Is Becoming A Real Estate Agent A Good Thing When You Want To Invest In Real Estate?
There are so many different ways to become involved in real estate investing. You can go the traditional route with the loan mortgage payment, you can get an investor to help you, you can fully invest your own capital, and yes you can even go the real estate agent route. But, is becoming a real estate agent really the best and most viable option when your ultimate goal is to invest in real estate? While there seems to be many benefits to becoming an agent first, there can also be several drawbacks that most people aren’t even aware of. In this article we will cover the different pros and cons of becoming a real estate agent when trying to ultimately become an investor in real estate.
One advantage to becoming a real estate agent prior to becoming an investor, it is the experience that you can gain and the knowledge that you can learn that comes from being an agent. While all of this experience and knowledge can be invaluable, it doesn’t necessarily mean that it cannot be learned on your own. Granted, if you’re a real estate agent you may have greater flexibility when it comes to making a deal, because you cutout having to pay a real estate agent to help close a deal. However, you also have to take into consideration the costs that come from being a real estate agent.
Becoming a real estate agent is not cheap. In fact, it can become quite expensive. Which is often times the real link as to why a majority of agents don’t even make it long enough to renew their licenses after just 12 months. Before even becoming a real estate agent there are pre-licensing course fees, association dues, lockbox fees, continuing education costs, and more. Plus, that doesn’t even take into consideration all of the potential set up expenses including website, purchasing technology, business cards, new devices, signs, and other types of advertising. All of these things when added together can easily total over thousands of dollars.
Not to mention, there’s no guarantee of a paycheck. In fact, a majority of agents will wait anywhere from an average of 3 to 6 months before they even see their first commission check. And in between that time they are barely earning minimum wage. So, real estate agents have to really make a daily grind to get out there and sell, sell, sell.
So, is it really worth becoming a real estate agent instead of simply just going the route via investing? Well, while there are certainly upsides to straight up investing. Such as, being able to just put $5000 in and you’re able to see income right away. Whether that is through mortgage note investing, private lending, real estate crowd funding, or wholesaling properties. The choice really must be left up to each individual. No one can really say whether or not becoming a real estate agent first is a good or bad option. Instead, it must be a personal choice that is been made after one has done their due diligence in order to best understand what option is good for them.
Regardless of which option you choose, real estate investment can be a financially freeing experience. In fact, it truly is the real link to financial freedom and becoming one’s own boss. Again, you just have to do your due diligence, be willing to work hard, and understand how the real estate industry works. If you can do this, you can set yourself up for success in the future.