Real Estate Careers Real Estate Career Choice: Should You Become a Developer, an Investor, or an Agent? by Nasser Mansur February 4, 2018February 3, 2018 by Nasser Mansur February 4, 2018February 3, 2018 Are you a real estate enthusiast? Are you interested in a real estate career? If so, then you should start by learning about the different real estate career choices that are available to you. This article will go into some details related to each real estate career choice: a real estate developer, a real estate investor, and a real estate agent. After deciding on your career choice, your next step will be to learn more about that career choice and start working on meeting the requirements to start your career. So, without further ado, here are the top three real estate career choices, their requirements, and what sets them apart from the other career choices in real estate. Related: 4 Amazing Real Estate Investing Books That You Should Read Real Estate Career Choices If you’re a real estate enthusiast, and you’re considering a career in real estate, then you should know that there are multiple real estate career choices for you to choose from. Your real estate career will depend highly on your personality traits and characteristics, as well as on your level of education and knowledge of the real estate business. The most common real estate career choices are: Real estate developer Real estate investor Real estate agent Each of these three real estate career choices requires a different set of responsibilities, level of education, and knowledge of the different aspects of real estate. Real Estate Career: Developer One of the most common real estate career choices and one that the real estate market heavily relies on is a career as a real estate developer. A real estate developer is someone who develops new real estate projects. What this means is that a real estate developer is the “mastermind” behind every real estate property that you see. While a real estate developer can develop any type of real estate property, including residential, commercial, and industrial, most real estate developers will focus on developing commercial real estate as it has the highest potential for profit. Qualifications of a Real Estate Developer A real estate career as a developer typically requires the highest level of knowledge of the different real estate aspects and the related fields, as well as an official education in a real estate related field. A real estate developer is required to manage and supervise all aspects related of the development of real estate projects from scratch. For this reason, real estate developers are required to have knowledge related to the fields of architecture, construction, marketing, and many others that other real estate career choices do not necessarily require. Additionally, a real estate developer is required to have a set of traits and characteristics that will allow him/her to manage the development project more easily, such as good networking skills, which will allow the real estate developer to work with a network of professionals in the fields necessary for the development of the project. It is usually advised for real estate enthusiasts who are interested in a real estate career in development to start their career in a smaller and less demanding field, such as working on smaller projects or with real estate agents to get to know the market better and learn the ins and outs of the real estate business. Finally, a successful real estate developer has the highest potential for making profits. A real estate career in developing projects can generate the highest profits in any real estate career choice, especially when developing commercial real estate. However, a failed real estate development project will also result in the highest risk and the highest losses. For this reason, it is usually advised that a real estate developer conducts an extensive market analysis to determine the level of risk associated with the development of the project. Learn: 7 Characteristics of a Successful Real Estate Developer Real Estate Career: Investor A real estate career as a real estate investor is the most accessible choice in real estate. What makes the choice of becoming a real estate investor different from the other real estate career choices is that becoming a real estate investor isn’t exactly a career choice, although it can be. A real estate investor can, in reality, have a full-time job in a different and unrelated field. To become a real estate investor, all you have to do is start investing in real estate properties. There are multiple ways and investment strategies that a real estate investor can choose from, making this the real estate career choice with the highest level of freedom and flexibility. Most commonly, a real estate investor begins his/her career by purchasing an investment property. An investment property can be any type of residential, industrial, or commercial real estate that the real estate investor buys for the purpose of generating a profit. Here are the three most common types of investment property that a real estate investor can choose from: Rental property Fixer-upper investment property Buy and hold investment property A rental property is an investment property that a real estate investor buys for the purpose of renting it out to tenants and generating profits through rental income. A rental property is the most common choice for real estate investing. This is because a rental property has the lowest level of risk associated with it, and it requires the least amount of knowledge to manage. Note: Click here to find nearby rental properties for sale that are performing especially well! A real estate investor who invests in a rental property, however, will be required to invest a lot of time and effort into running and managing the property, including tending to tenants and handling all maintenance and repairs related to the rental property. If you’re a real estate investor, and you’re interested in purchasing a rental property, make sure to consider the option of hiring professional property management to manage the different aspects of your rental property and greatly reduce the amount of time and effort needed from you. This, of course, comes at a price, so make sure to include that in your calculations to ensure that you will still be making a profit from your rental property. Related: Real Estate Investing 101: Rental Property Management A fixer-upper investment property is a real estate property that is in a bad condition and that requires a lot of repairs and renovation to become livable again. A real estate investor who purchases an investment property for a fixer-upper investment strategy will have the advantage of purchasing an investment property at a drastic discount due to its bad conditions. To make money from a fixer-upper investment property, a real estate investor needs to make sure that the price of purchasing the property and the costs of renovating it are lower than the price at which he/she intends to sell it. This difference in the price is the actual profit that the real estate investor will be making. Lastly, a buy and hold investment property is a real estate property that exists in a location which allows it to appreciate in value over time. This is the simplest investment strategy as the real estate investor will only be required to buy and hold ownership over the property until its value increases, at which point he/she can sell it again for a profit. Requirements for Becoming a Real Estate Investor There are no requirements for becoming a real estate investor. Depending on which type of investment property or investment strategy you want to go for, your only requirement will be to do the necessary research and learn as much as you can about your choice in order to make sure that you will be making a profit from the investment property. Read: Real Estate Developer vs. Real Estate Investor: What’s the Better Career Choice for You? Real Estate Career: Agent Last but not least, one of the most important real estate career choices is the career of a real estate agent. A real estate agent is basically the middleman and a cornerstone of any real estate transaction. Becoming a real estate agent means that you will be helping real estate investors, as well as real estate developers, conduct their business. As a real estate agent, you will help homebuyers find the optimal investment property or home to buy, or you will help a property seller find a buyer for his/her home or investment property. Also, a real estate agent will help close any real estate deal depending on his/her specialty, and he/she will do the negotiations to ensure that the client, whether a buyer or a seller, gets the highest value on his/her transaction. A real estate agent makes profit by closing deals. He/she is typically paid a fixed rate or percentage of the total amount of the deal. So, if you’re a real estate agent, and you’re helping a homeowner sell his/her home, for example, you will make a profit as a percentage of the property’s price that is being sold upon closing the deal. This makes a real estate career choice as a real estate agent have a very high potential for profits. The larger the deal you’re closing, the bigger the profits that you will make. Note: Click here to find investment properties nearby, and we will connect you with a real estate agent to help you close the deal! There are three different types of a real estate agent as follows: Real estate agent Real estate broker Realtor A real estate agent is the most basic level of this career choice. A real estate broker is a real estate agent who has acquired a higher level of education and obtained a brokerage license, allowing him/her to open up a brokerage firm and hire other real estate agents to work with him/her. A Realtor is a real estate agent who is listed as a member of the National Association of Realtors. Realtors are typically more trustworthy and have a strict code of ethics in their careers, and they have access to MLS sources that other real estate agents do not have access to. Learn More: Real Estate Agent: Your Potential Future Career Requirements for Becoming a Real Estate Agent To become a real estate agent, you will be required to have some official education in a related field. You will also be required to take an exam and obtain a license for becoming a real estate agent. Additionally, similar to a real estate developer, a real estate agent is required to have deep knowledge of the different real estate fields and aspects of the market. Since a real estate agent will act as an advisor and will handle different aspects of a real estate deal for a real estate investor, he/she is also required to have exceptional negotiation skills and research skills to identify the best deals and the best markets and investment properties for the clients. What’s Your Real Estate Career Choice? Whether you decide to become a real estate developer, a real estate investor, or a real estate agent, your career begins with learning. So, before you make your final decision and start your real estate career in any of these fields, make sure to do your homework, read, and learn as much as you can about your real estate career choice. Note: Click here to begin your career as a real estate investor and find the best nearby rental properties to invest in! Always keep in mind that in the real estate business, the biggest advantage that you can have is knowledge. No matter what career choice you decide to go for, your knowledge of the real estate aspects that are related to and required for that real estate career choice will determine your chances of success. Related: 6 Must-Have Real Estate Investment Tools Also, if you decide to become a real estate investor, make sure to check out our platform at Mashvisor.com. This platform was designed to help real estate investors find the optimal investment property or rental property and start generating cash more easily and quickly than ever before. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL 0 FacebookTwitterGoogle +PinterestLinkedin Nasser Mansur Nasser is an experienced content writer with a degree in English Language and Literature. He loves writing about all aspects of the real estate investing business with focus on market and property analysis and the best sources which every real estate investor needs in order to succeed. Previous Post What Are the Best Property Investment Strategies for Part-time Real Estate Investors? Next Post The Best Tips to Boost Your Occupancy Rate for Better Tenant Retention Related Posts What You Should Know About Section 8 Property Management How Long Does It Take To Start Making Money In Real Estate? 10 Property Management Skills You Need to Succeed Real Estate Investing: Why Is It Such a Great Choice? Do You Need Real Estate Courses to Succeed with Investments? 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