The chicken…or the egg. Have you ever considered owning multiple income properties and earning monthly cash flow that would take you out of the Rat Race? If this sounds brand new to you, then stop immediately pick up a copy of Rich Dad Poor Dad by Robert Kiyosaki and get your feet wet! Assuming we are on the same page, let’s dive in.
What is the Difference Between a Real Estate Investor and a Real Estate Agent?
Great question! Simply put, a real estate investor finds opportunities to profit long-term and/or short-term off of properties that are either selling for below market value, belong to a distressed home owner or could earn them monthly rental income. There are tons of creative strategies involved in real estate investing, and if we’re being honest, some of the wealthiest individuals in the world became so through investing in real estate.
A real estate agent on the other hand helps individuals find properties that suit their particular criteria based on factors such as location, price, amenities and style. Often times, real estate agents work together with real estate investors to create win/win deals.
Do I Need a Real Estate License in Order to Become a Real Estate Investor?
No. You 100% do not. In fact, you don’t even need a high school diploma. ACTUALLY, you don’t even need to have money – yourself. What you do need is some real estate know-how, a great team, and a highly recommend a mentor. Wholesaling and/or utilizing hard-money lenders are a great way to begin your real estate investing career. If you’re still slightly confused with some of these terms, I promise that book I mentioned will blow your mind.
Can I Be a Real Estate Agent and Be a Real Estate Investor at the Same Time?
Yes, but more importantly is whether or not you want to be both. Some real estate investors are anti-real-estate-agent. (I have no clue why, I find us rather helpful!) Also, in certain states you can actually run into some legal grey areas when it comes to certain investor activities that real estate agents shouldn’t really do. Yes, I’m being vague, but I didn’t attend law school and I prefer to stick to what I know. Consult an attorney about this part to be sure about your states rules.
Who Makes More Money? Real Estate Agents or Real Estate Investors?
Now this one is tricky! Both incomes fluctuate, but I will say that the opportunities to create long-term generational wealth weigh heavy in favor of real estate investors. While there are multiple ways to earn as a real estate agent, unless you intend on opening a brokerage, the generational wealth potential just isn’t there. Your “wealth” ends…well…not to be morbid, but when you end. As an investor, you can build up an immense portfolio of real estate across the globe, 1039 Exchange your way to even more wealth and create a legacy.
If Becoming an Investor is Better Than Being An Agent, Why Aren’t You An Investor?
You’re so inquisitive!! Now, I never said being a real estate investor is better, I only said the opportunities to create long-term generational wealth weigh in its favor. As a co-owner of a brokerage, I fall into the category of real estate agents who are creating a legacy within that realm. Do I plan to invest in real estate? HECK YES! One would be crazy not to! My brother, Esteban Alfaro, is a real estate agent and a real estate investor. My very next step is to take the investor plunge and document every minute of it.
Are you an investor or agent? Do you agree or disagree?