What job can I leverage for my future business in real estate investing?

Question

I am 22 years old and just graduated from college with a degree in Business Administration. My goal in life is to become a full-time real estate investor.  I hope to begin flipping single family homes within the next year and start investing in apartment buildings within the next three years.  Since I only have $1k in savings, I am looking for a job where I can learn and build some starting capital.

I want to work in a job where I can learn about real estate and investments.  I currently live in upstate New York and I am considering getting my real estate license and joining a commercial or residential firm.  My biggest hangups are that it takes time to make money and I eventually want to relocate to the coast of Rhode Island and this may be troublesome if I build a network here and have to start over.

Are there any jobs that I can leverage to start my real estate investment company?  Is going the commercial/residential agent route the wrong decision?

Thank you.

Dave Carpenter · Answer

DJ,

There was a podcast a few weeks ago that talked about working for a bank or loan company doing research on loans and due diligence for banks. It seems to me being involved in the financial side of real estate would be a great experience and an opportunity to learn some of the rules and regs of the business that might otherwise be very hard to learn without doing. With a BA degree I would guess you could get a foot-in-the-door that way. I know Wells Fargo hires lots of younger folks for loan related jobs.

I think you are taking a great approach to learning the industry. If you can get paid to learn, why not!?

Good luck.

Dj Samson · Answer

@Scott Costello That is definitely a better option.  However, like @Adam Powadiuk and @Shaun Reilly  mentioned I am reconsidering going the residential agent route.  I plan on living in my hometown for the next 2-3 years and then relocating a couple states over. I would hate to spend all of that effort building a network for my agency just to relocate.  I'm still going to join my local REIA though, which meets later next month.

I just interviewed at a local commercial real estate firm and they are looking for a Sales Assistant.  Basically I would be making an hourly wage while showing leases.  Then once I am ready I would go 100% commission.  This is a great route because I could earn money while I learn.  Unfortunately I am still waiting on an offer.  If this offer doesn't prove to be fruitful I may not go down the brokerage path because the ramp up time could be too long and put my investment goals on hold.

@Thomas Morgan, I've reached out to a couple property management companies and submitted my resume.  I didn't really apply for a specific position and I'm still waiting to hear back.  I also applied to my local bank as a Mortgage Closer and got declined, so I'm starting to think that my degree and marketing background might not be enough to get into the loan department.  I'm going to keep looking at other places.

I have not considered a job with appraisals.  Would this be a position with my local government?  Would it require any licensing/training?

There are a couple "blue chip" companies located in my city that I am going to be applying to as well. I would really prefer to work in RE, but worst case I can build up some capital this way as well.

I wanted to thank everyone for their help.  I've got alot of input, this community is pretty awesome.  Just to keep you guys updated I've got a little over $1k in savings - my goal is to get to $10k-$20k in order to implement my first flip.  I will most likely go the hard money route and my obvious goal is to build capital.  And hopefully one day I can go full-time and my dream is to own a large apartment complex.

Adam Powadiuk · Answer

I spent two years working at one of Canada's biggest commercial brokerages. I learned a considerable amount but it wasn't until I started working for a lender that the invest real estate lightbulb went on. My new employer is also paying for my CCIM courses which is really accelerating my knowledge.

A few things to consider between the two jobs;

- if you're planning on using bank financing for your first investment purchase, the bank will look more favorably upon your employment at a financial institution vs commission based brokerage employment.

- if you're planning on working for a few years to get experience and then get out, a financial institution is a better job. Brokerage takes several years of making very little money before you start getting traction on big deals. You also have overhead to contend with.  My first year in brokerage I was paid $30,000 and then I had $22,000 in expenses.

I hopes this helps, bear in mind all my advice is based out of a different country.

Shaun Reilly · Answer

@Dj Samson

It sounds like you are on the right track.

One thing to keep in mind as well is that you can keep looking for one of these bank jobs in the loan department (Think that is a great place to look!) and you can still work on getting your RE License.

Getting a license will involve some class work and taking a test and getting with a broker so it could take a while before you are even able to try to get some income.  If you can get another job and work on the other stuff while working that will give you a double bonus of getting the paycheck and learning the field from both of those angles.

Also it isn't uncommon to have part time agents so you can keep the day job and work the agent stuff on the side and learn the business while getting a steady paycheck.

Good luck!

Scott Costello · Answer

DJ,

A great place to find brokers who are also investors might be at your local REIA meetings.  You'll know they are all investors, then the trick is actually finding the ones who are brokers.  Might be easier then finding a broker who is an investor if you know what I mean?

Dj Samson · Answer

Scott, thank you for the advice.  I've been reaching out to some local brokerages but haven't had the best of luck finding agents who are also investors. I'm going to keep trying.

Dave, I've applied to several local banks since I read your post.  I chose local banks because from my research these are most likely where I'll be going for my portfolio loans since I may not qualify for traditional loans in the early going.

I also reached out to a local company that does house flipping.  I know there are many investors who flip SFHs in my area who wouldn't want extra overhead, but these guys are partners and seem to do a really good job marketing themselves and probably have a large quantity of deals each year.  I think even if they just need a guy to answer phones/analyze deals/or do the dirty work I may take it, because I would be working for people who are doing exactly what I want to do.

Thank you again for the advice.

Scott Costello · Answer

Dj,

Any job in real estate will help you for sure.  If you become an agent, you can hook up with a brokerage that is owned by an active investor.  They are out there.  My partner got his license and hung it with a broker who is an investor.   It has been great for him so far.

With this setup you will be around real estate 24/7 and even gain knowledge on how your broker does his investing business.  I'm sure he/she will even help you out if you seem motivated.

That's my 2cents.

What job can I leverage for my future business in real estate investing?

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