In this article, I am going to cover some hard-core, to-the-point, and un-biased information on how to make money as a real estate agent. If you are looking for more generic advice on getting your Real Estate license, click here to see my article on how to Become A Real Estate Agent.
The first thing we are going to talk about is what real estate agents do on a daily basis and what benefits and challenges this business model offers.
Next, we are going to cover why entrepreneurs choose to be a real estate agent and why many fail.
Last, but not least, we will discuss how to make money as an agent and how much money you can make.
Being a Realtor has some great perks and some pitfalls that you will want to avoid.
Read on to find out if brokerage is right for you…
Real Estate is not all glitz and glamor as many people think. It requires work! It means getting up early and staying up late at times. It means getting on the phone and calling people. It means spending some money on marketing expenses, office equipment, and sharing in commissions with your broker. It means negotiating contracts, meeting with lawyers, showing properties, helping clients with due diligence, and serving the needs of your clients.
I guess when compared with most jobs, that is not all that bad. It is especially not bad when you compare these things to the benefits that brokerage offers. My favorite part is a free schedule. I like to golf, and I do plenty of that. I like learning, and I attend lots of seminars, conferences, and networking events. I control my income. I control my appointments and my free time. I have no boss. I choose who I want to work with and I fire the ones I don’t like. I also feel good about my service and I get cards, hugs, testimonials, tickets to sports games, and other kinds of gifts from my clients.
You can see that brokerage has its pros and cons like anything else, but why do SO many entrepreneurs flock to brokerage?
What makes it so special?
- They live in Real Estate and understand it
- The numbers are big
- Control their schedule
These all make sense but unfortunately, they are the exact reason why most people fail in the industry. Check out the other side of the coin for each of these reasons:
- What they don’t understand is that everyone else thinks the same way and that creates a lot of competition
- What they don’t understand is that big numbers end up scaring most people who are used to making smaller paychecks on a regular basis
- What they don’t understand is that having control of your schedule requires discipline which most of us do not have a lot of
As long as you are aware of these issues before you decide to go head-first into this arena, then you will be good to go. Some people are highly disciplined and/or have a really good reason why they WILL make it in business and nothing will stop them.
And, of course, you are probably wondering about the $$$$ in Real Estate…
You know the saying, it takes money to make money? Well, that is half-true in brokerage. The better way to say it is, it takes money or time to make money. The truth is, you can get started for around $1,000.
You need money to get your license and to pay your MLS dues. Other than that, you can be creative, energetic, and hard-working and make a ton of money with little to no more money than that. But, as I said, this will require a lot of time.
If you do not have a lot of time then you will need more money. You can send mailers, pay for internet marketing, post ads in local newspapers, and a myriad of marketing techniques which require money but work well. If you had $1,000 to invest per month, you could start profiting over $10,000 per month within 1 year.
In fact, if you got good at delegation and had the drive to earn 7 figures per year, that too is possible. I sell commercial real estate and the numbers are much bigger than in residential. If you choose to go down that road, you can probably get to 7 figures within a few years if you have some good help. There is a very good, free resource available by a commercial broker who runs the #1 contact management program in the commercial real estate industry. He talks about his past experiences and what it takes to get to that level.
I have seen many agents fail and I have seen many have success. It really boils down to you. If you want it bad enough, you will get it. Be realistic, think it through before deciding, and when you decide, don’t look back, don’t get distracted, and follow your plan on a daily basis.