In LA area - should I wholesale or become agent?

Question

Hi everyone!

I’m completely new to real estate. At this point, all I’ve done is research.

But I’m looking at either wholesaling or becoming an agent.

Any recommendations for LA? Also for Atlanta or Charlotte?

I’m considering moving in a few years. Thanks!

Marc Brenner · Answer

Only you can answer that question based on what your goals are. But unless you're actually interested in the work a Realtor does and are willing to dedicate a lot of time and energy into creating a sustainable business, I would not bother to get licensed. If you're soley focused on investing, you will likely grow weary of spending the time working it requires to become a successful agent.

Saying all that, I became an agent to fund my investing and it's one of the best decisions I've ever made. There is also a huge need for investor friendly agents in the marketplace.

Both Wholesaling and Real Estate Sales are extremely difficult to achieve success in and both will require your full dedication and effort. Best of luck.

Abel Curiel · Answer

Hey Dorian,

This will depend on your goals/interests AND local laws. Some states are more wholesale-friendly than others.

As far as your day-to-day, there are some key similarities. You're prospecting for buyers and sellers, everyday. Whether you're a wholesaler or a Realtor, the way you get paid is by finding a deal, being a matchmaker (finding a buyer/seller OR finding a Realtor with a buyer/seller), and closing the deal.

In my opinion, being a Realtor is a better option... at least it is in my market. I can market for deals that work for investors AND end-users. I can also earn commission from helping folks purchase investment or personal use properties. As a wholesaler, you're mainly dealing with investment property so you're limiting the potential client pool.

Heres an example - You can be working on getting a potential seller under contract for 6+months only to find out that they're totally unrealistic with their price-point. At this point, no investor would touch an overpriced deal and your efforts could go in the trash. As a Realtor, you can still list that property and get an amount closer to what the seller wants by selling to an end user.

Best of luck to you on your journey!

Abel

Dorian Ridgely · Answer

Thanks for the insight @Marc Brenner! I’d ultimately like to invest.

As I’m just starting out, I see a lot of options to get started as an investor. Just curious, what made you feel that being an agent was the best route for you?

Dorian Ridgely · Answer

Thanks @Abel Curiel! My goal would be to eventually flip or buy and rent. My two main concerns are legality and ability to accumulate funds to invest with. With that in mind, do you still thank agency is the way to go?

Also, Do you know where I might look to find out how Wholesale-friendly my state is?

Thanks for the quick reply!