I currently work at a bank. I am in the process of getting my RE license. Being a full time bank employee does not allow you to hold a RE license, so I will be leaving to do what I really want to do ( Real estate) . My goal is to get into Real estate as an agent first, learn and good money through hustle/ long hours. Then I can invest into my own personal investment property's that produce cashflow.
With that said I know it can be a bumpy road when just starting out as it is only commission. My question is, do you know of any ways to make money in real estate while waiting for listing's to pick up?
Leaving is going to completly cut off my income. I have saved funds to make the switch. But I do not want to blow through them trying to get off the ground if possible. I know this is very similar to starting your own business and some fail.
I have heard of property management and doing rentals for income as an agent but I would like to learn more. If you have experience I would really like to hear your advice.
You may want to look into being a buyer's agent for a successful agent in your area. Find one that works with investors or who may have investor lists they need worked. Most buyer agent agreements require you to split your commissions with your agent but they also typically pick up most or all of your business expenses. Doing this for a year could get you some good experience and make some great connections.
Alternatively, you could look at fee for service brokerages. You have to be careful though, because MLS access usually comes with membership to a Realtor's association and certain associations have restrictions around fee for service agents. I would talk to your local Realtors association and see what they say. It varies from state to state and association to association.
Good luck and congrats on making the leap!
Jon Deavers, Real Estate Agent in VA (#0225213131)
- Hometown Realty
My real estate instructor (for when I was getting my license) told our class of 50 to look around. She said, "Look around at everyone in this room. 80% of you won't be in this business a year from now. The remaining 20%... 90% of you won't be in this business two years from now). So... that leaves you with 2 people out of 50 after two years. Yikes!
Jon had a great suggestion... work as a buyer's agent. Heck, just work for a top-producing agent doing anything you can! Learn the business.
If you just want to go at it on your own, I suggest using the Post Office's Every Door Direct Mail (EDDM) and pick a farm area and mail postcards offering a free home seller's guide. This WILL get you leads. They may not be ready today, but you never know what tomorrow brings unless you... follow up! <---See the key word? FOLLOW UP.
Just don't be like the majority of the agents who are just sitting around, picking their noses, waiting for the phone to ring. Take action!
Jon's advice about joining a successful team is a great idea.
Also, if you want to stick it out on your own I would suggest picking up any work other realtors don't want. For instance, if another realtor has a potential client but maybe they are looking at cheaper houses than that agent usually deals with, ask them if you can take that client and pay them a referral fee. Same goes for listings or clients that are more needy. It might seem like a headache but it's business you didn't have before so who cares.
Also, ask more busy realtors if you can hold open houses on their listings. Most of the time they are going to say yes. This will put you in front of buyers and sellers as well as open up opportunities for you when promoting the open houses.
Just put yourself out there and let it be known that you are a realtor and you will get business. You have to plant seeds before anything can grow. Good luck!
Jim Wilson, Real Estate Agent in NY (#10401255054)
All good suggestions. I would also recommend you become licensed and work as an Agent BEFORE quitting your job.
I'm a firm believer that all agents should start part time. The risk of failure is far to great. Being undercapitalized will only increase your failure risk.
Also you stated you want to invest in your own Real Estate. Quitting a w2 job means banks are not going to loan you any money for at least 2 years.
My job will not allow me to do Real estate. I am a personal banker and it is considered a conflict of interest. With that said my income is to small to scale my investments ( 33K ) plans so I need to find something more lucrative to do.
That is the scary fact that is bothering me about making this transition.
What would be the best way to find a team to join?
Yes I am certain. I spoke to the VP about it.
I saw your prior response after I clicked reply.
I would recommend at least taking the classes and test before leaving your job. There is no conflict of interest to taking classes during your personal time.
@Chris Lynch. I noticed you're in R.I. I'm not sure what the market is like there but here in Boston, it is crazy hot. I started about 2 years ago and I've been non-stop. What helped me was doing rentals while I prospect for sellers. Rentals are like hitting singles, not thrilling but you get great experience with bringing a deal full circle. Working with experienced agents also helped me learn the ropes faster. Don't try to reinvent the wheel, just set a goal, devise a plan, and follow it. Opportunity will find you if you are positive and genuinely want to help other people succeed. But ya man, rentals (if your market allows for it). All the best - Pete
Pete Schwan, Real Estate Agent in MA (#9553403)
As someone who transitioned from the financial sector to the real estate world, you have a huge advantage. Namely, you are accustomed to putting in the hours, and understand timely communication.
Showing-up and Following-up are going to get you through the hurdles. There is a lot of opportunity in real estate for those who are willing to network and create value for their clients.
Good luck and keep us posted.
I recommend a part time job to go along with real estate. bartend or a security job late at night, you need some w-2 income.
one tip I can add to the list. everyone hands out business cards, but when you do insist on getting one in return, this will help build your circle of friends and associates. one other thing I like to do, once you have a client list, contact a local business and see if there running any specials, then get a copy of it and blast it out to your email list. individuals get tired of emails letting them know your a realtor every month, if you can give them something they will remember you more.
That is great, how long did it take you to start making income from rentals from your start date, and do you feel it is likely to make more then I am making now (33K) first year?
@Chris Lynch I was unaware of this conflict of interest. I would recommend a part time job. Perhaps bartender or waiter. Both will put needed money in your pocket & give you networking opportunities.
@Chris Lynch "Yes I am certain. I spoke to the VP about it."
You get it in writing?
New Agents usually start with Rentals AND FSBOs.
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