Focus on investing or traditional side as newer agent?

Question

Hello - I am new to BP and relatively new to real estate in general. Just over a year ago, I got my license, quit my corporate job and started down the path of enlightenment :) I've been told I did pretty well my first year in real estate which was solely focused on traditional side; helping people buy/sell homes and condos. The last year was also an eye opener to the investing side as I saw countless flips hit my local market, tear downs, listed a couple fixer uppers that sold to investors and saw RE agents buying properties themselves for rental income. My question is what are the differences between the traditional and the investing side? From what I've learned on BP and other investing sites both sides rely on lead generation but how different or similar is investing vs the traditional side beyond lead gen?

I started with KW but left after a year to go into business with my brother-in-law. He's an attorney first and broker second. I can take our business somewhat wherever I want it to go and I've been wondering should I switch gears and focus my time and energy on investing instead of traditional? I would appreciate any other agents sharing their experiences and advice...the good, bad, and ugly on both sides of the fence.

Thank you!

I started with KW but left after a year to go into business with my brother-in-law.  He's an attorney first and broker second.  I can take our business somewhat wherever I want it to go and I've been wondering should I switch gears and focus my time and energy on investing instead of traditional?  I would appreciate any other agents sharing their experiences and advice...the good, bad, and ugly on both sides of the fence.

Thank you!

Jake Thomas · Answer

@Brian Edge I work with both investors and retail buyers and sellers. To be a good investor agent I think it helps if you invest as well. You can add more value to them and most investor clients like it when their agent has similar goals. I am about 50/50 and plan on keeping it that way for the time being. The investor clients are great because they don't just buy one house, they buy multiple year over year. I won't stop helping traditional buyers and sellers because I still like listings as I feel they are easier to manage. Most investors on the buy and hold side do not list properties often.

Brittany Moreland · Answer

I got my re license with the goal of getting into investing.  My first year I focused purely on getting as many listings as possible.  Was top regional listing agent one month, won a few listing competitions at work and got my name known so I had enough of a reputation as hustler....I also had a baby 2mos after getting my license.  2nd year I pulled back and started focusing on making connections with investors and contractors.  I didn't do much business that year as I stopped actively seeking out buyers and sellers and only came by them organically.  I lined up a crew, looked at a bunch of reo's with contractors and picked their brains so I can be within $5k of estimated rehab costs and so I know what to look for.  Just started my 3rd year and my 2nd week of my 1st flip.  I won't turn away a listing or a decent buyer but definitely switched to focusing more on my own business.  For me though the reason for pulling back on residential instead of working on both is due to time constraints that come from being a single mom of 2 kids under 5yrs old.  If I had more free time I would bust my ass and do both.

Brian Edge · Answer

Thanks Russell for the response.  I probably should have clarified when using the phrase "working on the investing side."  By investing I meant I would be the investor; not so much an agent looking for investor clients.  I like your comment about the two go hand in hand though.  Finding investor clients could be a good path to get myself into the game.

Russell Brazil · Answer

Working with investors and retail buyers both have their pros and cons.  I think though to work with investors it really helps to be an investor yourself. If you invest yourself, you will have a better concept of what investors are looking for.  Working with an investor requires a great deal more market knowledge than working with a retail client I would say.  I would say about 1/3 of my clients are investors with 2/3 being retail clients.

John Newhall · Answer

It's good to have both as clients. I try to maintain the 50/50 balance also but lately it's skewing a bit more towards investors because I've built up that clientele.

Brittany Moreland · Answer

Thank you and best of luck you whichever way you decide to focus on.

Brian Edge · Answer

Wow that's impressive Brittany.  I can somewhat relate as I left my job last year with a 2.5 yr old at home and one on the way.  My wife has liked me a lot less in the last year than previous years in corporate.  Definitely tough hustling and having a young family at home.  It sounds like you are going after it though...congrats!

Focus on investing or traditional side as newer agent?

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