Updated over 7 years ago on . Most recent reply
Should I keep living at home or buy my own house?
I am 20 years old and I recently became a licensed real estate agent. I work part time as a roofer and I will continue until I have a solid client base. My goal is to buy a multifamily and live in one unit while I rent out the rest. Should I continue living at home for free or try to find a property and move out?
Most Popular Reply
@Jason Stoltzfus. Congratulations on the progress you've made.
I would ask - do you consider yourself "Financially Stable" - whatever that means to you? Are you making enough money to pay ALL YOUR BILLS: Rent, Automobile, Groceries, Insurance, other items necessary to establish yourself as an Independent person? Could you survive for for a period of time if you were unable to work everyday?
If you can honestly answer YES to most of these questions, and you feel you have the emotionally stability to continue making progress - then GO for it!
Becoming a Real Estate Agent can be very lucrative or it can be a large money sucking hole. Depending upon the RE Market in your area it can take some time to collect your first commissions, and establishing a successful and profitable RE Practice can take several years for most Agents. Don't spend the commissions before you get them or immediately thereafter. As a Commission only Sales Agent, you'll need to budget for your MLS Expenses, and other REALTOR Expenses, as well as Income Taxes and Self Employment Taxes. Self Employment Taxes will consume 15% of your commissions. Income Taxes will take another 15% - 25% dependent upon your Tax Bracket. This is before you've invested any money in your marketing for clients.
Two other major pieces of advice as a new real Estate Agent:
1. Invest in your most important Asset - YOU! Meaning don't hesitate to spend money WISELY on education and training. It was always amazed at some agents that would spend $2,000 for a "jazzed Up" computer, but would not spend $500 to attend an out-of-town training session that could produce many thousands of dollars in return.
2. Grasp the concept as a Self Employed Real Estate Agent - your success is UP TO YOU! You company and Broker can assist, but it's up to you to make it Happen!
As I was starting out and considering whether to join a large Company or a Smaller Company, an Experienced Agent said to me - "Jim, it doesn't matter whether you choose a small company or a large company - it's really all up to you"!
Good Luck and welcome to a great profession!