What has your range of income been?

Question

I know this can be a touchy subject for some but out of curiosity what has been your range of income throughout your real estate career? ( feel free to use rough estimates) And what were your income streams coming from?

Russell Brazil · Answer

First year in the business under $10k...has varied up to $450k.

Joel Owens · Answer

Jordan you are younger so right now money might seem like it has a lot more weight than it does. Over the years as people age more and more they tend to see life very differently and that TIME and HOW you spend that time for lifelong happy memories and happiness is the key to a fullfilled life.

When I was just out of high school (44 years old now) I focused on money and all of these things I could do with it. As I aged and saw others I went to school with and actors I watched growing up pass away it really became clear. I value time. I think about how every minute,hour of my day will be best spent.

Money is just something to help you be financially free so you can truly pursue what you are passionate about. Some people do LOVE money but it is very rare. Most use it as a vehicle to allow them the freedom to be happy.

I am ontrack for seven figures this year. I could push harder but I choose not to. I know people with tons of money some 9 figures in wealth. You can't take it with you. Money does not solve all of life's problems either. As money grows there are more forms, systematic processes to manage the wealth,etc.

Kristin Kiddy · Answer

@Jordan Lucas I'm very new myself and definitely not where I want to be financially.  I have the benefit of being married with a spouse who makes enough income for me to find my feet.  But real estate is a passion of mine that took me 48 years to pursue.  So you are really ahead of the game if you have already found your passion!

Jason L. · Answer

Disclaimer that I am not a full-time agent (I have a license, but I have a full-time W2 job outside real estate), but I can offer some valuable statistical insight from other similar industries (since you seem to be snooping around for info before deciding on a career change).

A real estate agent is largely going to be the same meritocracy that most all sales jobs follow (in other words, you eat what you kill). This can be both good and bad. The bad news is that sales jobs have low barrier to entry and thus extremely high wash out rates. In many financial services sales jobs, a firm might bring in 10 entry level recruits expecting that 1 will still be there in 18 months. The good news for those who do survive the pain period is that the upside is technically uncapped but certainly never a guarantee. Consider this study done on real estate agent income versus tenure...

The people who thrive as agents (the people who don't just survive the first few years but actually beat these averages) likely have one or both of the following two things going for them:

1) They also have their broker's license, and thus are also getting small pieces of all their agents' deals too (residual income, which is probably the next best thing to passive income).

2) They have so much tenure and clout in their region that their referral network is almost self-sustaining. This likely takes many years and much dedication to accomplish.

Not trying to persuade or dissuade, but it's just important to understand that any numbers people might be willing to give you on their personal income are going to be anecdotal and not necessarily representative of the industry as a whole. Try to do some broader research on industry standards and best practices, and then use that to decide if this is what you'd like to do.

Russell Brazil · Answer

Find a niche, spend 3 to 4 hrs a day on lead generation, focus on higher priced properties.

Marcus Auerbach · Answer

Drop out rates are cracy high, like 80% in year one and again in year two. Most agents don't last 3 years. Reality is much different than HGTV. My first half year was about $600 net after expenses. It took me 2 years and a lot of hours to reach six figures and I am in the top 5% or my office, so my income is not average. I still make more money as an investor than an agent, but we use that income to keep growing our portfolio.

JoJo Tucker · Answer

I am very new to the REI world too, but my goal for my first purchase is to be one of much lower-risk. My pro forma reflects that with very conservative calculations. I read the book Commercial Mortgages 101 and although it may not apply directly, it provides a different set of metrics a lender may use in vetting a client (Debt Coverage Ratio). I apply these metrics in addition to the traditional ones used by RE investors.

To really answer your question, with my first purchase I am just trying to find something that will yield any positive cash flow-enough to cover any expenses, debt service, and unforeseen repairs (easier said than done). A property that needs moderate repairs and updating so I can force a little appreciation myself. But I am trying to mitigate risk as much as possible with my first purchase and find something that may not yield higher returns as others would like, but will certainly not give me as much headaches or deter me from investing further.

I am getting my CA RE license and will begin selling businesses this year. I view buy-and-hold cash flow as an instrument to stabilize my future income that comes with many ups-and-downs. My long-term goal is to hedge the risks and inconsistent cash flow of my current job, by establishing passive income with safe and sound investments.

Kristin Kiddy · Answer

I can attest to @Russell Brazil the first year is difficult.  It takes a while to build your customer base.

Jordan Lucas · Answer

@Jason L. Wow thanks so much for that detailed response, I really appreciate it! And I think that is great advice to research more broadly, thanks for the suggestion.

Chinmay J. · Answer

I am a frequent poster on the board, and most of my income has ranged from $5,000-$20,000, as I don't do it full time.. 90% of my income comes from my IT Job, and I plan to keep it that way. LOL.. I invest in real estate (to create passive income); don't run a real estate business (huge difference)

So don't think that just because  you see someone doing it a certain way, that's the only way to do things. It's whatever suits you, and whatever your dreams and goals are.

What has your range of income been?

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