Real estate agents have a unique opportunity to leverage their expertise for investing.
Let’s get into how real estate investing is an excellent opportunity for all, especially real estate agents.
Investing in Real Estate
Investing in real estate is a great way to build wealth. Real estate investing is an attractive avenue for building wealth because it is easy to gauge and predict value. Property is a tangible asset that appreciates over time.
An average person has great potential to make money as a real estate investor and must build the skills agents already have!
Advantages of Real Estate Agents Investing in Real Estate
Getting involved in an industry you’re already interested in and knowledgeable about makes sense. If you’re an agent looking into investing, there are a handful of reasons to choose real estate. All of these benefits make investing more accessible, quicker, and cheaper.
1 – Save on commissions
About 88% of buyers hire a real estate agent. Even experienced real estate investors hire agents often as well, but you wouldn’t have to do that. Most people are investing in the assistance and expertise of an agent, and if you’re an agent, you know it comes with a price.
The commission is usually 6% of the home’s sale price – with seller and buyer agents splitting that amount. That means, as an investor and an agent, you are able to save on commissions and pocket that yourself. You can save at least half of the traditional commissions as your own agent.
2 – Analysis Skills
As an agent, you’ve practiced analyzing deals and the market. On average, it takes buyers about three months to research a market, search for properties, and property within their budget.
When you’re investing in real estate, you’ll need to be skilled at analyzing the market to find the properties that are right for you, and your budget, and are fair prices. As an agent, you’re already familiar with these research requirements and have seen your clients go through the process repeatedly.
Agents also have all the tools and resources to learn and make the best decision based on the data.
3 – Inside knowledge
One of the biggest advantages of investing in real estate while already being established in the industry is having inside knowledge about the local market. You are likely an expert in what is out there, what sells, what is going up for sale, or just closed – you name it.
You know when a property is overpriced and can tell when there are deals to be snagged. Investors need to act quickly, and agents who know the trends and can make decisions fast will have the edge over the competition.
Your greatest tool is your familiarity with the real estate market in your area. You already have an understanding of the trends and variances in the area in which you’ll be investing, and you have knowledge of what property types and features are the most sought after. When it comes to the meticulous research process that goes into finding the right investment property you’re miles ahead. You have obtained all the data you need through your daily interactions and activities. This translates into the ability to make quick decisions on properties that have potential for profit.
4 – Access to deals
Real estate deals typically come from the MLS database and connections in your network. The MLS database is something only agents can access, and as a buyer and an agent, you’ll get that leg up on other buyers.
Through your network, you’ll have access to deals that others aren’t privy to. You may hear about properties before they hit the market. Sellers who desire privacy may prefer to sell on the down low with pocket listings and private deals. And then, there is the wealth of off-market and foreclosure homes that most consumers never see.
5 – Financing
Financing concerns are common among home buyers, and agents are there for the ride. After learning the basics of financing and assisting others, it can be a much easier process to do for yourself.
With experience as a real estate agent, you are familiar with your area’s different loans, rates, and financing details. You have also built solid relationships with various financing sources. As an agent investing in real estate, you can put these things to use.
Real Estate Agents Have a Unique Advantage
While there are many benefits to investing in real estate as an agent, it’something that can also enhance their client real estate business. While most traditional home buyers purchase a home every 7-10 years investors often purchase and sell multiple homes per year.
Either way, the knowledge and experience an agent has can truly benefit not only them but their clients too. This makes incorporating a real estate investing strategy into a real estate business can be a smart move.
Looking for ways to level up your flip design? I’ve got you covered
I have a great course for you to get multiple offers in any market! Learn the high-end flip design tips I use in my projects! Check out the High-End Flip Design Course here.
Just getting started? I have the perfect place to start! Check out my Find Your Flip course. Walk through 3 properties with me as I’m searching for the next flip project.
I also have some resources I’ve put together to help you get the information you need to move forward on creating your flipping life.
Make sure you have the Fixer Upper Checklist so you know which areas are key to added value in a home. There are several videos on finding houses, renovations, and funding on YouTube. Check out your favorite flipping topics and new videos weekly!