QUOTE (cm24 @ Dec 31 2009, 10:29 AM) I am not yet an investor, but am in the process of learning and paying down my debt so that we can begin purchasing properties. I am currently a truck driver, and would like a job that allows me more time at home on a daily basis, rather than being gone five days in a row. As I want to know everything I can about Real Estate, and believe I would enjoy the work, I want to become a Realtor.
Is this a good move or a bad one? Would there be a conflict of intrest? Are there laws against it? My primary goal is to become a full time investor, but I would also enjoy helping people find their homes, or helping other investors as a realtor.
Realtors can invest in real estate but have to make sure that they are not in a conflict of interest with their clients. So you have to be carefull.
I am in the proces of becoming a realtor myself (in Calgary). With the up-tick in real estate, there are currently a lot of people who think being a realtor is right for them. But... there are also many things you have to keep in mind:
[list type=decimal][*]It is not cheap - count on $10,000 to $15,000 in upfront costs which includes education, exam fees, board memberships, setting up a home office.[*]Money does not roll in from day one. Apart from the upfront costs, if you do your education at high speed you lose between 3 to 5 months of income because you have to study. Once you work as a realtor, you`re not likely to sell your first property nor will you receive the commissions right away (they are due upon taking posssession of the property). So I would count on another 6 months of no significant income.[*]80% of the real estate is sold by 20% of the realtors. In Calgary there are about 5000 realtors and around 4800 listings. So that is on average 1 listing per realtor - however, remember the 80/20 rule.The brokerage you join will also require money so if the commission of a house sale is $10,000 then you and your brokerage get typically $5,000 and from that the brokerage takes its share (count on 30-40%) and then you have to deduct your gas, coffee and marketing costs, your cell phone, etc. So you may walk away with as little as $2000 out of 10,000 gross commissions.To make a living, you need to sell between 15 and 20 houses per year.[/list type=decimal]
Yet, there are a fair number of realtors that make a very good living. I guess it depends on your commitment, your sense of realism, your people`s skills and how long you can afford to hang in. Hope this helps.
