Being a Real Estate Agent vs. a Real Estate Investor and How you can benefit from the two! #30DaysofThreads
A real estate agent is a person who represents sellers or buyers of real estate or real property. Each state has their own requirements for getting licensed. Typically you will have to complete a course, pass the state exam and a background check, pay the required fees.
Please note, as an agent, you have to work under a Broker. It’s important you select the right broker because your broker can influence how you get paid, your niche, what resources are available to help you advance in your career and you’re overall success.
Being an agent requires a lot of hard work and consistency. You have to constantly be working on your business or you literally will not make any money. It’s a very competitive industry and you must be skilled in sales and marketing. Most agents quit within their first year.
You must also abide by the state laws and regulations or you can face hefty fines or jail time. Additionally, you will have to pay broker fees, association fees and potentially expensive marking costs regardless if you’re earning any money.
The good part about being an agent is if you’re good at it, you can make a lot of money. Most agents earn about 1% to 3% of the purchase price of home. So if you sell a $400k house with a 3% Commission that’s a $12,000 check.
Being an agent is a customer based business, being an investor is not. As investor, you can do Fix and Flips, Rental Properties, etc. It won’t always be easy, but it’s extremely profitable if done right. Plus there’s always value in ownership.
As an investor, you dictate your success. You don’t have to get any licenses or certifications. You can pretty much find everything you need to know online or in books or through mentorship. Just build a solid team, do you research, evaluate each deal and play it smart.
For example, with $12k, I constructed two deals that earn me a combined $1k passively each month. Even though I like being an agent and investor, this is why I personally prefer being an investor.
If you want to learn more about investing, book a consultation with me at parkhillconsultingservices.com
