If you have been reading our blogs for a while, you might already know how profitable the real estate industry is and the potential it possesses.
“Real estate is, without a doubt, an imperishable asset. Its value increases over time. Also, it’s the most solid security that the human ingenuity has devised.”
With a solid fool-proof game plan and the right execution, you can not only take yourself to the top, but also live achieve that financial freedom that most people desire.
But with real estate being a vast field, what you might be thinking how to get into it.
Should you be an investor? Or a real estate agent?
Should you pursue both of it part-time or full-time?
Which option is the right fit for you?
In this blog post, we’ll be looking at the four points that’ll help you figure out the option you should chase.
Let’s get into it.
3 Points You Should Consider to Learn Whether
You Should Be a Real Estate Investor or an Agent
Here’s a list of the points we’ll be looking at:
- License
- Commissions
- Brand Building
License
Okay, first thing to note here is that real estate agents are licensed, whereas investors are not.
Literally anyone can invest in real estate, but not everyone can be a real estate agent.
If you aim to be a real estate agent, then you will have to apply for a license. You’ll only need a license if you plan to represent a third-party while purchasing or selling properties.
So, if you want to be a real estate investor, you don’t need to have a license, which is a good thing. You won’t have to go through all of that trouble.
But, if you plan to go at being a real estate agent full-time, then you can apply for a license.
Commissions
Real estate agents, for each sale they close, earn 1-5% commissions of the total sales price.
Whereas, that’s not the same with investors.
What most investors do is purchase a property, whether it’s residential or commercial and rent it out. This helps them get the monthly rental income, while the real estate value appreciates over time.
Or other investors who do it full-time, fix and flip properties or harness the power of passive real estate investing.
However, with being a real estate agent, you’ll be helping out your clients get the best deal for them in the market and you’ll be earning commissions for each sale you close.
Brand Building
Real estate agents, to achieve success in the real estate field, need to build their own brand and create a deep network in their local real estate market.
This helps them find the best deal for their clients.
And to succeed as real estate agent, you may have to build your own website, visit local events, connect with other real estate agents, partner with them, create business cards, run direct mail campaigns.
However, that’s not the case with investors.
Depending on the type of real estate investing model you’re planning to adapt, you can just invest in real estate without having to go through all of that marketing-your-brand hassle.
For instance, you can just buy a property, hire a real estate agent to find you tenants and rent out your home. That’s it.
If you plan to fix and flip homes, you can find yourself the best deal in the market, hire contractors to fix the home and sell it for a higher profit.
While there’s risk involved in the flipping business, it can deliver high-reward.
Conclusion
Both, whether it’s being a real estate agent or a real estate investor, are highly-profitable when done the right way.
You can do it either full-time or part-time.
While being a real estate agent is more of a full-time thing, you can start it as a side-business.
However, to be an investor, you don’t have to work full-time.
With passive real estate investing, you can become a real estate investor without having to spend even a single second of your time focusing on your investment.
Otherwise, if you want to become a full-time real estate investor, you can become a home flipper or purchase a property, whether it’s residential or commercial and rent it out.