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Realtors and home investors. Is there really a difference? To recognize the difference between a real estate agent and an investor, some people have a rough time. Let’s face it, they both make money from properties, they both work in real estate… so what’s the difference?

Fewer similarities than differences actually exist between these two, in reality. If you’re looking to sell a house, having a distinct understanding of the two will be to your advantage. To start, let’s look at the definition.

Realtors and Investors – A Definition

Real estate agent – This is someone who has clients for whom they arrange the selling and buying in real estate transactions. By taking a percentage of the purchase/sale amount, this person makes a profit.

Real estate investor – This is someone who rents, manages, owns, purchases, and/or sells real estate for profit. Typically involved as part of the strategy for real estate investment is improving and making repairs to the property.

But wait… there’s more.

Licenses

Real estate investors do not need a license, while real estate agents do have a license. The reason real estate investors don’t need a license is that, only if you’re representing someone else (not yourself), do you need a license to deal with the selling or purchase of properties. An exam needs to be taken and passed to get a real estate license.

Brokers

Brokers do not control investors. They may or may not have their own employees and they are running their own business. 

Brokers are responsible for and supervise real estate agents, per real estate statutes. For the actions of a real estate agent, the broker is responsible. Agents are not employees, but rather, they are considered independent contractors. So, certain aspects of an agent’s work cannot be legally controlled by a broker.

Selling

Whatever you’re selling, investors want to buy it. On the other hand, whatever you are selling, agents want to help you do so.

Making Money

The investment itself is where investors make their money. Commissions are where agents make their money. Granted, they both earn their money through real estate, but in different manners. 

Let’s say, for example, a 5.2% commission of every sale goes to a real estate agent. That’s how they make their money.

Here’s how a piece of real estate might make money for an investor:

  • With a handful of other properties, bundling a property and then selling the properties together in bulk.
  • The property can be managed as a rental.
  • The property can be renovated and then sold.

Sales

Fast cash sales – that’s what investors specialize in. A slower process is used by agents.

For a realtor to sell a home, even if it’s in great condition, it can take two or more months. It could take even longer if the house needs repairs. During the entire time, however, a real estate agent works with you assisting with inspections, negotiations, offers, etc.

Fast cash offers are provided by most real estate investors. They look at what you have to sell. Within 24 hours, they may make you a cash offer. You’ll close the deal with them, if you accept it, in as little as 2 to 3 days. Within a purchase, flexibility may be offered by an investor. Depending on your situation, they might let you reside in the house for a while, as an example.

Skip the Hassles Of Differentiating Investors from Realtors – Go with Modern Feather Properties 

Would you like to sell your home in or near Haslet, Texas? Or, perhaps, you would like to buy a Haslet property? We can help you buy or sell. To get started, contact Modern Feather Properties LLC. We are a family/veteran owned real estate investment company providing flexible solutions for today’s homebuyers and homeowners. 

Modern Feather Properties is located at 536 Vidalia Court, in Haslet. Call 214-531-3310 to speak with a representative. If you prefer, email us at josh@modernfeather.com.