Becoming a Real Estate agent to invest
New to Real Estate · Maple Valley Washington · Member since 2020 · 18 posts · 18 votes
Becoming a Real Estate agent to invest
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Realtor · Albuquerque, NM · Member since 2014 · 109 posts · 79 votes
3yHello @Connor Campbell
Making money part time as a real estate agent is tough and as mentioned by @Martin Smith, the cost to be a real estate agent are expensive, and you have the same expense every year. The continuing education in NM is takes a fair amount of time and money. There are many ways to make money as a side hustle.
In order to make money for a down payment, I recommend looking at your existing job. Is there opportunity for overtime? Promotion? Other stuff? If no, there are plenty of jobs for anyone that wants to work. Find opportunites that will provide guaranteed income. Real Estate agents are guaranteed nothing in terms of pay. Most real estate agents don't make it 5 years, and many don't make it one year.
I am an agent and an investor and find properties for myself to invest. However, I had cash to invest when I got my license.
There are some great recommendations on this thread.
6 Replies
- Real Estate Agent · Member since 2022 · 88 posts · 23 votes3y
Hey Connor, my name is Leona; I am LA Realtor, it's a good idea, but it depends on time. To get a license, it takes from 4-6 months.
If you have any questions, Pl feels free to contact me.
- Realtor · Washington, DC · Member since 2020 · 29 posts · 27 votes3y
Connor, congrats on wanting to get started! I'm not familiar with the specifics of your particular state, but if you are interested in a side hustle that might help you learn the industry while also generating some additional cash, I'd strongly recommend looking into what is required to become a home inspector in your state. A real estate sales license is great in many ways (I have three of them!), but it can become VERY expensive, very quickly - pre-licensing courses, exam fees, license fees, local MLS dues, NAR dues, mandatory errors and omissions insurance premiums, buying SentriLock boxes, accounting (since you're self-employed), advertising... the costs get into the thousands of dollars, very fast.
And those costs keep coming year after year, every year, forever. It can be well worth it if you plan to USE the license actively, and you will also learn a great deal about how the industry works. But if you're only part-time, the expenses can eat up all your profits quickly. But, in some states, the licensing and ongoing costs to be a home inspector can be considerably less. And, you'll obviously learn a great deal about what to look for and what to avoid in your own properties if you do that for a while, plus, unlike a sales license, it's a much more straightforward transaction. You get hired to do an inspection, you show up, do it, write your report, collect your check, and go home. As a realtor, you may work with a client for months and end up with nothing to show for it, through no fault of your own, or even theirs. Now, the flip side of that is that nobody is going to call you out of the blue and ask you to take on an inspection that's going to generate a five-figure commission. Some people like the possibility of a big check every now and again. Other people prefer more frequent and reliable, but smaller, checks. I'd encourage you to research and consider both options - they're both potentially helpful in different ways.
- Investor · Boulder, CO · Member since 2017 · 304 posts · 347 votes3y
@Connor Campbell hello :) I'd say invest in some education about investing first. Investing is not the same as retail sales. I'm an investor who has her license and the license has been good to me but my investing background is the backbone of my 100% referral only real estate business. True investors want their agents to know investing in and out. The best way to do that is to invest yourself. Look at the poll on the forum home. Plus my cashflow from investing is what makes my life super fun :)
Look into wholesaling - hands down the fastest way to get started. Especially if you have a 9-5. There is so much info here on BP. Take a deep dive (you can search up on the right with the little magnifying glass). And If after you search, you still have questions. Let me know. Happy to help you get started.
Oh one other thing, look for a local REIA to join. You'll meet all kinds;)
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
It's what I did, through your search for deals you are going to have so many opportunities to represent clients and make 3% on all your transactions
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Connor Campbell:
"He who represents himself has a fool for a client."
A license gains access to the MLS and you can maybe save some money on transaction by not paying commissions, but how well can you represent yourself? You have no experience, little knowledge of contract law, weak negotiation skills, and you'll be emotionally tied to each deal and unable to maintain an objective viewpoint.
I recommend you focus on finding the deals and use a highly skilled REALTOR to cross-check your work, handle negotiations, etc. A good agent is worth the price.
The DIY Landlord Book4.7248 Reviews - Realtor · Albuquerque, NM · Member since 2014 · 109 posts · 79 votes3y
Hello @Connor Campbell
Making money part time as a real estate agent is tough and as mentioned by @Martin Smith, the cost to be a real estate agent are expensive, and you have the same expense every year. The continuing education in NM is takes a fair amount of time and money. There are many ways to make money as a side hustle.
In order to make money for a down payment, I recommend looking at your existing job. Is there opportunity for overtime? Promotion? Other stuff? If no, there are plenty of jobs for anyone that wants to work. Find opportunites that will provide guaranteed income. Real Estate agents are guaranteed nothing in terms of pay. Most real estate agents don't make it 5 years, and many don't make it one year.
I am an agent and an investor and find properties for myself to invest. However, I had cash to invest when I got my license.
There are some great recommendations on this thread.
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