How to become a real estate agent in the state of Illinois.

I get many regular calls at my job from people who are interested in learning how to become a real estate agent.

The first basic thing you must understand is that it is different for each state because each state has their own laws governing agency relationships and real estate transactions. In addition to this, different states have different reciprocity arrangements with other states that will in some cases simplify gaining additional real estate licenses once you have your first in a particular state.

The second basic thing you must understand is that it takes time to build a real estate business. In my opinion, the best way to start out is by joining a team. The downside of this is you will be giving a large portion of your commission earnings to both the company and team leader but I believe this is worth it for most people due to the invaluable experience you will gain. Becoming a part of a large team will provide you with leads, open houses to sit and meet your own buyers or nosy neighbors who may become your sellers, an experienced professional to personally walk you through all the steps and answer your questions as they arise, and so much more.

The third basic thing you must do, in my opinion, is get out of the team after you have gained about 12 months worth of experience. If you want to build a business that is highly profitable in real estate you need to begin building a network around your name and your brand - not someone else's team. I personally know many Realtors who after being in the business for 20 years do very little prospecting work because they have so many referrals coming their way. The number one key is to keep in touch with everyone you buy or sell a home with. Start building the database and stick with them. And for the first 5 years after no longer working on a team - invest money on building your brand through various forms of advertising (I may cover this in a later post). You also will want to give some thought to the company you choose to build this brand with as hopping around from franchise to franchise will hinder your ability to build a brand with everyone (I may also cover Real Estate Company options in a later post).

The last basic thing you must understand is that being a real estate agent is not for everybody. It will take some mental ability to initially study and focus enough to pass the state exam(s) and then ongoing continual education (CE). It will take the ability to learn from other people following their instructions that may take you outside your comfort zone. It will take patience to build your business (don't expect to make more than $25K your first year). It will take the type of personality that can be rejected 100 times and still get back up and ask someone to sign for the listing. It will take a marketable personality. And last, it will take self-discipline. If you follow my advise you will have someone holding your hand the first year but after that you must be self-disciplined enough to get your butt out of bed and busy working each day. No one will hold your hand. No one will spoon feed you leads. No one will cause you to succeed except yourself. But if you follow good coaching and the advise I can give - the earning potential is quite literally unlimited!

After you have seriously considered my first four points and determined that you still want to dedicate yourself to becoming a real estate agent - the next steps are really quite simple.

1. In Illinois you must take 90 hours of course work from a state certified school. Here is a list of schools you can choose from (https://www.idfpr.com/DRE/Education/RECESCH.pdf). 75 of these hours can basically be done as self study while 15 of them must be live interactive with a teacher (in person or via webinar). Prices for this course vary from school to school and range from $500-$749.

2. After you have passed the class you must pass a two-part examination. This is that state's test (IDFPR) but is given and processed by AMP. During this examination, in addition to all of the questions covering the material you have studied, you will also be asked basic questions about yourself to see if you qualify. In order to be a normal licensed real estate agent in Illinois you must be 21 or older, have a high school diploma or GED equivalent, have a social security number, and be of good moral and ethical character. If you have outstanding child support, for example, do not expect to be able to get (or keep) your license.

3. Once you have passed the state exams you will take the three papers they give you plus a score report from your school (showing you completed 90 hours) to the managing broker you have chosen to sponsor you (you will learn all about this when you study for the test). The managing broker who sponsors you will fill out the 45 day permit and mail the instruction sheet, original score report/license application signed and dated, real estate transcripts with school seal, 45-day permit sponsor card signed and dated, and $125 to AMP for processing (most companies will require you to pay this $125). Along with signing up with a sponsoring broker you will also need to sign an employment contract of some kind (most real estate agents in Illinois are independent contractors) between you and the company outlining the terms of your commission split, fees to pay, among many other things.

4. Once the 45-day permit has been signed by the managing broker you are legally ready to begin working immediately. Keep in mind, however, you will also be required to sign up with a local board connecting you to the MLS if the company is a member with them. If you plan to help clients buy and sell real estate in Illinois be prepared to pay over $1K each year just to belong to the Board, MLS, IAR, NAR, and Sentrilock.

This is designed to be a very brief overview that summarizes the process for obtaining a real estate agent's license in the state of Illinois. If you would like further information about companies, splits, common practices, foreclosures, the current market or anything else in the real estate industry please ask in the comments below and give myself an Upvote. Based upon the responses I get, I may begin writing more articles to let you know the answers to whatever questions you have regarding either factual HOW TO's or my subjective opinions about choices agents need to make based upon all the facts I know.