Should I become a realtor to gain experience in real-estate?

Question

I recently dropped out of college, as I felt I could find far better use of my time and money in today's world. After months of reading, listening, and watching, I have decided on real-estate investing. However, I currently have a job as a waiter, and I know that even if my investments go according to plan, they will not bear enough fruit in the short term for me to quit my job. This has led me to consider the possibility of becoming a real-estate agent, as I think it will allow me to get hands on in the industry, gain confidence with the process, become better at sales, network, have access to the MLS, and hopefully make more than I currently do. I am fairly personable and love the idea of having my pay being directly related by my work ethic. With that being said, I have a few questions for those of you that have experience in the industry:

1. The combined cost of the 60 hour course and test in Arkansas appears to be less than $500. Are there any hidden or recurring fees that I should know about?

2. Are there any issues that may arise from being a realtor and investor at the same time?

3. Are there other jobs in the industry that could pay my bills in the short term and give me experience that may be better than being a realtor?

4. Anything else I should know before going down that path?

Thank you!

1. The combined cost of the 60 hour course and test in Arkansas appears to be less than $500. Are there any hidden or recurring fees that I should know about?

2. Are there any issues that may arise from being a realtor and investor at the same time?

3. Are there other jobs in the industry that could pay my bills in the short term and give me experience that may be better than being a realtor?

4. Anything else I should know before going down that path?

Thank you!

Jonathan Greene · Answer

You can do it, but you are putting the cart before the horse on all of this. You just dropped out of college and are waiting tables so your investing trajectory is not in the near term unless you have some savings or inheritance. Both of the things you want to do in addition to waiting are commission-based and capital-based, so where is the extra income going to come from while you learn about both? Being an agent can be very lucrative for a young hustler who joins an experienced real estate team and takes all the coaching and training, but being an agent is also WAY more work than most think. Only 5% are even remotely successful. If you want to invest, you need money so I would be looking for more of a steady salary job before pursuing either of these so you know you can clock in and clock out and get paid and start saving and then consider both options while you learn about investing and attend meetups.

Ricky Davis · Answer

NO, you do not need to become a realtor to know real estate!!

Dave Poeppelmeier · Answer

@Ashton Patterson I will echo the above statements in that you do not need to be a Realtor to know Real Estate. However, being a Realtor give you a LOT more opportunity at making income than waiting tables. However, you really need to dedicate yourself to being a Realtor if you're going to do it. You can be a Realtor part-time if you have a 9-5 desk job or a part time job, but waiting tables I would imagine you're working a lot when people want to see houses, so I doubt that would work very well. The bar is not very high to become licensed, so you take your class and pass your test. But then, as David Greene will tell you in that podcast, you have to find a brokerage that is the right fit for you, you need to find a mentor or just read and study your rear off, etc. BUT, if you can make the transition, the contacts, income, and resources you will find as a Realtor are invaluable to yourself as an INVESTOR down the road. Just make sure this is what you want to do 100%, and give it everything you have. Good luck!

Billy Daniel · Answer

Make sure you shop around to the various brokerages and ask those questions. When we lived up there, we liked Lindsey quite a bit. Never really had much experience with any of the others. It's a big step, but don't get suckered into thinking that agents only "open doors". @Grace Wang is right that there are a mountain of fees, commission splits, and other "hidden" costs that come with being a realtor. Those will vary based on your broker though.

Riley Sanders · Answer

You should listen to David Greene on Where Rookies Go Wrong When Looking for an agent. It’s on the Real Estate Rookie podcast, and in my opinion gives a great idea of how a realtors job is and if it’s the right thing for you.

Grace Wang · Answer

@Ashton Patterson hey here are my thoughts!

1. MLS fees, if you want to be a REALTOR you'll pay those fees, brokerage fees (depends for each brokerage). You'll spend a few thousand per year, but if you close 1 deal a year you should be able to earn those fees back through agent commissions

2. This isn't really an issue, but you need to disclose you're a licensed agent when submitting an offer for yourself. On our team we don't compete with clients on offers, so that could be another downside.

3. You could join a team that provides leads to their agents. Some states require licensing for being a property manager position..so that's another option.

4. Lead generation is the most important thing you can do. Being a real estate agent is not easy, and you will work around the clock, but being able to help people purchase investments and homes is extremely rewarding. If you decide to get your license, just keep your current job until you're comfortable enough to quit. good luck!

Should I become a realtor to gain experience in real-estate?

Should I become a realtor to gain experience in real-estate?

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