5 Reasons why real estate agents need to invest in property
These days, it seems like everyone is interested in side hustles or new streams of income, even people with successful, thriving careers. That’s because it’s never been easier to set up a side business, whether it’s a YouTube channel, a podcast, an online store or a real estate investment portfolio.
One type of professionals that hasn’t taken to investing so much is real estate agents, which is sad because they are in a very advantageous position to launch an extra income stream. Not enough agents are taking advantage of their knowledge and expertise to earn more income and build a solid portfolio, whether because of fear or just not knowing how to get started.
Escape the feast and famine cycle that often comes with owning a real estate business!
So, what are some of the fantastic advantages that real estate agents have, and how can they start using them to win? Here are five reasons why being both a real estate agent and an investor is a smart move.
Finding the best deals
As a real estate agent, you come across properties every single day. While most aspiring investors struggle to find deals to flip, they are right under your nose. Why not take advantage of this, and start building your own real estate portfolio? You will stumble upon homes that aren’t on the market yet. Being able to find off-market deals is one of the most lucrative ways investors grow their portfolios. You will also come across homes that might not be as well-suited to a traditional transaction, and you could scoop this up at a reasonable price. It’s an advantage many people wish they had.
Your valuable expertise
Your work as a real estate agent also gives you unique expertise in putting great deals together. That means you know how to structure the contracts and even clever ways to fund your deals. You might have relationships with banks and even private lenders. You might also be able to use platforms like All Reverse Mortgage to find unique ways to turn your own home equity into a source of capital to invest in property.
Real estate is an excellent entrepreneurial venture where you have a lot more control over your income, but there’s one challenge many agents run into, and that’s the lack of a set pension. Many agents work for years and years to keep earning money while other people can retire and live off their retirement savings. It’s imperative to start thinking beyond the transactions bringing in a ton of money right now and start thinking about what will earn you passive income in the future.
This is where real estate comes in as a solid solution because it allows you to pour the earnings you get from commissions into “mailbox money.” You can buy multi-family units and become a landlord, and if you play your cards right, you can genuinely build a property empire that will make you and your family wealthy.
Stabilize your business
Real estate commissions are great, but sometimes it feels like you’re on a never-ending hamster wheel. What if you didn’t have to rely so heavily on transactions to fund your lifestyle? This is precisely what real estate investing allows. You won’t have to be so focused on trades when you’re earning money from the cash flow of your real estate investments every month. You will be able to escape the feast and famine cycle that often comes with owning a real estate business, and you will be better able to pay for your house, cars and other things. Starting an investing operation is perfect because it can actually at some point earn you more than you earn from your commissions, and that’s an excellent financial position to be in.
Build a versatile business
An investing operation perfectly works with a real estate listing business. If you’re selling real estate and doing nothing else in the industry, it’s like getting only one bite of an apple instead of eating the whole fruit. With solid knowledge, you can invest in properties you come across as you do your job. As an investor, you can also generate new leads. Imagine if one of your tenants decides that they now want to buy their first home. They are more likely to choose you as their agent. The two sides of the industry can become one service offering for you, which will keep you relevant in the industry for a long time.
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