Working as RE Agent: Helpful in Buy & Hold Investing?

Question

So, I don't want to be "that guy," i.e. the newbie who asks, like every other newbie, whether or not I should get my real estate license. I've read through TONS of forums and articles on BiggerPockets and elsewhere that address that question, and so I think I understand the pros and cons of simply holding a license to help in facilitating your own deals. But my question is a bit different from anything that I've been able to find:

What would actually WORKING as a RE Agent teach me that would help me in starting out in my buy and hold investing business?

I honestly don't want to work as an agent for my career over the long haul. I'm just trying to decide if investing a year's worth of time or so in actually doing the work, being in the thick and thin of the RE world (while also providing an income), would be worth the knowledge gained for my investing future...???

I'd love to hear from those in this forum that are both agents and buy and hold investors, but obviously, I'd love insight from anyone and everyone willing to comment! Thanks!

Linda Osborn · Answer

Welcome to BP @Justin Koopmans!

I agree with @Russell Brazil, and I think I can provide a slightly different perspective. I began investing far before I became a RE agent. I started out investing part-time, while working full-time in tech. Then I made good money, but did not have very much time. In early 2015, I switched from tech to real estate and went ahead and got my license. I just recently made the choice to step up both traditional real estate buy/sell activities and investor buy/sell activities. The advantages of being an agent are many, including not only the affore mentioned access to the MLS, but also access to training on real estate law, on your state's purchase/sale contracts, and other (often free) training not readily available to the general public. In addition, being an agent can help you build your real estate network, with access to specialists at title companies, mortgage companies, hard money lenders, real estate lawyers, and other real estate professionals. Being an investor, on the other hand, not only helps you to expand your knowledge about the industry, but ultimately opens your eyes to more non-traditional buy/sell methods, which may provide additional income generating / wealth building options.

The only caution I have to getting your license is that, depending on your state, it may open you up to some legal complications. In Texas, for example, agents are required to disclose they(we) are agents (or "real estate professionals") on all real estate transactions, whether or not we are "acting" as an agent in that particular transaction or not.

Hope this helps!

Stephen Hundley · Answer

@Justin Koopmans

This is exactly the reason I became an agent. I didn't have intentions of being a realtor full time but after practicing for a few years I fell in love with the profession.

I didn't invest for the first 3 years bc I was young (22) and wanted to learn the market inside and out. I'm glad I waited to invest bc I learned so much in 3 years. You have to be intentional about your learning tho. It won't happen without effort on your part.

By having my license I know where people want to live. I get to see people's successes and failures first hand so I know what to do. I highly recommend becoming an agent.

Justin Koopmans · Answer

@Russell Brazil awesome thanks! That gives me something to think about :)

Russell Brazil · Answer

If you actually want to work as an agent, and do a good amount of business as one.....it can and will really add to your market knowledge. You get exposure to little neighborhoods you might not know that they even existed. You will get a sense of how competitive a market is. You will know if a property is going to get 20 offers or zero. You will get a much better understanding of price/rent ratios throughout your area.

So it absolutely can help you be a better investor...however, I would only do it if it is something you think you will enjoy. I really enjoy being an agent, but many people dont.

Justin Koopmans · Answer

KK Alloway Glad to see there's someone else in the same boat! Feel free to post any questions that you have that I didn't cover :)

Tyisha G. · Answer

@Justin Koopmans Good question that can help other newbies and anyone considering pursuing a license. All the best to you in your decision. Some helpful information has definitely been given in this thread.

Justin Koopmans · Answer

Lots of things to think about. Thanks everyone for your responses so far!

James DeRoest · Answer

>What would actually WORKING as a RE Agent teach me that would help me in starting out in my buy and hold investing business?

Nothing, but it puts you ahead of the game. A lot of stuff does not hit MLS, they are pocket listings, and they are snapped up by realtors who also invest in buy and holds.

By all means though, be a realtor and get going, it puts you on the ground, gets you in the business and gets your name out there. Ok, there are a lot of other names out there, but you can't win if you don't play. I know a guy, gives his card to everyone he meets, 4 years after setting up he's now pulling low 6 figures. Great guy, loves what he does, and he's waiting until he can start investing again in buy and hold.

Paul Timmins · Answer

@Justin Koopmans

The short answer is someone on your team should be an agent it just doesn't have to be you.

Paul

Becca Summers · Answer

Justin, being an agent won't teach you much about investing. It could give you access to the MLS to find deals.

I think showing other investors or Realtors would be a better use of a year

Working as RE Agent: Helpful in Buy & Hold Investing?

Working as RE Agent: Helpful in Buy & Hold Investing?

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