Real Estate Agent · Akron · Member since 2019 · 35 posts · 11 votes
Hello,
I am currently working about 65 hours a week and feeling a bit burnt out. On top of that I still haven't done my first deal and being the only household income, not saving enough to build up reserves and holding costs to make the first deal a smart move.
I was considering becoming a real estate agent. I believe if I hustled as much as I do at my current job, I could earn more and start investing sooner.
As far as I know the cons are-
- wholesaling is not so much an option due to not being ethical/ best interest of client? ( or are agents the only ones who can technically legally wholesale? Seems to be a grey zone.)
- having to disclose you're an agent?
-maybe losing the benefit of having an agent as another set of eyes/ experience?
Your cons aren't really cons as I see them, you absolutely can wholesale as an agent, yes you do need to disclose your intentions and your license to the seller but I see that as a pro because I have more options to offer them. I can list their home conventionally, list it on an auction site or wholesale the property, there are pros and cons for the seller for each option. Disclosing that you are an agent is a con, it's who I am and what I do so I don't have a problem letting people know. As an agent you will be working for a broker so you have a more experienced set of eyes to bounce every transaction off of, also there is no restriction to using an agent for your own transactions.
Some cons about becoming a Real Estate Agent: Fees: At least $2,000 per year in Association, MLS and Access Key Fees
90% of agents fail in their first year and/or don't make enough in commissions to cover their costs and living expenses.
Commission splits, you will need to share a portion of your commissions with your broker either a flat fee per transaction or a split up to 40%.
You don't get paid until a transaction closes. And many sales don't close for a variety of reasons that are out of your control.
The bulk of your appointments will be in the evenings and weekends so you won't get to spend as much time with your family.
Competition - there are a lot of agents out there and you will have to compete with everyone of them if you want to replace your income.
You should only become an agent if you love houses and sales. Also you need to handle other people's problems very well and have grace under stress and pressure.
Real Estate Agent · Akron · Member since 2019 · 35 posts · 11 votes
6y
@Tamara Deering
Thanks for the in-depth response. I will definitely look more into it. I believe I would succeed and it's exciting to not have a hard ceiling on potential income (also scary to not have a minimum income lol).
Do you get a W-2 if you work for a broker or is that still 1099? Would a agent who has a year or 2 of established success have a hard time refinancing investments if they aren't W-2?
Also, would you have a chance at success as an agent if you had a part time job (25 hours a week to maintain benefits/pension?)
Los Angeles, CA · Member since 2019 · 512 posts · 301 votes
6y
@Nicolas Ake your cons are very confusing. I think more research needs to be done. Are you in car sales by any chance? Just a hunch
Real Estate doesn’t take a big brain or a Harvard degree to become successful at it.
Do your research, however boring it may be, trust me it gets repetitive and boring, keep doing it. You’ll find out being an agent is knowing the details people don’t and having a good demeanor. That along with some hard work and one day not too far you’ll find yourself contemplating what to do with your extra time.