Wouldn’t it be great to have the inside scoop on real estate deals happening near you? How would you like to save at least three percent on each real estate deal you close? How about having a team of investors ready to jump on board each of your projects? All this could be possible if you decide to become a real estate agent/investor.
Now, is it hard to become a real estate agent? No. Is it hard to become a SUCCESSFUL real estate agent? That may be a lot more tricky. Real estate agents now need to leverage social media, content creation, groups, meetings, networking, etc., more than ever. It is not the world for an introvert who is unwilling to grow out of their shell.
I took a deep dive into the world of being a real estate agent when I read the very informative book “Sold” by David Greene. I continued my journey when I read the book “Real Estate Note Investing” where the author, David Van Horn, describes how he was a real estate agent and investor.
How to Become a Land Millionaire
Finally, I can throw in a book like “Dirt Rich,” by Mark Podolsky, where he used mailing flyers, county tax data, and automation to find excellent land properties for cheap. When you mix them all together, you get something special. A hybrid real estate agent/investor who can call the shots.
First one caveat; I am 40 years old and have been in the workforce for 25 years. The most important factor of any future profession is time. I want to have complete control of time, even if it means I will make significantly less money. If you are a young person reading this, now is your time to hustle (read “Hustle in Your 20s and 30s, and Enjoy Your 40s and 50s”) and build your brand.
As I read these three books, the common trend was building your brand. As a real estate agent, you are your brand; they are one and the same. Being a successful real estate agent is akin to running a business. You are running a business—marketing, advertising, employees, lead generation, etc. Reading a book like “Company of One” can prepare you for the world of real estate.
Now, let’s get into the similarities and differences between a real estate agent and a real estate investor. Here we can learn what synergies we can leverage in each career path.
Real Estate Investing 102
The most important aspect of being a real estate is lead generation. Imagine you have 100,000 people in your area of operations. A lead would be a person who is interested in buying a home. How do you know if a person wants to buy a home? AHA! That is lead generation. Lead generation is at the top of your sales funnel (read “What is a Sales Funnel”).
From the top of your funnel, you work the leads down the funnel as they become clients, sign contracts, and hopefully buy the home. Once they close on the house, that is the only time that you get paid.
The two most important aspects of being a real estate investor are finding a steady flow of deals (called deal flow) and having available capital. You can see our synergies starting to form. How does an investor keep a steady flow of deals? Networking. What is a vital part of being a real estate agent? Networking.
As you read through these three books, you will understand that real estate is a world in and of itself. The number of different players involved in real estate is beyond the scope of reason. You have private money lenders, hard money lenders, portfolio lenders, flippers, land deals, tax liens, agents, brokers, syndicates, partnerships, notes, mobile homes, commercial properties, wholesalers, etc. The more people you know in this world, the more success you will have.
Why Real Estate is the I.D.E.A.L. Investment
Let’s take the example of portfolio lenders. A portfolio lender is a loan originator who keeps the loan on their books for the long term. Most big banks originate a real estate loan and then sell it to another mortgage company to package into a mortgage-backed security.
Portfolio lenders are usually local to your community or city and can be very difficult to find if you do not know where to look. Why are portfolio lenders so crucial to the world of real estate investing? They are some of the few lenders that will sign a loan that uses a business entity.
You see, real estate investors like to incorporate their businesses (usually an LLC) before they buy a home. Their business entity would then purchase the house and keep it as an asset. National lenders and bigger banks do not like working with business entities. Finding a portfolio lender is one of the first tasks an investor sets out to do when scouting an area for deals.
Creative Financing in Real Estate 101
That perfectly aligns the real estate agent into the world of investing. As an agent, your job is to get the contract signed, whether it is a first-time home buyer, small investor, or syndication. Over time you will have many portfolio lenders, hard money lenders, and private money lenders that you can tap.
That is the true power of being a real estate agent and investor, networking. You will gain a fantastic set of tools used to close deals across the spectrum of real estate. Each agreement is its unique entity and will require different resources than the time before. The person with the most resources closes the most deals.
Every day, real estate is becoming more and more expensive; however, there are more and more opportunities for people who can leverage a team and synergies. It may sound a bit overwhelming, but it all starts with taking a step.
Big Money in Tiny Homes
Look into becoming a local real estate agent. That would be step one. Then everything will fall into place from there. Remember, real estate agents are not allowed to sell homes; only brokers are. You would need to either become a broker or sign up under one.
For now, give yourself time to digest everything. Read these three books and understand how vast the world of real estate is and how exciting it can be. I am just scratching the surface of the world of real estate. If enough people like articles like this, I will continue to dig deeper and write more.
Real estate is the number one wealth generator, in my opinion. It is something everyone can do, with less primary risk than starting a business. If you put in the time to learn multiple facets of real estate, then you have a great chance of becoming highly successful. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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