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Updated over 4 years ago on . Most recent reply
I need another opinion on whether I should take this path or not
Hi, I was simply thinking about whether becoming a Real Estate Agent is the most ideal approach to begin before turning into a Real Estate Investor.
Most Popular Reply
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I am an investor and agent. I do not think that it is too big of an advantage to be both.
As an agent I have some flexibility with my time that I can manage my own rentals and look for deals. It can also be a profitable profession.
Some cons are that is often takes months sometimes 6+ months before you actually close on a single property which means you either burn through savings, OR have a spouse with income you can rely on.
I personally have a wonderful Wife that is supportive of my dreams and we are also able to use her stable salary income to qualify for purchasing more properties. With commission income many banks need at least two years of income to qualify you. So if you don't have other income and became an agent it could prevent you from purchasing property for a while.
To make good money as an agent takes awhile and takes alot of time. That means you could be spending so much time working for your clients that you have no time to build your own portfolio. Most of the agents I know own no rental properties.
Currently I have 37 rental units which took me 8 years to build up before my rentals started funding the next rentals. It is a full time job being an agent and close to that for self managing lots of rentals so while I say there is flexibility in my schedule it really means I can take an after noon off, but I may be working several evenings and the weekend.
If you have a good job it might be worth keeping it. Unless you truly want to do it as a career and happen to invest on the side. I love what I do and can't imagine doing anything else. But it could be a different story if I had a single income household.
Best of Luck!
- Andrew Adam