How a Real Estate Agent Gets Into Investing, Step by Step

If you want real success as a real estate agent, you can’t just sell, sell, sell. You have to buy as well.

Real estate as an agent can make you rich, but thinking like an investor will make you wealthy.

Step 2: Fix the Two Constraints Every Beginner Has

There are only two problems:

1. Finding deals

2. Funding deals

Everything else is noise.

So we solve them in order.

Step 3: Set Your Deal Criteria (So You Stop Chasing Random Houses)

Write these down:

1. Zip codes (2–5 areas you already work)

2. Property type (SFR, duplex, triplex, quad)

3. Price range

4. Strategy (rent, house hack, BRRRR)

5. Minimum equity you want on day one  Example: “I only buy if I’m walking into equity.”

Simple rule from my personal principles:  You don’t get rich on the purchase price you pay, you get rich on the discount you buy.

Step 4: Build Your “Investor Circle” This Week

The wealthy agents win because they are smart.  They won because they surrounded themselves with other investors ask for help.

Here’s your simple play:

• Go to 1 local investor meetup this week

• Meet 5 investors

• Ask the same 3 questions:

1. “What do you buy?”

2. “What’s a deal in this market?”

3. “What lenders should I talk to?”

Then do the most important part: Follow up and offer value. Work for free if you have to! Seriously!

As an agent, you already have value:

• You can find inventory

• You can run comps

• You can drive neighborhoods

You can bring leads.

Step 7: Lock Up the Deal (Control the Asset)

It's okay to get something under contract first, then solve the rest.  You do not need to have everything perfect to write an offer.

But you DO need to protect yourself.

Your offer should include:

• Inspection period (so you can verify numbers)

• Financing contingency (if needed)

• Clear close timeline

  
  

Goal: get it under contract, then go to work.

Step 8: Solve Funding in This Order (Most Simple to Most Complex)

Option A: Conventional owner-occupied (best if house hacking)

If you can house hack, this is the easiest.  Lower down payment, better rates.

Option B: Local community bank / portfolio lender

Community banks often lend based on:

• property value

• your plan

• the deal itself

Option C: HELOC or line of credit

If you have equity in a home, this can be your down payment engine.

Option D: 401(k) loan (not withdrawal)

I know an investor who used his wife’s 401(k) loan for the down payment.  This can work for some people, but you need to understand the rules and risks.

Option E: Partner on the down payment

You bring the deal.  They bring the cash.  You split the upside.

Most beginners get stuck here because they think:  “I need money.”  No. You need a deal good enough that money wants to follow it.

Step 9: Make It Cash Flow (Or At Least Pay for Itself)

Your first deal doesn’t have to make you rich.  It just needs to:

• pay the mortgage

• cover expenses

• build equity

• prove the concept

The 3 Rules to Not Screw This Up

People first  Treat sellers and tenants like customers, not obstacles.

Buy at a discount  Walk into equity on day one or don’t buy it.

Use your superpower  Your advantage is your market knowledge + relationships.  Stop trying to invest in some random market you don’t understand.

Your “Do This This Week” Checklist

• Pick your lane (house hack, buy and hold, BRRRR-lite)

• Attend 1 meetup

• Talk to 1 community bank lender

• Send 20 texts to your sphere asking for off-market opportunities

• Run numbers on 5 properties in your target zip codes

  
  

If you do that, you’re not “thinking about investing.”  You’re starting.

Author: Alexander Fazelani

Co-Founder of Designed For Agents