I just purchased my first property in August and I am currently doing a house hack. I live in in the Jackson Hole, Wy area and housing is very expensive and appreciating quickly. Is it worth pursuing my license to be my own agent in future to take advantage of the rising prices and use the commission in my favor to negotiate future properties?
@Joe Dvorak Yes, it is! The main reason I got my license was to save on my own real estate purchases. The savings alone is worth it but it turned in to so much more after I got it! Take the plunge, you’ll be glad you did!
Being a real estate agent is a full-time job and it takes a lot of commitment and hard work. You have to put 110%, especially at the start of your career, if you want to succeed. You also have to understand that you won't make money on day 1 on the job. It is commission based and it might take you a while to close your first deal, so make sure you have the finances in place to cover that period of time. I would recommend reading David Green's new book "Sold - Every Real Estate agent's guide to building a profitable business" and see if that's something you see yourself doing. I believe David said that about 80% of real estate agents quit within their first year. So it's not as easy and lavish as it might seem! But if you get a good mentor and the right person to guide you, you can be very successful!
@Joe Dvorak I like the idea. Having my license has saved me tens of thousands of dollars in the form of commission on the properties I closed on for myself. Along the way I have helped friends and family buy real estate before I had the intentions of going full time as and agent. Now I help great clients find amazing properties in North New Jersey... I think your on the right track.
@Joe Dvorak I did a house hack on my first multi-fam deal back in June 2019 and went through the same thoughts you did. I ended up getting my real estate license this past summer and it's been great. Besides saving commission money on the front and back end by being your own listing agent as well as buyer's agent, it also helps to build your network, give you additional resources you can use in your investing career, and, maybe most importantly in my opinion, you get more real estate reps going through transactions with real clients.
I do not necessarily agree with some of the responses. I do agree with @Tina Tsysh response about it being hard work. I have done this, and the first question you need to ask yourself in my opinion is: Do you want to be a realtor? I think you need to want to do that as a career just as much or maybe much more than being a real estate investor. If that is the case, then 1st be a Realtor, 2nd be an investor on the side. Otherwise, the effort, cost and litigation exposure that being an agent imposes on you when you're really wanting to be an investor is not worth it.
Best of luck to you.