Negative Connotation for Flipper/wholesalers and RE Agents?

Question

Hey everyone. I noticed there seemed to be a negative connotation for Flipper/wholesalers and RE agents in the field of finance specifically. I'm currently a freshman at Uni, and a lot of professionals I've spoken to have said that people who have a degree should strive to be in the RE finance field of real estate (PE, REDEV, Investments, etc.) They seem to underlook wholesalers/flippers and agents. I think this is because of several reasons. The first reason is how in RE finance, there is a larger barrier of entry. a couple of months ago (18 y.o), I got my Notary and RE license quite easily so the barrier of entry is extremely minimal. I also think that because the barrier of entry is so minimal, there is a disparity of competence between these fields.

Another reason would be because of the hierarchy. It seems as if agents and flippers are at the bottom of the totem pole with developers, large institutions, and commercial/investment companies at the top. Generally for an agent and wholesaler, the profit potential is ,on average, less. Of course you have the outliers too, but there are only a handful.

I was wondering specifically if anyone feels that there is a negative connotation in this field and their thoughts on this topic as well.

Thank you.

Account Closed · Answer

It seems as though you're implying that people with jobs with a lower barrier of entry are "lesser than" people with jobs requiring the generally useless and overpriced piece of paper you call a degree.
Everyone has their place and purpose in the real estate industry. I wouldn't personally choose to be an agent, and for the most part i'm not a fan of wholesalers, but i would never look down upon someone for their choice of careers so long as they're productive members of society. "People who have a degree" should strive to do whatever makes them happy.

Maybe consider seeking career advice from "professionals" who aren't pretentious a$$holes.

David Weintraub · Answer

If you live your life based on other people's opinions you risk being miserable because anyone who says that type of thing probably is.

Matthew Paul · Answer

One of the richest guys I know drives a trash truck but he has drivers for the other 149 trucks he owns . It doesnt matter what other people think about your job .

Russell Brazil · Answer

The barrier to entry for being an agent is low...however most wash out of the field in a year. Many of the successful agents in my market have advanced degrees. Finance had a higher ceiling, but I make more than my friends who work in finance, and I only consider myself moderately successful. There's about a dozen or so agents in my office that make a million or more per year.

Mark Scarola · Answer

I would consider the source of that feedback @Raymond Chan. Where do you go to school? Often those in academia can have a bias towards more scholarly pursuits and so they may view the manager of a REIT with greater prestige than a local agent or flipper. Do they realize how much analysis is done by a quality small-time investor, by a Realtor, or even the better wholesalers?

There are plenty of wannabe flippers who saw a tv show and have no experience or knowledge and wannabe wholesalers who aren't finding quality deals that can smear the image of those more skilled at their trades. But that shouldn't lead to a declaration being made about all such individuals.

Cameron Paterson · Answer

Finding an average agent or wholesaler may be easy due to low barriers, but finding an exceptional one is the key - those people are very skilled, know their stuff, and are an essential part of your team. They also do very well for themselves.

Raymond Chan · Answer

@Mark S. A pretty wealthy University in NYC (Don't want to disclose specifically). He was a VP in a specific Bulge Bracket Bank in the Real Estate division. Also another person, ironically, was working at a REIT.

I totally agree. I actually don't know how much analysis investors/realtors/better wholesalers do, but I'm sure it is not an easy task as no field is easy.

I know from my job experience that financial analysis is not easy at all (still learning actually.) There are so many factors and inputs to account for. (Operating Income, Operating Expenses which have a list of expenses such as repairs, utilities, insurance, supplies, etc) , Levered/Unlevered IRR, NPV, Tax Expenses, After tax Cash flows, Cash-on-Cash return, etc. That's merely just the financial analysis portion; you have to take into account of the other factors as well such as location, etc. It's easy to know the definition, but application and understanding the purpose for each one is no easy task. I just want to learn as much as possible so that I can have a niche specialization in finance.

Negative Connotation for Flipper/wholesalers and RE Agents?

Negative Connotation for Flipper/wholesalers and RE Agents?

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