In my opinion, the answer is simple: yes. I don’t really see any reason why becoming a real estate agent could harm you or your real estate endeavors. If I could turn back time, I actually wouldn’t mind going through the whole course, sitting in for the exam, and getting my license. A few things stand out for me where I can remember making mistakes and losing quite a bit of money, which might not have happened if I’d had my license.
Legal Issues & Compliance
The first way that becoming a real estate agent could help you in your investing business would be in the legals and compliance. There are a lot of things associated with putting together a contract, constructing a purchase agreement, or even selling a property that you definitely learn as a real estate agent. Unfortunately, you do need to have those book smarts or you’re going to be pretty raggedy like I was—writing bad purchase agreements and contracts. And once you put something on paper, you can’t really go back on it.
As far as compliance, you have to know what you are saying and how you are saying it. In Australia, we are very friendly and say a lot of things that may be received in a different way here in the states. We like to hug people and all kinds of stuff that doesn’t sit right here sometimes. So as a real estate agent, you can definitely learn important aspects of the real estate culture, especially the legal and compliance needed to do a successful job.
There are also logistical things that you would pick up immediately as a real estate agent—things like how to prospect for buyers, how to prospect for sellers, how to brand yourself, how to do marketing, how to do listing presentations, and how to come up with a description of a property. You’ll also learn better how to understand what a property is worth, how to do an appraisal or comparative market analysis, and how to go on to the MLS. I definitely think that those things are worth their weight in gold.
Real Estate Team
Last but not least, the most important thing is the team. What I mean by that is when you become a real estate agent, you are going to have to put your license under a broker or brokerage. Hopefully, you will have access to that broker because they will likely guide and mentor you. They will be someone who has been in the business for five, 10, or 15 years. So the wealth of knowledge and level of experience they have will be extremely valuable. They have gone through market cycles; experienced disgruntled buyers and sellers; and worked with financial institutions, lenders, appraisers, and building inspectors. So just imagine what they have to offer to you. Then you’re probably going to be working with other real estate agents who also have a certain level of experience. It’s kind of a match made in heaven. I say that because I’m a big believer in your network equalling your net worth. As an agent, you have people who can pick you up and take you with them. As a real estate investor, you are kind of on your own. I moved here by myself—I didn’t have much money, I didn’t know anyone. I had to meet people and it was pretty tough.
To summarize, I definitely think getting a real estate license and becoming a real estate agent can help you become a better real estate investor.
Do you agree? Disagree?
I’d love to hear your thoughts. If you have any comments, please comment below.