You know, I get a lot of questions for people on this channel wanting to know
what's the difference between being a realtor or an investor. Are they the same
thing? Do you need to be licensed? Is one better than the other? Does one make you
more money than the other? These are all fantastic questions. And by the end of
this video, there will be no confusion. In fact, I'm going to settle the score. And I'm
going to share with you in my opinion what you should do, what you shouldn't do.
What would be the most profitable. More importantly, what's going to save you the
most time. Let's break it all down.
A realtor, investor. They are 2 entirely different things. So, in this video, I want
to share with you how you're going to have your most success. I want to share with
you how you're going to make your most money. And I got to talk about the pros
and cons of both of these. Because the reality is there's pros and cons on both
side of the vents. First of all, there's some of you out there that are saying,
"Hey, Kris. What's the difference between a realtor and investor?" Let me actually
show you. So, the reality is is that when you get in the game of real estate, you
can get a license and make money with it. You can hold multiple licenses. Like you
could be an appraiser or you could be a loan officer or you could the one that
writes the mortgage. Winds up the financing with the bank. Or you could be
the realtor that helps find in some homes. You can make money with any of
them but you can only use one at a time per deal. So, let's talk about how this
kind of works. Let's just say here on screen for a moment that you are going
to be a realtor. In the world of real estate, this is about having a career in
real estate. Has nothing to do with being an investor. It's basically it's a job
--how do you make money. But I'll use the word career because some people are
super successful making a lot of money with it. When someone is selling a house,
what is standard practice is they're gonna offer a 3% commission
to the person that sells the home because they're going to bring a realtor on
and say, "Hey, I want to sell my house. Get it on the market show it. And help me
sell it." But then they're also going to have to offer three percent to the buyer. And
that's the buyer's agent. The one that says, "Hey, we looked around and we found
your house. And I want credit for finding it." So, basically, if you look at it, we've
got you in the middle. This is you sitting next to your house. And you need
a buyer to come along and then there's also a seller. And both of these, the
buyer and sellers agent all stand to make each 3%. You're going to pay a total of
6% if you're the one selling the house. Now, this is standard. Some people try to
do some things to get around the rules. But the bottom line is this is how most
real estate is transacted. Well, what does this mean?
If we're talking about a $500,000 house, what's 5%? It's 5 grand. So,
what would 3% be? Well, if 1% is 5. Then 3% is... 5 grand
times 3 which equals $15,000. Let's just say for a
moment that you were the realtor and you knew somebody that wanted that house
that someone was trying to sell. And you you connected your buyer with that house.
If it closes and they buy it, you're going to get paid 15 grand. The other
agent that actually was selling the house just for listing it, they're also
going to get 15 grand. So, there's $30,000 that
are going out the door. By the way, yes you have Realtors that sometimes
represent the buyer and seller. And they make $30,000. So, you can
clearly see there's some money in this game. Here's what I need you to
understand: When you're a realtor, what's great about it is it's a high commission
job. But it's also a competitive game. I think the average realtor will do like
1.8 deals or something like that. Because reality is most Realtors got a license.
You got to pay a thousand bucks generally. And you got to put in
100 hours of like training to get licensed and then every year or whatever
you've got to like update it a little bit depending on your area. But you know,
it's like...Well, if I ever sell my own houses, then I can be the realtor and
save some money. Yes, you can. Well, what if my neighbor or a friend of
mine or a family member wants help buying or selling a home? I could be
their realtor. Hence 1.6 or 1.8 average transactions per realtor. Well, you have
some Realtors out there that are like... Oh! I've learned how to turn this into a
game. I find people all day long that are selling or I find buyers or I specialize
in a niche. And now I move a house every month. And I make 10 grand a month. So,
make 120,000 a year, That's what life of a realtor is like. You're really
an entrepreneur. You control your own destiny, your own schedule, your
future. And if you work hard, you can make more. If you work smart, you can make way
more. And that's really what the game of realtor is. Do not confuse that however
with being an investor. Okay, an investor is totally different than a realtor. This
is a person who actually owns or controls the house. Now, I say control
because ownership is not important to most investors. We want to control assets,
that's what's really key. So, if I as the investor bought this house for
$150,000, that was my purchase --"P". And then s for selling. I sell
it for $300,000. Let's say there's a 150,000-
dollar difference. But then let's just say that I had $50,000 in
expenses. So, I really just netted 100 grand. Who makes this
$100,000? The investor. Investors can
make way more money than Realtors. Bad investors can make less money than
Realtors. And some people actually decide, "Hey, why not do both?" I'm going to take a
tangent for a moment. There are 2 main licenses that people will usually get an
association with real estate if they get one. One is being a realtor and one is
being a loan officer. One writes the mortgage, one is responsible for buying
and selling the real estate. Between the 2, do you know who makes more money? The
realtor makes mo money. The loan officer in my experience often has to work
harder for less. Not necessarily a lot less. It's just a different specialty,
it's a different niche. If you had to choose one, be a realtor. But this video
is not about that. It's really what makes more money and should you consider being
a realtor. And here's what I would say: If you're committed to the game of real
estate and you don't like your job, being a realtor can be a way to help you
transition faster and sooner than just relying on your investments. Because
sometimes investment capital and money off of investments takes time to build.
So, for some of you, being a realtor could be a really smart wise thing. I want to
disclose that I am NOT a realtor. I have never been a realtor. Years ago, I was a
loan officer. And that's because I was really skeptical as a lending process
and I just really didn't believe... I was super skeptical. I had to go through a
really huge learning curve and being a loan officer really helped me do that.
Right now, I'm not a realtor and I'm never going to be a realtor. I've owned my
own real estate brokerage. And the reality is I do so well focusing on my
investment business that that's really where my main focus is. That is certainly
where the money is for me .And if you had to choose between should I be a realtor
investor... An investor has the ability to buy enough properties to become
financially free for lifetimes. Most Realtors, being a successful realtor as a
career. It's a job that makes you money in real estate. Does not make you an
investor. So, those are the 2 distinctions. There are 2 very
different things you can pair them up and make them the same thing or have
them kind of work together in tandem. But that's the prominent difference between
the 2. If you're newer to the game of real estate and wondering right now "What
should I be doing?', you could either spend 1,000 bucks
pursuing a license and 100 hours or you could get this book for free.
You're going to pay $7 for shipping and handling.
And instead of 100 hours, you're going to spend 3 hours reading this
book. You might have it done in 2 hours. This book will give you some really
powerful information on what it is to be an investor and actually how you can
start making way more money than Realtors as an investor right out of the
gate. So, if it were me, I would basically say, "If you had to choose, you're going to
want to go down the investment route." And to do that, you're going to want to get some
knowledge and information. I've packaged it all here for you. So, I
hope it's something that you enjoy. Listen, I want to thank you for watching
this video today. I hope you understand I love Realtors. Realtors are such an
important part of my real estate team. But they are not investors. And so, you
need to understand that distinction. Make sure first and foremost whatever you do
put you on a path to be a successful investor. If it's after becoming an
investor you really want to see if you can save a little bit of money here and
there by being a realtor, go for it my friend. Otherwise, if we're going to look
forward to seeing you get this book and learn how to be a super successful
investor. Appreciate you very much. And make sure that you like this video.
Because it tells YouTube to share it. So, smash that like button. But more
importantly, I've got a video that's about to come up right here. And it
shares how I as an investor became financially free by the age of 26. And I
did it in 4 and a half years. And so, check this video out and it'll show you
exactly how I did.