Hello, I am new to RE investing and Bigger Pockets.
Currently I am a senior at Howard University School of Architecture in DC. I will graduate in May 2017 and my career goal is to become a residential developer of both single-family and multi-family.
I am looking at how I can raise capital for my first deal(s). I intend to work full-time after graduation but I am also considering working as a real estate agent on nights and weekends.
My question is about working hours. Can I successfully work nights and weekends as an agent? I'm looking to at least raise the down payment for an FHA backed duplex from working as a part-time real estate agent. Thoughts?
@Sid Siddig I think anything is possible if you commit to making it work. Maybe if you limit the number clients you work with, or only provide referral leads to other agents.
I think if I had only nights and weekends to spare I would partner up with another agent who has the time to work with the leads you generate. Then the two of you could negotiate a referral fee amount.
most closings are going to be during the day time so if you are needed at the closing table you will be working a few hours during the day. weekends are when most open houses are done. its super rare that r.e. agents work at night unless you mean working in the office and putting things together for your client(s). If you get off work at 4pm and want to get into real estate work around 4:30 to 7pm that would be up to your broker. Its not like you will be showing homes hours after sun down. my coin.
Being a part time agent is hard. I was a part time agent for 10 years before becoming a full time agent. I think being a part time agent is a good way to slowly learn the industry, but I'm not sure it's he best sort of side hustle to save money for a down payment on a house. being an agent is more akin to running a business opposed to having a job. As a business this means you have overhead. I tell new agents to expect to spend at least $10,000 on business overhead in year 1.
So if your primary motivation is as a side hustle to save money, I think there are better routes to go.
@Russell Brazil You are correct in that I am looking for a side hustle to save money. What else would you recommend?
It's possible, but not ideal. I was still a student for the first couple of months while I was a part-time agent. I spent a lot of time lead-generating on weekends though(open houses, door-knocking, networking, etc.). A majority of people are going to want to meet after 4 on weekdays and a lot on weekends to look at houses anyways. I got two deals while still going to school full-time, and it helped me learn a lot about the business. I feel like my transition into going full-time was a lot easier than the people that were just diving straight into it.
The biggest thing you would need to focus on is finding business. It's the hardest thing about being an agent. Being young(since you're a student, I'm assuming you're in your early twenties), makes it even harder because your friends are most likely not buying houses for the next 5-10 years.
Just focus on building relationships and informing people that you're actively selling real estate as well. Work on weekends. In your off-time, study your market, read real-estate books, and preview the areas you plan on working in.
Like Russell said earlier, you should also be looking to spend thousands of dollars for marketing/office fees/signs/etc. It's not the best side-hustle job if you don't have the money set aside for these things.
It's hard but possible. I am a part-time agent with a fulltime job in the IT industry. Using technology helps a lot especially with my previous clients preferring to use text messaging as a way to communicate. Showing wasn't ever a problem for me since I get to work pretty early and is typically out of the office before my client to meet them for a showing on a weekday. Like with any second job you'll find yourself working long hours, but with real estate it's more flexible. The decision for me to become a part-time agent was that I was constantly looking at real estate anyways, so why not make some extra cash from it.
It’s possible, but it’s not so easy as it may seem. There are night classes and online classes that you can take to get your real estate license.It will take a lot of time to prepare for real estate exam, since it is not easy to pass.
Also remember that it’s very important to provide great service. If you have a desire, I’m sure you can handle it. For instance, you can join a team, which can help cover for you when you have to work your other job. The other way to become a successful part-time real estate agent is to be available most of the time.
It is absolutely a great idea and possible. The most expensive cost is the initial cost to become an agent. People who tell you that you have to have a certain amount of money to be an agent are mistaken. If you want to become a mega agent or have leads come to you, then yes you will need to have an advertising budget or an amazing sphere of influence. I am a part time agent (Still active duty military) and will gross over $100K GCI this year. When you are first starting out focus on being a buyers agent.
Real Estate License: Unknown, depends on your state and if you take online or sit in class.
Realtor Union Dues: Can be avoided if you go to a brokerage that does not force you to pay them.
Brokerage Fees: Depends on brokerage (there are brokerages that you only pay when you close a transaction)
Open House signs: Buy them after your first deal if you are low on cash. If not make some, go down to one of the tech colleges that has woodworking and ask them if you provide the wood can they make you some signs.
Advertising: $0... Use Social media; word of mouth; Going to events and talking to folks is free, just cost you gas money.
Lead Generation: $0 - $200....... Do open houses for other agents (Free, only cost is gas and time); Door Knocking targeted neighborhoods (Minor; Business cards/Door hangers); Sphere of Influence - Make sure you let everybody know what it is that you do (Somebody will use you); Go to free events and just talk to folks about real estate (YOU WILL GET CLIENTS); Use biggerpockets - by staying active and answering questions on this website (YOU WILL GET CLIENTS).
If you sell one house a year as an agent it pays for itself. Be smart with your money, the wolves will come out of everywhere telling you that you have to have this program to be successful. ********!, you only need you to be successful.
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