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Real Estate Agent or Investor: What’s the difference and which one are you?

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Are you a real estate agent or investor? What’s the difference between the two, and which one are you? These are questions that many people in the industry ask themselves every day.

The truth is you’d probably be thinking, “I don’t need a real estate agent. I can just go to the internet and find my own property.”

While that’s true, you could also just buy a car without ever talking to a car salesperson. The fact is, working with a real estate agent is the smartest and easiest way to buy or sell a property.

Here are a few reasons you should know the difference between a real estate agent and an investor.

In this blog post, we’ll explore the differences between being a real estate agent and an investor so you can determine which one is right for you.

What is the difference between a real estate agent and a real estate investor?

real estate agent

According to First Research, there are more than 116,000 real estate establishments in the USA. They work in a wide variety of environments, including residential and commercial property sales, property management, appraisal, consulting, and other specialized fields such as land development and assessment.

The job of a real estate agent is to help people buy or sell homes and property. They do this by working with buyers to find a home that meets their needs, helping them get financing, negotiating the sale price, and handling all the paperwork.

They also work with sellers to list their homes at the right price, market them effectively, and handle all the negotiations once sold.

On the other hand, a real estate investor buys, sells, or rents properties for profit. They can be individuals or companies involved in real estate investing.

Investors buy an investment property intending to resell it at a higher price, rent it out for a monthly fee, or flip it (selling it immediately after buying) in the real estate market.

Investors can use many different strategies to make money in the real estate business, and each investor has their own unique approach.

Some people become real estate investors by accident – they inherited a property or several investment properties, received a windfall investment opportunity, or simply stumbled into the business.

But many real estate investors choose to get into the market because they see the potential for large profits in a relatively short amount of time.

Can real estate agents also be real estate investors?

Yes, real estate agents can also be real estate investors. However, it is important to note that being a real estate agent does not typically require extensive investing knowledge. 

In fact, most agents only know about buying and selling property.

Investment Strategy

A real estate investor has really good investment strategies

Investing in real estate can be a great way to build wealth and create passive income. There are many different ways a real estate investor can invest in real estate, including buying a property outright, partnering with another investor, or investing in rental properties. 

It is important to do your research before investing in any type of real estate, so you understand the risks and rewards involved.

They are savants when it comes to market knowledge, especially rental knowledge

Real estate transactions are complicated. On one end, you have a seller who wants to get top dollar for their home. While on the other end, you have someone looking to buy a property with minimal out-of-pocket expenses. 

In between is a RE agent who has extensive knowledge in negotiations and can help guide both parties through the entire process.

Investment Property

investment property

RE agents are always ready at a  moment’s notice to attend an open house for a seller, create listings, learn about new commercial properties, identify asset classes, and show homes to prospective buyers.

Real Estate Transaction

RE agents put their client’s interests first and assist them throughout the buying or selling process. RE agents are also passionate about being up-to-date on real estate laws in order to help protect both parties involved in a transaction. 

That’s why a real estate license is also necessary for this, not only for showing purposes to the previous clients but also to other investors that have the potential of becoming clients.

Is being a real estate agent worth it?

It can be, but it really depends on the person. For some people, it’s a great way to quickly make a lot of money. But for others, it can be a very hard work with little financial reward. People falling under the latter category sometimes also think of becoming a real estate broker instead.

Some things to consider if you’re thinking about becoming an agent:

  • It can be a very challenging field. You have to be able to deal with a lot of stress and work long hours.
  • The financial rewards can be variable. Some agents make a lot of money, while others make much less.
  • It’s important to enjoy networking and meeting new people. As an agent, you’ll spend a lot of time interacting with potential buyers and sellers.

Do investors need realtors?

It depends on the type of investor. If an investor is looking to purchase a property to live in, then they will likely need the help of a realtor. 

However, if an investor is looking to buy a property for investment purposes only, then they may not need the help of a realtor. Many investors choose to buy properties without the help of a realtor in order to save on commission fees. 

Real estate agents work alongside these investors to ensure that they get their real estate investment cash flow running smoothly.

Conclusion

Although not necessary, it is important for an investor to have a reliable realtor. The importance of working with reputable real estate agents will make them an ideal choice for growing and expanding your business, whether you are involved in multiple rental properties or fewer ones.

 

The best way to establish contact with an investor-friendly agent is to contact the agent’s representatives. You can find a real estate agent through a broad network, and increase your investment connections by working with lenders, title companies, real estate lawyers, and partnering with the local real estate investment association.

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