If you want to make a real estate investment, many people would suggest you to become a real estate agent because it seems obvious that one can earn better revenue from a niche while working in that niche. Here, different people have different opinions based on the true experiences but most of them would say that becoming a real estate agent is the right way to earn quickly. However, there are still some complications in this regard despite the obvious advantages.
Real estate license is expensive
While most of the outsiders assume a real estate license to be to be an ultimate tool to get better revenue, only the real estate agents would tell how difficult and costly it is to keep hold of that license. Pre-license course fee, lockbox fee, course continuation expenses and association dues are just a few money consuming factors that can change the mind of any determined real estate beginner. Furthermore, there are other expenses such as office setup, business cards, technological devices and the cost of business website that add considerably in the total costs.
In other words, you would need to spend thousands of dollars to officially start your career as a real estate agent.
You may have to wait long enough to earn a paycheck
Yes, it’s pretty much the case. The real estate agents get their share from the real estate deals when deals are officially closed. It’s worth mentioning here that the number of deals getting closed is quite lesser as compared to the number of deals initiated. In that case, the real estate agents have a very thin chance to earn their paychecks. And even after a deal is closed, it may take 3 to 6 months for the real estate agent to get the paycheck. It means that you will have to work hard to get more deals and, for that purpose, you will have to invest a lot in marketing of your real link business.
So, what can be the more profitable deal?
Here, we can compare the wage of real estate agent with the profit that a real estate investor can earn. According a statistic, there has been a rise in average total profits generated from the house flips in 2016. It is just one aspect that we are talking about. There are a lot of ways one can earn profits by investing in real estate business and that too without flipping the houses. In other words, you can either spend money to get a real estate agent license or you can invest the same amount of money in real estate business to be able to earn the profits quickly.