becoming a real estate agent the right choice?

Question

Is there any reason why a broker wouldn't want an agent who's main focus is to be an investor? I mean if you're at a brokerage and you're focusing on finding deals for yourself and just using your license and MLS access to your own advantage as an investor (as opposed to representing other buyers and sellers for the brokerage) would that be some kind of "no, no". Would they care that your not producing in your capacity as an agent so long as you're bringing them commission splits from your own deals?

Jay Hinrichs · Answer

@Russ Draper  in Oregon you can become your own principal broker ( sole practitioner) after 2 years as a broker ( agent)  all agents in Oregon are called Brokers....  just have to pass the principal broker test.. I ran for years as a sole practitioner

In Oregon

sales Agent = Broker

Broker = Principal Broker

@Alexander Friedman  there are many brokerages in the PDX market that will simply charge you a nominal transaction fee per deal. you simply need to follow the rules of agency and your good to go.

My current brokerage were I hang my license has many investors working with them.. including the owners of the company.

Steve Milford · Answer

@Russ Draper - FYI - Zillow and all others get the majority of their info from MLS - heck of a business model lol.

@Alexander Friedman Check out my response on your other post. Also start thinking about the time you invest versus the income you receive. If you look at this from a job perspective, being a Realtor, for me, is a lot more lucrative. For me it is 800% more productive for income for the amount of time I spend versus my job. Yet I don't feel comfortable bailing on the job so I keep it (as I have found my risk aversion is quite high). The real estate is not consistent enough - it is still feast or famine for me. And that is something that I am glad that I learned (about my risk aversion) BEFORE leaving the job.

Jared Watson · Answer

Time will tell brother, follow your gut and do it your way

Christopher Stanis · Answer

@Alexander Friedman,

The reality is that there is not a single right way to get started. I purchased my first property 2 years ago, using a number of credit cards (I did pay for a service to help me get the credit to begin with). Now that I have quite a few rental units, I've been considering going for my license, and focusing on the commercial side of the business, as working with investors has more appeal to me than working with first time home buyers.

The question you may want to ask yourself: what will help you get closer to your goal? What types of networking will help you gain the connections with people that are doing what you would like to be doing? Your day job may provide some of those opportunities, especially if you let all of your sales prospects know that you are interested in investment properties.

Finally, to address your original question: it's possible that a principle broker may not be excited that you're an investor, if you're not planning to bring in additional business. They may be worried that you would have a complaint filed by a tenant or someone that you'd purchased a below market house from. Not all principle brokers will mind, although I've been told this by a principal broker recently.

Alexander Friedman · Answer

@Austin Youmans Thank you for replying Austin. My two other jobs currently are as a door to door salesman for a renewable energy project and as an event organizer for a community of young adults. The income is not great but the event organizing job has the added perk of bringing in tones of connections and it's a residential job so my rent is negligible. I don't have a partner and getting loans is going to be tough at first. I thought I might be able to offset that with partnerships and other creative finance strategies OR by working as an agent for a few years and building a business that provides a track record of income. As for my strategy: I want to BRRRR it up! I'd like lots of rental income in my life :) You know it's funny but writing these responses, here on BP, has something of the clarifying effect of journaling. I think that I ought to start working as a retail agent. I mean if I hustle and make a good income for my self I can still use creative financing options, but I'll also have bank loans as a useful tool in my financing toolkit later down the line. what do you think?

Austin Youmans · Answer

@Alexander Friedman, It depends on so many things. It can be a distraction or a great help but you have to keep on top of your goal.

What would you do if your day job was not to be an agent? Do you like your other job aspects?

Does your other job pay well?

Do you have a partner that also has an income?

What investing strategy are you wanting to do?

A well paying steady job that you or your partner has makes it easy to get loans but if you don't like what you are doing and you think you would be happy and have the hustle to be an agent then you can make it work.

Alexander Friedman · Answer

@Jay Hinrichs Jay thank you for responding on this thread and the other one. That clears a lot up for me. Another question that I'd really appreciate your thoughts on: I've been living here in Portland, Oregon for a little over a year and recently got my license to be a real estate agent (though I haven't yet hung my shield with an agency). I'm having a bit of a debate with my self that's holding me back from getting started. What I really want is to be a real estate investor but my education and experience are lacking. Some people close to me recommended that I become a retail agent as a way to build some experience and confidence, learn the industry, and bring in some income for later investment. What I'm wondering is: Is this a good path to a thorough and effective education in real estate or a distraction that will take away time, energy, and $ from what I'm really trying to do? Would I be better served just hanging my shield with the type of brokerage that you're at, going to the local real estate investors club, learning here on BP, and hustling on my own? A note about my current position and whats driving this question: I have some savings that would allow me to be an agent full time for a good long while (about 18 months) but I'm wondering if that money is better spent starting a business as a retail agent (in a very risky, tight, and competitive market) or if its better saved as something to bring to the table with possible creative low money down financing options (I don't have the income history to get a bank loan yet)...

Jay Hinrichs · Answer

@Russ Draper  your thinking of Real Estate 20 to 30 years ago.

No one hardly ever goes into the office any more... you can have an office if you pay extra only about 5% or less agents work out of the office the rest work at home.

you really should shop around .. you can do waht you want no problem. you will have to pay 250 to maybe 500 a deal for the first 2 years while you apprentice once thats done you .. then can be your own broker..

Many I know ( myself included) don't mind paying small fee to have my broker handle all my paper work and make sure its all in compliance..

Russ Draper · Answer

Thanks @Jay Hinrichs, in my case I would never be a broker or agent then.  I could never quit my F/T job just for RE investing that I do on the side.  Perhaps there is a brokerage that wouldn't mind free money/commission from my own deals and me never coming into their office...

Jay Hinrichs · Answer

@Russ Draper  I was describing what is the law in Oregon and most west coast states.. I am licensed in CA as well.. and have worked a ton in Washington.. they are all the same other than the nomenclature I mentioned above.

I suspect all 50 states have some form of the same rule.. IE you must apprentice before you can work for yourself as a broker.

I am a broker in Mississippi as well.. but I was able to get that because of reciprocity and I was already a broker in CA. for 40 years...

so I am 99% sure in your state you need to become an agent ... work for a broker for the statutory apprentice period.. then take the broker exam and go out on your own.

becoming a real estate agent the right choice?

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