Two Roads Diverged...

[Joshua Martin]

Hey Gang, 

So I've been on here just a few months, but have been taking actions to get my own house in order so that I can make the move into REI. I've been reading on here on the time, getting involved, listening to the podcast, and reading the books everyone picks as their 'favorites' on the podcast, as well as choosing a real estate related profession to make the move in easier.

So, I've been going through the application process for the carpenter's union here in Milwaukee, WI, and also have been going through the real estate licensing course. For a while I was thinking I'd do both, but this looks a bit unrealistic, just giving the number of hours in a day. My basic question is this: since I am in more of a 'work to learn' stage, where would I learn more? I understand that choices are not irrevocable and I could later switch from the one to the other, but to you REI out there, what do you think would be the wiser choice: 1) work in a hot real estate market for a successful local RE brokerage, or 2) work in the trades getting my hands dirty and learning this side of the business?

  I understand that down the road if I'm flipping or buying, fixing, and holding I probably won't be doing much of the work myself (better to run it like business, time is money, etc.), but I think it might be valuable to meet contractors and learn the new construction aspect as well, potential building spec homes down the road and starting a contracting business. But I think working as an agent would allow me to make more relevant connections for investing, e.g. meeting other agents that work with investors, working with investors myself, learning the buying and selling process thoroughly, and perhaps some of the niches like REOs and short sales. 

  I'm a bit torn. If I had to decide based on what I might like more, it'd probably be getting my hands dirty. If it was based solely on where I'll learn more relevant knowledge for an investor, I tend to think it'd be working as an agent.

  Any input from anyone who's gone either of these routes would be appreciated. Thanks in advance. You guys rock.

  Best,

JTM

[Svetlana Foley]

Do not be torn, my friend and absolutely, 100% go with the trade.  You will be learning valuable skills and able to make a living, while gaining knowledge of what to look for in an investment property to decide if you should buy or pass.  As you gain more experience (and save some money while getting paid), you can always pick up RE classes again.  Over 90% of people who take RE classes cannot make it in the profession and have to look for another job.

Real estate agents (like myself) work 100% on commission.  It takes at a minimum 60 days to close (get paid) on a deal, and that is AFTER you found a buyer for your listing/house for your buyer.  In the meantime, there are monthly fees that must be paid whether you are making money or not. Every single expense (marketing, computers, car maintenance, gas for driving 100 miles per day, etc, etc) are 100% your responsibility.  Competition is beyond fierce.

You can make many connections while in the trade.  Partner up with a good agent for your investments while you are learning, and when you feel ready, jump back into RE licensing - the classes will always be there!