Careers in real estate

Have you found yourself thinking any of these thoughts?

 “Why do I work at my current job?”

“What can I do for a living and be my own boss?”

“What careers offer flexibility and uncapped income?”

“Where can I work and get unlimited vacation time?”

If you have had any of these thoughts run through your head, a career in real estate might be for you!

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Like I have mentioned in my previous blog posts, it all starts with getting your real estate license. (If you need a refresher on how to do that, check out my blog post, “How to get started in real estate”). Once you get your license that opens the door to many possibilities for yourself.

Agent- This is the most common career that you can pursue in real estate. Want to be an independent contractor? Be your own boss? Make your own hours? Selling real estate would be the way to go.

Broker- After having your license a minimum of 3 years and learning as much as you can about the real estate industry, you can apply to be a real estate broker. See, all real estate transactions run through a brokerage, meaning salespersons do business on behalf of their broker. Being a broker adds more responsibility, but now you are officially your own boss!

*These careers require different licenses than a salesperson or brokers’ license*

Appraiser- Don’t want to sell real estate? How about get your appraisers’ license and figure out the values of houses. This is a very important job in real estate, as appraisers work with lenders, brokers and inspectors to determine the values of houses.

Inspector- This is another important career in real estate. Buyers will use inspectors to make sure their investment in a property is worth it. A real estate transaction is not cheap, so inspectors carry a lot of value in the real estate world.

Mortgage Broker/Lender- Can’t afford to pay cash for a home? That is where people in the mortgage industry come into play. Essentially, if you work on the mortgage side, you will be the most important part of the transaction. If someone cannot afford to pay for a home on their own, that deal is not happening!

Property Manager/Landlord- Want to own properties or work with someone that does? This could be an option for you.

Any of these potential careers seem interesting to you? If so, I highly recommend you check them out and consider a switch into the real estate industry!

Diversifying your real estate portfolio

Real estate can be one of those avenues to diversify your portfolio. Like in the previous blog post of mine, I shared the different ways to invest in real estate. Now, it is all about acting on those opportunities that are out there!

Real estate can be utilized by investors and can be very profitable to them if done with great preparation and research. Observing market conditions, evaluating the quality of the house, and using a professional Realtor can make a huge difference for those looking to invest in real estate.

Think of a real estate broker like a stock broker. They both act on the behalf of their clients and work for their clients’ best interests. This is a huge responsibility for the Realtor to take and the good ones do everything they can for their clients.

Moving on to the return you can get with real estate. The potential return on real estate can be much higher than stocks and bonds. Of course you’ll be assuming some sort of risk by investing, but real estate gives you an opportunity to boost your income.

Flipping properties or renting properties you own to investors are ways to help increase and diversify your investment portfolio. Just from these two methods of investing in real estate, you are able to change the dynamic of your portfolio. Other ways to invest include bidding on HUD Homes, buying out people that are about to foreclose, working with banks (BPO’s), buying wholesale/black market, etc.

These investments also offer stability to you portfolio. With real estate, you know what you are getting when you invest. Stocks on the other hand, you really don’t know. Yes, the real estate market could crash like it did in 2008, but that was a rare occasion. 

Ways to invest in real estate

Investing in real estate can be a great way to make some big bucks, if you do it right. It will take time and some cash to get going, but it is definitely possible. You have to be smart about what you invest in and get educated. Read up on what you have to do to get going and once you do, it can be a profitable business for you.

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Just like stocks, there is always risk involved with investing. Is the risk worth the reward? Well, here are some ways it can be.

Rental Properties and Flipping: Ever want to be a landlord? Find a house reasonably cheap and that doesn't need too much work done to it. Make the needed upgrades and find some people to rent it out. If you don’t want to deal with renters, try putting it back on the market. These two ways are most popular in real estate investing.

Flipping can also be called “trading”. Usually the time frame of owning a property that you’re going to flip is three to four 

months. The trick is to land a house that is extremely undervalued or is in a “hot” market. Also, “flippers” can purchase a property at a fairly reasonable price and add upgrades to the house. These take more time and rely heavily on increases in the real estate market in that certain area. 

REITs (Real Estate Investment Trusts: A corporation (or trust) will do this when they use investors’ money to purchase properties for income. They are bought like stock, on major exchanges. In order to keep the status of a REIT, the corporation must pay out 90% of its taxable profits in the form of dividends. This avoids the REIT from paying corporate income tax.

Real Estate Investment Groups: These are a lot like smaller mutual funds. This can be an alternative for you if you do not feel like having the responsibilities of a landlord but you want to be involved. A company will buy a strip of apartments or condos and then investors will buy them through their company. You’re essentially becoming a part of their “group”, but you will have to share some of the monthly rent with the group. 

Things to consider when purchasing a home

Purchasing a home is one of, if not the biggest, purchases you will make in your life. After all, you will be living in this home that you decide to purchase or you will be doing something with it. Many people forget that there are many different factors that go into purchasing a home. The first question to ask yourself should be why am I purchasing this home?

Either you’re purchasing your home to live in, rehab and sell (flip), or buy cheap and rent out. Once you figure out what your motivation is to buy, now you can narrow down your choices.

Let’s say you’re just buying to live in. Do you have children? Do you want a big yard or kitchen? Basement? Excellent landscaping? Good neighborhood? These are just a few inquiries you might need to address before you purchase a home.

If you’re buying to invest in real estate, you still should consider some of these questions. Some might not matter because you’re not living in the home per se, but you have to make sure that purchasing this home is a worthy investment.

Another important thing to remember is to inspect the house. Calling a property inspector, carpenter or any other qualified person might not be a bad idea just to verify you’re not getting shafted.

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Once you have narrowed in on the specifics of the home and you’re sure you’re not buying a lemon, the bidding war begins! Make sure to not go out of your price range when doing this though. Stay within your means, but you and your Realtor will work together to put you best offer on the table.

FYI, don’t forget!

Don’t forget to consider resale value of the home that you purchased. This is where research about the home, neighborhood, etc. could be very important. If you decide to move out of that home in the future, you have to make sure you will get a return on your investment.

Also, the closing process for real estate takes a little time. Make sure to plan ahead and expect about a few weeks or more per transaction.

Here is a video first-time home buyers should watch and consider when they eventually go through the home buying process:

https://www.youtube.com/watch?v=zFkXnuU2qew

Preparing to sell your home

Do you think it is time to sell your home? Do you want to get the best return on your investment as possible? No problem that can happen! There are a lot of different factors that go into preparing your house to sell and if you do it right, what you desire can become a reality.

The idea of selling you home can be stressful, but you have to think if it’s time to move on, it’s time to be rewarded for your efforts! You first have to make sure you do all of the necessary repairs to your home. Think if you are looking to buy this home again, what would you want to get done with it?

After all repairs are made and the house is ready to be put on the market, it is time to list it. Get in contact with a Realtor (my name is Matt Capone, cell: 586-945-5209) and list it! This is the easiest step in the process. The Realtor will get all of the information about the house, take some pictures (we will talk about this next), and put it on the multiple listing service (MLS) in your area.

Once the house is listed, photos of the home are a must. If you have ever heard of the word “staging” in real estate, this is where it comes into play. Disassociate yourself from your home and make it look as flawless as possible. There are professional stagers out there, so if you aren't willing to move your furniture around and make your home spotless that can always be hired out. This part is so important because you need to make your home look as appealing as possible to the public.

Here is a video that goes over the staging process:

https://www.youtube.com/watch?v=Q-xn_mUn0Fs

After photos are taken and your house is staged to sell, let the listing do its work. Your house will be on the internet and your Realtor will do the best job they can to market your home. Showings, open houses and Realtor tours of your home will be done frequently to assure that your home is being targeted for sale!

How do I get started in real estate?

Have you ever considered a career in real estate? Does the idea of financial freedom and endless income appeal to you? Do you have an interest in helping people find their dream home? If you have answered yes to any of these questions, a career in real estate might be the thing for you to do!

Although I am 22, I am still able to do real estate. It doesn't matter how young I am or what my background was (not saying I have a terrible background!). I am just telling you that anyone that is interesting in beginning a career in real estate is able to do it.

If you want to get started in real estate, here is a checklist that you can follow to get going:

1. Get licensed. Each state has different licensing requirements. You have to have logged a certain amount of class hours to even qualify for the state licensing exam. Since I live and I am licensed in Michigan, I will give the specifics for that state. You need 40 hours of a pre-licensing course, plus 8 hours that discusses the Fair Housing Laws. This sounds like a lot, but you can finish this in one week!

Here is the link to the course I took at Middleton Real Estate Training:

http://www.middletontraining.com/REF.htm

2. Next, pick a brokerage where you would like to work. When you log all of your education hours and are eligible to sit for the state exam, you will be given the option to put your license with a certain brokerage where you will work. Since you are just an agent and not a broker, your license must be held with a brokerage (you will learn about this in your classes).

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3.Take the state test (and pass!). Like any other exam, the state licensing test for real estate requires some studying of the law and principles of real estate.

4. Now that you have your license, it’s time to get to work! I recommend establishing a budget and a clear, cut schedule for you to get established. Early on in your career, you will focus a lot on marketing yourself, paying dues and holding open houses. It can get expensive and time-consuming if you do not prepare accordingly.

5,Work hard and you will get rewarded! This business is definitely performance-based, so the harder you work, the more you can get paid.

Now that you know how to get going, good luck and make some money!

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Young people can do real estate too!

There has always been a misconception on who sells real estate. For the most part, this type of profession is viewed as an “old person” profession, but is that really true? The answer may surprise you, and if you are a young person still trying to find your career path in life, maybe selling real estate is the answer!

I have worked at a real estate firm for a little over a year now and my perception of the industry has taken many twists and turns. I remember before I got licensed to sell real estate and even before I knew anything about the industry, I thought it was only for those who were retired or have nothing else to do with their life. I was way off on that…

https://www.youtube.com/watch?v=jicfJkEYJO4

You see, eventually the people that are “older” and selling real estate currently are going to retire. When that happens, who is going to replace them? It’s going to be us, the younger generation! It is our time to take hold of what the generation before us has laid down. The day of thinking, “oh, we’re too young” or “I can’t do that until I am older” are over.

There are endless possibilities for young people in real estate. If you are willing to put in the time and effort to build a career in real estate, you can do it, no matter how old you are. As long as you are devoted and are willing to learn, a career in real estate is possible!