Hello again guys! I have been a part of these forums for a while, and I would like to ask a specific question regarding my situation. I am 19 years old and I recently got my real estate licence, ultimately, to get into real estate investing. I did not finish college and I decided to get a job while living at my parents house because I was told I should learn about the business before I start investing, so I became working as an agent. I was working at a small firm for a couple days (I am their only agent who is not family) and I found their training to be very flawed, and all I found myself doing was being a secretary , but I am getting paid on commission!
I was only doing this because my father wants to get into flipping too. I figure if it will take me 6-8 months to get a $3000 commission check (houses are ~$120k here), we should just be trying to flip with a HML, work 8-12 months to potentially get a $20000 check.
I do not like working as an agent, and I would rather do something else, I am just wondering if I should try to jump into flipping with my father, or work as an agent for while and switch to a bigger more systematized brokerage. Or should I stay in the smaller brokerage?
I am a good number cruncher, I like working with numbers and I have been studying biggerpockets and reading books for about 3 years. I am just wondering what path you guys think I should take if I want to start flipping.
You might consider an entry level property management job.
This is no offense to most real estate agents (especially those not on this site) but they have no clue about RE investing for about 99% of the RE agent population. If you do work in a brokerage you will learn some things about RE but most of it will be retail real estate to Mr and Mrs Joe Homeowner. It might still be worth going to a larger brokerage so that you can get some more exposure to potential investments and potentially an investor broker. You could also keep looking for a great investment and plan on learning the ropes on your first flip with you father. You will learn more about the industry and what you are trying to get into by doing that than working 40 hours in a brokerage for years. I learned all of what I know by doing projects and not by working in an office.
Hope that helps, just my two cents.
Good Luck, you are starting at a great time your life, you have a long time horizon and can take advantage of several RE cycles over your lifetime as well.
the best advice I can give you whether you want to be a real estate agent or an investor/flipper or both, is get out there and network. Find some business, now. Make it a goal to have 3 clients in 30 days.
1. GET your business cards in the hands of everyone you know and meet
2. ASK everyone you know and meet if they need a real estate agent or if they know anyone that needs help with real estate.
3. Knock on doors in your neighborhood, ask it they or anyone they know is planning on selling within 90 days.
4. If your state allows, call or visit the Expired Listings from your MLS, daily.
5. Be enthusiastic and offer to HELP others with their real estate needs.
6. Do not get discouraged, just keep at it, 30 days of focused effort, and repeat.
Take your "job" as a real estate agent seriously, set a schedule and work the business, and follow up. You will be surprised what business you can find both for your real estate business and your investing business with a little effort.
I too started my real estate career in a very small office with no training nor help. But I went to work and found some business and repeated - and just figured it out as I went. I thought I had to be able to "show" a larger firm that I had was successful before they would hire me. So once I was selling about 20 homes a year, I went to work for a very large firm - for too long. I then started my own very small firm. What I have found, there are Agents who want to "belong" to the biggest/best firm and their are agents who know their success is from the effort they put out, not what firm they "work for."
Good luck and let us know how you progress.
@Paul Timmins I actually am considering it at the moment. I would be able to learn more about rentals in that aspect, but I would be limited time wise if me and my father do decide to do flips. I would want to be able to stop down a couple times a day to our projects, and be open for questions while he works full time while we get our business started. Thanks for your advice!
@Frank Woodin This looks exactly like what I thought would be the case. The only thing I need help with at the moment is beginner training (how to search MLS, purchase order, closing, comps, market research etc.) Other than that if I am unhappy working as an agent I should try to look for a different money source to fuel my investing career, and the max I can probably get is ~$30-40k a year with no degree. Thanks for the luck and the kind words! I will hopefully be able to take advantage of my information and my young age to have freedom in my life!
@Kelli Foley I understand how to hustle and get my name out there and network, but the thing is I do not want to be an agent. I feel like if I focus those efforts from an agent, to getting in front of people who are doing the thing I want to do in this space, and talk about contractors/market and build relationships that way, it will be much more beneficial to me and my business . Thank you for your advice!
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