We’ve talked about it before: You don’t need a real estate license to flip houses. But if you do have your license, you should know the opportunity available. Real estate agents looking for additional income streams should consider real estate investing. There’s no clear answer to how many agents pursue investing, but experts estimate between 10 and 20%. It is a natural addition, but can also help their retirement.
Unfortunately, a 2019 survey found only 10% of US-based respondents believe they’ll have enough money for retirement. Agents can add a revenue stream and realize more profit while doing it through the advantages they have.
Agents have several advantages helping them succeed in investing. As an agent themselves, they will save money and time. There are three main advantages to investing as an agent: access, knowledge, and network.
The most apparent way agents have a leg up for investing is knowledge. Regardless of how long an agent has been working, they have learned a ton to get their licenses and have a great foundation of knowledge that can be applied to real estate investing.
Agents also know about desired locations and what buyers are looking for. This allows agents to be laser-focused on properties that will sell. Along the same lines is their knowledge of trends and value. Working as an agent requires getting into their client’s brains and learning what they want and don’t want out of a house and location.
Agents have the skill to recognize the value and go all in on homes that show the most potential and know how to get the most value out of the properties.
There are also advantages to knowing the financial side of things. This knowledge helps agents choose the best options and work with the lenders and financial institutions that make the most sense for them. And similarly, an agent’s experience in negotiation is invaluable in their own investment processes.
The next advantage to agents is their access. As agents pursue investing in real estate, they have access to more tools and a network others aren’t privy to.
Agents have access to the multiple listing service (MLS) data the public cannot see. 64% of National Association of Realtors members consider it their most valuable technology tool. The MLS shows listings sooner than other tools (think Zillow) and shares data about the properties, including rooms, square footage, updates, days on the market, and HOA status.
Access also helps for easier financing. Agents are aware of the financial options, including conventional mortgages, FHA loans, private money lenders, hard money loans, and many others. After hands-on assistance to clients, agents can take that experience to prepare the requirements and expect the interest rates. Not to mention, real estate agents naturally help lenders trust them and provide a level of credibility.
A real estate agent’s network helps in the above, including access, financing, and helpful tools. An agent’s network comprises a diverse group of lenders, contractors, other agents, homeowners, flippers, and more.
Experienced agents will have a diverse network of lenders, contractors, real estate agents, renters and landlords, buyers and sellers, and many others in the industry. Using an established network helps the process of investing and flipping from beginning to end.
An agent’s network can eliminate the time needed to find homes or buyers, find lenders, and vet contractors. A strong network is a game-changer.
The Bottom Line
For all of these reasons and more, getting into investing as an agent is a great route to go. These advantages help agents buy, renovate, and sell quickly, which is crucial in successful house flipping.
If you’re an agent, getting into investing is a smart move to leverage your expertise and secure your future.
Ready to take that next step when it comes to flipping?
Here are 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.
If you are interested in learning more about the House Flip Blueprint course go here.
There are several videos available on finding houses, renovations, and funding on YouTube. Check out your favorite flipping topics and new videos weekly!