What do you need to become a real estate agent?

What do you need to become a real estate agent?

Becoming a real estate agent can be a rewarding and lucrative career. If you’re thinking about starting this journey, it’s essential to follow the right steps. 

Get Your Real Estate License

1. General Knowledge: Attending a real estate school provides you with essential knowledge about different real estate types and other critical components of real estate deals, such as contracts, deeds, financing, and math.
2. Direction: Real estate school helps you figure out which lane to pursue. You may decide to go into residential real estate, commercial real estate, or even property management. For me, I chose property management.
3. Networking: By attending real estate school in person, you will meet a variety of people who could become part of your lifelong network, supporting you as you progress in your career.

The first and most crucial step is to get your real estate license in your state. While some people may question this initial step, here’s why it’s important:

Pick a Lane

After obtaining your license, the next step is to pick a lane in the real estate world. There are several directions you could take:

• Residential Real Estate
• Commercial Real Estate
• Property Management
• Homebuilding
• Appraisals
• Mortgage or Title

It’s crucial to become an expert in whichever path you choose. For instance, when I picked property management, I worked hard to develop my skills. I joined associations such as the Arizona Motor Housing Association and pursued certifications like the Certified Property Manager (CPM) designation. This can be applied to any lane you pick — residential real estate, mortgage, or title, for example. Becoming an expert in your field makes you a necessity for others in the real estate business.

Invest in Yourself

Once you’ve established yourself in your chosen lane, it’s time to invest in yourself by using your skills to create wealth. This is the point where opportunities start flowing to you.

1. Fixing Deals for Others: Many of the deals that come your way may not be properly managed or could be owned by banks. You can either fix these deals for the people who bring them to you or for yourself.
2. Partnerships: As you gain experience, you can explore partnerships, syndications, and working with lenders. You’ll learn how to identify broken assets and turn them around to create value, either for yourself or for others.
3. Building Wealth: Over time, you can leverage your property management and operational skills to purchase properties and generate passive income. Whether it’s raising money to fix deals or managing properties yourself, this strategy will lead to financial growth and a path to long-term wealth.

What’s really exciting about real estate is that it really is what you make it. How hard you work translates to how many dollars you have. If you want to have a lot of dollars, you will put in a lot of work. But before you can do any of that, you actually have to get licensed.

Requirements to Become a Real Estate Agent

All of the information provided is based on the state of Michigan. The process is very similar for each state; there will just be a couple of things that vary from state to state. So make sure that you’re checking out your own individual requirements based on the state that you live in.

• Age Requirement: You must be at least 18 years old. Are you 18? Check.
• Education Requirement: You don’t have to be a college graduate. You just have to be a high school graduate, or you can also have your GED.

Complete Your Pre-Licensing Course

You have to take your pre-licensing course. You need to complete a 40-hour real estate fundamentals course. There are a couple of different configurations of the way this class happens.

• Class Options: Some people will take online classes; other people will take in-person classes.
• Scheduling: Pick the one that works best for you and your lifestyle. For example, if you are working a full-time 40-hour-a-week job, you might do classes two nights a week from 6:00 to 10:00 p.m.

Pass the Final Exam

Once you complete your 40 hours, you’re going to take a final at the end of your class.

• Passing the Final: You have to actually pass this final, or you don’t have the green light to go take the State Exam.
• Retaking the Class: If you don’t pass your final, you will have to retake the class all over again.

Apply for Your Real Estate Salesperson License

After passing your final, you’ll have to apply for a real estate salesperson license.

• Online Application: Go online and pay the fee to apply for a license.
• Waiting Period: There is a waiting period once you apply for this license. It’s relatively brief—definitely less than a week.

Schedule and Pass the State Exam

You’re waiting for the email that says, “Congratulations, you’re authorized to take the State Exam.”

• Exam Fee: In Michigan, it is $75 each time you take the test.
• Study Tips:
  • Pay attention in class.
  • Take notes.
  • Ask questions on anything that confuses you.
  • Make flashcards and study them in your free time.
  • Use resources like PrepAgent on YouTube.
• Scheduling the Test: Test dates fill up fast, so make sure that you’re planning ahead.
• Exam Details:
  • The exam is three or four hours long.
  • There are over a hundred questions.
  • Use your whole time; double-check all of your answers.

Find Your Broker

Once you pass your State Exam, then you’re going to find your broker.

• Timing: Some people choose to find their broker before they take their State Exam.
• Importance of Choosing a Broker: Choosing a broker is very, very important.

Conclusion

Please make sure to check out the next video in this series. I’m going to be sharing my experiences with the brokers that I had and how I ended up with the broker that I’m at now. I am so, so happy with the broker that I’m at.

Starting a Real Estate Business: Your First 30 Days

Introduction

Starting a real estate business comes with a significant learning curve, especially within the first 30 days. Here’s a step-by-step guide based on what worked for me, aimed at helping you start off on the right foot. From setting goals to branding and networking, these strategies will prepare you to make a solid impact in your first month.

1. Set Clear and Achievable Goals

Before anything else, you need a plan. Sit down and set specific goals for the year. It’s great to be ambitious, but keep things realistic. For instance, don’t aim to make two million dollars in your first year—focus on achievable milestones. Break down your goals into manageable steps:

• Transaction Goals: Decide how many deals you aim to close.
• Volume Goals: Set your target for sales volume.
• Commission Targets: Determine your ideal income.

Once you’ve set your goals, calculate how many contacts or leads you need to hit those targets. Always think about where and how you’ll secure those deals.

2. Branding: Become Known as a Real Estate Agent

In real estate, there’s no such thing as a secret agent. People need to know you’re in the business. Start branding yourself immediately:

• Website: Build a professional website to showcase your expertise. Platforms like Wix are easy to use.
• Business Cards: Make sure your branding is consistent across all materials, including business cards.
• Social Media Presence: Start posting regularly, letting people know you’re in real estate.
• Newsletters: Send out newsletters to your network to inform them about your new venture.

Don’t be shy—branding is crucial to getting your name out there.

3. Build Knowledge and Confidence

There’s a steep learning curve in real estate, especially when it comes to transactions, open houses, and client handling. Constant learning will help you build confidence. Here are a few key tips:

• Attend Training: Whether your brokerage offers classes or seminars, make sure you’re attending.
• Create Video Content: A great way to build knowledge is by creating videos on topics you’re not familiar with. This forces you to learn, and presenting the information publicly makes you appear as an expert.

Remember, knowledge is your power. The more you know, the more confident you’ll feel in real estate transactions.

4. Host Open Houses

Hosting open houses is an excellent way to get your name and face out there. It’s also a fantastic opportunity to:

• Network with Established Agents: Pre-existing agents might have listings you can use for open houses.
• Practice Client Interaction: Even if people are just browsing, it’s valuable practice to speak with potential clients.

Even when traffic is low, use this time productively to prepare for the upcoming week.

5. Leverage Your Sphere of Influence

Your sphere of influence—friends, family, and acquaintances—are likely to be your first clients. However, if you don’t have a local network, don’t worry. You can build new connections through:

• Networking Events
• Door Knocking
• Cold Calling
• Purchasing Leads

If you’re in a new city without established contacts, you can still find business through persistence and strategic networking.

6. Avoid Over-Preparing and Take Action

It’s easy to fall into the trap of feeling like you need to prepare endlessly before launching into your real estate career. Don’t let that hold you back. While it’s crucial to gain knowledge, branding, and confidence, there will come a point where you have to dive in and take that leap of faith. Mistakes will happen, but they’re part of the learning experience.

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