New year, new site, and we are back on the financial literacy train! We’re setting bigger goals and diving deeper into the game than we ever have before. To start the year off right, we need to clear up some confusion.
When I first started investing, I didn’t know the difference between an agent and a realtor, and I didn’t even know a “Real Estate Attorney” was a thing. If you’re in that same boat, let’s break down the roles so you can build your own dream team.
1. The Real Estate Agent
This is the starting point. An agent is someone licensed to represent buyers and sellers in a property transaction. They’ve put in the hours, taken the classes, and passed the state exam. To keep that license, they have to pay yearly fees and keep their education up to date. They are your “boots on the ground” for finding and selling homes.
2. The Realtor® vs. The Broker
This is where it gets more professional.
- The Broker: After about three years of experience, an agent can take a Broker’s exam. Brokers are typically more experienced and often supervise other agents.
- The Realtor®: A Realtor is an agent who took the extra step to join the National Association of Realtors (NAR). Founded in 1908, this organization trademarked the term “Realtor” in 1950.
- The Difference: Realtors must follow a strict Code of Ethics based on the Golden Rule: Treat others how you want to be treated. Because they pay extra fees to maintain this status and often have a full staff, working with a Realtor usually means you’re working with someone who is moving volume—not just doing a deal here and there.
3. The Real Estate Attorney (The Developer’s Secret Weapon)
Don’t overlook this role! An attorney is essential once you start getting serious about your portfolio. They handle the “heavy lifting” that protects your neck:
- Contracts & Leases: They draw up the paperwork for residential and commercial deals, ensuring you are protected.
- The LLC Strategy: They are the ones who help you set up LLCs to hold your properties and handle the “re-titling” process so your personal name isn’t on the deed.
- Zoning & neighbors: If you run into issues with the city regarding zoning (a huge deal if you’re building something like a barndominium or an event space) or have disputes with neighbors, they are your first line of defense.
- The Closing Table: Pro Tip: Never close a deal without an attorney looking over the paperwork. You don’t want any surprises once the ink is dry.
The Bottom Line
Every player serves a purpose depending on where you are in your journey. Personally, I don’t move on any real estate business without a Realtor and a Real Estate Attorney in my corner. I want to make sure every base is covered so I can sleep soundly once a deal is done.
As always, do your own research and draw your own conclusions—I’m just here to provide the map. Let’s make this year the one where we build for real.
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