Should I become a Real estate agent

Question

Hi everyone,

Im new to real estate. I want to be an investor but I'm limited on capital in my expensive NJ market.

I have always said I do NOT want to be a realtor. I don't want to spend my time showing people houses. I heard listing is way better but you cant start with that. I tried getting into wholesaling because you don't need a license and I feel like you can make a greater profit than the realtor commission fee. However wholesaling is difficult and time consuming and I'm getting nowhere.

My uncle was a realtor and he keeps telling me that by taking the course I will learn a lot that will help me in all aspects of real estate and i will also meet and expand my network more than just going to REIA meetings once in awhile. I am interested in the course and learning more but not interested in being a realtor but I am interested in expanding my network in the real estate world and gaining more capital than my current 9-5. Maybe I do not have the full picture

Maybe theres a lot more benefits im not aware of and maybe it would make sense for me to go down that path?

What should I do?

Janelle Ginyard · Answer

I love this question, especially as someone who started off wholesaling and specifically did NOT want to become an agent.

Wholesaling was successful for me at first, but I started losing opportunities in my market because sellers were savvy. They knew they could get more for their property by listing it with an agent, even if they were distressed. That’s ultimately why I got my license — I didn’t want not having one to be the reason I lost an opportunity, especially after spending so much time building rapport with a seller.

The market knowledge and network I gained from getting licensed were worth it too. I wouldn’t change a thing!

I’d say keep doing what you’re doing: attending your local REIA, creating off market opportunities, and keeping your 9-5 ;) — but add a real estate license to your toolkit.

Once you’re licensed, keeping your license active is relatively easy, even if you don’t choose to become a full time traditional agent.

Happy to connect if you ever want to chat more in depth. Good luck!

Jay Hinrichs · Answer

wholesaling your on an island and a fraction of the deals that happen with real estate agents are happening with wholesalers.   And as you found out its really tough and many times pretty slimy end of the business IMHO.  when you get licensed and get in the game your working with other professionals and networking is 10 times what it will be trying to do this on a wholesale island or just going to meet ups..

For context I got licensed in 75 and a CA brokers license in 77  first 10 years I only sold owner financed deals keep in mind interest rates and such it was a poor market and I frankly being 18 to 20 years old had zero patients to work with appraisers inspectors and banks..  Owner finance for me really worked for about 10 years. I sold the odd improved property but that was rare.. over the course of the last 50 years I have owned 3 small brokerages some were purpose created to only sell my developments.  One was traditional with resi agents etc.. As most every one will tell you 20% of the agents bring in 80% of the revenue.  And at least back in my day it was common knowledge that if you were going to quit your day job you needed at least 1 year of living expenses in the bank. AS there is a ramp up period.

Now today you have Big Teams  and that I think is the best way for most agents to start if they are going into Resi be it selling to homeowners or investors.  GEt on a team the team leader who will be a top producer feeds you business get paid to learn and have someone who is going to benefit by your success mentoring you etc.

takes a decade or so and if you can make it that long you should be on your own and 80% or more of your bizz should be coming from referrals.

If you want to just work with investors then you might consider trying to get on with a commerical brokerage and when you do there you usually start out doing leasing. But at least you make some money as your learning..  I loved being a land Broker and when and if I slow down what I am doing now I am going to go back to work for a Land and Ranch brokerage ton of fun helping folks buy their dream ranch's

Michael K Gallagher · Answer

being an agent is an active business, if you want to get licensed to aide you in some other way in your business that's totally valid.  Some people decide to flip or develop properties and sell it themselves.

but its very active if you want to have cash/incomes from it, its a wheel that has to get up and spinning and its work to keep it there, and I'm saying that as someone still trying to figure it all out.

Has been hard in the best way though, really forces you to address your own self internally.

Should I become a Real estate agent

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