Investor · Ascutney, VT · Member since 2015 · 291 posts · 20 votes
Right now i am currrently a real estate agent.
i want to start flipping houses and owning rental property as soon as possible. I need to make some money before i jump into either of those but am wondering which route i should take.
Currently i am an agent. but i am wondering if becoming a property manager would give me more experience + more weekly pay?
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
10y
Hi Devin! In my experience, you have much more potential with pay as a real estate agent. You already have the license and experience - sounds like you need to take your business to the next level. If I were you, I would definitely build on what you have as an agent, vs. starting from scratch as a property manager.
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
10y
Hi Devin! In my experience, you have much more potential with pay as a real estate agent. You already have the license and experience - sounds like you need to take your business to the next level. If I were you, I would definitely build on what you have as an agent, vs. starting from scratch as a property manager.
Property Manager · Upland, CA · Member since 2015 · 10 posts · 5 votes
10y
I think becoming a property manager can be a great source of residual income and can definitely give you some experience for when you have your own rental properties. However, Jonna is right about the income. Most of the time a sale will net you a few thousand dollars, if not more, but as a property manager it takes a while to build your business to that level.
Also, if you can get a few sales close together it can give you the capital required for a down payment or working capital relatively quickly.
Real Estate Agent · Fort Lauderdale, FL · Member since 2015 · 4 posts · 0 votes
10y
I just received my real estate license and I am working with Keller Williams. I work full time and I am trying to transition to be a full time investor. The only reason why I got my license was to be able to have access to MLS. Understand contracts, closing, network, and most of all use commission for down payment. Was this a good investment to have real estate license for that purpose any ideas.
Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
10y
@Devin Mann I would suggest becoming a property manager, but continue in sales so that you will be able to learn as much as you possibly can. I actually started property managing as an agent under my previous brokers' firm. I learned a lot from investors who lived out of town and owned investment property in Connecticut.
Hi Devin! In my experience, you have much more potential with pay as a real estate agent. You already have the license and experience - sounds like you need to take your business to the next level. If I were you, I would definitely build on what you have as an agent, vs. starting from scratch as a property manager.
I agree with the above advice and would add that people want to be affiliated with experts. So if you are an agent and want to flip in your area then become the best agent in your area; know every street, every house, every price increase/decrease, trend, every business that's moving in/out, etc. If you know these things you will not only do very well as an agent but you will be able to pounce on flip deals and rentals when you see them. (The money will shortly follow with your experience.)
Hales Corners, WI · Member since 2013 · 229 posts · 80 votes
10y
The nice thing about property management is that you are making income off someone else's assets, so if you are paid a % of rents, then it's a steady income, you only have to sell it once and then you have that income over and over. Property management has been described as a good business to be in. But you have to get your customers and serve them well.
Either way could be a good way for you to go. Good luck!
Property Manager · Dalton, GA · Member since 2008 · 100 posts · 21 votes
10y
Why does it have to be one or the other? If your open to opportunities they will appear. One of the biggest Ah Ha's I learned in this is industry is diversify your income streams.
Property Management - Reoccurring income - Less upside but dependable income typically. Works well in a down economy. Takes time to build.
(Also note a job is reoccurring income as well - steady and reliable but less upside)
Wholesaling / RE Commissions - Small Capital Income - More variable income bigger checks then property management but more swings month to month.
Flips - Large Capital Income - Much bigger checks, capital intensive, bigger risk longer time frame fewer checks but big checks when you get them.
Notes / Rentals - Passive Income - We all know what this is.
Focus on what income stream is generated by an activity not so much what that activity is then figure out how to combine them to most efficiently reach your goals while providing a safety net if things turn south. If you mix your knowledge, expertise, and add more tools to your tool kit then longer term you are in a much stronger position for the ups and downs.
Also, a note on the agent end. The best agent isn't the one who knows every house, street, etc,
The best agent is the best marketer. The top 20% of agents who actually make money know how to market and generate leads, prospects, and turn them into listings or committed buyers. Time is best spent on those areas to be successful as an agent. By default if you do that and you generate business you are going to gain the market knowledge from experience of doing.