New investors often ask me whether it would help their investing activity if they became a real estate sales agent.
I actually did start my real estate career as a licensed sales agent. When I decided I wanted to get involved in real estate investing, I did not have any idea how to get started. My only exposure to the investing world had been a few books and the Carleton Sheets course, which I bought back in 1994.
Still not feeling comfortable with the myriad of questions I had, I decided that any action was better than no action, so I got my real estate sales license.
On the positive side, I learned a lot about real estate in general. How to write solid contracts, different forms of title, how to crunch numbers for buyers and how important it was to go out every day and get listings.
Huh? get listings? I did not realize that being an agent was it's own full time business. My broker was adamant about all her agents going out and getting those listings. After all, brokers make their money with listings, so that is what most brokers want you to do.
Investors are more interested in locating properties that they can buy, not properties they can list. It soon became a clash of ideology with my broker. Her disdain for investors did not bode well for my investing career. I ultimately decided not to renew my license.
But I certainly came out of that experience knowing a lot about real estate. It was a great foundational education. But a rather expensive lesson in choosing a business model.
All in all, taking the courses for a sales agent was a big leap for my understanding of the principles of real estate, but the fees and costs associated with being licensed were a definite burden to someone who was not really interested in functioning as a sales agent on a day to day basis.
If I were considering that decision today, knowing what I now know, I would take the sales agent course but I would not plan to take the exam or get my license.
There are advantages both ways. In making your decision, keep in mind your long term objectives.
If one of your objectives is to learn to buy and sell real estate, and you are willing to work with investors, you could have a built in client่le waiting for you.
Investors are always looking for a good sales agent to work with. This could be a great way to build your business and learn investing at the same time.
On the other hand, keep in mind that this business does cost money. You may have to split commissions with your broker. And you will be required to pay fees for things like MLS membership, lockboxes, electronic keys for lockboxes and other items.
You can interview a local broker in your area to find out what costs will be involved. Then you can decide if this course of action makes sense for you. Tip: Be sure your broker is OK with investor activity if you plan to work with investors. You broker will have a lot to do with your success as a sales agent. Choose one carefully.
Donna Robinson is a real estate investor, author, and consultant located in Atlanta Georgia. You may read more of her articles on her website at http://www.RealEstateInvestorHelp.com or you may contact her by email at drobinson@reihelp.com or call 404 542-9903.
Tags: real estate investing, real estate, mortgage lenders, mortgage financing, eminent domain
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