Realtors Becoming Investors

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Realtors Becoming Investors

Realtor · Portland, OR · Member since 2017 · 26 posts · 7 votes

I see a lot of realtors on here. Have some of you stopped selling RE altogether or do you both--actively selling plus managing your STRs? If you transitioned to 100% managing STRs, at what point were you able to do so?

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

I know many realtors that are investors. These are your better realtors because they have a better understanding of clients needs.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
I know many realtors that are investors. These are your better realtors because they have a better understanding of clients needs.
3 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@Shannon Ilas. I’m married to the #83 real estate agent in the nation. Perhaps if you tell us why you ask this question we can give a better answer.
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
I am a high volume realtor and investor. I haven't stopped selling real estate and probably won't for the foreseeable future. It's not because I can't financially, it's because I am 32 years old. I can't just sit around and deteriorate.
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Shannon Ilas
OP
Realtor · Portland, OR · Member since 2017 · 26 posts · 7 votes
6y
Originally posted by @Luke Carl:
@Shannon Ilas. I’m married to the #83 real estate agent in the nation. Perhaps if you tell us why you ask this question we can give a better answer.

I'm a realtor and plan to increase my investment portfolio. STRs need more involvement if I want to self manage, so I'm curious about the business models folks are using. Are they doing both, like your wife, or is the plan to eventually focus only on acquiring and managing properties? If so, at what point did you transition to managing full time? 3 properties? 10? 70? This could also be a question for others who have day jobs and manage investments on the side.

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@Shannon Ilas. We are at 30 doors and both have day jobs. Averys just happens to be selling real estate. We’re good at making money with properties so she teaches others to do the same.

We both love our day jobs and we (she) are fairly young as she said. So. We continue to work. We don’t need to.

I really wouldn't say STR is more work. LTR can tend to be a ton of work all at once then nothing for a while. STR is one month of setting things up then constant small amounts of work.

I hate to tell you but you won’t find anyone more qualified to answer your questions than her and I. And we are very happy to answer them! Bring them on :)
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
6y
@Luke Carl @Avery Carl ROCK STARS!!! :)
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@Michael Baum takes one to know one :)
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Julie McCoy
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Shannon Ilas I began as an investor and became a Realtor when my investments brought me financial freedom and I left my last career because I was burned out. But, like @Luke Carl and @Avery Carl, I'm still young and wanted something to do. I learned to be careful what I wish for, haha!
BTW - my investments are all STRs and I had four of them while working 80 hours a week in a high-stress job that wasn't close to any of them. Yeah the setup period is the most time-intensive but once it gets rolling, they don't tend to take up much time, you can automate most of it.
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Benjamin Vail
Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
6y
I am a Realtor, and I leaned the business by first helping others buy and sell. After a few years I started investing myself. Today I own about 12 units at any given time, and I own a brokerage that manages 65 STR properties.

My parents always told me the being an agent will feed your family, but owning property will build a lifetime of wealth. so I work hard as an agent/PM, and then take that money and buy assets. The goal for me is to eventually own enough assets that nobody in my family needs to work. However I love this industry so much, I don’t have a desire to stop anytime soon.

I also want to point out that the person who is a Realtor and an investor is WAY more effective than the person who is just an investor, or just a Realtor. It is like the Realtor side of my brain helps inform the investor side of my brain, and visa versa. Not to mention when I buy or sell as an investor, I make a commission as a broker (or save paying someone else a commission) so it also helps the numbers on investments.

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Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
6y
There are realtors in my town that are investors. Some make good R.E. investments, others don't. There are also non-realtors in my town that are investors. Like above, some are good and some are bad. There seems to be no correlation between the success of being a realtor on non-realtor. But there is a positive correlation as to how well a person does their primary job and whether or not their investments are successful. The correlation implies causation.
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Steve Morris
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
6y
THink you get to a point where you only have 24 hours in a day and decide what's a better investment - RE sales (which you almost need to do 24/7 to be successful) or managing your properties and collecting rents and expanding your holdings (which can also suck up every moment).
Or spending time on what's important outside real estate and brings you happiness :)
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Brandon VukelichBusiness Member
Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 549 posts · 458 votes
6y
I'm not a "realtor" but a licensed broker. LOL! I enjoy doing sales and invest personally, among other things like wholesaling. I do hold one STR rental property (3 units) but even if we add more, I do not have any intention of letting my license go. I love the various "tools" on my belt to find deals, solve real estate problems for people, make investments, facilitate transactions...you name it. But you should do whatever brings you balance and happiness while achieving your goals. Best wishes on your journey!
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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@Shannon Ilas Sad part is there’s a ton of knowledge on this thread and it seems the OP has already disappeared.
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Account Closed
Rental Property Investor · Escondido, CA · Member since 2018 · 268 posts · 137 votes
6y
@Luke Carl, would you advise the reverse, i.e. getting an RE license to help with investing? I'm hesitant because I don't have plans to give up my full-time job, so maybe at most I'd be a referral agent. What about getting a license in another state where someone wanted to invest? Any value in that?
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Shannon Ilas
OP
Realtor · Portland, OR · Member since 2017 · 26 posts · 7 votes
6y
Not gone. Just not on the forum today 😊. Great info, thank you. @Account Closed, I wouldn’t recommend getting a license if you’re not planning to work in real estate full time. There are costs plus continuing ed you need to do every year. Not to mention the negotiating and contract writing skills that come from doing several transactions a year. You’d be better off connecting with an experienced agent who can help you land the best deal. ;I used to live in Carlsbad and know several agents who could help you if you need a referral).
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Shannon Ilas
OP
Realtor · Portland, OR · Member since 2017 · 26 posts · 7 votes
6y
Originally posted by @Julie McCoy:
@Shannon Ilas I began as an investor and became a Realtor when my investments brought me financial freedom and I left my last career because I was burned out. But, like @Luke Carl and @Avery Carl, I'm still young and wanted something to do. I learned to be careful what I wish for, haha!
BTW - my investments are all STRs and I had four of them while working 80 hours a week in a high-stress job that wasn't close to any of them. Yeah the setup period is the most time-intensive but once it gets rolling, they don't tend to take up much time, you can automate most of it.

Thank you. How much time do you spend per week managing your investments? do you still have 4?

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Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
6y
@Shannon Ilas. Might I suggest you read a couple of books.
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Julie McCoy
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Shannon Ilas I have five STRs, will have six by the end of the year, and one LTR. The amount of time I spend managing them is almost zero (maybe 1-2 hours/week total?). Each has a ramp-up period that is a lot more time-intensive, but once it's rolling, it's very hands-off.

@Account Closed It's unlikely you'll find getting your license worth it. As Shannon said, there's more to it than getting your license in a particular state - to actually practice (even for yourself) you'll need to have a broker, pay the broker fees, join the local MLS (maybe more than one), keep your education current, etc. If you just plan to do a few transactions a year, especially if they're in various markets, you'll be better off with a skilled agent. If you're doing a high volume, your time is probably worth more than the hassle to get licensed and keep up with it yourself.
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Account Closed
Rental Property Investor · Escondido, CA · Member since 2018 · 268 posts · 137 votes
6y
@Shannon Ilas and @Julie McCoy, thanks for the input. Your thoughts are in line with what my local realtor who helped with our primary said. The fees and continual learning mean there needs to be a threshold of how much someone plans to use the license to make it worth it.
Any thoughts on a transitional plan to move from one profession to possibly being a realtor? What if I were interested in getting the license with the idea that I could slowly transition out of employment in education which I enjoy. My job is stable and I enjoy it, but I do love real estate. How does someone become a realtor without jumping in 100% right off?
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
6y
Originally posted by @Avery Carl:
I am a high volume realtor and investor. I haven't stopped selling real estate and probably won't for the foreseeable future. It's not because I can't financially, it's because I am 32 years old. I can't just sit around and deteriorate.

The deterioration comes no matter what - I'm always surprised at my level of deterioration! :D But I agree just sitting around is counterproductive!
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Account Closed
Rental Property Investor · Escondido, CA · Member since 2018 · 268 posts · 137 votes
6y
@Julie McCoy, when you mention managing STR's with just a few hours per week: That means, you are handling the bookings, check-in/out, etc? Do you use professional cleaning and is that automated as well? Do you use a platform for managing or have you built your own systems?
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@JD Martin I've got to occupy myself during the deterioration process! Hahaha
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Julie McCoy
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Account Closed All of those processes are automations that I have set up. Yes, I have professional cleaners and my scheduling with them is mostly automated as well. I've never cleaned one of my properties and I never intend to - I don't have the availability, and the pros are going to do it far more efficiently and at a higher level than I ever would! The time I now spend managing my rentals is generally in answering specific guest questions that don't get addressed in my standard templates, or any additional communication my cleaners require. Very occasionally scheduling some maintenance.
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Shannon Ilas
OP
Realtor · Portland, OR · Member since 2017 · 26 posts · 7 votes
6y

Hi Chad, I was in education for 25 years before transitioning to a real estate career. Having a background in guiding and serving others has actually been great. Having a background in guiding and serving others has actually been great. You’re welcome to PM me if you like. To be successful in real estate, you really need to be available to your clients and have a flexible schedule to meet their needs.You also spent a lot of time networking and prospecting. If you’re in administration or in the classroom full time, that would be a challenge. I taught part time at MiraCosta community college Until we move to Oregon and I know agents who teach part time and are able to have a successful real estate career, so it really depends.

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Mark Futalan
Rental Property Investor · La Quinta, CA · Member since 2018 · 263 posts · 95 votes
6y
I'm actually the other way. My wife and I sold our primary that we purchased during the last crash in 2010 and bought 2 STR's that we manage remotely while still working full time jobs and raising a family. I'm in the process right now of getting my RE license and hope to help fellow investors/ 2nd home owners own and manage RE while still having a day job. Hopefully in time this can be a full time thing :)
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