I just found out today that I only have about 2 weeks before my job will no longer exist. I would love to say that it’s ok because I’m making money investing, but it’s just not happening yet. I have been thinking about getting a RE license to become an agent. How was it when you first started out? I can’t go all that long without money coming in. Does it take a while to get going and start bringing in money or can you pretty much get it going pretty quick?
Starting in realestate can be fairly easy to fairly difficult the two biggest factors are:
- How good you are with people and follow up
- How good your real estate market is.
I have been a realtor for 6 years and I think that there is no better job in the world. Real estate is not about houses, it is about people. Yeah I know your selling houses but the houses ususally sell themselves, its finding the people to buy the houses that is the tricky part.
My broker gave me a avg pay scale that held really true for me.
1st year $15,0000-$35,000
2nd year $$35,000-$75,000
3rd year $100,000+
4th year $100,000+
This scale was dead on for me, and I have seen many other agents that seemed to stick to the same pattern. There arent a ton of agents that make 100,000+ but if your decent, it isnt really a problem. If I can do it anyone can.
If you know investing selling to investors is a great way to go because they usually buy more than 1 property per year, and if they flip they sell more than 1 property per year. I started selling to investors late into my second year. My third, and fourth year in real estate I was making 100k+ and only working less than 10-15 hours a week. Most agents work far more than that because they dont work with investors. I could go on and on about working with investors but I think you get the picture.
I am sure many other agents have a different experience but this is what being a realtor has proven to be for me.
Don’t expect to make money quickly. If you already have a client base then it will take less time. but it takes a few months to find propsective clients.
When I started my broker told me this. For everything you do today, it will take 3 months for it to pay off
Just my $0.02
Make sure you like working with people. Read that first line again. The money can be great but you WILL be the “people’s” person. I am a Realtor and built up a base pretty quick, but I soon realized I got my license to be an investor not a “salesperson” (been there done that) There is some flexiblitiy in being a Realtor but if you don’t want to go out on a Sunday night in the rain (or ect.) to show a property that they may not even be interested in and watch them pick it apart when they are not even going to buy it,(grrr) there will be many other Realtors willing to do so. You’ll get paid the amount you’re willing to put into it. I would personally rather go to my flip house and manage the crews and be in that role vs. at the beckon call of the retail world. Just my 2 cents also.
Has anyone started out as a part time Realtor and then transitioned into full time? I have a full time job with good pay (almost 6 figures), but it eats a lot of my time each week (50-60hrs). Couple that with doing investing already on the side, and I don’t have a lot of time to spare. However, I’d like to get me RE license to do it part time, and, if it’s something worthwhile, quit my 9-5 and do it full time. I just wanted to see if anyone else took this path and how it worked for them.
Edit: BTW, I already consider myself a people person having to deal with sellers (preforeclosures mainly) and buyers (recently trying to sell two of my properties myself), so talking with people isn;t a big issue for me.
In NC there’s various processes you have to go through before getting a license. First, you attend a real estate class (72 hours) then take the school’s exam. I thought the exam was harder than any exam I’ve taken in school or college :-. There’s a ton of math/finance/valuation, real estate/brokerage/agency law, trust law, Timeshare law, rules and regulations. It seems that the students who do well have backgrounds in banking, finance, and real estate investing. The exam was like taking a mini bar exam.
Once you pass the school’s exam then you schedule take the state exam to earn a provisional broker’s license (salesperson). Provisional broker status in NC will be phased by 2009. All existing salespeople will need to earn a broker’s license by then. Continuing your real estate education is continues and manditory each year through CE classes.
Once in the field you are an independent contractor, similar to owning your own business. You’ll pay your own rent, wage taxes, advertising and marketing costs, MLS dues, liability/health insurance costs, CE classes and the list goes on. Like with any business you’ll need capital to start-up your company. Having a good business plan to manage your company (you) would be very helpful and encouraged.
If you have good people skills and are aware of what’s realistically involved to become a real estate agent you’ll do well. By knowing your 1-2 year will be fairly lean you can focus on your career, skills, and education to potentially make some descent bucks down the road. I would also suggest to be prepared to work around the clock, weekends, days, and nights as you’ll be working by your client’s schedule. With a little luck and staying power the money will come. Expect the worse and hope for the best.
80% of new Agents do not manage to recertify at the end of their two year renewal period.
Of the remaining 20%…only 19% have been estimated to make enough to feed a family.
I’d rcommend having a years reserves or better before starting out.
Same here. Just like investing, being an agent takes time except it costs more money. Both businesses are the same in that you have to set it up as a business, get educated, build your network, and systematically follow up on leads. I wouldn’t see it being any easier being an agent than just birddogging or investing.