Do a quick search for images on insider trading, and you see business executives in handcuffs, secret whispers and Martha Stewart in prison. Insider trading in the equity industry, when done without disclosure, is illegal and those found guilty of such practices can be prosecuted.

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However, I think all of us secretly wishes we had a little insider knowledge passed our way that we can use to make significant profits and build our long-term wealth.

What do these “insiders” in the equity world know that the general public doesn’t understand or have access to? They have access to trends and they know intimate details about their business or industry. They may have a handle on government intervention in their business sector, knowledge of what their competitors offer and insight on future events that can radically affect their industry.

But here is the cool thing. As a real estate professional, you have the ability to be an industry insider in the field of real estate. In fact, many of us use that insider knowledge often for the benefit of our clients. That value we offer is often a point of difference that simply can’t be replicated by a website or an app.

Many of us are missing out because we use this knowledge and insight for our clients, but we fail to use it for ourselves.

In the equity world, the level of disclosure we would need to put out there prior to doing any trading activity is onerous. Yeah, we need to provide a disclosure page, but it is not like that disclosure affects the sale or rocks the industry in any way.

As an insider, you can capitalize on the best of the opportunities that hit your desk. As an insider, you have a team of the most skilled mortgage brokers, contractors and other service providers that can help you close on a transaction and get it to its peak value.

One of the things I love about the real estate industry is that it is a transactional-based income. For the most part, those who complete the most transactions earn the most money. The disadvantage of our industry is that as soon as you want to take a break, your revenue dries up. Those who build sustained wealth have income-producing assets that earn revenue passively (while you are not there on a daily basis).

One look at the number of active Realtors over the age of 65 tells you that unlike other industries, there is no Realtor pension plan. Sure, selling a bungalow is a heck of lot more enjoyable than being a cashier in a big box store or a fast-food delivery driver. Also, it is more lucrative. But that doesn’t change the fact that so many in our industry are in a position where they still need to earn income annually in order to pay the bills.

You can learn the skills to be a quality real estate industry insider and you have it within your ability to then use that knowledge to trade in quality real estate properties.

In my book, Armchair Real Estate Millionaire, I often state that a quality property in a quality neighbourhood can allow you to find quality tenants, letting you keep the property for a longer period of time without significant incident. This will lead to quality profits.

Real estate ownership has its pain in the ass days. But this part-time job (and we are talking two to five hours most months) can help you be in a position of financial freedom, allowing you to not be a full-time Realtor, or for that matter to retire, as much as a decade earlier than you may have originally planned.

You are already building the skills necessary to be good Realtor. Now, use those skills for your most important client of all – yourself.

3 COMMENTS

  1. Love this article Michael!

    I couldn’t agree more. A lot of good points to think about here. I’m going to pick up a copy of this book for sure – great title, you had me at “armchair”.

    Good for our industry when the success stories include wealth creation from related income streams and the agents are able to retire at the end of their career (if and when they choose).

    • Thx Toby. The thought of NOT taking advantage of real estate equity and being forced to keep completing real estate ends to put food on the table seems way riskier to me.

      Maybe, just maybe … there is a better way.

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