Why realtors don’t invest in real estate??!!

Question

Just curious why a lot of realtors I know don’t invest in real estate themselves. Their not buying what they’re selling??

Jay Hinrichs · Answer

@Dan Maciejewski perfect response.. I always chuckle when folks get on here and say women are discriminated against in the RE world.. when in fact they are the majority..

Anyway you right a vast amount of agents are part time just got into the business etc etc.

and lets no forget they are self employed any self employed person knows how stinking hard it is to get a mortgage.

And a lot of top producing agents simply have better things to do then to try to chase tenants to make a whopping 200.00 a month cash flow.. their down payment money put back into their marketing would increase their income 10X or more compared to owning rentals..

Lastly as your post indicates the vast majority concentrate on selling Billy and Bobby Sue a home to live in .. they are not in the investment space.. don't work in it have never studied it have no desire to be in it.

Civilians out who are not in the real estate business just don't know what they don't know about the industry as a whole.

Dan Maciejewski · Answer

The simple truth is that most people don't invest in real estate. At its core, real estate sales is a sales job.

Here are the latest NAR statistics that include your average Realtor. That link states:

• The typical REALTOR® is a 55-year-old white female who attended college and is a homeowner.
• 64% of all REALTORS® are female, and the median age of all REALTORS® is 55. and also:
• The median gross income of REALTORS® was $49,700 in 2019, an increase from $41,800 in 2018

So you're asking why the average white female college-educated homeowner that grosses $50k/year and probably nets $25-$30k/year doesn't invest in real estate. Phrased that way, I think you'll get your answer. My guess is because it's not presented as an option in public middle-class education. Aside from the fact that that's minimum wage in most places.

On here, most of us either got into real estate through investing, or found investing through being a Realtor. Once you start looking away from the average Realtor, you'll find a lot of Realtors DO invest in real estate compared to the average American.

Also, that median income level is the midpoint. Half of all Realtors made more and half made less. The half that made more are most likely the full-time Realtors that do it as a career. The half that made less are probably part-time or new and sell a house or two a year to their friends. I suspect you'll find a large number of the full-timers are making well above six figures and a large number also have several streams of income, including rental properties.

PS -- BP is asking for a disclosure -- I think because of my mention of NAR. I am a Realtor and as such pay dues to, and am a member of, NAR.

Why realtors don’t invest in real estate??!!

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