Like any other field, in real estate investing there is a path that most people follow to first “learn the ropes” and then climb the ladder to the top. If you are a new investor or are thinking about getting into real estate investing, your career progression will probably follow this path.
Here’s a quick snapshot of what the evolution of a real estate investor typically looks like.
Step 1: Bird Dog
A real estate bird dog or property locator is someone who helps a real estate investor find properties to purchase. Typically, if the investor purchase a property that a bird dog brings to them, they will get a commission. Depending on the type of property, the commission will usually be somewhere between $500–$1500.
After spending some time as a bird dog, the aspiring real estate investor will have enough knowledge to purchase a property for themselves, and then immediately turn around and sell that property to another investor for a “wholesale” price. Sometimes, the wholesaler will actually just purchase and sell the contract to buy the property, and not the property itself.
The next step in the career progression of a real estate investor is the “house flipper”, which has been popularized by many cable TV shows. This is the person who purchases a home, remodels it, and then re-sells it several months later for a profit.
Buy and Hold
The final stage of the real estate investor career progression is the investor who buys properties and holds on to them as rental properties–in other words, a landlord.
In reality, many investors are involved with several stages of this career progression at the same time. For example, an investor might have a few rental properties, a few properties that they are in the process of flipping, and a few properties that they sell at wholesale prices. This is the case with RVA Property Solutions, and you can browse our rental and wholesale properties on our website.
Are you ready to begin your training as a real estate investor? Start by signing up for one of our Bird Dog Workshops, and we’ll teach you everything you need to know to get started.