Agent or Investor?

Question

I've come to a crossroads and looking for some advice! I know I want to be Investor and I'm currently looking for my first multifamily and for possible flips in my area. However, I've come to grow very weary of my current day job. So much so, Ive been thinking of becoming an agent for experience and to be in the Real Estate "field".

Do you think there is a big market for agents who specialize in working with investors? I would love to pursue that niche as I want to be an investor myself.

Thoughts?

James Wise · Answer

@Cody Harris The short answer to your question is yes you can make a lot of money specializing in the investor niche. I originally became an agent for the sole purpose of investing in my own deals. Fast forward a few short years later & I run a brokerage that employs over 50 people, manages over 500 properties, collected over $2 million in rent this year and will sell $30 million worth of real estate. All of that started because I worked the investor niche.To this day I have never personally sat in a sunday open house.

Jennifer Lee · Answer

I am an investor that got my license for me, and I don't mind being an agent... Let me say, that working with investor, you don't make $$$. It's a volume thing. That is if you are in my market. I love my investor clients, they give me steady business. I don't actively do Realtor stuff, I don't make cold calls or get listing. And once you do this enough, you will realized you have to VET the investors. Investors aren't the most loyal group. They require a ton of work, so this is a relationship that needs to be earned on both sides. My clientele are mostly distressed buyer/seller or investors. I get the occasional first time home buyer and relocations from my network. I don't have a dream to run my own brokerage. My income is from my rentals. That is why I have the patience, time and resources to help investors. When you work with investor you have to realize you may have to put 100 offers before getting a deal. you also have to work 100x as fast to get them the diamond in the rough at a drop of a hat!And when you get a newbie investor, you have to be a teacher... and teach My 2 cents

Ned Carey · Answer

@James Wise is an impressive success story. However be aware most agents don't make it a year. It takes some time to build up a clientele. However I think a big advantage to working with investors is they are likely repeat buyers. Being an agent is great for some people. I didn't like it.

Rosston Smith · Answer

Work your W2 and invest in the side. Better for financing.

Samuel Sadler · Answer

My advice is to sit down with Investors from each of those categories and ask them what they like and don't like about what they do. A MF Investor, a wholesaler, an Agent that specializes in investing, yes I can recommend one of each to talk to... Each role has pros and cons. Keep in mind what you have to work with will play a large roll in where you start out. Credit, liquid capital, time, etc. You are in FL and that's a Landlord friendly state...That's a start.

Johnny Kang · Answer

@Cody HarrisTo me, the question of someone contemplating whether to be an agent or investor, comes down to a person's need to get clarity on which side of the Cashflow Quadrant they'd like to operate from. And being that this is a topic that's often discussed, I think a lot of people equate being in the same industry they want to work in (in this case real estate, but you can just about apply this to any industry) to mean that they'll end up in the quadrant they envision for themselves down the road. You can be in the same industry, but operate from a completely different quadrant, which means you see the world through a completely different perspective. i.e. A person might have a passion for helping people with their health and decide being a doctor working for a hospital as a W-2 employee is the way to go (the "E" quadrant), maybe because they know someone personally who's a W-2 employee doctor, versus another person who has the same passion for helping people with their health might decide the best way to help the most people is to open up a bunch of hospitals and run them as a business (the "B" quadrant). So in my opinion, the question we can all ask ourselves shouldn't be "at this juncture in life, how should I proceed to get experience in the real estate field?," but rather which side of the quadrant do I want to ultimately operate from? Do you want to be in real estate seeing things through the lens of a real estate sales person, or do you want to be in real estate seeing things through the lens of an investor? As Robert Kiyosaki talks about, the world is completely different from all those quadrants.

Mike S. · Answer

I like Jennifer's approach. I was thinking along these lines..and buy some more houses for myself.

Cody Harris · Answer

Thank you guys so much for the response! That was very helpful to hear all the different perspectives. @Ned Carey @Rosston Smith @Jeremy Pakalka @Samuel Sadler @James Wise @Mike Shay

Mike S. · Answer

I am considering this as well. Tonight was my first night in class.

Mike S. · Answer

I am considering this as well. tonight was my first night in class.