Should I start in property management or obtain my real estate license?

Question

Hello,

My name is Carissa Hendricks and I am so grateful to have found this community! I am finishing up How to Invest in Real Estate by Joshua Dorkin/Brandon Turner and would like to take another action step. My husband and I are interested in starting our investment journey, but we are not sure of the best avenue to do so. He currently works full time while I stay home with our 11 month old daughter. Recently, I have considered either returning to the workforce within a property management role for experience or obtaining my RE license. What advice or recommendations would you give to our family? I would also love to connect with any local investors to simply learn more. We live near the Savannah, GA area.

Nathan Gesner · Answer

Property Management is my personal recommendation.

1. You'll start earning a steady paycheck immediately.

2. You'll learn the ropes of managing investments well, which is a skill most investors never pick up.

3. You will learn which investments work best and perhaps start investing smarter than the average bear.

4. You will work with other investors and that may lead to deals.

Many states require you to hold a real estate license while operating as a property manager, which means you can be licensed to sell at the same time. My agents are all licensed and some of them increase their annual income by 50% or more by dabbling in sales. I earn $100,000+ as the Broker of my PM company, but I also earn $75,000+ from sales each year even though I only do it part-time.

Tanner Sherman · Answer

Yes, definitely state specific.

Joshua Austin · Answer

Hey Carissa. I too live in the Savannah area. In Georgia you have to be licensed to manage real estate as well. There is also a ton of other positions in the property management world that don't require a license. I started 7 years ago working part time at my friend's property management company in Savannah. I was doing all of the accounting with our management software Appfolio. I become amazed at the money I was sending to our clients every month and began to ask questions as to how I could get on the other side of the transaction. My broker Frank is an incredible teacher and mentor and I'm happy to say that I went from making $15 per hour then to now owning over $7 million in real estate with over 25 properties. None of that could have been accomplished had I not been connected with the property management company. I decided to get my license and do sales after a few years and just became addicted to buying houses and helping others do the same.

Tanner Sherman · Answer

As a real estate agent, I think he is shooting low with that 95%....

Tanner Sherman · Answer

This is a great question, but it is pretty much apples and oranges. I would start with Robert Kiyosaki's Cashflow Quadrant, and decide where you want to be. Being a leasing agent would be in the Employee quadrant, where as being a real estate agent is in the Self Employed Quadrant. Both have their own unique pros and cons, and both can help benefit your investing goals. I want to emphasize what others have said; you do not need a real estate license to be a successful real estate investor.

Alex Hormozi talks about finding your highest dollar producing activity and making the absolute most amount of money you possibly can, and investing as much as you can. I like the idea of working in the industry parallel to your investing, which can help you learn faster just through the osmosis of being around it every day.

You could also do both. Get a W2 as a leasing agent to learn that side of the business, then spend your nights going through schooling to get your license. When you get licensed, those two "jobs" could work synergistically to give you an upperhand in the other!

Hope this helps

Carissa H. · Answer

Thank you all again for the feedback and advice!! Every nugget of wisdom has been so helpful in making the best decision. I’m now leaning towards starting in property management while simultaneously studying for my license.

Alan Asriants · Answer

Getting property management experience would be great for you.

I don't think you need your license to get paid a salary.

If you are paid commissions from the properties you manage, then yes.

Should I start in property management or obtain my real estate license?

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