Real Estate Agent · New Haven County, CT · Member since 2019 · 18 posts · 13 votes
I'm sure there's many people out there on the BP forums who either currently or have previously held a real estate license. I would love to hear from anyone who has worked as an agent as a 2nd job or side business. I currently have a "W-2" job that I work 40-50 hours a week. I love real estate and have been considering a career change but do not want to leave the security of my current job to pursue it if I don't have to. Even if I did not make it a career change I figure I could use the extra income and industry knowledge to help with investing. I met with a couple realtors to discuss the specifics of getting my license and ask some basic questions but I'm really curious to hear about your unbiased experience. How did you manage your time? How much longer did it take to get your name out there and build up a client base not doing it full time? If done successfully, is it worth the extra income? Does being in the industry help you on the investing side? Any feedback is appreciated!
Real Estate Agent · Springfield VA · Member since 2018 · 480 posts · 400 votes
6y
I respectfully disagree with @Russell Brazil unless you have huge savings or any other sort of passive income coming in. I understand Rusell's point, as you grow you have to do it full time. There are too many aspects in the business you need to stay on top.
When I started I was transitioning jobs so I did it full time for some months. At the beginning it is going to be slow. It will take time until your closest sphere (friends and family) thinks that you are capable to handle all the aspects of a transaction flawlessly. It will take also some time to build all the knowledge needed to be fully confident on the different objections you will face from your clients. It will take even more time for people you know and investors to respect you and refer you to others. All that time you might barely make any money. We are speaking of at least a year.
I would not recommend going full time. A slow and steady transition I believe is the safest way to go.
However, I understand how others might think differently. If you decide to work in a team and get experience faster by giving up a big chunk of your commission is another possibility. I decided I wanted to grow on my own at my own pace.
It is also lot about relationships and you do not build strong relationships within a small time frame.
Another thing to have in consideration is that I do not personally do direct lead gen (Cold calling, door knocking, etc) it all comes from friends, friends of friends and social media. If you are planning to use direct lead gen, then yes full time is the only way to go.
Real Estate Agent · New Haven County, CT · Member since 2019 · 18 posts · 13 votes
6y
@Rob Massopust Awesome advice Rob. I like how your comment first addresses goal setting which is something that I am still in the process of. If I decide to do go through with this I need concrete goals to stay on track and not lose focus of where I'm heading. The ultimate end goal is to obtain cash-flowing rental properties in solid appreciating markets. There's a million ways to get there so I just need to figure out what my way will be.
Your recommended plan is a great one. Unfortunately, my wife and I just bought a townhouse at market value 6 months ago that we currently reside in. We tried to find a fixer upper in our area but it was incredibly difficult due to the high market value (average home value in my town is almost $500k) and extremely high competition for investment properties. We placed about 10 offers on fixer upper properties but could not compete with the investors making cash offers for full asking price with no contingencies. This is not an excuse. If we kept looking I'm sure we could have found a deal but we only had a month to find a place and move because of our jobs. Now, I almost regret not renting temporarily until we found the right deal. Either way, we are confident in the value of our home appreciating well over the next few years and when we're ready to move we will hold onto it and rent it out. I feel as though obtaining my license would forcibly involve me in the industry and make the right connections to get into investments in a tough market like this. However, going to REI meetups and events may be able to achieve the same goal.
@Rob Massopust Awesome advice Rob. I like how your comment first addresses goal setting which is something that I am still in the process of. If I decide to do go through with this I need concrete goals to stay on track and not lose focus of where I'm heading. The ultimate end goal is to obtain cash-flowing rental properties in solid appreciating markets. There's a million ways to get there so I just need to figure out what my way will be.
Your recommended plan is a great one. Unfortunately, my wife and I just bought a townhouse at market value 6 months ago that we currently reside in. We tried to find a fixer upper in our area but it was incredibly difficult due to the high market value (average home value in my town is almost $500k) and extremely high competition for investment properties. We placed about 10 offers on fixer upper properties but could not compete with the investors making cash offers for full asking price with no contingencies. This is not an excuse. If we kept looking I'm sure we could have found a deal but we only had a month to find a place and move because of our jobs. Now, I almost regret not renting temporarily until we found the right deal. Either way, we are confident in the value of our home appreciating well over the next few years and when we're ready to move we will hold onto it and rent it out. I feel as though obtaining my license would forcibly involve me in the industry and make the right connections to get into investments in a tough market like this. However, going to REI meetups and events may be able to achieve the same goal.
Yeah buying fixers if its a hot market makes no sense. Investors sometimes pay more because they think it needs work it must go up in value. Not always just look at comparable cost per sq ft. Find a failed flip and you can get a property fixed up and the price is trending down. We have not hit that yet but be on a look out. My friend just made an offer on a house in Anaheim, 1000 sq ft needed everything over $75+ in repairs plus a roof and landscaping. Asking price was $500k, sold for over $525k with over 30 offers. It just gets stupid you have to sell it for $750k+ whereas just down the street a larger house at $569k needs some updating but livable and better financing, you can fix up over time etc. So dont be dismayed by the flipppers and wholesalers. Same as the auctions, those prices get bid up to market value and you have no idea who is in the property or what the condition. It just becomes and ego driven pissing match. Look for those properties that were overpriced in the beginning, got passed over in the "golden 2 week window" and sits for several months, then the seller missed the market and eveyone assumes there is something wrong with the property and most agents dont want to bother with it at that point. They want to find the easiest and quickest way to escrow.
I just had 2 agents contact me from 3 months ago when we made a lowball offer and the seller was "offended" and would not counter. Now they realized they overpriced, missed the market and they are tagged as a problem house. Yes we will look at your counter now. So time is on your side in some cases. Know your market, know your numbers, know your capabilities and keep pursuing.
You could always take your townhome [ look at corporate furnished rentals] and turn it into a rental and when you find that fixer you'll be ready. Remember you got that 2 year timeclock ticking and after 2 years you can sell it as owner occupied tax free. The wife might complain but explain to her its a stair step way to building equity. My wife and I bought a duplex, then 4 plex before a house, then house, then back to 4 plex then back to house.
Rental Property Investor · Tucson, AZ · Member since 2019 · 173 posts · 87 votes
6y
@Ozzy Sirimsi
It is cheap compared to starting a normal business. Being an Agent is a business and the cost of entry is ridiculously cheap compared to most other businesses.
Any business with inventory will naturally cost more.
Rental Property Investor · Salem, OR · Member since 2017 · 11 posts · 0 votes
6y
Hi @Erik Pierson
I am in this situation myself. I became officially licensed December 28th and already have a home closing later this month. A listing set to go live next week and currently putting an offer together for a client. I’ve been able to do this all while working my 40hr a week job.
I would say go for it! That said, time management is the hardest part, but it’s worth it in my opinion. Like anything, I think the most important part is having a great coach to guide you through in the beginning. It also helps to take it on knowing you’re about to build your own business and it’s going to be a lot of grinding up front.
My agency is hosting a top performing agent at a live webinar on Real Estate 101 this Sunday. PM if you any other question or want to attend the webinar. I can get you a guest pass.
How easy was it to find an agency to work with knowing that you would be part time?
When I move forward with this, I will start out part time, and in Minnesota only a broker can apply for your real estate license for you. Is it that way in your state?
I guess I'm nervous that brokers won't want to deal with a part-time agent. Am I overthinking it?
Investor · Northern MN & WI · Member since 2020 · 55 posts · 64 votes
6y
I recently cold emailed an agent about one of her listings at about 8am. I didn't hear anything back after a few hours, so I called her. She said she was a full-time school teacher and I just happened to get her at lunch. I said not to worry and give me a call back later. She did not call that day. The next day, she messaged me to see if we could arrange a time to chat. My schedule was tight, but I had about an hour free at the same time she was free. She did not call and later messaged me that she was "with a student." I was very frustrated because my question wasn't that difficult to answer, but did require a dialogue that doesn't really work with email. I was disappointed too, because I love teachers and I know they are not paid enough. I thought it was really great that she was pursuing real estate as a side hustle. However, if you cannot be reached most days of the week, you are costing yourself money and more importantly, you are costing your clients money. I would be hesitant to hire a part time realtor. Though, I really like what @Joseph Ranola wrote. I think he did a good job of managing expectations and was fair to all of his clients (including himself).
Real Estate Agent · New Haven County, CT · Member since 2019 · 18 posts · 13 votes
6y
@Kevin Peña That's great man congrats! It's always nice to hear success stories of people in the position you want to be in. I'll PM you about the webinar.
Real Estate Agent · New Haven County, CT · Member since 2019 · 18 posts · 13 votes
6y
@Account Closed That sounds frustrating especially as an investor I'm sure most of the time you do not have time to wait around for your realtor to get back to you or you risk losing the deal. I'd like to hear more about your experience with realtors from the investor side. I'll PM you!
Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
6y
See thats what is problematic with RE. I know everyone wants a side hustle. But RE is hard, lots of stress and moving parts. For most buyers/sellers this is a huge financial purchase. You need answers and dedication. NAR [National Association of Realtors dont care because more Realtors = more dues. State does not care because of same issue.
I think its time the Real Estate market grows up. Your doctor or accountant, financial guy, stock broker or what not does not "side hustle" as a profession. Should be the same for real estate. Thats why the iBuyers and the like are going to eat our lunch in the coming years. As or if this market slows down there will be the cyclical culling of the agent herd. Real estate in and of itself needs to be repositioned as the hotest way to make money, blah blah etc. Constant pressure from professional investors and wall street are partly to blame for this unfettered greed and keeps pushing house prices up for the average homeowner.
You may not want to hear this as an investor, but SFR's should be controlled and limited to owner occupied and have a cooling off period where owners get a first look, first opportunity to buy. We are becoming a renters nation and that is not good for society. You might disagree with me [and I am an investor myself] but thats how I see it. 😢
Investor · Northern MN & WI · Member since 2020 · 55 posts · 64 votes
6y
There's a lot to unpack with your post there, @Rob Massopust, and I agree with a lot of it. However, on your last point I think most people in this venue will disagree with you. I see you're from California so you might be looking through a straw alittle bit, you think? Where you are at the market is saturated with investors, it is the most populated state and still among the 10 fastest growing populations in the nation. Investors are not to blame for the housing shortage. Municipalities who have failed to zone properly and large corporations, especially in the Silicon Valley, own much of the undeveloped real estate near the highest paying jobs. Look, nobody is required to stay in California, so I'm just not buying the 'investors are to blame narrative.' Finally, there is already a great deal of evidence that millennials prefer the mobility that renting offers. Despite interest rates at historic lows, young people prefer to spend their money on experiences instead of locking in a 30-year liability that comes with a traditional mortgage.
Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes
6y
I know its contrary to us as investors [self included, and I expected to get some guff] but when I see a slight fixer house in a marginal area in Anaheim priced at over $500 per sq ft and still needs $75k in work get 37 offers its just crazy. A fixer owner does not even have a shot unless they have all cash and a rehab crew. Yes CA is in a feeding frenzy and might end up eating its own, but CA is always considered a growth state, look at Jeff Bezos just bought the most expensive home in CA, ever.
Yeah being in CA does skew everything and I am sure the rest of the country thinks we are idiots!🤑
People come to CA for the jobs, regardless what is in the news. I know people that come here from all over looking for work. Silicon Valley has always been out of touch, just was up there last month and it looks the same as it did 15 years ago, same with LA the only difference you'll pay $1000 per sq foot for some crack house. I see properties I bought in LA for $100-200k selling for millions, man I F'd that up. My little house in Eagle Rock I paid about $250k for in 2002, listed for $1.5, geez dont tell my wife. What has changed, the cost of money, cheap and its fueled this run up.\
Its not just young people older people cant or wont sell because they cant afford to go anywhere unless they move out of state but most have family here so its a quandry and keeps inventory continually low and that too creates scarcity. I'd move back to New Hampshire but not now I cant handle the cold!💨
💲💲 Is it here to stay, I think so, they are just going to keep printing money until we debase the dollar and keep lowering interest rates for the next 25 years [according to Larry Kudlow, Trumps Economic Advisor, funny TV president and TV economic guy!} But really who knows. Just talked to a broker friend of mine and he got 30+ offers on an average but nice house in Orange, a house just down the street, fixer probate - over 70 offers. WTF!
I know all markets are local etc etc.
But I also see the continual erosion of the home buyer. Look at Blackstone the hedge fund and others buy up tracts and 1000's of homes just to turn around and rent to those same people that got evicted its a broken system. Now builders are building SFR's just for rentals. Huh?
But investors are the only ones that want to or can afford to buy, fix and rent out or flip. The average homebuyer is asleep at the wheel. They see the easy button on HGTV and just want push button convenience, makes it great for us flippers, but from a societal point of view there are some real drawbacks. They snooze they lose.
Millennials want the freedom of renting, I say no, some might but deep down I dont think so, they just cant afford homes and are burned by 2008. They want to buy, just scared or cant. So they do other stuff with the funds they have and go for "experiences" and avocado toast [hey dont fault them, just buy it yourself and its not so expensive and avocado is really a superfood and unless you've had it you'll keep mocking them, sorry getting to California-y] They are just like most 30's year olds, we were all Millenmials. I talk to lots of people that are trying to do it or house hack etc. But also their expectations are out of whack too.
As landlords [self included] want maximum cash flow, right who doesn't. But think about your tenant making $12 bucks an hour, how many hours does it take for them to keep paying for the increase. Thats why in CA we got Statewide Rent Control. Somethings got to give tenants dont have any recourse. I might be early but this might be going on in other places as cheap money keeps flooding the markets.
Real Estate Agent · Orange Park, FL · Member since 2017 · 63 posts · 16 votes
6y
@Erik Pierson
Great morning!
I am a dual career agent with teaching as my first profession. In my second year, I was top producing agent at the regional level with individual sales. Yes! It can be done.
I’ve now convinced others they can as well- as my Assistant principal and school register are doing it and have either made their first sale or listed.
It’s possible! I am now investing for myself and have acquired 3 acres of land and have 1 buy and hold that’s cash flowing.
I did use Zillow as a source for leads and many people referred me to their friends.
My principal was flexible, and I am an ESE teacher, so I do not have a class all day.
Real Estate Agent · New Haven County, CT · Member since 2019 · 18 posts · 13 votes
6y
@Joddie Mcclain That's great to hear and congrats! Sounds like you're really hustling. What's the market like in Orange Park, FL? I'd love to hear more about your experience. I'll PM you!
I have been slacking on my bigger pockets commenting, posting this year! but i saw this in my notifications and i switched over to full time agent and closed 7-8 deals in the first 6 months after switching over. I didn't realize how much time it really takes to fully service your clients! I am still working with a team of agents which is very helpful and i actually have become the productivity coach for my team! quitting my job accelerated my RE business like crazy its also given me time to work with an investor who is planning to fix and flip 3-4 homes this year. I would not have been able to service this client at all if i had kept my job due to him being a full time GC and investor himself he only wants to see houses during what would be work hours at my old job!
I hope this is helpful! everyone is different working part time is not a bad way to get started but your goal should be to eventually build up your business, go full time.
Its not really possible to do it and be successful. People trying to be dual career is one of the very reasons that the failure rate for the industry is 87%.
I represent that 23% and I have a very successful part-time real estate business and I am a full-time W2 employee --- I have a real estate license and I am a real estate investor. My monthly rental income goal for 2023 is 50k monthly and I am more than happy to announce that I am more than 50% complete at this time and quickly growing. I have a good working relationship with my real estate broker, and I primarily purchase properties for myself to Buy and Hold. I have been a real estate investor for over 15 years, and I have been a real estate agent for over 2 years. I rarely work as a Seller's Agent, but I am a Buyer's Agent on my deals and make a very good return for my time. I pay for access to 4 different MLS listings, and I currently have 21 doors, which are mainly multifamily properties. I host a local Meet-up Group in New Jersey, I am an active advocate of learning more about RE investing, and I enjoy being a real estate investor. I have a high demanding W2 job working 40 hours a week as a Program Director with a for-profit company, and I am making good money $$$. The main question I have for you - What is your long-term goal/s? For me, I just turned 50 and want to retire within the next few years or so. I am willing to work longer as a W2 employee depending on job conditions and convenience. Right now, I am enjoying the dual career.
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
3y
@Erik Pierson I did it for one year and I did not have enough time to successfully manage my real estate side huddle. Clients didn’t want to wait until I was off work and I couldn’t pick up the phone when they called.
I can tell when I work transactions with other realtors who have full time jobs, it’s a pain ( sorry )
When I took the leap of faith and went full time into RE, it was the best decision. For me
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
3y
We own a mortgage company, a real estate investment business, and a realty practice. Our mortgage company recently started a program in FL where real estate agents that were also licensed agents could do both, but what we found is that it's really, really hard to do both well at the same time. Now, we have the agent take the loan ap, gather basic docs, and then partner with a senior loan officer for a revenue split while the agent goes off and focuses primarily on real estate. I'm sure people successfully do side-gigs. It's simply been my experience that's it's really hard to do both at the same time and do them well...particularly if you have a family like I do. I have an amazing wife that runs the real estate practice and the investment side, so we've been able to lean on each other, but it is very, very hard to split focus and do it all well.
Its not really possible to do it and be successful. People trying to be dual career is one of the very reasons that the failure rate for the industry is 87%.
I represent that 23% and I have a very successful part-time real estate business and I am a full-time W2 employee --- I have a real estate license and I am a real estate investor. My monthly rental income goal for 2023 is 50k monthly and I am more than happy to announce that I am more than 50% complete at this time and quickly growing. I have a good working relationship with my real estate broker, and I primarily purchase properties for myself to Buy and Hold. I have been a real estate investor for over 15 years, and I have been a real estate agent for over 2 years. I rarely work as a Seller's Agent, but I am a Buyer's Agent on my deals and make a very good return for my time. I pay for access to 4 different MLS listings, and I currently have 21 doors, which are mainly multifamily properties. I host a local Meet-up Group in New Jersey, I am an active advocate of learning more about RE investing, and I enjoy being a real estate investor. I have a high demanding W2 job working 40 hours a week as a Program Director with a for-profit company, and I am making good money $$$. The main question I have for you - What is your long-term goal/s? For me, I just turned 50 and want to retire within the next few years or so. I am willing to work longer as a W2 employee depending on job conditions and convenience. Right now, I am enjoying the dual career.
Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes
3y
I think it's very feasible and lot's of benefit from the education and expose to inner circle of the people in the industry. When I started out, I trusted and used a realtor for my investment properties. I had no reason to trust her except on two factors: One she's very nice, enthusiastic, communicative, and secondly, she's willing to offer a 4.5% commission to sell my houses. I didn't know what's going on behind a deal after we entered a contract, she didn't educate me or maybe she didn't know better. I felt like I was very reactive and lost my leverages in negotiations when I'm working in escrow.
After I got my license and worked in the industry, I couldn't believe how much is going on behind the curtains. The knowledge and experience helped my real estate negotiation tremendously. I know what the agents on the other side want and what the seller want. This is one of the perks from having a real estate license.
Other perks are: Have access to houses that are on the market. This perk got old quickly. When I first got my license, I was so excited and decided to "preview" many houses on the market. Now I don't remember the last time I "preview" a house.
If you are with a brokerage that has bi-weekly meetings and you attend these meetings and some other trainings, you can get spoon fed with more relevant market and industry data as opposed to if not, you will have to be self-motivated to find the data on the internet.
Biggest one is earning a buyer's commission when purchasing a property, and earn your own seller's agent's commission when selling a property. I would say there is a difference between a season and good realtor vs. an amateur realtor when it comes to selling houses. I have seen in the same neighborhood, similar house condition and similar price point, one listed with a reputable realtor, who was on point with marketing and open houses and sold within a month, another one listed with a not so well known realtor and who just posted on the MLS, sat on the market for half year and later withdrawn. So I'm not too sure about the "savings" in selling a property.
So all these perks as a self represented agent come with a cost of about $600 to $2000 a year depend on which broker you hang your license with. The rule of thumb is if you do one deal a year, you will get your cost paid for. So I think it's always good to have a real estate license as long as you are active in real estate.
Now let's talk about actually providing real estate agent services to other people and become a successful real estate agent. This is a completely different ball game and require a complete different mentality than what I stated above. It's a tough industry to do well in. There's almost no way for one person to hold a W-2 job and be a diligent and successful agent. The time is not there. You either be a really ****** employee to your company, or a really ****** agent to your customer, or both. On top of serving your clients' real estate needs, you need to study the market, know the market, get good at dealing with people, negotiate deals, be diligent and have the attention to details with your contract and all the procedural paperwork involved with doing a deal. If you aren't good at your job as an agent, you WILL cost your client thousands of dollars. If you suck at marketing and sales, nobody wants to use you and your business will fail. So you need to be good at being an agent and being a marketer and salesperson. I think if anyone can learn and sustain this career and maintain a good W-2 job, that would be <1% of the population.
So to summarize, it's very feasible to get your license and do most of your own deals and maybe some of your family and friends' deals. But it's almost impossible to be a career realtor who still holds a successful W-2 job. Mostly you will do your customer and your employer a disservice.
Rental Property Investor · Member since 2019 · 411 posts · 148 votes
3y
@Erik Pierson It is definitely possible to be successful working a 9-5 and investing. I have myself to prove it. You ultimately need to be very efficient with your time, continue to be motivated and not let anyone get in the way of your goals. You will get tired, there will be late nights and weekends you sacrifice for your RE business, but at the end of the day it will pay off. You also need to learn to leverage other people's experience, knowledge and money. I've strictly stayed in the investment space up until just recently where I've begun to lessen the time in my W2 for Real Estate.
I'm sure there's many people out there on the BP forums who either currently or have previously held a real estate license. I would love to hear from anyone who has worked as an agent as a 2nd job or side business. I currently have a "W-2" job that I work 40-50 hours a week. I love real estate and have been considering a career change but do not want to leave the security of my current job to pursue it if I don't have to. Even if I did not make it a career change I figure I could use the extra income and industry knowledge to help with investing. I met with a couple realtors to discuss the specifics of getting my license and ask some basic questions but I'm really curious to hear about your unbiased experience. How did you manage your time? How much longer did it take to get your name out there and build up a client base not doing it full time? If done successfully, is it worth the extra income? Does being in the industry help you on the investing side? Any feedback is appreciated!
(I'm located in the Northern Virginia area)
im just starting out im soon to get my licesnse i just completed the courses needed so now I just need to get onboarded with my brokerage im doing that next week. I work dayshift at my current job and have 5 1/2 hours till I go to bed so I feel I can maximize my free time and weekends to learning the ropes and then in time start building my business. after posting on facebook that im getting my license a friend of mine commented that he wanted me to sell his house so I may get my first listing soon. Im doing it after reading scott trench's book set for life he said it would be a good idea to get a commission based job that can grow in order to reach financial independence.