What did you do for money when starting out as an RE Agent

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What did you do for money when starting out as an RE Agent

Paul Aqua
Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes

Hello there! I will have my RE License soon and I am aware it'll probably be around 60 days before I get my first commission after being licensed ( I am in a hot market and already have several people interested in listing their homes with me). I currently just left my current job though I am starting another one at the beginning of next month. I just wanted to know what people did while they were waiting for their first commission check and when did they decide to do real estate fulltime.

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Russell BrazilBusiness Member
Moderator
Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
8y

@Paul Aqua

If you are able to get listings, then you can close deals quicker in a hot market. If you are working with buyers, it is the exact opposite.  Working a hot market is an advanced skill, and will take considerably longer and more effort until you have the proper skills to do so.

If you are relying on leads from your brokerage, you will fail. Brokerages have crap leads. Teams have hot leads.  If you rely on leads from your brokerage, you wont be in the business in a year. 87% wash out rate for the profession.  And of those that do not wash out, 90% are just scraping by while 10% do about 90% of all the business.

Generate your own leads, and never stop generating.

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  • James C.
    Rockledge, FL 路 Member since 2016 路 493 posts 路 427 votes
    8y

    Paul, 

    I got in about the same point in the market cycle as we are now in a super rural state. 

    I threw a newspaper route (actually 3 of them) for the local paper during the week. I also taught computers, networking and Internet courses at a local junior college.  

    Once I got about a year in, I picked up doing BPO's, which got me listing for MGIC. From there, property preservation, and a few other clients for REO work. Property preservation and clean out followed, then onto purchasing NPN.

    Dropped the newspaper thing about 3 years in. The newspaper routes were my farm. I kept teaching because I liked it. 

    The non-listing bits were all over and above the regular client listing and selling stuff.

    Hope that helps.

    Good luck,

    Jim 

    1Reply
  • Zach SikesBusiness Member
    Residential Real Estate Broker 路 Edmond, OK 路 Member since 2011 路 452 posts 路 183 votes
    8y

    Hi @Paul Aqua!

    We鈥檝e had new agents work part time morning jobs so they can hit afternoon, evening, and weekend appointments. We鈥檝e had people bartend. We鈥檝e even had people uber/lyft so it could match their work schedule. It really just depends what options you have available, and work with what you have. 

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  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y

    Nice I like the responses, My game plan as of now is to get my insurance license as well and I would basically sell insurance in between real estate commission checks. Plus the benefit that I can sell insurance to people I get to buy a home. 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    8y

    I dont want to scare you away from the profession.....but I would not count on 60 days til your first paycheck.  It is not unusual for a new agent to take 6 months to a year to close their first deal.

    If you do want to close deals sooner....probably the best way is to join a high producing team. They will likely having you close deals much much sooner, and give you great training.  The caveat is they will likely only pay you between 40-60% of the commission you generate.

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  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y

    @Russell Brazil I am fairly confident in my ability to pitch and close a sale. It does help the area I am interested in working in ( Eastern Sacramento-Folsom California) is white hot. I do understand it won't be easy and I won't be selling 10 homes a month, but I've already started gathering clientele so I am not to concerned about my first paycheck I merely wanted to know what others did while they started establishing themselves.  While I did interview with several teams I decided it was best to pass on it, I decided to go for a brokerage that could supply leads and my commission split will be 80/20.  At the same time in my area the average home is selling for roughly 385,000 so I am not to concerned even if it took me 2 months to get my  check as that is a little over 9,000 dollars per home. 

    0Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    8y

    I was-and still am in the machine gun business. I even added a page to my machine gun website for real estate but so far, haven't sold a combo of the two to anyone:) I was also into legal loan-sharking--304% APR in Florida. I was also in payday advances and the jewelry business. Both of those were terrible but maybe I just wasn't smart enough to make money at them.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    8y

    @Paul Aqua

    If you are able to get listings, then you can close deals quicker in a hot market. If you are working with buyers, it is the exact opposite.  Working a hot market is an advanced skill, and will take considerably longer and more effort until you have the proper skills to do so.

    If you are relying on leads from your brokerage, you will fail. Brokerages have crap leads. Teams have hot leads.  If you rely on leads from your brokerage, you wont be in the business in a year. 87% wash out rate for the profession.  And of those that do not wash out, 90% are just scraping by while 10% do about 90% of all the business.

    Generate your own leads, and never stop generating.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    8Reply
  • David Hunter
    Residential Real Estate Agent 路 Cleveland, OH 路 Member since 2008 路 579 posts 路 225 votes
    8y

    I was just trying to do real estate full time when I started.  Got 3 listings... money started to dry up.  Got a part time job, then after 6 months of not selling anything I was out of business.  haha  But, I did get back into it working with a top real estate agent for 6.5 years (guaranteed pay!).

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y

    @Russell Brazil Thanks for the advice. I am extremely confident in my ability. Who knows maybe I fail miserably maybe I kill it and sell 30 homes a year  but I know I will never know unless try. I never said I was depending solely on my broker for leads all I said was I opted out of joining a team in favor for higher commission as well as getting leads supplied on top of that I will also be paying substantially less in fees. Being apart of a team is great for alot of people at this point I don't think it will be a great fit for me at this time but the great thing is I can always join a team later on down the road. Like I said I am looking at being a listing agent for the most part not a buyer agent. Since you don't know me I will let the comments slide but I KNOW WHAT I AM CAPABLE OF.

    0Reply
  • Clancy Catelli
    Real Estate Agent 路 Sequim, WA 路 Member since 2017 路 64 posts 路 39 votes
    8y

    It took me about 3 months to close my first deal but it was just a cheap vacant lot, about $1800 commission. Then the next one took about 4 more months and that was a $700k house that a friend was selling, maid around $10k, then it just became more stable and deals start to flow in slowy. I don't do any kind of advertising or office work. Pretty much fly solo and do other stuff like flip houses to stay busy. But I dont see why you couldn't do round $30-$40k your first year just by working your inner circle of friends and families

    1Reply
  • Ola Dantis
    Multifamily Syndicator 路 Houston, TX 路 Member since 2016 路 1k+ posts 路 2k+ votes
    8y

    @Paul Aqua Congrats Paul. 馃帀 You are a super hot market for sure!

    Use the "free" time to learn how to feed your pipeline with leads. As an agent, you should always think of how to add value by solving people's issues and making them feel good about you and your brand (I never said your brokerage). 

    So, use this time wisely to learn how to be a successful agent. 

    Hope this helps, Paul. Goodluck. Thanks! - Ola

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y
    Originally posted by @Ola Dantis:

    @Paul Aqua Congrats Paul. 馃帀 You are a super hot market for sure!

    Use the "free" time to learn how to feed your pipeline with leads. As an agent, you should always think of how to add value by solving people's issues and making them feel good about you and your brand (I never said your brokerage). 

    So, use this time wisely to learn how to be a successful agent. 

    Hope this helps, Paul. Goodluck. Thanks! - Ola

     Thanks Ola, I have been to several seminars that have empathized on how important it is to build your own brand rather than attempt to let your brokerages name carry you to success ( it doesn't work that way). I appreciate your kind words!  

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y
    Originally posted by @Clancy Catelli:

    It took me about 3 months to close my first deal but it was just a cheap vacant lot, about $1800 commission. Then the next one took about 4 more months and that was a $700k house that a friend was selling, maid around $10k, then it just became more stable and deals start to flow in slowy. I don't do any kind of advertising or office work. Pretty much fly solo and do other stuff like flip houses to stay busy. But I dont see why you couldn't do round $30-$40k your first year just by working your inner circle of friends and families

    While I am not opposed to reaching out to family and friends, I do have large plans for real estate and have already starting allocating funds for advertisment and other things. I would definitely hope I make more 30K  ( thats roughly 3 homes off a 80/20 split). With homes in some areas selling as fast as every 8 days I am hoping to sell a home every 45 days.

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y
    Originally posted by @John Thedford:

    I was-and still am in the machine gun business. I even added a page to my machine gun website for real estate but so far, haven't sold a combo of the two to anyone:) I was also into legal loan-sharking--304% APR in Florida. I was also in payday advances and the jewelry business. Both of those were terrible but maybe I just wasn't smart enough to make money at them.

     Interesting, I don't know much about the gun business but I do find it interesting. I actually am going to use most of my commission check towards getting a duplex I can rent out ( Out of California of course). Though maybe I will get into an actual store front business sooner than later.

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y
    Originally posted by @David Hunter:

    I was just trying to do real estate full time when I started.  Got 3 listings... money started to dry up.  Got a part time job, then after 6 months of not selling anything I was out of business.  haha  But, I did get back into it working with a top real estate agent for 6.5 years (guaranteed pay!).

     I see that Cleveland has been a gold mine when it comes to multifamily properties, I see a decent amount of deals in ohio ( atleast compared to california lol) I  am glad everything ended up working out good for you :). How did you get guranteed pay being a real estate agent?

    0Reply
  • John Thedford
    Real Estate Broker 路 Naples, FL 路 Member since 2013 路 9k+ posts 路 6k+ votes
    8y
    Originally posted by @Paul Aqua:
    Originally posted by @John Thedford:

    I was-and still am in the machine gun business. I even added a page to my machine gun website for real estate but so far, haven't sold a combo of the two to anyone:) I was also into legal loan-sharking--304% APR in Florida. I was also in payday advances and the jewelry business. Both of those were terrible but maybe I just wasn't smart enough to make money at them.

     Interesting, I don't know much about the gun business but I do find it interesting. I actually am going to use most of my commission check towards getting a duplex I can rent out ( Out of California of course). Though maybe I will get into an actual store front business sooner than later.

     For the most part, they are not legal in CA. They appreciate about 15% per anum. I don't have a retail store tying me down. I haven't seen any other BP members that sell them, but have run into some that owned them.

    0Reply
  • James W.
    Minneapolis, MN 路 Member since 2017 路 353 posts 路 223 votes
    8y

    It is good that you have some leads starting out, but I would be more worried about how you are going to generate more leads over time.  I know a few people who did well when they started as the had friends/family looking to buy or sell, but most people are not looking to buy every year so it will be a bit of work to continually get new people.  It seems like just about everyone has a friend or knows someone who is a realtor.

    0Reply
  • David Hunter
    Residential Real Estate Agent 路 Cleveland, OH 路 Member since 2008 路 579 posts 路 225 votes
    8y

    Guaranteed pay because I worked for a top agent.  Hourly plus commission, so guaranteed!   :-)

    0Reply
  • Christopher Phillips
    Real Estate Agent 路 Garden City, NY 路 Member since 2016 路 3k+ posts 路 1k+ votes
    8y

    @Paul Aqua

    Sounds like you're off to a good start.

    Hardest thing for new agents is having initiative. Many people coming off of 9 to 5 jobs have spent so much time being told what and how to do things that learning to be self driven is difficult. Don't wait for someone to show you something. Fail forward and learn as you go.

    Typically, for every home you sell, you should pick up two more. There are a couple of ways this can happen. As soon as you list a property, immediately call the neighborhood or door knock and let people know you just listed the property. Do the same to invite people to the open houses. Then do the same when under contract. Do the same when it closes. Start asking for referrals form the sellers when you sign the listing agreements. Ask neighbors for referrals: it's a great neighborhood, do you know anyone that is thinking about selling or buying real estate? Make sure you also run ads on Facebook and craigslist.

    Somewhere in there, you'll pick up other listings. Then rinse and repeat for each.

    1Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y
    Originally posted by @Christopher Phillips:

    @Paul Aqua

    Sounds like you're off to a good start.

    Hardest thing for new agents is having initiative. Many people coming off of 9 to 5 jobs have spent so much time being told what and how to do things that learning to be self driven is difficult. Don't wait for someone to show you something. Fail forward and learn as you go.

    Typically, for every home you sell, you should pick up two more. There are a couple of ways this can happen. As soon as you list a property, immediately call the neighborhood or door knock and let people know you just listed the property. Do the same to invite people to the open houses. Then do the same when under contract. Do the same when it closes. Start asking for referrals form the sellers when you sign the listing agreements. Ask neighbors for referrals: it's a great neighborhood, do you know anyone that is thinking about selling or buying real estate? Make sure you also run ads on Facebook and craigslist.

    Somewhere in there, you'll pick up other listings. Then rinse and repeat for each.

     I appreciate the kind words. I have heard stories of people starting off strong ( listing 4 or 5 homes in their first two months) and for whatever reason They are unable to to continue that success down the road. While here in my market selling 4-5 homes still gets you by ( depends on what you split is but anywhere from 27,000-45,000 a year before taxes and expenses) I obviously want to do substantially more than that 

    1Reply
  • Christopher Phillips
    Real Estate Agent 路 Garden City, NY 路 Member since 2016 路 3k+ posts 路 1k+ votes
    8y

    @Paul Aqua

    Yes. I鈥檝e seen some people that start with a listing or a buyer from personal contacts and then never see them again. Really comes down to lead generation. As a buyer or an investor, people need to have a daily method of generating new leads. People that refuse to do lead generation or let themselves get tied up in a 9 to 5 instead of building their business fall away from RE.

    0Reply
  • Ian R.
    Real Estate Investor 路 San Antonio, TX 路 Member since 2016 路 143 posts 路 167 votes
    8y

    @Paul Aqua I think you're brushing off some really excellent advice that @Russell Brazil just gave you. I always recommend that new agents start with a team. Yes, the splits are lower but if you're with a high-producing team, you'll more than make up for that in volume. And most importantly, you'll get invaluable training from other more experienced agents. Once you're on your feet and you're starting to generate your own leads of referrals from past clients, then that would be a good time to go on your own. I would also humbly suggest that you not decide to just focus on being a listing agent right out the gate. Almost all agents start as buyers agents first, then graduate to listings once they've become established in the business. A great agent that provides excellent service should be well-versed in working both sides of a deal. Your enthusiasm and confidence are to be commended but also keep in mind that most of the people on these boards have been in this business for decades. They just might know a thing or two that could benefit you.

    Best of luck in your new career 

    1Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y

    @Ian R. I understand it is good advice and I also understand a large amount of agents leave the business due not finding success. While I am most likely not going to join a real estate team I have found a real estate mentor who has been coaching me and helping me network and learn how to grow leads on my own. I am not going to just be a listing agent, ultimately money is money regardless if it is as a listing agent or buyer agent :). I also understand you guys have experience. I appreciate all the advice but I merely just wanted to know what people did for money while they waited for their real estate business was building. I have also built up a network of more experienced agents that have offered to let me assist on several of their deals. Aside from that I have already have begun getting interest from the various leads I have gathered. So I am not starting off with nothing. I understand what russell was trying to say but he strayed away from what the topic of this forum was.

    0Reply
  • Rob Gillespie
    Specialist 路 Cleveland, OH 路 Member since 2011 路 1k+ posts 路 852 votes
    8y

    Hey Paul,

    Keep filling that pipeline!!! Go do more deals and keep sluggin through and never let the well go dry again!

    Do some part time work doing BPO's for your broker, perhaps find some California buyers that wanna buy rentals in Cleveland or other midwest cities and bring them to investors out here. you can get a quick cash closing which will get ya cash faster!

    Its not easy, but it is worth it! keep going and always be closing!!!

    Good luck!!

    0Reply
  • Paul Aqua
    OP
    Property Manager 路 Sacramento, CA 路 Member since 2017 路 37 posts 路 12 votes
    8y

    Hello @Rob Gillespie thank you for your kind response. I've actually found that there is  numerous ways to make money and seeing as I have a history of property management ( I was an assistant Property manager for roughly 3 years)  I may try to go back in that field part time to pay bills. I believe that I will be wildly successful but once again I appreciate your kind words. While I left my current job I currently am working odd jobs to make ends meet but I am aware it will only be temporary.  

    0Reply
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