Texas Real Estate License Tips

If you are a Texas resident and have any interest at all in getting a Texas real estate license, then you are exactly where I was just a few short years ago. Now if you were like me, you want to be able to drive your real estate costs down while simultaneously creating more agility, or ease of operation in your real estate business (I’ll explain more about this in a minute).

First, let’s talk about the costs. Now it will cost some money to take all of the pre-qualified Texas real estate license courses, and there are some application fees, etc. But I want to focus on just one thing – if you can push one real estate deal through after you get your license, you will very likely make all your upfront costs back, and then some.

Let’s take an example. Let’s say your first deal was a $150,000 home. Not a massive deal, but let’s say that you have to split the commission between another agent, and your broker. So that might be 50% of 50% of 6%, which would be 1.5% in a final commission to you.

That would still end up making you $2,250!

Not bad for your first deal, and way more than its going to cost you to get your Texas real estate license. But not only will you make that money, but you can also write off your education costs and fees from your federal income taxes! It’s a really great situation.

Now, to other part I mentioned, about having agility, or ease of operation in your real estate business. You see there is one thing about being a real estate agent that other professionals do not get, and that is access to the MLS (multiple listing service). This access is exclusive to real estate agents and brokers, and is the medium for advertising among your local real estate community.

When you become an agent, you’ll have the opportunity to get instant access to the MLS, and you’ll be able to search properties, run market value comparisons, and generally know who is selling what in your area, usually at the click of a mouse!

So because I was primarily focused in real estate investing, the attraction of being able to cut my costs as much as 4.5%+ in some cases, coupled with instant access to who’s selling what via the Internet, was more than I could resist. I had to get my Texas real estate license.

And I encourage you to do the same!

So I wanted to give you the short list of exactly what TREC (Texas Real Estate Commission) requires of you before you can get your Texas real estate license. Before I show these requirements, just remember that once you get through the initial licensing, you really have a great chance to make a solid living, and the continuing education and renewals is nothing like getting licensed initially. So here we go, here are the Texas real estate license requirements.

The general requirements are that you must be 18 years old, a legal resident of Texas, and a citizen or lawfully admitted alien of the United States.

That part’s easy, huh?

OK. On to the specific requirements:

1. Education

1. Principles of Real Estate core real estate course (60 classroom hours)
2. Law of Agency core real estate course (30 classroom hours)
3. Law of Contracts core real estate course (30 classroom hours)
4. An additional core real estate course (30 classroom hours)
5. Another four semester (60 classroom hours) in core courses or in related courses acceptable to TREC.

This accounts for a total of 210 classroom hours. Now, if you already have college credit in courses acceptable to TREC, you are eligible to be exempt from the “other” 60 hours mentioned in #5 above. Just send in your transcript with the appropriate application, and they’ll review it, and let you know if it qualifies.

Don’t be overwhelmed! You can quickly go step by step through the Texas real estate license courses if you stay focused, and take it one step at a time.

2. Submit Your Education Documents for Evaluation

Once you have completed the coursework, you’ll need to fill out a Request for Evaluation of Education Documents. There is a $30 fee for this, and you’ll need to wait at least 10 business days before contacting TREC to go on to step 3.

3. File Your Application for Inactive Salesperson License

At this point, you can apply and pay for your Inactive Salesperson License online. There is a filing fee of $97 plus a recovery fee of $10 (don’t know what this fee is for, but it’s required) in order to do this. Make sure you have all your education requirements done and approved by TREC before you do this step.

4. Taking and Passing The Exam

Once your application has been approved by TREC, they’ll notify you and you can setup a testing date with PSI. At this point, you’ll have 6 months to successful complete the exam. Once you have passed the exam, there’s just a couple more things…

5. Get Fingerprinted

I know, I know, I hate it too. But it’s there requirements. Here’s what you need to do to fulfill the fingerprint requirement. And lastly…

6. Find and Work a Deal With a Sponsoring Broker

All real estate salespersons must be sponsored by a licensed Texas real estate broker. So get the form, find and work a split with a local broker, fill out and return the form, wait until TREC shows your license as active, and then get started making money!

*Note: TREC does background investigations, and may deny your license for a variety of reasons, including, but not limited to non-payment of a Texas guaranteed student loan. So be sure to take care of that stuff!

So there you have it, the Texas real estate license requirements in a nutshell. Let me know if you need more help…

With regard to whether it is possible to get a Texas real estate license online, the short is, absolutely YES! However, there is application process with TREC (Texas Real Estate Commission), and you have to go in for your final exam, and get your fingerprints taken (I hate that part) before you can actually become licensed. So it cannot be totally, 100% completed online, but you can do the toughest part of it online – completing your Texas real estate pre-licensing courses.

Getting your prerequisites done online is definitely not a scam, if you use the right service. Online Texas real estate pre-licensing services like Real Estate Express have been in business a long time, they are TREC approved, and offer a great way for you to complete your pre-licensing requirements from the comfort of your home, and on your schedule.

You can do the coursework at night, on the weekends, or during the day if you wish. When I was doing my pre-license coursework, I did mine at night after work. I crunched and crunched, and got it all done in a just a month or two. What a satisfying feeling it is to get through 150 hours (I had some college hours, so I didn’t have to take the full 210 hours) just on nights and weekends in just a month or two’s time.

And when I took the test, I passed it the first time! Many people said it was really hard, and no way you could pass it on the first try, but if you go through the coursework diligently, and study hard, you can pass it on the first try. So don’t get discouraged, just put your head down, go through the coursework, and schedule test soon after you finish the pre-licensing work. The longer you wait, the more information you will forget!

One more thing, you can take the courses by correspondence, and perhaps even in a classroom setting if you don’t have a computer, or you just aren’t in to the whole “online thing”. But since you’re here, you probably don’t mind computers, and are perfectly happy with getting as much of the Texas real estate licensing process done online as you possibly can.

I know I did!

So at this point, you have completed all of your Texas real estate pre-licensing courses, you’ve completed your application, paid for your fees, and have setup a date and time to take the final exam. OK, so now you have to pass the test, the pressure is on. I know you have to pay every time you take the test, so let me give you some tips so you have the best chance at passing the test the first time.

Here’s some encouragement. I am licensed Texas real estate agent and I passed the test on the FIRST TRY! A lot of people said it couldn’t be done, but you absolutely can pass it the first time!

Look, the test I took was standardized, and I’m sure it will be for you too. That means multiple choice. So let’s look at a few tips to get you passed:

• Get up early on the test day, and travel to the testing center will before the test starts. You don’t want to be stressed out trying to make it to the testing center on time!
• Take several deep breaths, and remember, you CAN do this.
• Find out how much time you have for the entire test, and how many questions are on the test. Then calculate how much time you have to answer each question.
• During the test, be aware of a question that is taking to long to answer. You can always answer it, jot down the question number, and come back to it later.
• Read each question all the way. Small words like “not” can completely change the meaning, and you don’t want to know the right answer, but still get the question wrong…
• Use deductive reasoning. Hey, if you can eliminate all but 2 possible right answers, then you have a 50/50 chance of getting it right!
• Here’s the most important, yet often overlooked tip I can give you. Answer EVERY question. An question unanswered is wrong 100% of the time, so be sure to answer everything, even if it is a flat out guess!

These are great test taking tips, and I encourage you to use them when taking your Texas real estate license exam. They WILL help you. Remember, I passed the test on the first attempt, and you can too! So best of luck, and let me know when you become a licensed Texas real estate agent!