Real estate agents are a bunch of reliable professionals who help home buyers, and real estate investors achieve their property-buying goals. They have the knowledge in the local real estate market and the skills and experience to make a real estate transaction a better experience. If you are an agent yourself, the thought of investing in real estate will surely come to mind. But then, not all real estate agents are willing to step up, nor are they confident enough to become an investor. But there are a couple of reasons why your title and experience makes can make you a great real estate investor.
Why Real Estate Agents Should Consider Investing in Real Estate
Not all real estate agents desire to invest in real estate, other than their own home. For one, they believe they don’t have enough access to funds to finance a real estate investment. Many agents don’t even get to enjoy the average annual salary of real estate agents in the U.S.
Aside from financial issues, they know that many things can go wrong. You can end up paying too much only to receive a lesser amount in return. With the market’s unpredictability and the hassle of dealing with contractors and finding a reliable contact to manage the real estate, many don’t have the motivation to say hello to real estate investing.
But then, your title as an agent provides a great opportunity to build your wealth and start saving up for your inevitable retirement. These are but some reasons why you should consider investing in real estate.
You Have Enough Real Estate Knowledge and Experience
You know which properties would make a good investment. Chances are, you most definitely stay on top of the real estate trends, and you already helped many buyers and investors alike in finding the right property that meets their needs. Add the fact that you have the right connections only make it a lot easier for you to kick start your career as an investor.
You Come Across Great Property Investments All the Time
As a real estate agent, it is your job to find your clients the right properties. You have access to the best listings in your area, and your connections with other agents make it easier for you to find properties that can make excellent investments.
This Can Be the Perfect Opportunity to Grow Your Wealth
Most agents don’t have the regular benefits of a nine-to-five job. This means you have no employer to match your 401K, health insurance, pension plans, etc. With the amount of cash you can get for every successful investment, you get to increase your wealth and set yourself up for a more comfortable retirement.
How Real Estate Agents Can Get Started in Real Estate Investing
The first thing you need is to start finding ways to fund your investment. If you are earning less than the average real estate agent in your area, find a real estate brokerage that offers better commission rates. The experts at Ashby & Graff Real Estate brokerage explain that with more commissions for every transaction you close, you get to save more money for your investments.
Consider getting into partnerships. You will be surprised by how many people have the funds to invest in real estate but don’t have the time and skills to get it done. Just make sure to be very clear in splitting the responsibilities, costs, and profits to avoid costly hassles in the future.
Stop renting and buy your first property. You are better off with a multifamily home than a single-detached house since you can rent the other units and make passive income. While you’re at it, you can start renovating the property to make it more appealing.
Before you start buying another rental home, take a deep financial check to know how much you can comfortably afford. You also want to buy rental homes that are in a great neighborhood, have good rental prices, and requires a bit of fixing and upper but won’t break your budget. Consider all the expenses that come with buying and flipping another rental property and make sure these are less than your potential average rental income.
Start buying more distressed properties with equity one at a time. Continuously flip houses and sell them. Use the profits to finance bigger projects but make sure you pay yourself first and set aside enough money for your savings and retirement.
Don’t forget to pay down all of your debts. The less debt you have in your name, the more cash you can take home and use for your real estate investments. If possible, pay off the house as soon as you can before buying another investment and use your rental income as payment for the next mortgage.
Real estate agents already have many advantages compared to newbie investors who have no idea how real estate investing works. One just needs to make a choice and the right decisions so start building their wealth out of real estate investing. Why not take the opportunity to level up your real estate game if you already have what it takes to become a successful real estate investor?