What Real Estate Companies Pay for Your License

You have decided. You are going to become a real estate agent. But the closer you get to realizing your dream, the clearer it becomes; your savings are not enough.

Some real estate companies help with licensing education, but the payment arrangements differ. Keller Williams’ KSCORE advertises eligible Kaplan prelicensing education at no cost, while Edina Realty advertises conditional tuition reimbursement for new agents. Check the written terms before you enroll.

Education assistance does not automatically cover every cost of getting licensed. Ask specifically about application, exam, background-check and license fees, as well as course materials and retakes.

These programs are designed mainly for the real estate agent license.

Company sales training and state-approved licensing education are different. Before counting any brokerage course toward licensing or continuing education, check that the course is approved for your state.

In this article, I’ll share which major national and regional brokerages offer deals to fund your pre-licensing education, the pros and cons to consider, and alternative routes to cover costs if company sponsorship isn’t right for you. Reading this guide will provide valuable insights to help you make the best decision when planning how to pay for your new real estate career.

Edina Realty

Edina Realty offers a path into real estate in Minnesota and Wisconsin, including education support for new agents.

Its current offer is worth reading closely because reimbursement comes after qualifying activity.

On its careers page, Edina Realty says new agents can earn back the full cost of licensing education when they complete transactions within six months of joining. That is a conditional reimbursement offer, so you may still need money upfront.

They support students in the Minnesota and Wisconsin areas. To learn more about how they help aspiring agents, visit their website or sign up for an information session.

Edina Realty Eligibility Criteria

Ask an Edina Realty manager for the current written eligibility and reimbursement terms. The public page does not spell out every condition.

• Which courses and expenses qualify?
• How many qualifying transactions must you complete within six months?
• When is reimbursement paid?
• Does leaving the company trigger any repayment obligation?

Keller Williams Realty

Founded in 1983 by Gary Keller and Joe Williams, Keller Williams offers licensing-education support through KSCORE.

The company is still headquartered in Austin but now has offices on almost every continent, spanning from Asia to Europe, South to North America, and Africa.

KSCORE advertises self-paced online prelicensing education provided by Kaplan Real Estate Education at no cost to eligible participants. Kaplan is the state-approved education provider; Keller Williams is not the provider of the licensing course.

Confirm that the program covers your state and that you qualify before enrolling. Ask the participating office whether its offer includes any affiliation or repayment terms.

Free course access is not the same as a free license. Budget for any government, exam or other fees that the offer does not expressly cover.

Keller Williams Eligibility Criteria

Start with KSCORE’s enrollment process and confirm the current state-specific course availability.

Do not confuse the licensing course with KW Prep. KSCORE identifies KW Prep as business training that does not count toward prelicensing or continuing education credit.

Visit the KSCORE website to learn more about their programs.

How to Find a Real Estate Company that Pays for Licensing

The companies that assist with agent licensing don’t stop with these two. These have earned a place on our list because of their diverse programs.

But with some detective skills and a bit of commitment, you can unearth real estate companies that could help you cover your licensing costs.

As a licensed agent myself, I know how hectic licensing costs can get. So here are some of my unearthing skills; no shovels required:

Do Your Research

To find real estate companies that could cover your costs, you will have to dig beyond the surface. If you know any agents or brokers, reach out to them. Find out if their companies offer licensing sponsorship and to what extent.

Another research avenue is to contact a local broker whom you’d join after licensing and see if they’d consider paying for your license.

Review Different Training Programs

Training support is a useful question to ask, but it does not prove a brokerage will pay your licensing costs.

There are different real estate agencies that offer training programs to agents. Contact them to find out if they would be willing to pay for your license.

Drawbacks of Having a Real Estate Company Pay for Your License

Having a real estate company pay for your licensing is not all good news. There are some drawbacks to having a company pay for your license. You will have to weigh the pros and cons and decide if the route is worth it.

Give Up Some Control and Flexibility

Some offers require you to affiliate with the brokerage; others may have different conditions. Read the agreement instead of assuming every program works the same way.

Check for a minimum affiliation period, production deadline or repayment clause. If a condition is unclear, get it clarified in writing before accepting the assistance.

Include your plans for moving or changing brokerages when deciding whether an offer fits.

Accept Lower Commission Splits

Your agreement with a brokerage may include a commission split and additional fees. Compare those terms alongside the value of any education assistance.

A small tuition benefit may be outweighed by ongoing costs. Ask for a written example of what you would keep from a transaction after all applicable charges.

Alternatives to Company Sponsorship

 

If you don’t find the right company to sponsor you, it isn’t the end of your licensing journey. There are several licensure options you can explore:

Grants and Scholarships

Grants and scholarships can be a great way to fund your licensing costs. Many colleges, companies, and universities offer financial aid packages, including grants and scholarships, to cover tuition and materials for qualifying students.

While grants and scholarships can make studying more affordable, they are usually an option for those completing more extensive real estate programs like degrees, not standalone licensing courses. Still, for the right student, they can provide invaluable financial assistance at the start of their career.

The pros of grants and scholarships:

• They offer free money for school that doesn’t need to be repaid.
• They often provide enough money to cover various costs, not just licensing.

The main con of grants and scholarships:

• Scholarships and grants are highly competitive. Students will need to research options, meet eligibility criteria, and go through a lengthy application process for a chance at being awarded limited funds.

One good example is the Schurgin Family Foundation Scholarship offered by the International Council of Shopping Centers.

Personal Loans

Taking out a personal loan is another route that aspiring agents can use to cover the upfront costs of getting licensed. Personal loans provide a lump sum of money upfront that can be repaid over time in fixed monthly payments.

These offer a fast way to access money to jumpstart your licensing process. They can also help you cover all the licensing costs. But be sure to shop around for the best rates and terms, and only borrow what you need.

The main pros of personal loans:

• They provide immediate funds that can be used for any area of licensing education and exams.
• The application process is relatively quick and straightforward.
• It can also help you build a credit history as you make on-time payments.

The cons of personal loans:

• Loans accrue interest, so you end up paying more than the principal amount borrowed.
• Interest rates on personal loans are also high.
• You have a fixed monthly payment to make even if your real estate business doesn’t take off quickly.

Asking Family for Help

Whether asking parents, grandparents, siblings, or other relatives, family can potentially assist with some or all of the expenses involved in getting licensed.

The pros of seeking help from family:

• Family support may be a gift or a loan, depending on what you agree.
• You may be able to arrange flexible repayment terms.

The cons include:  

• It can strain family relationships if expectations are unclear or repayment issues arise.
• There may still be written agreements on repayment details.

With open communication, reasonable expectations, and respect, family funding can be a fantastic kickstart to your real estate career. But be sure to think through the pros and cons carefully before making the ask.

One Last

Real estate licensing is not only about pre-licensing education. When you embark on a real estate journey, you will have to consider the application fee, exam fee, background and fingerprinting costs, and license fee.

Whatever choice you make, ensure that you have considered all aspects. Pick the route that will help you cover everything without breaking the bank.

Start Your Licensing Journey

Keller Williams and Edina Realty both advertise help with licensing education, but their offers work differently. Compare free course access with conditional reimbursement, then check what you must pay upfront and what happens if you do not meet the terms.

When you embark on a real estate excursion, you will have to consider other fees such as the application fee, exam fee, background and fingerprinting costs, and license fee.

Whatever choice you make, know its implications for your career. Pick the route that is most favorable for you.

Next Steps:
If you’re considering becoming a real estate agent, here are some steps you can take:
1. Research companies that might sponsor your licensing course.
2. Understand the pros and cons of company sponsorship.
3. Explore alternatives such as scholarships, personal loans, or asking family for help.
4. Consider all costs of getting licensed – not just pre-licensing education.

We hope this guide has given you valuable insights into how to finance your journey into real estate! What other questions do you have about starting out in this industry? Share them below. We’d love to hear from you!

If any experienced agents are reading this post, we’d love to hear about how you funded your start in real estate, too!