Real Talk: Real Estate Julia Hoagland

RT:RE [Real Talk: Real Estate] is my new series where we explore real estate from and for a millenial and gen Z audience.

Real estate agent, Julia Hoagland, gives an inside look at how to become a real estate agent and the field. 

What area of real estate is the best to invest in as a beginner? 

Focus on real estate that meets one’s investment objectives; it’s critical to define these up-front. Once that’s done, starting with a small purchase may be a good practice, as there is sometimes an ‘inexperience tax’ as one gets their feet wet. Working with experienced advisors can minimize this ‘tax’ and ensure all aspects material to the transaction are considered\

What are your thoughts on out of state investing? 

It’s good practice to invest where you know, or partner with someone who knows where you want to invest

Do you need to live in the state you are investing in? 

No

How does one obtain a real estate salesperson’s license? 

There are a number of online or in-person courses; the in-person courses enable interaction with industry experts, and sometimes experienced agents/teams/brokers will recruit at these courses. The online courses are convenient, and one can always reach out to managers in brokerage offices once the license is secured to put their name in the rotation to be contacted by agents looking to build their teams. Some brokerages will work with agents without experience

The Department of State grants salesperson’s licenses. Classroom coursework and an in-class test complete the course, and then one takes a final exam at a state location. With your salesperson’s license you can practice under someone else’s brokerage license

What are the next steps once you have your license?

To identify a broker under which you can “hang” your license; you can then officially start selling real estate   

How can one make money in the real estate world without prior education?

One way is with a deep network: if you have connections to people who are buying or selling real estate, you can then partner with an experienced broker who can help you close the deal(s). You split the commissions with the partner, take care of your clients, and get an education all at the same time

How does one put a deal together? 

Ask a lot of questions to understand the goals of the client, and then work to unearth opportunities that meet those goals, provide expert guidance on options, formulate a valuation analysis once an option is identified, and create a strategy for negotiating and closing the deal. Pay close attention to all details and stay on top of the process from start to finish

Is it better to go into real estate management than to go into the sales side? 

This is dependent on an individual’s goals, skills, schedule, and needs. Property management is often a salaried position with typical M-F ‘9-5’ hours and benefits. Sales is an independent contractor position, with no salary (100% commission), no benefits, and no set hours, and unlimited upside. Depending on skill set, property management is likely more suited for individuals who are looking for stability, and sales is for individuals with more flexibility in the hours they can work and where they get their benefits from 

Are midwestern states better to invest in than west coast or east coast? 

It depends on one’s goals. If the top objective is to maximize yield, then lower-cost states with stable rental demand are more appropriate investments. If the top objective is liquidity and/or upside appreciation potential, then markets with greater sales activity and demand from multiple markets (local, national, international) may make more sense

How does one make consistent income from real estate? Working or passive? 

There are many areas of real estate and many strengths of individuals. The way to make the most in real estate (or any industry) is to know one’s strengths, and then focus on the area that requires those strengths

Is the field male dominated?

Residential real estate brokerage has people from all backgrounds, which makes the field interesting

When did you feel comfortable in the field?

I had learned the basics by the end of my first year, but I learn things every day even after 14 years. This is part of what makes the industry interesting and challenging.