Blog Post Background Graphic
Real Estate Sales Blog

Reasons Real Estate Investing is Agents’ Path to Wealth

You will ask: Reasons Real Estate Investing is Agents’ Path to Wealth?

Real estate has provided many folks with a great income and an opportunity to own their very own business. Real estate agents can make very good money selling homes to private individuals, however they build much more wealth by selling and investing in properties. Real Estate agents are able to save a lot of money as an investor by the virtue of having a real estate license.

If you are a real estate agent, I strongly recommend you start investing in real estate as it is a tremendous way to build wealth and being an agent will give you a huge competitive advantage over your competition.

One of the great things about making a career in real estate is the numerous options to make money. Most folks do not start off tremendously well because they try to fit into a box and that is no different with real estate agents. Once an agents learns to diversify into other areas of real estate that fit them such as REOs and distressed properties, their career can take off. If you are an agent and you have a desire to start investing in real estate, being a real estate agent will help you immensely!

Being a real estate agent will help you tremendously in your own investment career. If real estate agents are interested in investing in rental properties, they can make considerably more returns than the typical investor. One of the reasons they can earn such high returns is that they save thousands of dollars on each transaction by being a real estate agent.

If you are interested in fix and flips, a real estate agent will save thousands of dollars on those transactions as well. The bottom line is investors will save a considerable amount of money on commissions when they become real estate agents.

If you plan to invest in real estate and want to buy more than one or two rental properties per year,you should strongly consider getting your real estate license. If you do nothing else with your license except buy your own rental properties, you will save thousands in commissions per year. On every rental property you buy, you will save a ton of money because you will bepaid a commission as the buyer’s agent. The commission may be only 2, 2.5, or 3 percent per deal, but in the end that adds up to a good amount of money. If you buy four houses per year with an average price of $100,000, being a real estate agent can save you $8,000 to $12,000 per year – not too bad at all. If you fix and flip those houses, you will more than double your savings because you will save a commission when you sell the house as well.

What are the advantage of being a real estate investor with a real estate license? There are many advantages to being an investor with a real estate license. As mentioned above, being a real estate agent will save you commissions and will allow you to get more deals as well.

Below are other advantages for an investor to have a real estate license.

  1. First of all as a real estate agent, you have access to the MLS and can do your own searches for properties without having to rely on an agent, sometimes an unreliable one to find you the right deal. Having access to MLS gives investors a huge advantage because they do not have to wait for an agent to send them listings. You will be able to search for listings as often as you like, and you can often make offers the same day a house is listed and before other investors know about the property. An agent can also easily pull sold comparable information from MLS to calculate values on properties. Calculating a property’s worth is one of the most important things an investor needs to do in order to be successful.
  2. Second, as a real estate agent, you can socialize with other agents and people in the real estate world. The more people you know in the business, the more people you can tell what you are looking for and perhaps find something. Sometimes the best deals are those that are brought to you, not the deals you find yourself. Let everyone you know that you are looking for investment properties and you never know what will turn up. By surrounding yourself with realtors and investors, I guarantee you that you will find and purchase at least couple of properties because of your contacts in the business.
  3. Another huge advantage is tax advantages. The IRS has limits on how much money you can deduct on rental properties if real estate is not your primary job. If real estate is your primary job, you may be able to deduct many more expenses, this will save you a lot of money!
  4. A fourth advantage is if you are a real estate agent that does many deals, most agents will know who you are. If you have a strong reputation for getting deals done, sticking to your word, and being dependable, other agents will want to work with you on tough deals. Many investment properties that will have major issues and may be tough to sell and folks will want to work with you to get deals done.

As a real estate agent you can make a lot of money investing in properties and can be a great way for you to build wealth. You have many advantages which I have listed above, the most important one may be access. You don’t have to count on anyone to find a deal, you have the MLS at your fingertips and can do searches multiple times a day. You can save a ton of money by not having to pay commission fees and you’ll have some huge tax benefits as well. By being in the field and networking with other agents, you will be able to find deals earlier than many other folks could ever imagine.

As a real estate agent you will quickly find who other investors are and you could very easily partner with them as I assure you that they would love to bring a realtor on their team to help them find deals. These investors would probably be willing to put up the funds and split profits with you if you are able to find and manage the property.
As a real estate agent you can make money on flips and rentals. As a real estate agent, you have such a huge competitive advantage over your competition and you and your peers should take advantage of that and start investing in real estate. While you can make a very nice living selling properties, you can build much more significant wealth by investing in real estate. Why would you settle for just a 2% to 3% return when you can make a 25% to 35% return or greater? By being in the business you will be able to recognize those highly profitable deals much easier than other folks. Stop passing all that profit along to other investors, it is time for you to get a bigger piece of the pie.

How to Create a Great Business in Real Estate