In real estate, investors often rely on a dream team of essential industry professionals (real estate agents, contractors, brokers, etc.) to optimize their operations and profits. However, as industry experts, many of these real estate professionals have the resources and knowledge to excel as investors on their own. That is why we have seen an increase in multi-talented industry professionals, such as real estate investor agents.
While licensing is not required for real estate investing, investor agents entering the investment market hold several financial and strategic advantages over the competition. With a niche expertise in short- and/or long-term realty and local markets, agents are poised to excel in the real estate investment market.
If you are one of the over 3 million active real estate licensees in the U.S. and want to know the benefits and steps to becoming a real estate investor, look no further. Below, Finance of America Commercial (FACo) will break down the benefits of becoming a real estate investor agent and how to get started.
The Benefits of Becoming an Investment Real Estate Agent
Before we dive into the steps to becoming an investor agent, it’s important to understand the perks of real estate investing for agents. The biggest benefit of becoming an investor agent is building additional income streams to combat market stagnation.
As an agent, you are well aware of slow seasons and down markets. During those times, it can be extremely difficult for real estate agents to make ends meet financially. That is why many savvy agents turn to real estate investing as a means to generate passive income year-round.
Aside from additional, stable income streams, there are several other advantages to becoming a real estate investor agent, including:
Deeper Market Insights & Understanding
Like investor contractors, real estate agents can leverage their niche expertise within the real estate market to gain an upper hand. For investor agents, that brings vast market knowledge, particularly within local markets.
Comprehending market trends, real estate investment statistics, financing, and the costs associated with purchasing, renovating, or selling a property can be a steep learning curve for investment beginners. Agents, especially those looking to invest in local familiar housing markets, are already equipped with most of this knowledge, and can easily identify:
- Current and up-and-coming market trends
- Property types in high demand (single-family homes, townhomes, condos, apartments)
- The amenities, features, and renovation ideas that will skyrocket property values
This granular knowledge of market tendencies gives real estate investor agents a significant advantage over the competition. Additionally, it helps investor agents make faster, more concise, and accurate investment decisions.
Enhanced Market Analysis
While there are several differences between real estate investors vs. agents, one commonality is market analysis. Like real estate agents, investors must perform vigorous market research to make more informed, data-driven investment decisions.
To identify and capitalize on ROI-generating investment properties, investors must research and understand factors like:
- Local job markets
- Housing costs
- Residential growth
- Vacancy rates
- Unemployment rates
As you can imagine, understanding and implementing adequate market analysis can be a daunting task for beginners–which leads to several missed opportunities. Agent investors, on the other hand, are equipped with the experience, skills, tools, and insights to perform market analysis and pinpoint neighborhoods and investment properties with high upside.
Best of all, licensed agents typically have access to the latest innovative tools for modern home flipping, new-builds, and other investment opportunities, as well as the latest local housing market conditions. This empowers agent investors to perform their own comparative market analysis (CMA) and property analysis, rather than relying on secondary or outdated research.
A Leg-Up With Networking
As mentioned, experienced investors understand the power of real estate investor networking and leverage several industry professionals to enhance their operations and bottom line. While networking opportunities have become more accessible in today’s digital age, it takes time and energy to build relationships and trust with other professionals.
As an agent, you’ve spent years building trusted local relationships with key players (contractors, inspectors, lenders) to help you and your clients purchase, renovate, sell, and profit off properties. This “built-in” professional network gives real estate investor agents yet another upper hand over the competition.
Financial Benefits
Many investors hire real estate agents to gain an inside look at local trends and the best opportunities. As an agent, you are rooted in your local markets and have built relationships within communities. That, along with access to the MLS database, gives you an inside track to the latest houses going on sale. In some cases, even before they hit the market!
Rather than using these insights to earn 6% commission, savvy real estate investor agents leverage this knowledge to find and profit from the best investment opportunities on the market. Best of all, real estate agents get to cut out the 6% commission fee other investors swallow (After all, you’re your own agent!)
Additionally, licensed agents can have more leverage during loan negotiations. Many successful investors leverage short- and long-term business loans through private lenders to purchase, build, rehab, rent, and sell properties. Fortunately, many private lenders view licensed agents as experienced and authoritative borrowers. This makes lenders more likely to:
- Offer better rates
- Increase the size and/or number of loans
- Say “Yes!”
Becoming a Successful Real Estate Investor Agent
Can you be a successful real estate agent and investor? In short, licensed agents already have the skills, tools, insights, and network necessary to outpace the competition and succeed in today’s real estate investment markets. However, while there are several benefits and paths to investment success, investor agents must equip themselves with the right mindset, work ethic, and, most importantly, funding.
For over a decade, FACo has earned a reputation as one of the most reliable, investor-friendly capital partners on the market. With flexible short- and long-term loan options, we help real estate agents level up to investor agents and achieve financial independence.
We offer loan options for any property investment project, including:
If you’re ready to take advantage of the perks of becoming a real estate investor agent, let the expert team at FACo help. CLICK HERE to schedule a FREE consultation today.
Authored by Bianca Montalvo
SEO copywriter and strategist
*Requires 3rd party mobile app download. Currently available for one unit properties only. Time from full document submission to settled wire averages 24 hours but may vary. Release of funds is based on clear photographic evidence of completed work matching the request.
