, or text me if you’d like this resource—it's free!