Going from real estate agent to real estate investor has many perks. While licensing is not required for real estate investing, licensed real estate agents who venture into the investment business hold several financial and strategic advantages over the competition. That is why the transition from real estate agent to pro investor is prevalent within the long- and short-term real estate industry.
If you are one of the over 3 million active real estate licensees in the U.S. and are wondering how to become a real estate investor, CIVIC is here to help. Below, we’ll explain the benefits of being a licensed agent in the real estate investment markets, how to invest in real estate, and how to go from real estate agent to pro investor overnight.
The Benefits of Being a Licensed Real Estate Agent
If you’re a licensed real estate agent who has worked in the industry for a while, you may have an understanding of slow seasons and down markets. During those times, many savvy agents look to real estate investing as income to combat market stagnation.
Aside from an additional income stream, real estate investor agents maintain several advantages over the competition, including:
Aside from an additional income stream, real estate investor agents maintain several advantages over the competition, including:
Enhanced Knowledge of Local Markets
One of the most significant advantages real estate agents have over the competition is market knowledge, particularly within the local markets they work in regularly. Real estate investing for beginners can be a sharp learning curve, especially in understanding how to spot market trends and investment potential. No education or informal research can beat the breadth of knowledge and expertise obtained through years of buying and selling properties in local markets.
Agents are tapped into recent and expected movements in home values and trends. They know the amenities (patios, garages, pools, greenery) and property types (single-family homes, townhouses, condos, apartments) that are highly sought after by consumers–whether renters or homebuyers.
This enhanced knowledge helps agent investors identify properties and make faster, more concise business decisions. In real estate investing, speed and accuracy are two formulas for success.
Agents are tapped into recent and expected movements in home values and trends. They know the amenities (patios, garages, pools, greenery) and property types (single-family homes, townhouses, condos, apartments) that are highly sought after by consumers–whether renters or homebuyers.
This enhanced knowledge helps agent investors identify properties and make faster, more concise business decisions. In real estate investing, speed and accuracy are two formulas for success.
Faster Market Analysis
When learning how to become a real estate investor, market analysis is one of the most crucial yet daunting tasks for beginners. Without the help of a firm or real estate investor mentor, researching the local real estate market can take a beginner over 90 days. Which, as you can imagine, leads to several missed opportunities.
Investors must understand the overall status of the market, including:
Investors must understand the overall status of the market, including:
- Job markets
- Housing affordability
- Residential growth
- Unemployment rates
They also must correlate these findings with demographic shifts among young homebuyers and renters, to pinpoint neighborhoods and real property investments with higher demand and upside.
With this data, investors can ballpark the potential profit of different real property investments. As a real estate agent, you are already familiar with local housing market conditions (after all, that’s how you make your commissions!). Additionally, agents have access to the latest technology in real estate. Rather than relying on secondary research, investor agents can perform their own comparative market analysis (CMA) or ROI projections on different markets and properties.
With this data, investors can ballpark the potential profit of different real property investments. As a real estate agent, you are already familiar with local housing market conditions (after all, that’s how you make your commissions!). Additionally, agents have access to the latest technology in real estate. Rather than relying on secondary research, investor agents can perform their own comparative market analysis (CMA) or ROI projections on different markets and properties.
Access to the Best Deals
Many investors eat the 6% commission and hire a real estate agent to gain access to the MLS database. Unlike regular investors, investor agents have the inside track on the latest listings, through the MLS–and sometimes even before they hit the MLS. As an agent, you are rooted in your local markets. As you work your territory, you may see “for sale” signs in yards and move on brand new properties before they hit the database.
Additionally, you are familiar with the activities going on in local neighborhoods and where to find short sales and foreclosed or bank-owned properties. In the end, you have access to and know how to identify the most profitable investment properties in your market. Rather than passing a lucrative investment off to a client, by learning how to start investing in property, you can begin reaping the benefits of real estate investing.
Additionally, you are familiar with the activities going on in local neighborhoods and where to find short sales and foreclosed or bank-owned properties. In the end, you have access to and know how to identify the most profitable investment properties in your market. Rather than passing a lucrative investment off to a client, by learning how to start investing in property, you can begin reaping the benefits of real estate investing.
Built-in Professional Network
Real property investment success is more likely with a team of essential players providing their unique professional expertise. While real estate investor networking in the digital age has made it easier for beginners to connect with industry professionals, agents once again have a leg-up over the competition.
As an agent, you know better than anyone that real estate is a people’s business. You’ve spent years building trusted relationships with essential players (contractors, inspectors, lenders) as you’ve helped buy and sell homes for clients.
Additionally, past satisfied clients, whether homeowners or property investors, can be valuable tools for finding off-market properties before they become available.
As an agent, you know better than anyone that real estate is a people’s business. You’ve spent years building trusted relationships with essential players (contractors, inspectors, lenders) as you’ve helped buy and sell homes for clients.
Additionally, past satisfied clients, whether homeowners or property investors, can be valuable tools for finding off-market properties before they become available.
Additional Financial Benefits
As mentioned, experienced real estate investors often hire agents to access the best investment opportunities. However, as a licensed agent, you don’t need to hire another agent. This, in itself, saves you thousands of dollars at closing and maximizes your return on investment.
Additionally, being a licensed agent can give you a slight upper hand with financing. To succeed, experienced investors utilize short- and long-term business loans through private lenders to purchase, build, renovate, rent, and sell properties. Some private lenders view licensed agent investors as experienced and authoritative borrowers. This makes it easier for lenders to say “yes.” It can also give you more leverage when negotiating rates, and may help increase the size and number of loans you can be approved for at once.
Additionally, being a licensed agent can give you a slight upper hand with financing. To succeed, experienced investors utilize short- and long-term business loans through private lenders to purchase, build, renovate, rent, and sell properties. Some private lenders view licensed agent investors as experienced and authoritative borrowers. This makes it easier for lenders to say “yes.” It can also give you more leverage when negotiating rates, and may help increase the size and number of loans you can be approved for at once.
How to Become a Real Estate Investor Agent
How do you invest in real estate as a real estate agent? For a licensed agent, adequate funding is the only thing standing in your way. The transition to investor agent can be a smooth and highly beneficial move. In reality, you already have the skills, tools, insights, and network necessary to outpace the competition. Now, you just need a reliable capital partner to help fund your projects.
CIVIC has partnered with countless clients to provide the guidance, tools, and capital necessary to succeed in real estate investing. With the most reliable and flexible short- and long-term loan options on the market, we help real estate agents level up and triumph as investor agents.
We offer loan products for any investment endeavor, including:
CIVIC has partnered with countless clients to provide the guidance, tools, and capital necessary to succeed in real estate investing. With the most reliable and flexible short- and long-term loan options on the market, we help real estate agents level up and triumph as investor agents.
We offer loan products for any investment endeavor, including:
- Fix and Flip Financing
- Construction Loans
- Stabilized Bridge Loans
- Single Rental or Rental Portfolio Loans
If you’re ready to make the most of the real estate market and learn how to become a real estate investor agent, reach out to one of our licensed experts. CLICK HERE to schedule a FREE consultation today!
