Real Estate Roles Explained

What do you think of when you think of someone working in real estate? An agent or broker? That’s where most of our understanding ends when it comes to real estate as an industry. However, there are many different roles and personas that work hard to make the real estate world go around!

Understanding the various roles within the real estate industry can be quite enlightening, especially when distinguishing between a real estate professional, investor, entrepreneur, and influencer. Each role has unique characteristics, goals, and approaches to the real estate market.

Real Estate Professional

A real estate professional typically refers to someone who has a license to practice real estate transactions. This includes real estate agents or brokers. These professionals act as intermediaries in real estate transactions, assisting buyers and sellers in navigating the market. Their tasks involve listing properties, providing market analysis, guiding clients through the buying or selling process, and handling negotiations and contracts. They earn commissions based on the transactions they facilitate.

Key Attributes:

• Licensed and regulated by state laws.

• Acts as a mediator between buyers and sellers.

• Earns income through commissions.

Barbara Corcoran: Known for her role on the TV show "Shark Tank," Barbara Corcoran is a prominent real estate broker who founded The Corcoran Group, a New York City real estate brokerage. She started her company with a $1,000 loan and grew it into a multi-million dollar business before selling it. Her career is a prime example of a successful real estate professional.

Real Estate Investor

A real estate investor is an individual or entity who invests capital in real estate with the expectation of receiving a financial return. This can include buying properties to rent out (thereby generating rental income) or purchasing real estate to sell later at a higher price (capital appreciation). Investors focus on the financial aspects of real estate and are typically not involved in the day-to-day management of properties, unless they choose to be hands-on.

Key Attributes:

• Focuses on investment and return.

• Engages in buying, holding, or selling properties.

• Earns profit through rental income or property appreciation.

Robert Kiyosaki: Author of the famous book "Rich Dad Poor Dad," Kiyosaki is a well-known real estate investor. His investment strategies, focusing on generating passive income through real estate, have influenced many to invest in properties for rental income and capital appreciation.

Real Estate Entrepreneur

A real estate entrepreneur is someone who creates a business within the real estate sector. This could involve developing new properties, flipping houses, or even starting a real estate technology company. Unlike investors who might passively invest in properties, entrepreneurs are actively involved in creating and managing a business in real estate. They take on more risk, but also have the potential for higher rewards.

Key Attributes:

• Builds and manages a real estate-focused business.

• Involves innovation and risk-taking.

• Earnings come from the success of the business venture.

Sam Zell: Chairman of Equity Group Investments, Sam Zell is a notable real estate entrepreneur. He has built a vast empire in the real estate industry, involving real estate investment, ownership, and finance. Zell's approach to investing and building businesses in various real estate segments marks him as a true entrepreneur in the field.

Real Estate Influencer

A real estate influencer is a relatively new phenomenon, largely driven by the rise of social media. These individuals use platforms like Instagram, YouTube, and TikTok to share content about real estate. This content can range from market insights, property tours, investment tips, to interior design ideas. While they may not engage directly in real estate transactions, their influence can sway public opinions and trends in the real estate market. Their income primarily comes from sponsorships, advertisements, and collaborations with brands.

Key Attributes:

• Utilizes social media to share real estate content.

• Influences trends and opinions in the real estate market.

• Monetizes through sponsorships and advertisements.

Ryan Serhant: Best known for his role in the Bravo series "Million Dollar Listing New York," Serhant has effectively leveraged his experience as a real estate broker to become an influencer in the industry. Through his social media presence and his book "Sell It Like Serhant," he influences both real estate professionals and enthusiasts.

While there's some overlap in these roles, each one offers a unique approach to the real estate industry. Professionals focus on facilitating transactions, investors on financial returns, entrepreneurs on creating businesses, and influencers on impacting public opinion and trends. Understanding these distinctions is crucial for anyone looking to engage with the real estate market, whether as a career or an investment opportunity.