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Real estate licensing stuff

How Much Does It Cost to Become a Real Estate Agent

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Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only

Changing careers and becoming a Realtor is a major step in anyone's life. As such, a real estate agent has to budget for pre- and post-licensing expenses as accurately as possible. But it isn’t only real estate agents who have to account for these sorts of expenses. Most professional service providers like accountants and attorneys are just a few of the similar models that budding real estate agents can look at as a model. .h2head{text-transform:none;color:grey;font-weight:500;margin-top:40px;} .bull1{margin-left:50px;} .bull2{margin-left:50px;} .bull3{padding-right:20px; padding-left:20px;} .bull4{padding-right:15px;padding-left:20px;} .bull5{padding-right:15px; padding-left:20px;} .bull6{padding-right:20px; padding-left:20px;} @media(max-width:800px){ .bull1{margin:auto 0;} .bull2{margin:auto 0;} .bull3{padding-left:-0px;} .bull4{padding-left:-0px;} .bull5{padding-left:-0px;} .bull6{padding-left:-0px;} } Real Estate School Cost Before becoming a Realtor, prospective agents have to pay for real estate license classes in order to sit for the state examination. Real estate courses aren't free and as such you should budget the cost of real estate school into your plans. ADHI Schools’ real estate license courses: $150-$499 Real Estate Exam Fees In addition to the cost of the licensing courses at a state approved real estate school, there are exam and license fees to consider as well. Also, remember that this article is written and published in March of 2020. These fees can change over time. You are encouraged to check our website or call us at 888 768 5285 to ensure that you are looking at the most recent set of fees. State examination: $60 4 year real estate license: $245 Criminal background/Livescan fee: $80 Real Estate Broker Fees Once you complete all these pre-license costs, the broker you decide to associate with will determine the next set of costs. When shopping for a place to hang your hat in the early days of your real estate career, be sure to find out about: ⦁Desk fees, if any, that you will have to remit to the broker. These are fees that the broker charges whether or not you actually sell anything. ⦁ The commission split you have to pay to the broker. Most brokers will take some portion of the commission you pay to them from every transaction that you close. ⦁ What day-to-day expenses, if any, the brokerage will cover. ⦁How and if the brokerage will help you get leads. Ongoing Costs: Marketing Expenses, Continuing Education, Travel All the factors listed above should play a part in your decision about which broker to choose after you get your real estate license. Remember, there's much more to your upfront expenses than real estate courses and tuition for real estate license school. Note that, like most other business professionals and entrepreneurs, you will have some expenses even before getting a license. After that, there will be other costs, only some of which should be considered "upfront" in nature. A few, like ongoing marketing expenses, continuing education costs and travel expenses should be put into the "ongoing" category since they need not be paid before you earn your first commissions. Realtor Membership Dues Don’t forget that to join professional associations like the National and California Association of Realtors will also set you back over $1,000 annually in California. This will cover your access to the Multiple Listing Service, the contract generation software and an eKey that will allow you to open homes with lockboxes. Marketing Fees As an active real estate agent, you will also likely have ongoing marketing fees of at least $1,000 or more per year: This category includes necessary items for getting your name out there, like business cards, flyers, advertising, signs, websites and similar items. Keep in mind that your broker might cover some of the above expenses for you. That's why it is essential that you discuss all the details of expense coverage, desk fees and commission splits with your prospective broker. Those factors will have a profound effect on what comes out of your pocket as opposed to what someone else will pay once you decide to become a Realtor. Now That You Know the Cost, It’s Time to Start Your Career Starting your new real estate career with eyes wide open is helpful. I wanted to write a blog post specifically about this as I know that the newer real estate licensee will likely have many of these questions. If you haven’t taken the first step to become a real estate agent, enroll in our real estate license courses today! Call me at 888 768 5285 if we can be helpful. Love, Kartik
Real estate licensing stuff

Do this BEFORE you get your real estate license

Purchase contract in front of realtor and prospective home buyers

I was up in the high desert a few days ago and spoke to a group of students who had recently finished our real estate school and work for Alam Realty. While I was speaking to them something came up that

I was up in the high desert a few days ago and spoke to a group of students who had recently finished our real estate school and work for Alam Realty. While I was speaking to them something came up that surprised me. Many of our recent graduates had clients that they were working with within just days of getting their licenses issued. I pulled the broker aside and I said, "Mohammad, how are these guys hitting the ground running so quickly? Most new agents have a 60 to 90 day period where they're still learning the purchase contract. They're still learning how to get customers. They're still kind of getting their feet wet. Your team seems to be doing well very soon after getting licensed. Why is this?” Mohammad said to me, "Kartik, you don't remember I do a class here on Tuesday nights." Turns out that every Tuesday he does a real estate class on sales skills. He also teaches the purchase contract and provides tips about the industry before they get their license. This got me thinking about what you could do (no matter where you live) as a current student of ours to hit the ground running. One mistake that I see a lot of people make is they're so focused on preparing for the real estate exam test they think, "I'll learn about the contract and pick a broker later on. Let me focus right now on passing the test.” While that's semi-true I would highly recommend that you start learning about the business and about the industry early in your journey. Don't wait until you get your real estate license to do that. There's no law against you learning the purchase contract or reading the listing agreement now before you get your license. There's no law against you shadowing a successful real estate agent. There's no law against you attending a sales meeting before you get a license. There's no law against you interviewing with real estate companies. I would try to get immersed in the culture as early as possible as the state will take four to eight weeks to process your exam application. What that means is even after you pass the three courses and you apply for the exam it can take a long while before you're taking the actual real estate exam. It’s super important to build momentum through the licensing process. Again, one big mistake that I see a lot of people make is that a lot of students are so focused on the test that they don't think about what's going to happen after they get their license. You don't want to run out of steam early in the game. Remember you don’t yet have a license so you might not be able to solicit for customers. You're not going to have a Supra lock box or an eKEY now but there's a lot of things that you could be doing now that will make sure that you obtain success quickly. Love, Kartik
Real estate licensing stuff

How I Got Started in Real Estate Education

Empty classroom for a real estate prelicensing course

I get this question a lot:  "How did you start teaching these real estate classes? What's the story behind your school?"You can listen to my podcast about it here, or read on. Long story short — it

I get this question a lot:  "How did you start teaching these real estate classes? What's the story behind your school?"You can listen to my podcast about it here, or read on. Long story short — it happened by chance.ADHI Schools is a brainchild of my passion, education and past experiences. Ultimately, I combined my love for real estate and teaching and turned it into a real estate school.   It Started With a Love for Teaching   When I was going through college in the late '90s and early 2000s, I taught the SATs to disadvantaged high school students. Back then, parents of means could pay for SAT prep classes for their kids, but kids without money didn't have the same advantage.This disparity meant that average students couldn't prep as well as those who had access to the premium classes that cost thousands of dollars. To make matters worse, they didn't have the internet to help them. Today, people with tenacity and focus can learn just about anything on the internet — however, back then, there was no YouTube or online schools to give them a leg up.During this time I spent teaching the SATs, I developed a love for showing others how to thrive and be successful through education. It was exciting to empower people and level the playing field in the age of little to no internet.   I Saw the Sign   After I finished college and got my real estate license, I joined a brokerage. There was a sign behind this office that advertised a real estate school. I was just starting out and didn't sell anything for about three weeks. Although this is not a long time to not sell anything in real estate, I was particularly over-caffeinated and impatient, so I decided to try to pick up a side hustle.I called the 800 number on the flier and a man picked up. I asked him if he needed help teaching these classes. I also asked him out of curiosity how much it paid. When I heard that the pay was $60/hour, I called that man twice a day for a month until he finally relented and gave me a chance. He offered me a spot in Norco. I reviewed the material and taught the class, giving my best effort.The next day, the owner of the school called me and asked me how I thought things went. I told him that I thought things went pretty well. He responded, "Well, actually, all of them called simultaneously and asked for a refund, but I like you. If you're willing to try, there's another class you can take over once a week ... BUT, you can never go back to Norco.I agreed. Soon one class turned into three to four classes a week. After I gained experience and confidence, I started my own real estate school in October 2003. The rest is history. We're now in our 15th year in business.   Serendipity and Success   If I hadn't gone into that real estate office and sat in that seat and seen that sandwich sign, perhaps ADHI Schools wouldn't exist now.  The real estate school sign was situated right behind my desk at the real estate office I chose to join. If I had chosen to work anywhere else, I might not have had that opportunity to initially teach - and our real estate school might not exit.Though it all happened through a series of accidental events, the result feels meant to be. I have worked with the same group of people for years, and they feel like family. We have a bunch of instructors, assistants and managers who all work together to make our school the powerhouse it is today.My real estate teacher was my mentor. I learned so much from watching how he taught real estate classes. He had lots of experience teaching classes to big-name brokerages since the '70s and '80s. I carry a lot of what I learned from him still today, because before you can branch out, you need to first imitate people who are successful in what you want to do.   So that's the story. Now I also have a brokerage, real estate school and marketing company. I stay busy, and I like it that way!   Make Your Own Story   Feeling fired up? Ready to start your own success story? Find out more about our real estate courses by calling the office at 888-768-5285. We would be happy to help get you enrolled in California Real Estate License courses!
Real estate licensing stuff

Crucial Legal Updates for California Real Estate Professionals

Real estate agent showing potential property to young couple

Find here a summary of important legislative updates affecting California real estate professionals. Assembly Bill 1650—Disclosure Requirements on Solicitations New legislation has been signed

Find here a summary of important legislative updates affecting California real estate professionals. Assembly Bill 1650—Disclosure Requirements on Solicitations New legislation has been signed into law by the governor that affects disclosure requirements on real estate solicitation materials. A.B. 1650 is concerned with real estate licensees disclosing when they are performing a task that requires a license if it is intended as a first point of contact with a consumer. Thus any publishing or distributing of materials that advertise a product or service that requires a license must state that a license is required for that activity. For example, if a REALTOR® wants to advertise his or her listing services, their distributed material must make it clear that listing a property requires a real estate license. All of these “first point of contact” materials are also required to include the licensees license identification number and apply to mortgage loan originators as well, not just real estate salespersons or brokers. The new law provides examples of materials that will require this disclosure. It specifically states that covered materials “includes business cards, stationery, advertising flyers, and other materials designed to solicit the creation of a professional relationship between the licensee and a consumer”. Note that this is not an all-inclusive list and any other material intended as a first point of contact with consumers would be subject to the same requirements. The real estate commissioner has the power to define the list further. This law’s reach does not extend, however, to “an advertisement in print or electronic media” or to for sale signs. SB 710 Clarifies Team Name Laws Current California law requires the listing of the company name and responsible broker’s license number on all team advertising materials, which was not the intent of legislators when they originally wrote the law. Enter Senate Bill 710, which, effective immediately, changes the requirement from both the “name under which the responsible broker is currently licensed by the bureau and conducts business in general or is a substantial division of the real estate firm” and the associated license identification number, to that name or that name and the license identification number. Those wishing to refrain from listing the broker’s identification number on advertising materials may now do so. Again, this law is effective immediately. For any further information, the text of the legislation can be found here AB 2330 Updates Broker Associates Searchable Information and Broker Notification Requirements The California legislature has unanimously passed and Gov. Brown has signed into law AB 2330 and goes into effect January 1st, 2018. This new law requires brokers to “immediately notify the Commissioner in writing” when a new real estate salesperson hangs their license under the broker or is terminated by the broker. “Willful or knowing” violation of this provision is punishable as a misdemeanor. Brokers must also report to CalBRE if a licensee is an “associate licensee” and if so, which broker the licensee is contractually associated with. CalBRE will be required to publish this information as well. AB 197, SB 32: Greenhouse Gas Legislation A seemingly unusual law for inclusion in a real estate-centered legislative update, but this law actually has the potential to be quite important. This law requires the State Air Resources Board to “approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990” to be achieved by 2020. By 2030 greenhouse gas emissions are to be reduced to 40% below 1990 levels. The board is also required to “protect the state’s most impacted and disadvantaged communities” while creating these regulations. This means that more steps will be taken to lower emissions—steps that have not yet been decided. The economic impacts are not yet known. Housing is clearly an issue that disadvantaged communities are concerned with, perhaps lending strength to the argument that policies that would directly affect the housing market will not be included. Yet, there is not yet any such guarantee. Real estate professionals should watch this law and its impacts as they assess their markets. Adhi encourages our students and readers to pay attention to politics and the state of the economy as our industry is dependent upon consumer confidence and a healthy economy. AB 73: Clarifications Upon Disclosures of Death, HIV This law, which took effect on September 25th, 2016, updates the wording of the law to clarify required disclosures. One such clarification is the confirmation that owners and agents are not required to disclose an occupant’s death or cause of death on the property if it occurred more than three years prior “to the date the transferee offers to purchase, lease, or rent the property”. Previously the law only stated that failure to disclose under these circumstances provided no cause of action. This law also clarifies the disclosures surrounding HIV/AIDS. Owners and agents are not required to disclose that “an occupant of the property was living with human immunodeficiency virus (HIV) or died from AIDS-related complications” at any point. It is of crucial importance that California real estate professionals fully understand these disclosure requirements in order to fulfill their duties to their client and not violate the law. AB 2406, AB 2299, and SB 1069: “Accessory Dwelling Units” These laws change some requirements for the zoning and creation of “Accessory Dwelling Units” (ABUs), formerly referred to as “Second Units”. AB 2406 permits a “local [housing] agency” to “provide by ordinance” for the creation of ABUs in single-family or multifamily residential areas. This includes “Junior” ABUs within a single-family home. Any proposed ordinance to permit these ABUs must include “among other things”, building standards for the creation of said ABUs, “required deed restrictions, and occupancy requirements”. Additional parking requirements for the unit are prohibited by this law. AB 2299 and SB 1069 work together to change the term “Second Unit” to “Accessory Dwelling Unit” as well as establish guidelines for ADU permit review processes and restrictions with the declared hope of increasing housing supply in the state. Cities and counties are permitted to identify and/or evaluate potential sites for the creation of ABUs. Cities and counties will be able to substitute ABUs for up to 25% of “the community’s obligation to identify sites for any income category” (meaning that communities that invest in housing may include ABUs as part of said investment, with further requirements.) The laws also mandate that local agencies approve or disapprove applications “ministerially without discretionary review” unless they have adopted their own ordinance in accordance with this law—incentivizing local agency cooperation. Local agencies can adopt certain restrictions to accommodate other zoning laws. For specific requirements and details of these laws, visit them here: AB 2406,  AB 2299, SB 1069 We welcome feedback and commentary from our readers on these important new laws. Do you foresee important market impacts? Will any of these laws affect your business in any way? Let us know in the comments. And as always, for any questions or clarifications feel free to reach out to cody@adhischools.com
Real estate licensing stuff

Expedited Real Estate Licensing for Veterans

Usa military veterans walking off of plane

In what should be exciting news to any Veterans looking to pursue a career in real estate, effective July 1st the initial licensure processing for all honorably discharged Veterans will be expedited. S.B.

In what should be exciting news to any Veterans looking to pursue a career in real estate, effective July 1st the initial licensure processing for all honorably discharged Veterans will be expedited. S.B. 1226 added Section 115.4 to the Business and Professions Code (BPC) and requires that all boards within the jurisdiction of the Department of Consumer Affairs “expedite, and may assist, the initial licensure process” for any applicant that can prove honorable discharge from the U.S. Armed Forces. This includes the licensure process under the California Bureau of Real Estate. The Salesperson Exam/ License Application also provides the details for this expedited process. There is no word yet on how expedited the process will be, but considering the process can currently take several weeks this should be a valuable perk for Veterans. We at Adhi Schools would like to thank all Veterans for their service and remind our readers that Veterans receive a 25% discount from our live packages if they choose Adhi for their real estate education. We are proud to say that we have many Veteran students who have completed our programs and we always provide the highest quality real estate education to those who have served our country.
Real estate licensing stuff

Our real estate commissioner

Licence

Jeff Davi is the current Real Estate Commissioner for the California Bureau of Real Estate. He is a licensed real estate broker and a graduate of St. Mary's College in Moraga. The Real Estate Commissioner

Jeff Davi is the current Real Estate Commissioner for the California Bureau of Real Estate. He is a licensed real estate broker and a graduate of St. Mary's College in Moraga. The Real Estate Commissioner is the head of the Bureau of Real Estate. The DRE adds "Commissioner Davi previously served as a Director for the California Association of Realtors and President of the Monterey County Association of Realtors. He also served as president of the Economic Development Corporation of Monterey County, was co-founder of the Affordable Housing Steering Council of Monterey County and was on the founding board of directors of the Monterey County Visitor and Convention Bureau." He was appointed on October 6, 2004.
Real estate licensing stuff

Have you taken classes overseas? Want to count these toward your license education requirements?

Alphabet blocks spelling out the word study on a table

In order to get a real estate license, you have to take classes. We all know that. In order to get a brokers license, you could use a college degree to waive the two-year experience requirement. We

In order to get a real estate license, you have to take classes. We all know that. In order to get a brokers license, you could use a college degree to waive the two-year experience requirement. We also know that. What about if you have taken classes at a University overseas? The Department of Real Estate requires:"Courses must be completed at an institution of higher learning accredited by the Western Association of Schools and Colleges or by a comparable regional accrediting agency recognized by the United States Department of Education, or by a private real estate school which has had its courses approved by the California Real Estate Commissioner."If you have taken a course or have a degree from overseas the courses "completed through foreign institutions of higher learning must be evaluated by a foreign credentials evaluation service approved by the Department of Real Estate."Check out the form to use to submit the foreign transcripts here.Let me know if you have any questions!
Real estate licensing stuff

Taking the real estate exam if you have a disability

Screen reader for a blind person attached to computer

My sister was born with cerebral palsy, I am intimately familiar with those affected by physical disabilities. The Department of Real Estate has a form that you can use, if needed, to request special

My sister was born with cerebral palsy, I am intimately familiar with those affected by physical disabilities. The Department of Real Estate has a form that you can use, if needed, to request special accommodations during your state exam.Here is an excerpt from the form""In compliance with the Americans with Disabilities Act (ADA), Public Law 101-336, the Department of Real Estate (DRE) provides “reasonable accommodations” for examination applicants with disabilities. It is the applicant’s responsibility to notify DRE of alternative arrangements needed. DRE will provide special accommodations once your accommodation needs are documented. The information requested below and any documentation regarding your disability will be considered strictly confidential and will not be shared with any outside source without your express written permission."In 2006, I brought this to the attention of the California Department of Real Estate at an open forum and DRE executive Barbara Bigby assured me that the DRE is committed to providing examinees with accommodations in compliance with the Americans With Disabilities Act.ADHI Schools is committed to providing a world-class learning experience. Please let me know if we can help in any way!
Real estate licensing stuff

Latest Department of Real Estate statistics

Licence

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.Heading { display: table-row; font-weight: bold; text-align: center; } .Row { display: table-row; } .Cell { display: table-cell; border: solid; border-color: gray; border-width: thin; padding-left: 5px; padding-right: 5px; } .cell_1{ width: 620px; height: 20px; } .cell_2{ width:300px; } .cell_3{ width:80px; height:19px; } .cell_4{ width:300px; height:19px; } .cell_5{ width:80px; height:19px; } .p_table{ color: gray !important; font-size: 17px !important; } .p_table1{ color: gray !important; font-size: 17px !important; text-align:left; } These are as of September 2008 from the Department of Real Estate website September 2008 This month Last month 12 months ago 24 months ago Licensee Population: Brokers 152,832 152,854 149,189 139,822 Salespersons 384,753 386,510 394,005 374,462 Total Licensees 537,585 539,364 543,194 514,284 Real Estate Licenses Issued: Original Broker Original Broker 571 728 749 514,284 Original Salesperson 1,160 1,240 2,940 Examinations: Broker Administered 999 914 842 Salesperson Administered 1,590 1,855 14,918
Real estate licensing stuff

What's on the real estate salespersons exam?

Licence

According to the Department of Real Estate, the salespersons examination consists of the following topics with the following distribution of questions in percentage terms:Property Ownership and Land Use

According to the Department of Real Estate, the salespersons examination consists of the following topics with the following distribution of questions in percentage terms:Property Ownership and Land Use Controls and Regulations (approximately 18% of exam)Laws of Agency (approximately 12% of exam)Valuation and Market Analysis (approximately 12% of exam)Financing (approximately 13% of exam)Transfer of Property (approximately 9% of exam)Practice of Real Estate and Mandated Disclosures (approximately 24% of exam)Contracts (approximately 12% of exam)Notice that the "practice" section of the exam consists of about one-quarter of the test! (About 40 questions!)Study hard!
Real estate licensing stuff

What is Livescan?

Digital fingerprint

Livescan fingerprinting is an electronic method of capturing and distributing fingerprints. The Department of Real Estate requires that all applicants for a salesperson or broker license have a Livescan

Livescan fingerprinting is an electronic method of capturing and distributing fingerprints. The Department of Real Estate requires that all applicants for a salesperson or broker license have a Livescan done and pass a background check by the Department of Justice and the FBI. In a previous blog, I talked about criminal history and a real estate license. Just a quick reminder that you have to have a Livescan done to get a license. The form that you would use to get this can be found hereAlso, a list of Livescan service providers can be found hereIt is my experience that a lot of the centers on that list have moved or are no longer in business, so I would call ahead and talk to someone before you go. Some of the centers require an appointment, so be sure to check them out before you drive out. As always, I am here to help. Contact me with any questions!Good luck!
Real estate licensing stuff

Can I obtain a real estate license if I have background issues?

Criminal background check paperwork being filled out

Well, the short answer to this is - it depends. First of all, I am not the Department of Real Estate and have no idea whether or not the DRE will approve or deny YOUR specific circumstance. However,

Well, the short answer to this is - it depends. First of all, I am not the Department of Real Estate and have no idea whether or not the DRE will approve or deny YOUR specific circumstance. However, there are a few hard and fast rules that reign true:1. DISCLOSE, DISCLOSE, DISCLOSE! The DRE will find out out of you have omitted some portion of your background. This may be construed as attempting to obtain a license by fraud and could result in your license application being denied.2. If the DRE does grant you a license, they may require your supervising broker to sign something stating that they are aware of your past. 3. From the DRE Guide to Obtaining and Maintaining a license"In the event you have one or more offenses to report, please take extra care to disclose all actions and convictions regardless of how long ago they occurred, or whether or not a conviction has been expunged under Penal Code Section 1203.4, or a similar statute. The failure to disclose charges/convictions will result in substantial delays in the processing of your application and may also result in denial of the license application."So even things that were expunged from your record must be disclosed to the DRE.Bottom line: When in doubt, disclose!
Real estate licensing stuff

Are you a lawyer that wants a real estate license in California?

Lawyer studying for the real estate license exam

OK here's the deal, if you are a licensed attorney (that means you have a California bar card) you can step right into the brokers exam without taking any of the 8 college level classes that would normally

OK here's the deal, if you are a licensed attorney (that means you have a California bar card) you can step right into the brokers exam without taking any of the 8 college level classes that would normally be required.If you finished law school, but don't have a bar card (that test is a pain in the ass ain't it?) you just need to take 2 college level classes in real estate (as opposed to the 8 that would normally be required).The 2 classes are 1.) Real Estate Finance2.) Real Estate AppraisalOnce these 2 classes are done, take the brokers exam, pass it, and you are good to go!Got questions? Call ADHI Schools, LLC at 888 768 5285 or visit adhischools.com for more information!By the way, nothing waives the requirements for the brokers test itself. All real estate license applicants regardless of experience or education must pass the state exam itself for either brokers or salesperson. NO EXCEPTIONS!