Should I begin a career as a commercial real estate broker if I want to become a full-time real estate investor one day?
-
I am a recent college graduate with zero savings. I am considering getting my license and becoming a broker. I intend to save my earnings and begin flipping single family houses and eventually add medium-sized apartment complexes to my portfolio for a buy and hold strategy.
-
Answer:
I agree with Sean. Why pay someone else when you don't have to?
Doug Raymond at Quora Visit the source
Other answers
Becoming a commercial broker probably means that you have to pay money and put in time to get licensed when there's an easier way. I am to the point where I can flip houses now but started off with no money. What I did was wholesale (flip contracts) for money until I had enough money in the bank to start getting hard money loans. For that, I only needed about $10,000 in the bank and now can flip homes.
Ryan Pettigrew
It can not hurt and you could represent your self down the road when you start investing. I have a partner that has her brokerage license so fees, commissions, etc. are factored into our portfolio. If she did not have the license we would be paying someone else.
Sean Watson
Keeping as many functions as possible in-house will help your bottom line, but keep in mind that it takes many skill sets to be successful in real estate investing, especially flipping. I know many investors who won't touch construction or major remodel projects because they don't consider construction one of their strengths. I know others who partner with general contractors to augment their brokerage skills and complete profitable flips. I know still others who hate working with tenants and prefer to build multi-family projects, hire a leasing agent to fill them with tenants, then sell them as quickly as possible. When you're starting out, determine what you have the capacity to do at the professional level and farm out everything else to pros.
John Souerbry
Yes you should become a broker if you want to invest in commercial real estate/residential real estate in the future. Most importantly as you noted, you have zero savings. Somehow you are going to need to earn an income and pay the bills and then have capital to invest. Providing that you are successful this will give you the capital you need. As a broker you will earn and learn. You will also see the real risk that others take on in the real estate investment business. You will forge some relationships with mentors in both brokerage and the investor side of the industry that will be extremely valuable to you. All around you win, and you will be well prepared to execute on your plan as an investor. Best of success to you.
Greg O'Donnell
Currently in the Las Vegas market, buy and hold is the best strategy for small time investors. But there are deals out there where you can do a quick rehab and flip. I work as the Realtor for my family who are all RE investors here. They are happy to pay me instead of 3rd party agent plus I get to get my hands dirty and help fix up many of the properties then LIST them. I would advise you to get to know the business inside and out. Know the laws, know your market, know outside the box techniques that work to your advantage (buying up HOA liens and going into "partnership" with the homeowner...etc)....there are tons of ways to make money in real estate. Lastly, market yourself ALWAYS. #prospectingwillgetyoupaid
Lance Partin
Most brokers only pay commission. Depending on your degree, it MAY be possible to go on the payroll for one of the large commercial brokers, like CBRE, as an accountant, or other salaried staff if you are qualified. Then you could sustain yourself economically while obtaining a license.If you can financially sustain yourself without a job until you can learn the business, then I say go for it!Good luck
Christopher Michaud
Related Q & A:
- If I want to become a doctor what should I do?Best solution by Yahoo! Answers
- How do I begin a career in theatre?Best solution by atgtickets.com
- What should I do if I want to become a chef?Best solution by Yahoo! Answers
- How to find a good real estate broker to work for?Best solution by Yahoo! Answers
- How can I become a full-time artist?Best solution by Yahoo! Answers
Just Added Q & A:
- How many active mobile subscribers are there in China?Best solution by Quora
- How to find the right vacation?Best solution by bookit.com
- How To Make Your Own Primer?Best solution by thekrazycouponlady.com
- How do you get the domain & range?Best solution by ChaCha
- How do you open pop up blockers?Best solution by Yahoo! Answers
For every problem there is a solution! Proved by Solucija.
-
Got an issue and looking for advice?
-
Ask Solucija to search every corner of the Web for help.
-
Get workable solutions and helpful tips in a moment.
Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.