Realtor AND Investor?

Question

Hi Everyone,

I'm curious if any of you have an opinion about being both a practicing Realtor and a real estate investor. I know some people have a license only (no clients) in order to have a competitive advantage in buying their own properties, but are there pros and cons in both having clients and investing in your own property? Maybe there's already an obvious ruling on this that I'm not aware of, but would you lose clients? Would you lose trust? Or would you just broaden the scope of your success?

Russell Brazil · Answer

I'm both a Realtor and an investor. The pros are I have a much better understanding of the market being a full time realtor than someone who is only an investor. I know when the market is changing, I know what buyers are looking for and I know that as those things are changing. I know what neighborhoods are heating up and which ones are cooling down. You just have a much better sense of the market.

The only con I see is time. But I'm primarily a buy and hold.investor, so it doesn't take up all that much time.

Daniel Nolan · Answer

Dawn K, I too invest when opportunity  appears through my direct mail marketing search. Since the vast majority of responders want a much higher price than I offer in conversation over phone, I have the option of Listing their properties if conditions are right. I always keep the conversation, friendly, inquisitive  and helpful while trying to uncover their motivation. If I can't Buy it, maybe I can Sell it. Unlicensed  investors don't  have that hard earned opportunity.

Hope all goes very well for you!

Dan Nolan- Realtor/Investor

John Mathewson · Answer

This first step i took in my real estate investing career was to get my license. This for me personally has proved to be one of the most valuable things i have ever done. Yes depending on how busy you get you may have to choose how many clients you can take on but the insight and extra income alone have proved to be a huge asset to me and my business.

Account Closed

Zach Sikes · Answer

I'm both as well. In my opinion, more Realtors should be investors. They should put their money in what they are selling, and it will help them serve their clients better.

Account Closed · Answer

I agree with @Russell Brazil --  having clients may detract from finding your own deals because they take time.

But consider that you and your clients may not have the same criteria. If you come across a good deal that you can't buy, you can recommend it to someone else and vice versa.

Dawn Brenengen · Answer

Account Closed  I get asked all the time by my investor-clients "aren't we competing for the same deals if you also invest?"  The answer is YES!  However, fortunately for them, I have a finite amount of funds to buy properties with, so I only buy one every other year or so.  There is plenty of opportunity for everyone, and I come from a place of abundance.  Also, whether I am or am not their agent, we would still be competing for the same homes.  Of course, I would not be making offers for myself on any property my client is also making an offer on.

Account Closed · Answer

Such great input! I can't tell you how much I appreciate all the experienced advice! This was very helpful in building my business plan.

@Chris Majors - I'll definitely check out that book. I'm always adding to my reading list. Right now have one of his other books to read - "The 1 Thing"

@Ricardo Lopez - If this is something I ultimately decide to do, and I'm leaning heavily toward it, I will definitely reach out to you about your experience.

Michael Noto · Answer

I'm a realtor and investor here in CT and if I have lost potential clients as a realtor because I am an investor they haven't told me that to my face.

With the clients I have worked with, I have never been in direct competition with them for a property so it hasn't really come up.

Remember, there are a lot of facets to investing just you and a potential client are both investors you may be pursuing completely different niches of investing, the areas you are looking in may be different, etc...

Realtor AND Investor?

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