Choosing a Career Path in Real Estate
Considering a Career in Real Estate?
So, you are entertaining the idea of entering the world of real estate. You may be nervous, have a lot of questions, or be completely excited about the new venture without hesitation. You are not alone. Whether you have been considering a career in this ever-changing industry for quite sometime or this is a new venture you're looking to take, real estate can be a lucrative career for the right person. You just need to have a clear understanding of what it entails so you aren't blindsided with the unexpected.
There are so many paths in real estate that many don't consider when entering this industry. Most people think holding a real estate license is strictly limiting them to buying or selling homes. That is far from the case. Knowing your options can help ensure you make an informed decision about the real estate path you are best suited for.
Why Are You Thinking of Real Estate?
License Required: No
Leasing is usually done on-site at an apartment complex. Your duties include showing the unit that is for rent, processing application to ensure they qualify, and retaining residents.
The ultimate goal is to reach 100% occupancy.
License Required: No
Property management is a way to get into real estate and provides a more stable work environment because you are typically hired by companies to manage their properties. While this position doesn’t require a real estate license in most cases, keeping your license up to date will help you in keeping with Fair Housing Laws, changes in regulations, and more. Not to mention, it will enhance your value in the real estate industry.
Licensed Required: Yes
This is my top pick for getting started in the real estate market. Especially if you are not financially able to rely on zero income for at least your first six months.
Apartment Locating allows you to get started immediately in real estate without having to join the expensive boards required to be called a Realtor®. Once you have passed your exam, you are officially a licensed real estate agent. Apartment locating does require a license however, you are able to generate an immediate income as you are paid by lease.
As an apartment locator, you are in control of your schedule. That schedule will revolve around apartment complex business hours. Typically, Saturdays will be your busiest day of the work week as that is when most people are conducting searches.
Each and every client you help move into a rental property will remember who got them there. This is a great way to build up your pipeline for possible home purchases. Gather contact information for every client and be sure to stay up on marketing to them. (Marketing is covered here.)
Advertising to potential renters should go something like this so you get the point across that your services are FREE to them. Apartment complexes pay your "finder's fee" or commission since you brought them a new tenant.
"You are in the market to rent. Nothing wrong with that. In this case, use a licensed real estate agent to find you the apartment or rental home you need. Also known as apartment locators or rental specialists, these pros serve the rental market. They are able to access listings that you or the general public are not able to and can find those awesome move in specials for you."
Recap the Benefits of Becoming a Locator:
Not required to join a board
You are a licensed real estate agent
Dedicated to rental market
Referrals create a pipeline
You are your own boss
License Required: Yes
Expect to spend a lot of money if you go straight into residential or commercial home sales once you have obtained your licensed. There are board dues, business cards, lock box fees, memberships, additional designations, etc. associated with getting started. This is all before you have obtained your first client. (Unless, of course, you had a friend waiting for you to get your license so they could buy a home.) You should expect to spend the first six months without an income while building your client list and marketing yourself.
A Buyer's Agent represent a buyer in the purchase of a house or property.
Simply put, this is an agent licensed in real estate who represents a buyer in the real estate buying process. A buyer's agent will ensure the clients are knowledgeable in the transaction, treated fairly, and their interests are protected.
Needless to say, a buyer's agent is an important piece of the real estate puzzle when someone is looking to buy a home. Not only will a buyer's agent help them find their dream home, an agent will also help with:
Obtaining a credit report
Setting a budget
Finding a lender
Choosing an area
Searching for your dream home
Obtaining an appraisal
Submitting an Offer
Setting Up Utilities
Researching Home Warranty Companies
License Required: Yes
A Seller's Agent represents seller's looking to sell their home.
You may be wondering what a seller's agent is. Simply put, this is an agent licensed in real estate who represents a seller in the real estate selling process. A seller's agent will ensure their clients are knowledgeable in the transaction, treated fairly, and protect their interests.
A seller's agent is an important piece of the real estate puzzle when clients are looking to sell a house or property. Not only will a seller's agent help them market their home to ready buyers they will also help with:
- Obtaining a market analysis of the area
Setting a starting price
Finding a ready buyer
Obtaining an appraisal
Turning off utilities
New Home Sales
License Required: Yes and No
Manufactured home sales are in high demand and though those types of home sales don’t require a real estate license, having a license doesn't hurt. In some cases, the company that hires you requires your license be inactive but that doesn’t mean you are giving up your license, just putting it on temporary hold.
There are two ways to enter new home sales. Work in the manufacturer's model home, attracting new customers. Or, be a licensed agent that brings buyers to the model home.
Licensed Required: No
Investing is as simple as scooping up properties for your own purposes such as flipping, developing, or renting. Investing has a whole host of opportunities but you will need start-up capital to get going.
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This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.