First job out of college - do I become a realtor?

Question

Hey y'all, I'm approaching graduation from Baylor University in May. I will be getting a degree in Finance and Entrepreneurship with a concentration in Real Estate. Through my finances courses I stumbled upon an intro to RE class and loved it! After that I kept going and will have taken all of them by the time I graduate. I really love this industry and cannot imagine working in another field.

With that said, I want to hear your opinions on whether or not I should pursue my RE license as a starting point for REI. I want to work in the field, make connections, and make some money to finally get into it. Yes, I'm aware that you don't need 4 years of college to get your RE license and some may say that is a waste, but I see it as a stepping stone rather than my career for the rest of my life.

On the other hand, I am qualified for finance jobs that will potentially provide higher income and job stability. However, if I were to land a job not relating to real estate, I fear that my time and energy would push me farther and farther away from my ultimate goals of REI due to my innate ability to focus and dedicate everything to what is in the present. After such, I see myself posting one of those forums "should I quit my job to get into RE?" to which it all depends.

Now here is the dumb question, should I settle to get my RE license but gain expertise? Find another job in the RE industry also to gain expertise? Get a job in another industry and try to jump in with less expertise later?

Any opinion is appreciated, I'm just a kid who doesn't know what they want to do when they grow up haha :)

Russell Brazil · Answer

Out of the gate, a job in finance is likely to pay higher than a job in real estate sales. It is also a safer, less risky avenue. 87% of real estate agents fail out of the business in under 5 years. However, if you are good at it....it can provide an avenue to likely making more money than someone in finance, but very few do. The median income for a real estate agent is $45k. However, my best friend is in finance, and is a managing director of a major banks wealth management division....so he does very well....but I make a lot more than he does, and I only consider myself moderately successful. I have multiple colleagues that make in excess of $1 million per year. The agents at the very top of the industry....which is not a realistic goal to have, top out in the $10-$15 million per year range.

Tabby Gawalis · Answer

Thanks for the advice John, I really liked your point about how being an agent helps build the network, but doesn't necessarily teach about investing. My strengths lie in figuring things out and learning as I go, not so much connecting with people. With that, if I am able to use the agent route as a networking tool, that is one step in the right direction for me.

John Warren · Answer

@Tabby Gawalis everyone comes to these decisions differently, and I don't think it is bad that you are getting a great education. I personally finished my masters degree and was well established in a career before I made the switch to being an agent. I wish I had started being an agent sooner in hind sight!

I think the big question you need to ask is whether you want to be in real estate sales, real estate investing, or both. Being a realtor doesn't really teach you anything about investing, although it can help you build up your team of attorneys, inspectors, and contractors. I actually jumped into real estate investing first when I purchased a vale add four unit in Lyons, IL, which was right by my home at the time. I got my license almost as an after thought!

At minimum, I would take the classes to become an agent if I were in your shoes. You need about $1500 to get started as an agent, and you can see where it takes you.

First job out of college - do I become a realtor?

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