Working as a real estate agent is believed be one of the most stressful jobs. This by extension implies that those who invest in real estate must also develop a really thick in order for them to cope with the stresses of the business so to say. An example usually given to prove the that the theory is true is how the investor reacts to good news [property they own will be bought] but after a day they learn that the deal fell through. They'd at that time want to take something to cheer them up, right? Do you guys think anyone who wants stress-free investment should stay away from Real Estate?
I've never worked in the field, but it is hard to imagine it is that stressful during normal times. Granted, most occupations have a certain degree of stress load and this one wouldn't be any different. Like anything, being able to manage stress and not let things get to your head is the key.
You're right Rainman. My dad who has been in the real estate business for decades now still feel the stress of it. I cannot count the times when prospective buyers would be on the brink of buying and then suddenly backs out. There were even times when they have already given down payment then suddenly changed their mind and not continue on with the purchase. I would always know if something like that happens because my dad would come home looking stricken.
Investing in real estate is often (but not always) less volatile than other usual investments such as stocks. So from that perspective it should be less stressfull. However managing a property can be hard work especially if you run into some bad tenants. I've said this thing here maybe 10 times but I'll say it again: REITs are the way to go for me when it comes to investing in real estate. It is simply so much faster and easier and everything is managed by professionals, I do not even need to lift a finger to get my monthly income.
No doubt it's stressful - you're working on straight commission, and don't get any sort of trailing income like investment advisors and insurance agents get. It's purely transactional. And the markets can be very up and down, and many people are flaky and difficult to deal with and often difficult to make money off of. I can relate being a former mortgage broker... And besides everything else I've mentioned, realtors have to be the ones to drive out all over the place on their own dime and show properties to people at all hours of the day and night - at least some of whom no doubt won't buy or cannot buy. It can of course be very lucrative for some. Like just about anything else, it helps being well-connected, well-known, and good at marketing oneself. And having access to plenty of high dollar properties will be very helpful, since you're paid on a percentage of the sale. I'm pretty glad overall that I'm no longer a mortgage broker - I much prefer being an investment advisor. And I'm even more glad I'm not a realtor.
I really wouldn't fancy a career in real estate at all. Yes, there is money to be made but it's all so precarious until you get the client to sign on the dotted line, There are so many reasons why they might pull out beforehand and it can mean a lot of wasted effort.
With our experiences as a seller of real estate, those brokers who handled the sales tell a lot. A broker is in the middle of the buyer and seller. They say that there were many times when the deal is almost done and suddenly the buyer will back out for whatever reason or the seller will have second thoughts on the agreed price. If that is not stressful then tell me what is. Truly, selling real estate takes not only skills in selling but also the tenacity to handle adversities. It is difficult to maintain diplomacy when one party is not fulfilling his part of the bargain.
