Thinking about becoming a real estate agent? You’ll be in good company. Estimates from the Association of Real Estate License Law Officials (ARELLO) show

How do you become wealthy in real estate?

There are three main routes you can take to achieve financial success in real estate.

  1. Become an agent
  2. Become a developer
  3. Become an investor

Now, the success rates vary for each of these options.

Not every agent is successful. In fact, almost 87% real estate agents quit within first 5 years of their career. It’s possible to make a lot of money as a real estate agent but it’s not a get rich quick scheme (none of these are).

Becoming a real estate developer is no walk in the part. It takes a lot of experience, money and connections to become a great developer.

However, you can invest in real estate and, if your objective is to eventually get a steady stream of income while you have a lot of assets as well, then this is the road I would say you should take.

I am going to try to answer this question using one of the best books I ever read, Rich Dad & Poor Dad by Robert Kiyosaki, who if you didn’t know, is a very well-known real estate investor.

Tip # 1 – Learn How To Crunch Numbers

“If you want to get rich, you’ve got to read and understand numbers”

– Robert Kiyosaki

It doesn’t matter if you become an agent, a developer or an investor, you will fail unless you are comfortable with numbers because real estate is a numbers game. You need to be able to run with numbers easily and explain them well as well. For example, as an investor, you need to know what cap rate is, what cash on cash return is, what gross rent multiplier is, what operational expenses are, what net present value is and most importantly, what all of these mean.

That’s STEP # 1 if you want to get wealthy in real estate!

How To Analyze Investment Properties

Tip # 2 – Think Long-Term

“A job is only a short-term solution to a long-term problem.”

– Robert Kiyosaki

As an agent, you get commission when you complete a transaction. Although you have no formal work hours or a boss, you still are very much dependant on the next deal to stay afloat. Unless you become really successful and close a lot of deals every year, your chances of achieving financial success will be pretty minimal. It’s good for short-term but not long-term.

As an investor, you have to think long-term.

You invest your money, you recover it and you invest again. You are building an empire!

Tip # 3 – Don’t Fear Failure.

“Fail Harder. You cannot be successful without failure.”

– Robert Kiyosaki

All of us fail and it’s normal. We learn that way. If you want to get filthy rich by working in real estate, there is no way you can do that without facing failure or getting rejected.

If you are an agent, you might hear “NO” multiple times a day.

If you are a developer, your project might flop because buyers don’t like the design.

If you are an investor, you might invest in the wrong property the first time and might have to sell it for a loss. That doesn’t mean you can never make money as an investor, it just means you were sloppy and didn’t do your due diligence.

Failure inspires winner, failure defeats losers so don’t fear failure!

Tip # 4 – Acquire Assets, Not Liabilities

“I use debt to buy assets. Most people use debt to buy toys and liabilities”

– Robert Kiyosaki

The most important lesson of all. Don’t spend your money in the wrong places. You don’t need a fancy car, you don’t need a Louis Vuitton bag, you don’t need expensive branded clothes, you don’t need a house. Anything that costs money but doesn’t give it back to you is a liability. Your fancy car probably will cost you more money on fuel, your bag does nothing for you, you can live in a less fancy house which meets your requirements.

You need assets, not liabilities and assets in real estate are income properties.

Do your homework to find great investment opportunities, invest in them and rent them out. Use

Create multiple streams of income!

You need to focus on cash flow, the month income you get every month from the property you own. You need to look at price appreciation, how much would your property be worth in 5, 10, or 20 years. You need to account what kind of city development projects are in place and how you can benefit from them.

Invest wisely and build a strong portfolio of income properties. In my opinion that’s one of the best ways to create wealth in real estate.

Here are some useful guides that can help you become a more successful investor, developer or agent:

https://grel.org/library/resources

If you are really committed to becoming a real estate investor, you might want to for GREL – Investor Edition, an online course for new investors, which costs only $30 / month and can teach you how to invest in income properties and how to flip homes for profit.

GREL – Investor Edition

Hope this helped!

Taimoor Ali

Global Real Estate Licence