The Value of Being a Real Estate Hybrid

Education & Training with The Residential to Commercial Academy Inc.

Both residential and commercial real estate have many advantages and a few disadvantages. This often puts the most successful residential real estate agent in a difficult position when they consider moving into commercial real estate. While there’s a big opportunity to grow in commercial real estate, a traditional commercial mentorship takes time and it can take years before you’re working entirely on your own. At the beginning of many mentorships, you do simple work for a sliver of your mentor’s commission.

Thankfully, Residential to Commercial Academy offers a different path; one with none of the pitfalls of a traditional mentorship. RtCA offers knowledge you could previously only gain by being mentored over time by a commercial real estate expert. In just six short hours (at your own pace!), RtCA lays out a proven roadmap to success in commercial real estate that would normally take years to acquire.

But enough about us, let’s talk about the many advantages of being able to take on both commercial and residential real estate deals.

Unique Expertise in Multifamily Deals

Working in both residential and commercial real estate gives you a unique perspective when dealing with apartments, duplexes and other places where renters live. Knowing the most popular aspects of a housing development can give you a leg up on deals by knowing the most up-to-date features that renters are looking for in a place to live. While this may seem small, it’s often these tiny differentiators that make or break a tough deal.

Deal Length

Another major advantage of working as a real estate hybrid is born out of one of the biggest differences between commercial and residential real estate. While no two deals are the same, on average, a commercial real estate deal will take place over a much longer timeframe. That means commercial agents have to wait much longer for the commission than they would on a residential deal.

For a commercial-only agent, that means you have to budget effectively around the deals you have in queue. But for the hybrid agent, you can jump back into residential deals whenever you want.

Now, it is true that as you grow into a more established commercial agent, you’ll be less and less likely to have the time or the need to make these swaps, but you can’t always rely on that. And that brings us to our next advantage.

Market Stability

Likely the number one reason to remain seasoned in both residential and commercial real estate is market stability. The real estate market has booms and busts, and those who are equipped to switch markets will also fair best when they need to.

We’re all aware of swings in the housing market. When a market bubble pops, agents who predominantly work in residential can do well picking up a few commercial deals to round out their needs. Even if you’d like to remain a mostly residential agent, having the skill set and network to take on any deal that comes your way will give you a safety net that residential only cannot.

But what might surprise you is that the same concept applies to commercial real estate as well. There are times where commercial real estate dries up but residential is untouched. A pointed example of such a disaster was immediately after 9/11. Market stability was completely lost and commercial agents saw many deals fall through. Those who faired best in that time of uncertainty were the agents that could fall back on residential deals.

While residential real estate may not hold the same profit margin as commercial, it is often consistent even through times where commercial faulters.

And there you have it; three of the very best reasons to maintain your skills in both commercial and residential real estate as you grow. So, now you have no excuse; if you’re ready to get into commercial real estate, you now know there’s no better way to do it than to become a hybrid. Luckily, RtCA is more than happy to offer the tools you need to succeed as a commercial agent while keeping your residential career thriving.

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Comments (3)

Joseph Doohan
Joseph Doohan - Las Vegas, NV
I offer business strategy advice for realtors

Informative post! This is a fair point: "The real estate market has booms and busts, and those who are equipped to switch markets will also fair best when they need to."

Jan 29, 2020 08:28 AM
The Residential to Commercial Academy Inc.

Thanks so much, Joseph! We hope this info is valuable to agents looking to diversify.

Jan 29, 2020 03:22 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Great information for anyone having the desire to incorporate commercial into their business model.

Jan 29, 2020 09:16 AM
The Residential to Commercial Academy Inc.

Thanks, Joan! We have more where that came from!

Jan 29, 2020 03:22 PM
Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, ABR,CNE,CRS,ePro,PSA,RENE,SRS

This is a great post featuring some fantastic content. Thank you for sharing!

Jan 29, 2020 10:27 AM
The Residential to Commercial Academy Inc.

Thanks, Jeremy! Glad you enjoyed it!

Jan 29, 2020 03:23 PM