The real estate industry has been a steady and reliable source of income for millions of Americans throughout decades. While it’s an industry that is greatly influenced by the economy, even times of economic recession can bring about huge financial gains to real estate agents and investors that are willing to endure hard times. If you are considering a career in real estate, first understand the importance of a proper real estate education.
Become a licensed agent
Whether you intend to buy investment properties or become a real estate agent, getting licensed is your first step. As a buyer, being a licensed agent will help you find bank owned properties and other low cost opportunities that your competitors won’t have access to. Taking the extra step to become an agent is a smart move for residential or commercial real estate investments. If you intend to sell properties for clients and help buyers locate homes, you need to be licensed before you can work professionally.
Interest rates, economic impact and other factors
There are many things that can have an effect on the real estate industry. Most notably, these things are the federal funds rate (Federal Reserve interest rate), mortgage interest rates among banks and the current state of the economy. For instance, since the latest recession the federal funds rate dropped below 0.25% and has stayed there, creating a buyer’s market. This caused mortgage interest rates to drop and real estate prices to climb. It has been one of the primary reasons the housing industry has recovered as it created opportunities for investors and home buyers. Knowing the current state of the economy, expectations for the economy going forward and how any changes can impact the real estate industry is very important.
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