To be or not to be (an agent). That is the question...

[Jordan Carty]

Hello everyone!

My short term goal is to house hack a duplex, 3plex. Long term would be to get into apartments and then sometime before death to open a hotel/resort...lol

BUT i am just starting and im already at a crossroads and i am looking for your advice and input as i feel it could dictate my future path.

OPTION 1: I currently have a w2 job for a new home builder so getting a RE license is considered a no-no or i would just do that. The drawback to this is that i am in a sub-par location and my future is not "secure". I have talked to a few lenders and with my current job i should make quite a bit more than a new REagent. I will be able to qualify for a normal loan and get into my first property almost immediately. My plan would be to stay on this path until i have the passive income to cover expenses then get my license.

OPTION 2: Get my license immediately and forgo being able to get an investment property through conventional means for at least 2 years. As well as the loss of income compared to my "safe" job. The reason i am considering this is because the market in DFW is on fire right now and i think it would be a pretty painless entry. I am already selling homes and i know i enjoy the work.

What do you think?

[Scott Beck]

@Jordan Carty

Being a real estate agent is typically different than having a W2 job. In most cases you are an independent contractor for a broker. So you are essentially running your own business within the structure and rules of a brokerage (and the state). Just like any other business there are a lot of failures along with lots of upside potential. (I recall hearing that the latest data from the National Association of Realtors is that 90% of new agents do not renew their license.) You need to have a good plan and reserve funding as you start up.

Before making a decision I recommend reading the following:

• How much money do you need to save before becoming a real estate agent? (http://investfourmore.com/2014/06/how-much-money-do-you-need-to-save-before-becoming-a-real-estate-agent/ )
• The links at the U.S. Small Business Administration website (https://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business )
• "21 Things I Wish My Broker Had Told Me" by Frank Cook (Dearborn Real Estate Education 2007).

These will all give you different perspectives on what you need to know to be successful.

I also recommend talking to some brokers about their cost structures and expectations. Even in our hot DFW market you will be spending money before you make money. Also talk to the broker about your investment strategy. You will find that many are also investors.

Please send me a PM if you would like to discuss this in more detail.

Good luck!