Real Estate License - What’s next?

Question

Hello everyone!

I am currently working 40 hrs a week at an office job. I don’t love it but I definitely give it 100%.

I have had several things in my life that I was passionate about for a short time and then it would fizzle out but something about real estate investing has turned my life upside down and I am doing whatever it takes to get in and stay in the game.

In April I will be house hacking a duplex and I am ecstatic about that project. I am working on getting my real estate license and I should have it completed within the next 2-3 months. I obviously do not want to quit suddenly with no back up plan so I am here looking for advice on next steps after I secure my license.

Any and all advice would be appreciated!

Seth Ferguson · Answer

Hi @Cyreah Steele,If you're serious about starting a career as an agent, you need to quit your day job. Real estate is a full time sport.Too many people try to make real estate work as a part time job, and these are the people that fail. As long as there's a cord connecting you to the comfort of a pay cheque, you will not reach your full potential.You'll be entering profession with an incredibly high drop out rate. Do not be the majority that fail.

Anthony Dooley · Answer

@Cyreah Steele I hate to be the bearer of bad news, but about 75% of real estate agents do not invest in real estate. I know a very successful agent who has been in the business for over 25 years, very successful, but has never purchase a single house. She asked me about investing and I assumed she knew a lot about it. I have only been an agent for about 5 years, what could I tell her? She had no idea, not the first clue. Most agents focus on open houses, listings, showings, etc. They never see the investing side. Now, here are the good things about being an agent/investor: Access to the MLS and the comparable sales tools, access to listed homes using the key fob, access to the contracts, addendums, and other forms, ability to write my own offers and email them directly to an agent or seller, commission when I buy or sell my own property. I like it, but I am a "lone ranger" type guy. I like doing my own thing on my own schedule. I will list a house for friends or help people buy occasionally, but most of the time I am looking at property for myself. I suggest you keep your day job, invest in real estate for cash flow until you can quit your job, then maybe get a license.

Anthony Dooley · Answer

@Cyreah Steele A real estate license is absolutely not required to be a successful real estate investor. If anything, it could slow you down, depending on how your broker feels about it. There are a lot of continuing education requirements and fees that you don't deal with if you are not an agent. Almost nothing that you have to learn to pass the licensing exam pertains to investing. Just saying. Book suggestions: Millionaire Real Estate Agent, Millionaire Real Estate Investor, The One Thing, Profit First, and Multi-family Millions.

Aaron K. · Answer

@Cyreah Steele being an agent is not easy if you are starting from scratch and want to support yourself with it. Marketing and networking are really the key to success, there are good agents who don't do either and can't make a living as an agent. There are others who stumble through every transaction and make a very good living.

Cyreah Steele · Answer

@Seth Ferguson I was definitely neutral about being an agent and now it’s clear to me. I believe that I can work with/shadow an agent to gain knowledge about that side of things but in terms of a career I think I will utilize my license to assist me in real estate investing. Real estate investing is something that I never knew could be a career choice. If only I knew sooner! Thank you for that wonderful advice.

Cyreah Steele · Answer

@Irene Nash great point! I have been hitting a wall and it is frustrating but I would be a lot more frustrated if I couldn’t pay my bills. I think I can suck it up a little while longer. Thank you for the book suggestion!

Cyreah Steele · Answer

@Anthony Dooley all of the points that you have listed above coincide with why I want my license. Hearing that you use it in those ways is music to my ears!

Irene Nash · Answer

Hi @Cyreah Steele, In line with points some others have made, if your true goal is to be a successful investor and not build a career as a real estate agent, then I would recommend keeping your job, at least for a while. Not having enough income can be a more significant barrier than not having enough time if it forces you to make decisions that aren't good for your business goals. You know your own situation best and will have a better idea than any of us, obviously. :)If a career as an agent were your goal, then that would be a different scenario and it would make more sense to look at freeing up your time sooner rather than later, but it would still be a major decision to quit your job to focus on that if you weren't sure you had enough financial reserve or else clients lined up.As others have mentioned, many people invest without a license, and many agents don't invest at all. I totally agree with @Aaron K.'s point above about consistent marketing and follow up being more of a success factor than how an agent actually does their job - not saying that's a great thing, but I believe it's often true.I think 'old school' real estate marketing is transitioning more into education-based marketing, in which the agent is more of a guide than a salesperson. I realize a lot of people have been working with clients this way for many years, it's what I do as well, but in actual advertising it appears to still be less that way.Along those lines and in terms of networking and advertising, I think a really (really) good book is The 1-Page Marketing Plan by Allan Dib. He covers a wide range of important topics in a very hands-on way that doesn't overwhelm, rather he gets to the highlight of each point so that the advice is very actionable, unlike many business books. Good luck!

Cyreah Steele · Answer

@Anthony Dooley Thank you for the book suggestions! I will be checking those out as soon as possible. I am definitely noticing that there isn’t much on investing as I go through the real estate course which is disappointing. However, what I am hoping to get out of a real estate license is the opportunity to meet more people doing what I’m trying to achieve And learn from them.

Cyreah Steele · Answer

@Anthony Dooley Thank you for the book suggestions! I will be checking those out as soon as possible. I am definitely noticing that there isn’t much on investing as I go through the real estate course which is disappointing. However, what I am hoping to get out of a real estate license is the opportunity to meet more people doing what I’m trying to achieve And learn from them.