Where's the Money in Being An Agent?
Most Popular Reply
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
11yThe reality is no matter the profession chosen the strong not only survive but thrive to heights not reached by many. Decide what you are passionate about taking the money out of the equation and make the decision to be the best at it.
Most people in life are just mediocre. Mediocre eeks you out a living. Mediocre makes you just a number. Mediocre let's you set low goals and not challenge yourself to see what REALLY is possible.
Being mediocre is a CHOICE. Most people see the success but they do not see the hard work behind the success. They want a quick buck with little effort. Some of the greatest achievers I have read about in books and watched documentaries on failed and fell flat on their face many times. They never gave up. It is tough. You will be challenged everyday to get better.
74 Replies
- Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes11y
Depends on how much you are selling. I know plenty of agents that make multiple 6 figures, but they work their asses off and that's definitely not the norm. Most agents dont make much, but they also dont treat it like a bu
Depends some on you market. Hard to make much selling $60k houses at 2-3%, pretty easy selling $600k houses at 2-3%.
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Darrell Shepherd:
Depends on how much you are selling. I know plenty of agents that make multiple 6 figures, but they work their asses off and that's definitely not the norm. Most agents dont make much, but they also dont treat it like a bu
Depends some on you market. Hard to make much selling $60k houses at 2-3%, pretty easy selling $600k houses at 2-3%.
That makes sense. The market does play a huge role! I consistently hear of agents not making that much, could be as you said that they're not treating it as their business. Great insight! Thank You!
- Real Estate Broker · Pueblo, CO · Member since 2013 · 368 posts · 303 votes11y
Hi, it depends on your goals.
I've had my license for 7 months and had 2 buyers close and had 2 listings just go on the market. I work 40 hours a week besides that and have 5 rental units I manage.
My goal is to attain passive income. I got my license so I could turn all leads in to $$$.
- Investor · Indianapolis, IN · Member since 2009 · 178 posts · 26 votes11y
I recommend getting a real estate license. You have so many different ways you can monetize your leads..
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes11y
Top 20% do something like 80% of the sales volume.
If you put in the time selling 30+ homes a year is very doable.
- 11yZach SikesBusiness MemberResidential Real Estate Broker · Edmond, OK · Member since 2011 · 452 posts · 183 votes
If you are only selling 10-15 houses a year, there is not much money in it. The fixed costs are just so high. We don't really start making any money for ourselves until we hit about 5 million in sales. We probably spend $100k on business expenses and splits every year, although our office caps our split a very fair amount.
Are you thinking about becoming an agent or just trying to get some clarification?
HCO Leasing4.198 Reviews
Homestead & Co4.9172 Reviews - Miami, FL · Member since 2010 · 16 posts · 13 votes11y
Johnny,
As in every other career, you can be very successful as a Real Estate Agent if you are passionate, persistent and dedicated to the profession. Being a Realtor is not for the faint of heart. If you think a Doctor is the only career where you work 24/7 than you are in for a rude awakening.
I've seen Realtors easily make over 100k. It's tough when you first start out. Basically you have to let everyone you know in your SOI (Sphere of Influence) that you are in Real Estate and continuously remind them with all that you do (i.e. open houses, listings, closed sales, etc). With social media these days it makes things a lot easier but that's not enough. You have to pound the pavement, knock on doors, send out postcards, hold open houses for other agents under your broker until you start making money. Eventually after a year or two you will start getting referrals and that's when your career starts to take off.
I know agents that are very successful and its only because they have been at it for 10 to 15 years. If you love helping people sell their homes or find that perfect home than you are going to enjoy this career no matter how gut wrenching it can be. No one prepares you for how emotional of a transaction this can be for buyers and sellers. Be ready for that!
The great thing about being a Realtor is you can make as little or as much as you want depending how hard you work at it. If you are the type of person that will knock on a FBSO and introduce yourself every time you see one and be persistent enough to keep coming back for 10 weeks until they list with you (and they will)...then you will make a killing.
Good luck brother!
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Chris Pasternak:
Hi, it depends on your goals.
I've had my license for 7 months and had 2 buyers close and had 2 listings just go on the market. I work 40 hours a week besides that and have 5 rental units I manage.
My goal is to attain passive income. I got my license so I could turn all leads in to $$$.
That's excellent! Keep up the hard work! That is my goal as well, but before attaining passive income I need a career to support my investments and that's why I am considering being an agent.
Thank you!
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Armond Wright:
I recommend getting a real estate license. You have so many different ways you can monetize your leads..
That's a very good point so many avenues to get into in real estate!
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @James Wise:
Top 20% do something like 80% of the sales volume.
If you put in the time selling 30+ homes a year is very doable.
That is encouraging to hear! I hear that statistic a lot and it would make sense that in most businesses it's like that. I guess it's just having that persistence to get into the top 20%!
Thank you!
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Zach Sikes:
If you are only selling 10-15 houses a year, there is not much money in it. The fixed costs are just so high. We don't really start making any money for ourselves until we hit about 5 million in sales. We probably spend $100k on business expenses and splits every year, although our office caps our split a very fair amount.
Are you thinking about becoming an agent or just trying to get some clarification?
Okay that's what I was thinking, I'm glad my thinking wasn't completely wrong. Selling only 10-15 houses like you said doesn't seem like it would support someone very well. However the stories I hear is that it's very tough to even sell 8 houses a year! Let alone the 20-30 to make a better living. Once you hit the 5 million does it get easier to make that same mark every year?
Yes I am planning on getting my license by the end of the year. I want to start a career so I can start saving money to invest in buy and hold rentals. I thought what a better way to do that than to be in the business selling houses!
Thank You!
Johnny
- 11yZach SikesBusiness MemberResidential Real Estate Broker · Edmond, OK · Member since 2011 · 452 posts · 183 votes
You and I had the same thought. It's possible to do - I hit the 6 million mark 2 years in, and haven't looked back. We've been extremely blessed. If you work hard and do what works, it's very possible. Most realtors don't succeed because they don't want to do the simple things or they are lazy.
HCO Leasing4.198 ReviewsHomestead & Co4.9172 Reviews - CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Eddie Hernandez:
Johnny,
As in every other career, you can be very successful as a Real Estate Agent if you are passionate, persistent and dedicated to the profession. Being a Realtor is not for the faint of heart. If you think a Doctor is the only career where you work 24/7 than you are in for a rude awakening.
I've seen Realtors easily make over 100k. It's tough when you first start out. Basically you have to let everyone you know in your SOI (Sphere of Influence) that you are in Real Estate and continuously remind them with all that you do (i.e. open houses, listings, closed sales, etc). With social media these days it makes things a lot easier but that's not enough. You have to pound the pavement, knock on doors, send out postcards, hold open houses for other agents under your broker until you start making money. Eventually after a year or two you will start getting referrals and that's when your career starts to take off.
I know agents that are very successful and its only because they have been at it for 10 to 15 years. If you love helping people sell their homes or find that perfect home than you are going to enjoy this career no matter how gut wrenching it can be. No one prepares you for how emotional of a transaction this can be for buyers and sellers. Be ready for that!
The great thing about being a Realtor is you can make as little or as much as you want depending how hard you work at it. If you are the type of person that will knock on a FBSO and introduce yourself every time you see one and be persistent enough to keep coming back for 10 weeks until they list with you (and they will)...then you will make a killing.
Good luck brother!
That is what I'm a little worried about, these agents put in so much work working 24/7 for a mediocre income. It doesn't sound very enticing.
That's great advice, I need to get out and put in the miles and do anything I can to let everyone know that I am in real estate. I guess referrals are the name if the game!
I understand it's going to take some time and time is on my side being younger but surviving those first years sounds like it can be quite a challenge! With determination and persistence it is possible however!
That's the aspect I like is that I can determine my income really by how hard I work! Great advice! Thanks so much for your time and insight! Greatly appreciated!
Johnny Lujan
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Zach Sikes:
You and I had the same thought. It's possible to do - I hit the 6 million mark 2 years in, and haven't looked back. We've been extremely blessed. If you work hard and do what works, it's very possible. Most realtors don't succeed because they don't want to do the simple things or they are lazy.
Wow that's awesome! That's actually what I like to hear is that most realtors don't succeed because they're lazy. I'd much rather it depend in the person than the business. In my opinion it's much better to control the outcome of the business if it's in your hands. Very nice to hear advice from a successful realtor as yourself!
Thank you!
Johnny Lujan
- Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes11y
Becoming a successful agent is a lot like networking on bigger pockets.
How many times do we all see people who come on the site and make a few posts looking for potential partners then later they disappear?
Last year I purchased over $1,000,000 in real estate via J.V. partnerships with bigger pockets members. I also sell & manage many more properties for members of bigger pockets.
Take a look at my post count. It's not a coincidence that I found these other members to purchase these properties with me or have my company manage them.
I met these members through persistence. Grinding it out every single day. Providing quality content, updates about my market and welcoming newbie after newbie that has a dream to get involved in the industry.
- 11yJonathan Taylor SmithBusiness MemberRental Property Investor · Durham / Raleigh (Triangle), NC · Member since 2015 · 841 posts · 802 votes
I just got my NC-RE license last week. I initially decided to do so to get more insight into the industry and learn the buy/sell process, to be able to show myself properties, and to lower my costs as an investor. However the more I learned about the business, the more intrigued I became with the ideal of being an agent - to the point that I am interviewing firms over the next few weeks to see where may be the best fit and start my training. I'm confident that I will do well and I'm generally not concerned about the failures of others (but seek to learn from their mistakes). So I would say it all depends on what you know of yourself... your willingness to put in the work, even if that means 16 hour days... and are you easy to quit and give up when things get hard or at your first encountered setback? 6 figure success is not easy in any industry or that would be the industry that everyone is in.
Blue Chariot Realty & Management4.915 Reviews - Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes11y
The reality is no matter the profession chosen the strong not only survive but thrive to heights not reached by many. Decide what you are passionate about taking the money out of the equation and make the decision to be the best at it.
Most people in life are just mediocre. Mediocre eeks you out a living. Mediocre makes you just a number. Mediocre let's you set low goals and not challenge yourself to see what REALLY is possible.
Being mediocre is a CHOICE. Most people see the success but they do not see the hard work behind the success. They want a quick buck with little effort. Some of the greatest achievers I have read about in books and watched documentaries on failed and fell flat on their face many times. They never gave up. It is tough. You will be challenged everyday to get better.
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @James Wise:
Becoming a successful agent is a lot like networking on bigger pockets.
How many times do we all see people who come on the site and make a few posts looking for potential partners then later they disappear?
Last year I purchased over $1,000,000 in real estate via J.V. partnerships with bigger pockets members. I also sell & manage many more properties for members of bigger pockets.
Take a look at my post count. It's not a coincidence that I found these other members to purchase these properties with me or have my company manage them.
I met these members through persistence. Grinding it out every single day. Providing quality content, updates about my market and welcoming newbie after newbie that has a dream to get involved in the industry.
That is a good analogy! You see many people on the site that like you said post a few times and disappear. There are others that only read and never get involved and there are those that are well known and consistent. Same goes with being an agent like you said. Great point!
Those points make sense, great advice James! It's all about networking and persistence is what I get from it!
Thank you!
Johnny Lujan
- CO · Member since 2014 · 166 posts · 44 votes11y
Originally posted by @Joel Owens:
The reality is no matter the profession chosen the strong not only survive but thrive to heights not reached by many. Decide what you are passionate about taking the money out of the equation and make the decision to be the best at it.
Most people in life are just mediocre. Mediocre eeks you out a living. Mediocre makes you just a number. Mediocre let's you set low goals and not challenge yourself to see what REALLY is possible.
Being mediocre is a CHOICE. Most people see the success but they do not see the hard work behind the success. They want a quick buck with little effort. Some of the greatest achievers I have read about in books and watched documentaries on failed and fell flat on their face many times. They never gave up. It is tough. You will be challenged everyday to get better.
Very true, there's no thin line between being mediocre and great! I am very passionate about business and real estate I just wanted to make sure that it will support myself and a family and of course it will with enough hardwork just have some fears like everyone else I gues.
I think most people choose mediocre because it is easy. It takes hard work to be great, to be the best we possibly can and I like that aspect of the business.
Great advice! Something never came from nothing, I have to put in the hustle and the hardwork CUZ ultimately that's the recipe for success. Have to choose to not be mediocre! Thank you!!
Johnny Lujan
- Residential Real Estate Agent · Cleveland, OH · Member since 2008 · 579 posts · 225 votes11y
I remember hearing the average agent makes like $35,000/year.
Look at the agents who have "teams." They're the ones making a killing. They have buyer's agents and selling agents. They have an office manager.
That's the way to make the big bucks.
- Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes11y
Originally posted by @David Hunter:
I remember hearing the average agent makes like $35,000/year.
Look at the agents who have "teams." They're the ones making a killing. They have buyer's agents and selling agents. They have an office manager.
That's the way to make the big bucks.
Right on. The average agent makes just under $40,000 a year now. The reason is many agents are part-time and most of the agents who are full-time don't know how to run a business or make themselves do what it takes to succeed.
The awesome part about being an agent is when you get to a certain level it is not all about working as many hours as possible to make as much money as possible. It is about leveraging your time by hiring staff and other agents to sell for you. I have 9 people on my team now with 6 licensed agents. It used to be all me selling 150 to 200 houses a year and now I sell about half that and make more money thanks to my team.
I heard the 80/20 analogy and it seems more like 95/5 to me as far as 5% of the agents make 95% of the money. A small number of agents make the money because only a small number of people take the time to plan their business, train themselves and keep working hard when times are tough.
- Residential Real Estate Agent · Cleveland, OH · Member since 2008 · 579 posts · 225 votes11y
Originally posted by @Mark Ferguson:
Originally posted by @David Hunter:
I remember hearing the average agent makes like $35,000/year.
Look at the agents who have "teams." They're the ones making a killing. They have buyer's agents and selling agents. They have an office manager.
That's the way to make the big bucks.
I heard the 80/20 analogy and it seems more like 95/5 to me as far as 5% of the agents make 95% of the money. A small number of agents make the money because only a small number of people take the time to plan their business, train themselves and keep working hard when times are tough.
I always said it was 90/10. But, you're probably right... 95/5.
When I was active, I would meet new agents who came to the office everyday. They were excited to be there and did whatever on the computers and their phones. Big smiles on their faces dreaming of all the money they are going to make.
Then, I'd see them a few times a week. Motivation decreasing, but still a little smile on their faces.
Then, I'd see them once a week... once every two weeks.
Then... I'd get an email from LinkedIn that said, "Congratulate So-&-So on their new job!" ha
- Stockbridge, GA · Member since 2015 · 159 posts · 33 votes11y
There are some benefits with being an agent. As for as the money is concern, that is another story. You can find ways to make money, though by become a real estate trainer.
- Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes11y
Originally posted by @David Hunter:
Originally posted by @Mark Ferguson:
Originally posted by @David Hunter:
I remember hearing the average agent makes like $35,000/year.
Look at the agents who have "teams." They're the ones making a killing. They have buyer's agents and selling agents. They have an office manager.
That's the way to make the big bucks.
I heard the 80/20 analogy and it seems more like 95/5 to me as far as 5% of the agents make 95% of the money. A small number of agents make the money because only a small number of people take the time to plan their business, train themselves and keep working hard when times are tough.
I always said it was 90/10. But, you're probably right... 95/5.
When I was active, I would meet new agents who came to the office everyday. They were excited to be there and did whatever on the computers and their phones. Big smiles on their faces dreaming of all the money they are going to make.
Then, I'd see them a few times a week. Motivation decreasing, but still a little smile on their faces.
Then, I'd see them once a week... once every two weeks.
Then... I'd get an email from LinkedIn that said, "Congratulate So-&-So on their new job!" ha
very true. It is not a job you can sit at your desk at and hope something comes to you. I know many new agents that get stuck taking classes and learning for months before they will even talk to anyone.
- Investor · Edgewood, MD · Member since 2015 · 13 posts · 7 votes11y
Real Estate is like any other career you get out what you put in. I got my license in March 17 2015 and I had my savings and checking accounts in -350 dollars. Since then and as a newbie, I have been able to put 25k in my bank account, I have two properties under contract and Wholesaled one with the help of an attorney. I'm currently in the process of negotiate a 15k commission deal. So don't pay attention to others failures and focus on what your goals are. Good Luck!!!!
@Johnny L.undefined
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