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Balancing Acts: Can One Successfully Juggle Roles as Both Real Estate Agent and Investor?

Author : Emily Jackson | Published On : 08 May 2024

You must have worked as an agent in a real estate brokerage for at least half a year or more. As your client’s advocate, you must have helped them take the best advantage of the Mississauga housing market - guiding buyers in getting the perfect property at a great deal, assisting sellers in fetching the top dollar for their home, and pinpointing investors towards lucrative opportunities.

However, have you ever considered using your knowledge and expertise to earn extra income from the Mississauga housing market? We mean investing in properties on your own.

Let’s explore the possibility of a real estate agent becoming an investor and the benefits that come along with it in detail below!

Can Ontario Real Estate Agents Become Investors?

Yes, absolutely! Agents working in a real estate brokerage in Mississauga can definitely become investors. There are no legal restrictions to prevent an agent from buying properties for sale for their own investment portfolio.

In fact, your profession and expertise offer you several advantages that can make you a successful real estate investor such as -

  • Market Expertise - Agents spend their day-to-day life learning about the ins and outs of the Mississauga housing market to help their clients make informed decisions. This helps them gain a strong understanding of the housing market trends, popular property types, and potential investment opportunities. So, unlike someone new to the real estate industry who has to do a lot of learning, you can easily find emerging neighbourhoods or properties with high growth potential.

  • MLS Access - You may already know that MLS access is exclusively reserved for licensed real estate agents and brokers. So, as an agent, you’ll have a significant advantage over other investors who do not have a real estate license. Through the MLS, you can easily find off-market property deals, analyse property details, and conduct comparative market analysis to figure out a fair price for investment properties.

  • Negotiation Skills - The hours you have spent negotiating and getting the best deal for your clients don’t just benefit your clients. You can also benefit from your key negotiation skills in getting a favourable deal for yourself as an investor. During your investment journey, you can effectively negotiate purchase prices, terms, and contingencies, saving a lot of money and maximising returns.

  • Networking Advantage - Agents of a real estate brokerage have a built-in network of contacts within the industry with potential buyers, sellers, property managers, and other investors. This network can help them get valuable leads on their investment properties, easily connect with contractors for repairs, or gain insights from seasoned real estate experts.

  • Cost Savings -By representing yourselves in your own real estate transactions, agents can avoid paying buyer’s agent commissions. Also, your knowledge of the industry can help you navigate paperwork and legal processes more efficiently.

  • Time Efficiency - Real estate agents often have flexible working schedules which allows you to dedicate time to actively search for and manage investment properties.

How Does Becoming an Investor Help Your Real Estate Career and in General?

  1. Offers a Passive Income Earning Opportunity

Maybe you’re earning a significant income from your real estate career or struggling to make ends meet. Either way, with a real estate investment property, you can generate a passive income through rental properties or potential appreciation in value. This extra income stream can help you a lot financially as a real estate agent, especially during market downturns when there aren’t many buyers in the market.

  1. Helps You Gain Deeper Market Knowledge

Yes, by working as an agent in a real estate brokerage, you can learn a lot of things about the Mississauga housing market. However, by becoming an investor in addition to being an agent, you develop a deeper understanding of the Mississauga housing market.

You get the chance to learn better about rental market trends, maintenance costs, and the overall financial aspects that come with property ownership. Imagine how better you can serve your real estate clients and get ahead in your career with this extra knowledge.

  1. Extends Your Real Estate Network

By being a real estate investor, you get a chance to meet and network with other investors, contractors, property managers, and legal professionals. And you must surely know the power of connections in the real estate industry - more referrals, and more access to investment opportunities.

Balancing Investor and Agent Duties Could Also Negatively Affect Your Real Estate Agent Career

Unfortunately, that’s true!

Balancing the role of an investor and an agent of a real estate brokerage in Mississauga can be a tightrope walk. To start with, you’ll need to assign a lot of time to manage your new investment property. From calling up professionals and following up with them to maintaining and repairing your property to dealing with tenants, you’ll have many tasks on your plate. This means you may have to compromise in actively serving your real estate clients.

Also, when a real estate agent acts as both the buyer’s agent and investor in the same property, it could create an ethical conflict. Your personal financial interest may influence your advice to your real estate client.

However, with the help of some strategic steps, you can stop these challenges from hampering your real estate career and investment journey -

  • Outsource property management tasks to a property management company.

  • Block specific times in your schedule for investment-related tasks, making sure they don’t overlap with your client appointments or showings.

  • Use online tools and automation for different tasks such as rent collection, tenant screening, and property marketing.

  • Always disclose any potential conflicts to clients of your real estate brokerage upfront. If your client is interested in your investment property, be transparent about your financial stake.

Take Advantage of the Opportunities in the Housing Market While Guiding Your Clients to Do the Same

Real estate agents do benefit from the flexibility and unlimited earning potential in their careers. However, they do not have access to several traditional retirement plans. This means agent must build their pension pot on their own and the sooner they start, the better.

A long-term rental investment property is one of the best ways for a real estate agent to earn passive income, both for retirement savings and post-retirement earnings. Unlike stocks or bonds, you can control and manage your real estate investment property which offers a sense of security and stability in your retirement portfolio.

Also, with your knowledge and experience, you can easily identify undervalued properties, negotiate favourable deals, and manage your investments effectively. So, if you’re considering stepping foot in the investment market apart from being a full-time real estate agent, go ahead confidently!