Becoming a Real Estate Agent as a Stepping Stone?

Question

Hello everyone! This is my first post here, and I was guided here by The Book on Rental Property Investing which was given to me by a friend. I am a 24 year old college student and am trying to work towards a future of freedom. I love the idea of becoming a property investor, but have no further defined which area I would focus on.

I was wondering if anyone here had any advice or experience being a real estate agent, and how this may be as a first step towards gaining more capital and networking within the field. I am a student in a Northern California beach town, and my hometown is a Southern California beach town as well, and I would like to live and work in these areas. I'm aware of the impacted market in these areas, and figured this would be a great way to introduce myself to the field and form a network in the area. If a housing recession of sorts occurred and damaged my job as a real estate agent, I could then dedicate myself  to property investing with my saved capital and personal connections.

I'm trying to keep my thoughts simple, but have been pondering this idea and I always enjoy hearing others opinions and experiences.

Thanks! I look forward to becoming a member at BiggerPockets

Nathan Gesner · Answer

Real estate is one of the easiest businesses to get into . . . and the hardest to make a living. Over 85% of all agents quit within two years. Half the agents you see driving nice cars, wearing tailored suits, and looking rich are either borrowing up to their eyeballs, they've been in the game a while and made it work, or they're living off some other source of income. 80% of all agents are sharing 20% of all sales, which isn't enough to earn a living.

An easier way to get in? Get a W-2 job with a property management company. You'll learn how to manage much faster and quickly get a taste of whether you want to be a Landlord or not. If it's working out, you can get your license and start dabbling in sales, working with investors, or even buying your own investments.

Colton Hahn · Answer

What kind of degree do you have? There are many roads to end at the same destination. You could work in real estate finance even, and go from there.

Peter Mckernan · Answer

@Nickolas Caselles I am an agent in in SoCal, and I would say that there are three things that people on these boards and the BP Podcast talk about for increased capital to invest in properties (wholesaling, real estate agent, and flipping). There is some type of active work to get that you to buy properties that create passive income.

I would look into all three, and I would say wholesaling and real estate agent positions are the most alike by the hustle needed and the money spent on advertising. @Nathan G. is right on the high percentage of agents (87% of agents fail in the first 5 years). This stat is because you need to take an agent role as a business owner mindset (this goes for flipping and wholesaling) and not just an employee mindset. This will build your success quicker and for a longer period than just trying to see if it makes you money.

The last thing, you should join a team first before going off onto your own (possible one that works with a lot of investors), I did not and wish that I did because it would expedited my experience and grasp of what an agent is to do on a weekly, monthly and yearly routine. Oh, and I drive a 2011 Jetta currently, think that is the investor in me, would rather drive an older car and buy more properties for cashflow.

Stephen Brown · Answer

Being an agent is tough but I got to say if it fits your personality type it most certainly opens doors. It allows you to network easily and gives you the ability to find the people to help scale and build your team. However expect to have interruptions to your investing career to assist clients.

Dwayne Poster · Answer

Working as a licensed Realtor is an excellent way to acquire knowledge, but, operating costs are high, regardless if you are closing deals or not, which tend to drain the accounts of most new comers. I would never recommend anyone get licensed as a part time gig, or for your own deals. Your in, or your out.

Nickolas Caselles · Answer

Hey Colton,

I have AA's in Literature and English, and am currently studying Anthropology and Environmental Science. Nothing remotely related to this field besides some above average writing skills. I'm not looking to change majors or continue school past these degrees, but am always willing to learn in another setting if you have any advice.

Nickolas Caselles · Answer

Thanks for the advice Peter. I like to think I thrive in work environments where I am independent and am motivated to work hard in a way that directly benefits me, not just my employer. I do not have any experience in this field and hope to work with some experienced individuals or a team that can help me guide me through the initial learning process and hopefully offer some opportunities as well. I would hope that becoming a real estate agent would be a means for me to gain capital and experience, but also be a job I take seriously.

Funny you mention the car! Flipping cars is a hobby of mine, and I recently parted ways with all but my 2003 truck from my grandfather. It's left me with a nice lump of cash, but probably not enough to enter the California beach town real estate market.

Nickolas Caselles · Answer

Good to know! After reviewing the cost of maintaining an active license, I've realized it's definitely something to complete once I am ready to begin that journey, rather than while I'm just considering it.

Thanks.

Becoming a Real Estate Agent as a Stepping Stone?

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