Becoming a real estate agent is actually pretty simple. Now succeeding as a real estate agent, well, that's a whole nother story. I've got a bunch of videos on my channel about that, but in this video, I'm going to share with you how to become a real estate agent in five simple steps.
Step number one is meeting your state requirements. So if you jump on the computer and you simply go to LARA, or the Licensing and Regulatory Affairs, Bureau of Professional Licensing in your state, what you're going to find is all the requirements to apply for applications.So in my state here in Michigan, here is what you need to do to qualify. To get a real estate license, you have to have good moral character, which essentially means they are going to do a background check. They're going to see what type of criminal proceedings or civil actions may be against you, and they want to see what type of criminal background you may have. You have to have a social security number, and you also have to be 18 years or older.
Now, the great thing about being in real estate is there is no college education required. You can make unlimited income in real estate without having to go to college, spend four or five years racking up a bunch of debt, just to get out of college and hopefully get a job where you make 40 or $50,000 a year. Now in real estate, you have an unlimited income potential. Matter of fact, my first year real estate, I made over $300,000. I made a video about that, I'll put a link in the description to watch that video after you watch this video.
Step number two is enrolling in your pre-licensing course. Now, you have a few options here. The first thing you're going to want to do is jump back on your computer, and what you want to do is just simply go to Google and type in "real estate salesperson license." That's the key thing here. This is the type of license that you're going to apply for. Again, I'll just go on my state, in Michigan here, and there's a bunch of different companies. This is the company that I like that you can sign up for your course. Now, when you're on the website, you are looking for the Real Estate Salesperson Licensing course. In Michigan, it's a 40-hour pre-licensing course. You want to make sure you don't take the wrong course. That would be really, really bad. So, every company that you choose from online has a bunch of different options. You can do an in-person classroom, or you can do an online study only at home. Now, of course, there's some pros and cons to doing your online pre-licensing course in a classroom versus online.
So, here are some pros of doing your pre-licensing inside of classroom setting. First, you're probably going to retain the information better if you're in a physical classroom with an instructor where there's other students learning at the same time, because you're going to not be as distracted, it's going to be probably a lot more engaging. May still be boring, but at least it's going to be engaging where you can learn, so you'll probably retain the information a lot better than you would online. The second reason why I like in-person learning is the instructors are very good at giving you real-world examples. So, depending on where you take your pre-licensing class, the instructor most likely has some real estate experience or they have relationships with people that are in the industry that they can give you real-world examples with the information that you're learning. For me, I love seeing, "Hey, how does this apply in the real world of real estate?" So, that in-class person training experience, you'll get a lot of real-world examples. The third thing I like about in-person training is most of the time, depending on where you take your pre-licensing course, they will have a real estate broker or an experienced real estate agent come and talk to the class and offer up a live Q&A before graduation. This will be your ability to interact with somebody who's succeeding in the industry at a high level. So, you can ask them the questions that are top of mind. Hey, how do you get business? Hey, what's a average income for the first-year real estate agent? And so on. Now, there are some cons for taking in-person class. First off, if it's a 40-hour class, that means you're going to be in a classroom Monday through Friday, 9:00 AM to 5:00 PM. There's not a lot of flexibility around that. So if that doesn't work for your schedule, that might be something for you to consider. The other con of in-person learning is those courses and those classes are typically more expensive than if you took your pre-licensing online. It's usually not a big deal, but if you look here at this company, the in-person classroom is starting at $335 versus the online starts under $300. Then the other con about the in-person classroom experience is, I mean, you're in class all day. So that means you've got to wake up, get ready, get dressed, probably commute, drive, fight traffic, and then sit in a classroom for eight, nine, 10 hours a day for a full week, versus being able to learn at your own pace, at your own home, being comfortable.
Now, the pros of online is obviously you can go at your own pace. You're still going to need to meet the minimum number of hours required to pass your pre-licensing course. However, you can do it at your own pace versus being forced to sit in a room all day, every day. The other thing about your pre-licensing course online is you could do it anywhere. You just need a laptop and an internet connection, and you can do your pre-licensing real estate education anywhere in the world. Now, the cons of taking your pre-licensing class online is it may take you longer, where the in-classroom structure is designed to get you in and out of that classroom and five business days. Yeah, you got to sit there all day, but you know in five days you're going to be done with your pre-licensing. Unfortunately for most humans, we take the path of least resistance. So left up to your own, it may take you a little bit longer to get through that pre-licensing class, depending on how motivated you are. Then the other con about taking your pre-licensing online is you may not retain the information as well as you would in class, which may result in you having to take your exam multiple times before you can apply to get your actual real estate license.
Step three is passing your pre-licensing exam. You see, before you become a real estate agent, before you can even take your state exam, you have to pass the pre-licensing exam, which requires you to retain the information that you're learning in class. You can't just show up and click next and go through a bunch of just online modules or go and sleep during class, you actually have to retain the information and pass a pre-licensing exam to be eligible to take your actual real estate test.
Step number four is taking and passing your state real estate exam. Now, there are a bunch of different testing centers. Depending on which state that you're in, most of these places are now allowing you to take your actual state exam online due to all the changes with all the things that are happening in 2020 and 2021. Unlike before, where you had to go in person to take your exam. Now, depending on what state you're in, your exam is probably going to be between $80 and $100 to take your exam, so you want to make sure that you do everything to prepare to pass your exam on the first try. Now, most states will allow you to take the test multiple times until you pass. However, you're going to be charged every single time you take that exam.
Step number five is finding a real estate broker. Now, this is by far the most important step in the entire process because you can't actually get your real estate license until you have a sponsoring real estate broker. Believe me when I tell you, in my 16 years of being in this real estate business, being a real estate broker, owning a company, coaching real estate agents all over the country, believe me when I tell you, picking the right real estate broker will make the difference between you succeeding or failing as a real estate agent in your career. So, you need to make sure you pick the right real estate broker, who you're going to work for, who's going to sponsor you, so that then you can apply for your state exam after you've passed your test. Now the question is, how do I, Brandon, pick the right real estate broker? Well, good news for you. I made this video right here, where I walk you through the 12 questions, now listen closely, you absolutely have to ask before joining a brokerage.