Real Estate Agent Before Investing?

Question

Hello all,
I am wondering if in your opinion it is worth the time and money to get my RE license and become an agent before I start investing (or if its realistic to invest on the side after licensed)?
In NH it is fairly easy, its a 40 hour course for $349.
I want to pursue REI as a career but dont want to jump into it if im not yet ready. I feel being agent would give me a good foundation and hopefully some good mentors. I am just tryin to weight my options as im young and very eager to start a career in RE. I would like to get out of my current job and start doing something in the field I love and want to do for a career.
Another question I have is about how long after I get my lisence and hired by a RE company can I start to make money?
All opinions and advice are welcomed and appreciated!
Thanks you,
Sean Ebert

James Smith Moore · Answer

My plan was to get my license, gain credibility in the RE space and begin investing. So far so good. I'm gaining momentum and experience by selling Real Estate that will surely help launch my Real Estate Investor career.

Ned Carey · Answer

If you mean give you a good foundation for real estate investing, becoming an agent won't help much. You will learn some useful things in the agent classes about the law. But you will learn noting about investing. Most agents know little about investing. Most agents are in the business of selling pretty home to homeowners. They don't have a clue what makes a good investment. Of course some agents regularly work with investors and know that side of the business well. There are benefits to being an agent and there are many threads here about eh pros and cons. Just keep in mind that the vast majority of agents and listed properties are far removed from what we do as investors. Good luck - Ned

Lynn McGeein · Answer

While I agree that many agents out there know little about investing, actually being an agent first (knowing I wanted to invest someday) taught me a lot, even without actually working with investors. Every deal had some sort of new issue -- termites, roof replacement, loan problems, etc. I made many contacts as I got to meet different lenders, repairmen, attorneys, etc., saw them in action and got to know the true professionals and the ones to avoid. When it was time for my first investment property, I knew a lot more about what can go wrong and how to avoid it or fix it. It gave me the confidence I needed to start investing myself. And when I did call a repairmen, they already treated me like a long-term client because of the work I brought them with my sales.

Sean Ebert · Answer

Thanks for the support guys! I figure the pros definitely out weight the cons.

Terry Portier · Answer

Good choice, altho I agree that most agents have no clue about REI I would not be too concerned about that it doesn't really matter, rather be the exemption to the rule. Most do know their market, learn to sell, close, etc, and Id venture to say SOME do better than REIs....One fact I hope we all can agree on is if you do not become part of the 'norm' having a license certainly can not hurt. Well as far as I know, unless there are things the license prohibits your from doing that effects REI. I am looking into this now, like assigning contracts as a wholesaler? Anyone know?

Sean Ebert · Answer

Thank you all for the responses. I have desided to go ahead and get my lisence. Wish me luck!

Terry Portier · Answer

I have recently came to the realization I should have got my license three months ago when I started looking at REI. Since then I have had agents take to long to get me info like comps from MLS and lost deals, to never getting back to me, etc.....I don't want others to control me and my market analysis, and there is other valuable info in MLS. It alone worth the time, plus all the fees you save and learning local markets. Other thing I should have done along time ago is join local associations, REI, Builders, etc....they have data, and the networking is valuable. I have also started a construction co doing well, so in my mind, I will not dive into some big REI investment without having my feet wet at least in some areas important to me. Also, the agents license puts me in a good position to wholesale some deals to other investors...I see it as a necessary tool, like the design and estimating software I purchased to help my construction co, and the new computer, and the.....well you get the picture. :) Good luck!

Andrew Garner · Answer

Hello Sean, My wife is a Realtor in Arizona and went through a similar process. It is pretty easy to get the license but the hard part is finding a mentor or someone who will teach you. In Arizona it is much easier to find mentors and help when you already have your license. It is virtually impossible to break into the field without the license. She has some experience now selling and buying properties but not yet on the full investment side, it takes time and hard work. I think it is a great idea to have it at least in our market! In your case I would probably talk to a Real Estate Agent or two and see if they are friendly and willing to help you out with out the license and if not then definitely go and get it! I am still new to the game so you may want to take my experience witha grain of salt. Good Luck!