Last updated on January 18th, 2023 at 11:15 am
The real estate industry offers a wide variety of profitable opportunities. You may be the top real estate agent Houston, but if you want to boost your earnings and net worth, you need to start investing in the property market yourself. Since you are already well-versed in the real estate market, why not put your knowledge to use in creating a personal investment portfolio?
Here are the top six reasons why you, as a residential or commercial real estate agent, should consider investing in properties.
Experience in the local housing market
You have a leg up on other investors thanks to your thorough familiarity with the local real estate industry and the dynamics and trends that shape it. Although there is no prerequisite education for real estate investment, and much may be acquired through online educational resources, nothing can replace the practical experience and insights you have gained from years of purchasing and selling real estate in your area.
Agents are well-versed in the rental industry and are aware of the current state and future trajectory of house prices. To maximize profits, they know the types of rental properties (detached homes, townhomes, condominiums, and apartments) and features (garages, patios, verandas, and swimming pools) that are most in demand in their area.
With this information in hand, agents can quickly and simply determine whether or not purchasing an investment rental property is a good idea in their market and profile the most lucrative property on the market. That offers them a huge leg up on other investors who would have to spend weeks or months doing the same research.
Capacity to provide independent analyses
It typically takes the average individual three months to learn about a real estate market, begin looking for houses and discover a suitable one that fits their budget.
The excellent bargains will naturally have been snapped up by professional investors long before a casual investor is prepared to purchase. Agents that make a living buying and selling property are effectively professional investors.
It is essential to analyze real estate before making a property investment. Understanding the current market, the appropriate value for the property you’re considering, and the potential for profit from a rental is essential. Your commissions as a top real estate agent Houston are directly tied to the health of the housing market, so you likely know what’s going on.
In addition, you may determine a reasonable purchase price for the investment property you’re considering by doing your own comparative market analysis (CMA). To top it all off, you get complete access to all the resources and information you need in the real estate market to evaluate the profitability of local real estate listings.
Have access to every discount there is
If you’re a commercial real estate agent, you can get information from the Multiple Listing Service (MLS) that other investors need help with. For this same reason, many of them choose to work with an agency instead of making investments on their own. Additionally, when you are out and about in your area daily, you will quickly become aware of any “For Sale” signs on houses that are not currently included in the Multiple Listing Service.
You are conversant with foreclosure processes in your area and know where to look for the greatest bank-owned houses, short sales, and other deals on foreclosed properties.
One of the greatest ways to get a good deal on real estate is to take advantage of the off-market properties available to you via your network, which we will explore in more depth shortly.
Real estate brokers, by their profession, are among the first to learn about the market’s most desirable bargains. If they find a good investment property for sale, they don’t have to sell it to their customers; instead, they may keep the profits for themselves. That’s an advantage that no other investors have.
Affiliated real estate networks
As a top real estate agent Houston, you know firsthand that real estate is a people industry. When purchasing real estate, whether for yourself or on behalf of a client, it is helpful to have connections in the industry. You’ve spent a lot of time and effort cultivating a wide circle of contacts to enhance your career as an agent; now, you can leverage that same network to your advantage by investing in real estate.
As was discussed before, using your real estate ads contacts to get finance is simpler than it would be for a regular investor. In addition, having a large network of contacts among homeowners, buyers, sellers, and other investors will provide you first dibs on homes for sale (even those not yet listed publicly).
Furthermore, you will already be acquainted with the finest real estate attorney to resort to for any legal concerns related to the transaction when the time comes for you to purchase an investment property for yourself.