Is being an agent a good path to investing? (21 year old)

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Is being an agent a good path to investing? (21 year old)

Don Bingham
Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes

I'm 21 and I have started and managed a mobile application called "Aurafy" for 3 years now. I have also been trading equities for two years now. I've made good money in that time however I've always wanted to end up as a real estate investor, particularly commercial real estate. I'm very close to being licensed and have set up a six month real estate job for next semester. I am structuring it as an internship as I need those credits to graduate but it will be closer to a regular job. I'm going to learn how to build a potential client database, send newsletters, build my funnel, market and show properties, negotiate deals, etc. My mentor's goal is to have me close two deals by the time the job ends in June, 2020. After that I plan to get another agent job at a larger broker in San Diego where I'm from.

I'm curious if you think this is a viable path towards eventually becoming an investor? I have a very good sum of money to invest with when the time is right (hopefully in the next 3-4 years) but I don't want to waste my time as an agent if I won't be learning things that will help me invest.

I know being an agent will cut my commission expenses as an investor and help me build capital in the mean time, but I'm more hoping that it will teach me fundamentals of finding a profitable investment.

What do you guys think? 

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Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
7y

I took that path.  It got me into the market deeper, it is a job that is flexible, and if you're good at it, you'll might make more than your regular job.   But this is a sales job that is compensated by commissions.  Most new Realtors take some time before they make a living.  

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  • Jon Schoeller
    Flipper/Rehabber · Charleston, WV · Member since 2016 · 172 posts · 126 votes
    7y

    Hello Don! I think it's a great idea if you WANT to be a realtor. If you like sales and dealing with the public. Just know that it's not requirement nor does it doesn't necessarily increase or decrease your chances of success as an investor. It's all about what you put it into it and get out of it. It can help you learn the market and establish relationships that you would have never formed otherwise. I think either being a realtor or wholesaling are two great ways to get started in this business without a ton of capital. I say go for it if it is what you truly want to do. Good luck! 

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  • Robert Comstock
    Member since 2018 · 138 posts · 56 votes
    7y

    from the info you gave....i dont think you have spent enough time flushing out your goals.  a job is a method to build a skill set...what skills do you need to get what you want?

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  • Don Bingham
    OP
    Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    7y
    Originally posted by @Jon Schoeller:

    Hello Don! I think it's a great idea if you WANT to be a realtor. If you like sales and dealing with the public. Just know that it's not requirement nor does it doesn't necessarily increase or decrease your chances of success as an investor. It's all about what you put it into it and get out of it. It can help you learn the market and establish relationships that you would have never formed otherwise. I think either being a realtor or wholesaling are two great ways to get started in this business without a ton of capital. I say go for it if it is what you truly want to do. Good luck! 

    Thank you John! I do want to be a realtor in the mean time. I've always been infatuated with houses, buildings, architecture etc. so I think I will get a lot of enjoyment out of it while I'm learning about real estate. The capital I can raise while being a realtor and saving/investing in the stock market is very attractive too. Thanks again for your input.

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  • Don Bingham
    OP
    Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    7y
    Originally posted by @Robert Comstock:

    from the info you gave....i dont think you have spent enough time flushing out your goals.  a job is a method to build a skill set...what skills do you need to get what you want?

    Thanks for the reply Robert. My goal has always been to be an entrepreneur. Since I was a child that's what I have wanted, I hate the idea of working to make someone else wealthy. However I want to learn how to properly analyze markets, flush out deals, find investment properties, etc. I think this is a good path towards this. I think I have strong sales capacity already but I think this will just strengthen it more. 

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  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    I took that path.  It got me into the market deeper, it is a job that is flexible, and if you're good at it, you'll might make more than your regular job.   But this is a sales job that is compensated by commissions.  Most new Realtors take some time before they make a living.  

    1Reply
  • Bruce May
    Lender · San Diego, CA · Member since 2011 · 664 posts · 231 votes
    7y

    I know several Realtors that are investors and manage both very well. I think it's a good idea and will probably expose you to good investment deals before others see them.

    1Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    7y

    As a real estate investor, having a real estate license opens up many more doors for you, more opportunities, and more income. That said, do you want to be a realtor or an investor? If an investor, learning the agency ropes is great for experience and knowledge to make you a better investor but you won’t necessarily be building a funnel of buyer/seller leads once you get the investment side going, you should be shoving investment opportunities into the funnel. The agency fees I get from representing myself at purchase, at exit, referral fees, etc are bonus income within my strategies and have created many more opportunities for me than prior to a license.

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  • Don Bingham
    OP
    Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    7y
    Originally posted by @Will Barnard:

    As a real estate investor, having a real estate license opens up many more doors for you, more opportunities, and more income. That said, do you want to be a realtor or an investor? If an investor, learning the agency ropes is great for experience and knowledge to make you a better investor but you won’t necessarily be building a funnel of buyer/seller leads once you get the investment side going, you should be shoving investment opportunities into the funnel. The agency fees I get from representing myself at purchase, at exit, referral fees, etc are bonus income within my strategies and have created many more opportunities for me than prior to a license.

    Thank you very much Will! I definitely plan to be an investor but not until I have deep understanding of real estate and the market that I will be in (San Diego). This is why I think being an agent would be a good path for me to take. 

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  • Don Bingham
    OP
    Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    7y
    Originally posted by @Bruce May:

    I know several Realtors that are investors and manage both very well. I think it's a good idea and will probably expose you to good investment deals before others see them.

    Thank you Bruce, I appreciate the feedback. I agree, I plan on doing multifamily and commercial investments in San Diego (and throughout SoCal) and I will be an agent in Orange County and San Diego so I do think I will be exposed to investments before others.

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  • Don Bingham
    OP
    Developer · San Diego, CA · Member since 2015 · 13 posts · 4 votes
    7y
    Originally posted by @Brian Ploszay:

    I took that path.  It got me into the market deeper, it is a job that is flexible, and if you're good at it, you'll might make more than your regular job.   But this is a sales job that is compensated by commissions.  Most new Realtors take some time before they make a living.  

    Noted, thank you. I think that it is something I will be very good at, definitely should make me more than the average entry level job in my area ($30-40k). 

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