Help! Where Do I Start?

Question

Hello Bigger Pockets members,

I hope this message receives you all well.  Briefly, I work in an accounting setting, but want to transition to a career in real estate investment/development within the next year.  I've listened to the podcast, read blogs and forums, and searched online resources, but I'm stuck and don't know where or how to dive in.  My questions are as follows.  Please advise.

(1) Should I get a real estate license?

Note that I am planning on moving out of state next spring (Spring 2018).  So, if I do get my license, should I wait to get it in the state to which I move (Pennsylvania)?  Should I do it now (in New York) and then again when I move?  If I do it now, can I work as an agent part-time while keeping my full time job?

(2) Whether or not I get a real estate license, should I look for an entry level position at a real estate investment firm and work my way up the ladder, network, and perhaps personally invest on the side?

(3) Are there any other options worth looking into?  I am open to any and all suggestions.

Thanks everyone!

Shawn Ginder · Answer

If you want to invest in real estate, you don't need a license to do that. Go back to your goals, you can start investing build up cashflow, gain experience, learn as much as you can while you invest. Becoming an investor doesn't require a license. We have bought 5 properties and have no license, sellers in PA will normally pay the realtor fees, so you don't gain having a license vs. not as you buy investment properties. That's my thoughts.

Anthony Angotti · Answer

Hi @Andreana Gallagher

Only get your license if you plan on working with people as an agent and/or plan on doing multiple flips per year. Just run the numbers on savings vs cost of getting it. If you use it only for yourself I would forgo becoming a realtor and just get the license. Also, I would get the license for the state you are moving to.

In any event feel free to message me and I can answer what I can.

Marc Izquierdo · Answer

@Andreana Gallagher

I was recently in this dilemma also.  It depends on your goals, your time, and your current investing knowledge.  The below video helped me decide how I want to approach my license.

The video discusses this more but, as a new investor, your time learning how to invest is very valuable.  You can become a successful investor without your license but I don't think you can become a successful investor with only your license (no investment knowledge).  My approach is to use my time actually investing (the license takes a lot of time dedication - and money) and learning more about investing.  Once my business gets rolling and I have some income, re-invest some of that income into getting my license.

Take a look.  Hopefully it helps you as it did me.

https://www.youtube.com/watch?v=7vS9basu8uc

Chris K. · Answer

@Andreana Gallagher

1. It depends on what you want to do with it. Do note that as a salesperson, you will need to be under the supervision of a broker or a brokerage. If you want to be a part-time agent and be an investor, you want to make sure that you and your brokerage is the right fit. There can be a lot of drama in that world. :)

2. What kind of investment firm do you have in mind? Some firms are big enough that you are basically working for a large corporation. And depending on the position, you may end up learning nothing substantial about real estate. If you want to pursue this idea, one possibility is to focus on a specific area of real-estate and try to find a position that would help you learn more.

3. There are hundreds of ways for people can get involved in real estate. And many skills that you don't necessarily think of as "real estate" skills can translate well. For example, I have many friends who ended up becoming freelance consultants and many of them work with real-estate investors. For example, one of my consulting friends has a coding/IT background and has used that skill to really expand his network and increase his earnings.

Not sure what your exact skills are, but you probably have some kind of skill that you are better at than 85% to 90% of the population. You may want to start there when thinking about your future plans.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

Chris K. · Answer

@Andreana Gallagher

1. It depends on what you want to do with it. Do note that as a salesperson, you will need to be under the supervision of a broker or a brokerage. If you want to be a part-time agent and be an investor, you want to make sure that you and your brokerage has the right fit.

2. What kind of investment firm do you have in mind? Some firms are big enough that you are basically working for a large corporation. And depending on the position, you may end up learning nothing substantial about real estate. If you want to pursue this idea, one possibility is to focus on a specific area of real-estate and try to find a position that would help you learn more.

3. There are hundreds of ways for people can get involved in real estate. And many skills that you don't necessarily think of as "real estate" skills can translate well. For example, I have many friends who ended up becoming freelance consultants and many of them work with real-estate investors. For example, one of my consulting friends has a coding/IT background and has used that skill to really expand his network and increase his earnings.

Not sure what your exact skills are, but you probably have some kind of skill that you are better at than 85% to 90% of the population. You may want to start there when thinking about your future plans.

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it as legal advice. Always consult with your attorney before you rely on the above information.

DJ Cummins · Answer

Hello @Andreana Gallagher,

i have looked into getting my license part time, even bought the books, but didnt go thru with it.  Basically, if i would have sold 1 house per month, i would break even.  There are quite a bit of monthly costs.  I decided against adding pressure on myself.

As far a a career, i would say do what makes you happy.  If you are "over" accounting, go for it!  If you are going to do something 40 hours per week, do something you love!

Good luck!

DJ