Investment is considered by many to be one of the strongest ways to both build and protect your wealth, especially when an uneasy economy begins to show its face. However, investing can also be a tricky game for many. The uncertainty and volatility of certain investments make the practice seem like gambling, and if the point is to protect your wealth, uncertainty is not a good selling point. But what if you could take some of that uncertainty out of the question?
As a real estate agent, you absolutely can, and it all boils down to knowledge. Real estate agents know the ins and outs of the market better than anybody, and this insider knowledge is an important competitive advantage that you can use to make powerful, smart investments. After all, why wouldn’t you invest in the same thing you spend so much time and effort promoting?
As a real estate agent, you will have access to property information before they even become listings. Especially for listing agents, when you get invited to a listing appointment, that’s prime time to evaluate the property and see if you want to make an investment before the listing even goes on the market. Even more than the prime time, really, it’s the correct time.
There’s a bit of gray area to navigate here, especially since the seller is ultimately expecting you to find the best price for them. Disclosing definitive interest in the investment as soon as possible, before moving to the market, is then not only the responsible and appropriate thing to do, but in many states and regions, it’s also the legal way to make these investments.
Another advantage you’ll have as a real estate agent when it comes to investing is your experience in the market, which gives you a great idea of how much properties are worth, and whether or not the investment will be a good financial decision. Most buyers do not have this intimate market knowledge, and although the agents involved will try to find the best deal possible for everybody, adding more names to the process just naturally brings margins down for everyone.
Being your own consultant on the property value and then moving to make an investment before the property hits the market then isn’t just a great opportunity for you, but it’s also a great opportunity for the sellers.
A final advantage to consider if you’re a real estate agent who hasn’t started investing is that you know all of the right people. A big obstacle for most people looking to invest in property is knowing how to get all of the other names on board to make the project work out at all. As a real estate agent, though, you probably already work with plenty of plumbers, contractors, etc. A successful investment takes a team, but as somebody in the industry, you already have a team on call!
At the end of the day, being as dedicated as you are to this industry must mean that you believe in the properties that you help buy and sell. Investing is important for everybody and, with all of these advantages on your side, what are you waiting for?