Should I be a Residential RE Agent or Commercial RE Agent?

Question

I recently completed all of my required education and I'm now studying for the real estate licensing exam. As I study I'm trying to determine if I should be a residential or commercial real estate agent. I'm a single mother with 2 kids. They'll be 12 and 16 this July, so I don't have much time left with them. I'd like to be able to provide a good living for them before they become adults and I hear that commercial real estate gives you more bang for your time. However, I just watched a YouTube video saying that commercial real estate agents travel and work several evenings. One of the reasons I left my previous career was because I was traveling and working evenings so much. It got to the point where I no longer was able to maintain a relationship with my kids. They were practically raising themselves. Needless to say, I don't want to do that again.

Is there anyone here who can provide some insight and advice on which route would be the best to take? I would like to eventually get to a point where I have enough money saved up that I can start investing in properties. One successful house flipper told me that if I don't have any collateral, working as a real estate agent is a great way to learn about the field of real estate while earning money at the same time, so that's what I'm doing. Advice would be greatly appreciated. TYIA!

Is there anyone here who can provide some insight and advice on which route would be the best to take? I would like to eventually get to a point where I have enough money saved up that I can start investing in properties. One successful house flipper told me that if I don't have any collateral, working as a real estate agent is a great way to learn about the field of real estate while earning money at the same time, so that's what I'm doing. Advice would be greatly appreciated. TYIA!

Account Closed · Answer

Thank you for all of your valuable insights. This is all really great food for thought. I am leaning toward residential now. Once I’ve done this for enough time to be considered experienced, I’ll consider commercial real estate at a later time. For now I’ll focus on residential and take this as an opportunity to learn what I can, so I can eventually start flipping homes. Hopefully that’ll be sooner rather than later.

Thanks again!!

Jonathan Bombaci · Answer

Hi @Christina Jinez we’re a bit of a hybrid where we focus on helping clients buy age sell 2-12 unit multi-families which has 1 foot in each world. Under 4 units is residential over 5+ units is commercial which gives us exposure to both worlds.

You mention wanting to invest yourself and it sounds like IF you had the capital you’d consider flipping some properties. Assuming you would be flipping residential properties that’s where I would recommend focusing. Become a residential agent and Learn all you can by helping others, then you’ll have some lessons learned and out of the way when you start investing /flipping yourself.

Best,

Jon

Laurie Horning · Answer

Congrats, Christina! As a residential real estate agent, I attended a free meet up to learn more about becoming a commercial broker. One of the biggest take aways was that it may take 6 months or more to close your first deal so they suggested having a strong savings to keep you afloat for those months.

This is the first year I’ve worked on commercial deals. It’s completely different from residential, yet the hours are more 9-5 than residential. I was working many evenings and weekends as a residential Realtor. Given how hot the market is, I’d have to show a house the same day it hit the market to make sure it didn’t go pending. I haven’t had to travel or work evenings with my commercial clients but know some commercial agents who travel within the state for tours but it isn’t for more than a day.

Given what you’re looking for, I would reach out to brokerages you’re considering to join, both residential and commercial, and ask them what hours you’ll need to work to be successful, what they offer their agents to help market their business, and how much you’ll have to pay them out of your commission.

While becoming a Realtor is a great way to start learning the business, I wouldn’t recommend becoming one in order to invest in real estate. Being a Realtor is a hustle, you can make great money but you are a 1099 contractor and running a service based business. If you’re looking for steadier hours, you could look into becoming a real estate appraiser, being a mobile notary, or working at a title company.

Hope this helps! Feel free to reach out if you have any additional questions.

Charles Kao · Answer

@Christina Jinez

If you want to make alot of

money fast I’d recommend residential.  Commercial is a tough game because people

want experience and thats why many who get into commercial start out as an analyst at a big box broker or they have alot of personal

experience investing in commercial.  If you got commercial be prepared to wait months before you close your first deal.