3 Reasons Every Realtor Should Also Be A Real Estate Investor

As a real estate professional competing amongst a staggering 1.6 million+ licensed Realtors today, you need every competitive advantage you can find. Especially as the market weakens and transactions slow. 

There are, of course, several obvious ways you can do this, including building a strong personal brand, consistently networking with buyers, sellers, and referral partners, and implementing a marketing funnel, one strategy that you might not have considered is becoming a real estate investor. 

While this might at first seem counterintuitive because it’s not directly related to finding buyers and sellers, it can actually have a huge impact on your effectiveness, perceived expertise, and even open you up to an entirely new circle of people and opportunities.

And I say this from first hand experience, as someone who has worked extensively on both sides of the industry. My activity as a real estate investor has had a profoundly positive impact on my activity on the retail side of the real estate industry. 

So in this article, I’m going to explain how being a real estate investor can help you to become a more successful real estate agent. 

It Boosts Your Credibility

A powerful reason to become a real estate investor as a Realtor is to boost your credibility. 

When you invest in real estate—beyond just your primary residence, it shows potential clients that you believe in the value of real estate and the long term potential of the local community. This "eating your own dog food" approach demonstrates your commitment to your profession and the properties you recommend.

Additionally, becoming a real estate investor can help elevate your knowledge. Many agents, unfortunately, simply do not have a firm grasp on concepts like profit and loss statements, return on investment, or revenue forecasting, but as an investor, you will. 

Your improved financial acumen will make you a more valuable resource to your clients because it enables you to help them better understand the long term financial benefits of buying (or not buying) a particular property. But equally important is that it will also position you as the trusted expert, much like the way people see a doctor or lawyer. This empowers you to make an objective and logical case in negotiations so that you can close more deals, more efficiently, because you don’t have to spend as much time trying to prove your expertise.

More Insight = Better Decisions 

Being a real estate investor gives you a different perspective than most agents, making you more knowledgeable than someone who is only a Realtor. 

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You'll be able to more accurately assess property values, spot trends earlier, identify potential opportunities others might miss, and determine the best strategies for buying and selling real estate in terms of where, where, and how. 

You'll gain a deeper understanding of your local market, which can help you provide more accurate and insightful advice to your clients. You'll also be more attuned to market trends and changes, allowing you to adapt your strategies and recommendations accordingly—and before other agents.

This makes you a better Realtor, but it also makes you a more effective investor, creating a powerful snowball effect that produces more value for both you and your clients. 

Build Wealth And Financial Independence

As the income from your investment properties grows, you will become less reliant on any single client, deal, or even your brokerage—which means less pressure on you. This leads to more income, financial independence, and better decisions. 

By investing in real estate, you can create an additional stream of income that helps you weather slow periods in the real estate market and focus on providing better service to your clients. It also helps you become more confident, and when you're more confident, you tend to attract more opportunities on both sides of the industry and close deals more effectively. 

And your newfound financial independence empowers you to choose where and how you invest your time, energy, and resources. Now, instead of taking every listing or driving buyers all over town for the potential commission, you could focus on the largest listings or most lucrative investment opportunities. 

Moreover, real estate investments can provide you with larger chunks of change compared to working solely for commissions. Instead of earning a few thousand dollars per transaction as an Realtor, you could potentially earn tens to hundreds of thousands of dollars in equity and appreciation as an investor.

This lets you move from incremental to exponential growth, changing the financial trajectory of your family for generations to come. 

Conclusion

Becoming a real estate investor can provide numerous benefits for agents, including boosting credibility, gaining a better understanding of the industry and your local market, and building wealth and financial independence. 

By investing in what you're selling, you can demonstrate your belief in the value of real estate and your confidence in your community. Additionally, your firsthand experience as an investor will make you more knowledgeable and better equipped to advise your clients.

So, if you're a Realtor looking for ways to grow your business and gain an edge over your competition, consider becoming a real estate investor. The benefits are clear, and the potential for massive success is enormous.