I am about to take my real estate test to become a sales agent but I am also very interested in getting into real estate investing as well. What are the pros and cons of practicing real estate as an agent and doing real estate investment at the same time?
I feel like I will learn a lot from being a sales agent but will be more successful as an investor.
Hi jonny
The 2 have nothing in common. The sales person is just that…a sales person. You do transactions. You will do any transaction that makes money for you. The investor is evaluating the house for income potential. The plus is that you get access to MLS the minus is disclosure. If you sold a house that was “defective” being a real estate professional it may be argued that you should have known of the defect and disclosed that fact to the buyer.
If you notice in your agent training there is nothing taught about how to make money in real estate. You are taught about rules of agency, a few terms and how to do the transactions. As an investor none of that applies.
Thank you for your comment. That is the realistic conclusion that I was going back and forth with in my head. Thank you again.
There must be some benefits though, some way to capitalize being a real estate agent and an investor. well, if there is not I am in trouble because I am about to dive into both of these aspects of real estate. I will either find a way to marry these two or fail trying.
I guess I should ask only for the optimists view on how I can be successful in this crazy venture, because I can’t help but do both right now. real estate seems to be the first way of making money that I have ever had a passion for, and I am 29 years old. I have 50K in college debt and no desire to work in environmental science anymore.
OK screw it, here’s whats going on. I have always been interested in real estate. about eight months ago I was laid off from my job as an environmental technician. I was relocated to California and traveling all the time, didn’t really like my job. So I moved back to Ohio and my mother is diagnosed with terminal cancer. she now wants to buy me a house with 70K of here retirement money, but I am so broke right now that I don’t want to consider owning a house to live in. (taxes, utilities, repairs, ect.) Also, my sister and child are on hard times right now so my mother would like to give her a place to live for free until she get’s on her feet. My options are to by a duplex or triple to be able to pay for the house. So I will be getting into real estate investments very soon!!
On the real estate sales side; I have been sponsored by a real estate agent to get my license and work under him for a 50/50 split. He provides all expenses paid plus advertising and mentoring. Oh yes, I am getting into real estate one way or the other, I just don’t know what the ^%$$# I am doing yet, and who will be screwing me in my infancy.
Any advice I will take gratefully.
Thanks,
Jon
OK, so my problem right now is that I am about to be given $70K to buy an investment property. The stipulation is that my sister will be living in one unit. I have looked on all the local websites at multi-unit homes and need some advice on how to get the best deal with having $70K cash to put down.
Auctions, Bank owned, go to owners and ask if they want to sell, I don’t really know where to start or what approach to take. This is the only time in my life that I will ever have 70 thousand dollars given to me, so I really want to make a good decision here to start me off in my investing future.
Thanks,
Jon
if it where me i wouldn’t put the entire 70k into your house if you are broke and you don’t have to. i would put as little down as i could. things go wrong in life and it is a must to have cash as long as you can refrain from blowing it. what type of investing are you wanting to do? is your sponsor an investor? find a broker that does investing as well.
jonny,
Yes, you can be a real estate investor and agent as well. I have been and done both and now I am just an investor and business owner.
The advantages of being a real estate agent are that you will learn the business of buying and selling real estate. My advice is to take every free class offered and constantly upgrade and work for those credentials–broker, CRS, CRI, etc. Invest in yourself.
The second advantage is that you don’t have to look for good deals anymore–they will fall into your lap. You will start to know the market in certain areas so well that you will recognize a good buy the second it hits your desk. If you’re smart, that’s when you grab your keys and are the first one out the door to go look at it.
The disadvantage is that yes, you must disclose your superior knowledge as a licensee. I remember putting in an offer, “Seller to be aware that this price is below the current market value, and buyer is a real estate licensee”. Treat people right and you will be alright. That seller took the offer anyway.
The biggest advantage of all is that IF YOU LOVE WHAT YOU ARE DOING YOUR CHANCES OF SUCCESS ARE WAY HIGHER. If you are a drone just working for a paycheck, and yes, we have all had to do that–your heart just ain’t in it. Put your heart into a job you love, it’ll be happier.
Furnishedowner
Wrong. I don’t love real estate, I love money. Real estate is about passive income not working. Real estate is the only thing I found that gives me money without me working. I can then do what I love. Sailing, golfing, etc.
Thank you furnishedowner, that was very helpful. I will take your advice to the bank.