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What are the pros and cons of real-estate?
keyanna
age 18
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4 answers
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Meredith’s Answer
I have a few friends who started careers in real estate, some were successful and others weren't. It definitely has start-up costs and right now is a tougher time to start.
Pros and Cons of a Career in Real Estate:
Income Potential: Real estate can provide significant income potential, especially in terms of commissions. Successful real estate professionals can earn substantial amounts of money, particularly in high-demand markets or when dealing with high-value properties.
Con: there is a high failure rate (70% or more)! Uncertainty in the income and high-impact to market fluctuations. Also, it can take time to "ramp-up" with a client base and word of mouth (anticipate 3-5 years to grow your business.)
Flexibility: Real estate careers often offer flexibility in terms of working hours and location. Real estate agents can have control over their schedules and have the opportunity to work from home or remotely.
Con: you will work nights and weekends to be successful, perhaps even holidays in the beginning. Agents need to be available for client needs, showings, and open houses. Meeting client expectations and managing multiple transactions simultaneously can be stressful.
Independence: Real estate professionals can enjoy a sense of independence and autonomy in their work. They have the freedom to make decisions and take actions to grow their business and serve their clients.
Con: Regulatory and Legal Challenges... Real estate transactions are governed by various regulations and legal requirements. Real estate professionals need to stay updated on these regulations, contracts, and disclosure obligations. Failure to comply with the rules can lead to legal issues and liabilities.
Personal Growth: A career in real estate can contribute to personal growth and development. It requires honing skills such as negotiation, communication, problem-solving, and marketing. These skills can be transferable and beneficial in various aspects of life.
Networking Opportunities: Real estate involves building relationships with clients, other professionals in the industry, and local communities. These networking opportunities can lead to new business prospects, referrals, and collaborations.
Con: High Competition - Real estate is a highly competitive field. Many individuals enter the industry, leading to fierce competition for clients and listings. Building a strong reputation and standing out from the competition can be challenging.
I hope this helps. Many have started a career on nights/weekends as a side gig or hobby, to then grow when their business was big enough (along with strong market conditions) to branch out.
Pros and Cons of a Career in Real Estate:
Income Potential: Real estate can provide significant income potential, especially in terms of commissions. Successful real estate professionals can earn substantial amounts of money, particularly in high-demand markets or when dealing with high-value properties.
Con: there is a high failure rate (70% or more)! Uncertainty in the income and high-impact to market fluctuations. Also, it can take time to "ramp-up" with a client base and word of mouth (anticipate 3-5 years to grow your business.)
Flexibility: Real estate careers often offer flexibility in terms of working hours and location. Real estate agents can have control over their schedules and have the opportunity to work from home or remotely.
Con: you will work nights and weekends to be successful, perhaps even holidays in the beginning. Agents need to be available for client needs, showings, and open houses. Meeting client expectations and managing multiple transactions simultaneously can be stressful.
Independence: Real estate professionals can enjoy a sense of independence and autonomy in their work. They have the freedom to make decisions and take actions to grow their business and serve their clients.
Con: Regulatory and Legal Challenges... Real estate transactions are governed by various regulations and legal requirements. Real estate professionals need to stay updated on these regulations, contracts, and disclosure obligations. Failure to comply with the rules can lead to legal issues and liabilities.
Personal Growth: A career in real estate can contribute to personal growth and development. It requires honing skills such as negotiation, communication, problem-solving, and marketing. These skills can be transferable and beneficial in various aspects of life.
Networking Opportunities: Real estate involves building relationships with clients, other professionals in the industry, and local communities. These networking opportunities can lead to new business prospects, referrals, and collaborations.
Con: High Competition - Real estate is a highly competitive field. Many individuals enter the industry, leading to fierce competition for clients and listings. Building a strong reputation and standing out from the competition can be challenging.
I hope this helps. Many have started a career on nights/weekends as a side gig or hobby, to then grow when their business was big enough (along with strong market conditions) to branch out.
Updated
Jesse’s Answer
Hey Keyanna! You've got a fantastic question about real-estate and its pros and cons. I'm delighted to see your curiosity! Meredith gave an insightful answer, and I'd love to build on that by discussing owning real estate, in case that interests you as well.
I'm fairly new to the journey, but I started investing in rental properties and now own two townhomes in Pennsylvania, rented out to tenants. Many realtors I've met invest in properties themselves, and it can be an amazing way to create passive income over time. Though there are pros and cons, I'll list a few below to help you explore this opportunity.
Pro - Passive Income: Investing in rental properties can provide a steady stream of income, requiring minimal engagement once everything is set up. With an affordable property management company, you can focus on your primary source of income while your rental properties work for you.
Pro - Earlier Retirement: Being involved in real estate can open the door to early retirement. By generating rental income, you can cover living expenses like mortgage payments and save more for the future. This can also help in expanding your real estate portfolio, ultimately securing financial stability for you and your family.
Risk - Costly: Real estate investment can be expensive, and it's crucial to do thorough research. Resources like the Bigger Pockets podcast offer valuable insights and tips for investing, whether you have a small or large budget. But remember, owning real estate comes with substantial costs, including fees and interest rates.
Risk - Unforeseen Factors: Always be prepared with insurance, savings, and contingency plans when renting out properties. Things can go wrong, and having financial support will keep things under control. Do your research on rental prices and local conditions to avoid unexpected surprises.
While real estate might not be for everyone, it's definitely worth exploring. Owning rental properties can be a game-changer in the long run, opening up numerous possibilities for your future. So, dive in, do your homework, and who knows – maybe you'll find your perfect real estate opportunity!
Wishing you all the best on your real estate journey!
I'm fairly new to the journey, but I started investing in rental properties and now own two townhomes in Pennsylvania, rented out to tenants. Many realtors I've met invest in properties themselves, and it can be an amazing way to create passive income over time. Though there are pros and cons, I'll list a few below to help you explore this opportunity.
Pro - Passive Income: Investing in rental properties can provide a steady stream of income, requiring minimal engagement once everything is set up. With an affordable property management company, you can focus on your primary source of income while your rental properties work for you.
Pro - Earlier Retirement: Being involved in real estate can open the door to early retirement. By generating rental income, you can cover living expenses like mortgage payments and save more for the future. This can also help in expanding your real estate portfolio, ultimately securing financial stability for you and your family.
Risk - Costly: Real estate investment can be expensive, and it's crucial to do thorough research. Resources like the Bigger Pockets podcast offer valuable insights and tips for investing, whether you have a small or large budget. But remember, owning real estate comes with substantial costs, including fees and interest rates.
Risk - Unforeseen Factors: Always be prepared with insurance, savings, and contingency plans when renting out properties. Things can go wrong, and having financial support will keep things under control. Do your research on rental prices and local conditions to avoid unexpected surprises.
While real estate might not be for everyone, it's definitely worth exploring. Owning rental properties can be a game-changer in the long run, opening up numerous possibilities for your future. So, dive in, do your homework, and who knows – maybe you'll find your perfect real estate opportunity!
Wishing you all the best on your real estate journey!
Updated
Brittany’s Answer
Pros and cons of real estate: I sold new construction homes for 6 years in northern VA:
Pros-form great relationships with buyers, very rewarding to help families select and purchase their dream home! very financially rewarding. work with alot of great people internally such as project managers and loan officers. Great collaboration and exciting process to work so closely with folks on an investment that is huge for them.
Cons-working weekends
Pros-form great relationships with buyers, very rewarding to help families select and purchase their dream home! very financially rewarding. work with alot of great people internally such as project managers and loan officers. Great collaboration and exciting process to work so closely with folks on an investment that is huge for them.
Cons-working weekends
Updated
Cris’s Answer
Positive Aspects
- Enjoy the freedom to manage your own timetable.
- Engage with numerous individuals and assist them in realizing their dream of owning a home.
- With the right blend of time, effort, and a bit of good fortune, it can prove to be a profitable venture.
- It's simple to get started, acquire knowledge, and earn your license.
Negative Aspects
- You'll face a high level of competition.
- Your success can be influenced by the market conditions. During a downturn, you might experience several months without income.
- It requires time to develop and establish yourself as a real estate agent.
Here's wishing you the best in your journey towards a successful real estate career.
- Enjoy the freedom to manage your own timetable.
- Engage with numerous individuals and assist them in realizing their dream of owning a home.
- With the right blend of time, effort, and a bit of good fortune, it can prove to be a profitable venture.
- It's simple to get started, acquire knowledge, and earn your license.
Negative Aspects
- You'll face a high level of competition.
- Your success can be influenced by the market conditions. During a downturn, you might experience several months without income.
- It requires time to develop and establish yourself as a real estate agent.
Here's wishing you the best in your journey towards a successful real estate career.