I was talking to one of my top producing realtor in the residential space. she has now moved on to commercial.
Since she was successful as a residential agent, i asked her if it was neccessary to be successful in residential THEN move on to commercial.
She said no. She said pick one and work it. to the successful commercial agents, do you agree?
Also, is that the same if you want to be an investor?
Lastly, whether investor or agent in the commercial space, is the most important activity sourcing deals or sourcing sellers because in residential, as an agent, you dont need to source deals.. you need to source sellers.
As to whether to be an agent or an investor....I say that 100% you should be an investor...but whether you should be an agent Id say depends on how much you like dealing with people, and whether you like being self employed or not. I really like being an agent, but being someone who is largely financially independent, it doesnt really matter to me that I dont make any money from say November through February.
Now as to whether to invest in commercial vs residential...Id just say it is about your goals and interests. With being an agent....I think you should Id say to choose one and go at it. Commercial and residential are two entirely different animals. Neither is better, but they are incredibly different. Residential you will do a larger amount of deals for a smaller amount of money, and commercial you will do fewer deals but with larger paydays. I think residential is a little easier to break into.
I do both.
Next 6 months I am on pace to close about 40 to 50 million in commercial deals. That is me and not teams and all of that. I work with ultra high net worth investors but I am going on 13 years in the business.
When you first transition to commercial you will tend to work on the smaller deals say under 1 million. Sometimes you will work on larger deals if you have a senior director watching over you. I own a boutique firm so I am the principal broker. I also do development deals.
I like having the transaction business for cash flow and the development business for equity gains.
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