Selling real estate appears to be a sexy and easy way to make a huge 6 figure income. While it is definitely possible to earn a large income, it requires work and persistence.
Many students are under the impression that the difficult part is taking the classes and passing the state exam, but the real work begins once you become licensed.
In real estate, you are self-employed. Although there are some salaried positions available, the most common way to work in real estate is to be a commissioned salesperson. Once you have your license and begin selling, the real challenge is finding clients.
In real estate, every day you wake up unemployed.
Being a salesperson is a business, not a job, so the key to your success is shedding the employee mentality and embracing the entrepreneur mindset. Set a plan for waking up every morning prepared to hunt for your dinner. That is the hard part and that is where the reward comes in. You see, you could go months and months without any income because you only get paid when you close.
That’s why it is vital to have a plan and be consistent if you plan to succeed in real estate. Which you can accomplish when you take our Real Estate Classes.
Now that we have that out of the way, what about selling real estate part time? Is it possible?
Yes and no. Here are the 5 things to consider when deciding if you should be a part time agent.
- Will your broker allow it? All salespersons must work under a broker. Some companies allow part time agents, and others frown upon it. It is best to discuss it with your potential employer and be aware that there is no strict definition of part time. If you are hired as an independent contractor (commission only) IRS rules prohibit the broker from setting your hours, however, if you have other obligations, such as a full time job, the broker may not want to invest training and resources in you for fear of low return. Simply stated: If they think you are too busy to produce enough to justify the cost in training you, they probably won’t hire you. Discuss this upfront and be honest in order for your Broker relationship to be successful. Do not be discouraged if it takes time to find the right fit. Keep looking and don’t give up. Here is a video about How to Choose a Broker. There is the right company out there for you who will support your part time career and support you in your business. One other thing to think about: Is the company set up to help you transition into full time? They might have experience with other agents and have a plan in place already.
- We live in a mobile world. Much of our business is done remotely, so it is so easy to juggle real estate with your personal life. You can make phone calls from the car, send listings at 3 am and write contracts from your laptop in Greece (that was me:). If you work a full time job or have other obligations that keep you from being full time, it can be quite easy to keep in touch with your clients and leads on the regular- even if you are sitting behind a desk at your day job. The challenge comes in when clients want to see you to view property or to list their home, and they are only available when you aren’t. This can be tough, but there are ways around it. You can partner with another agent in your office and work as a pair, or you can join a team. Or, you can simply only take clients that can work around your schedule. Despite the challenges, remember that everyone can only be in one place at a time. Even the full time agents can have a full schedule and need to be creative to fit in client meetings. Just because they are busy showing houses and you are busy at your day job doesn’t need to affect things. Busy is busy. Find a way to work around your schedule.
- Do you have an exit strategy? Are you planning to be part time forever? It’s ok if you want to keep real estate as your side hustle, but if you plan to grow into full time, you will need to set yourself up for the transition. Since commissions arrive in your bank account sporadically, it can be difficult to make the leap from a steady income to full blown entrepreneurship. There will be many obstacles in your path from budgeting for bills, business expenses and replacing benefits such as health insurance and 401k. The straightest path to transition is to save up all the commissions you earn as a part time agent to bridge the gap once to quit your job and take the full time agent plunge. This strategy requires discipline, as most people spend those commissions as soon as they land in their account. It is often a good idea to work with a coach and draft a plan that they will hold you accountable to.
- How will you generate business? This is the biggest challenge for all agents, but when you are part time, it’s a bit trickier since you have other obligations on your schedule. Some part time agents rely on family and friends who use them to transact, but that won’t generate a steady flow of business to sustain your income forever. Research some ways to attract clients and ask for advice from some seasoned agents or coaches. You can join our Janis Benstock Real Estate Academy Facebook group. Real estate is a business, so treat it like one. Come up with a business plan before you get started.
- Will you have enough business to justify the cost? There are start up costs and ongoing fees to keep your Real Estate License active. In addition to the cost of classes and the exam, there is also a licensing fee, continuing education, broker fees, MLS fees and REALTOR dues. Even if you don’t set aside a marketing budget, the fees alone can come out to $1000 a year or much more. Most of these fees are a cost of doing business, and money well spent as an investment in your business. But if you are doing real estate as a side hustle, be sure to calculate the cost in your market and make sure that you plan to earn enough commission to justify the cost. I have seen many agents give up on real estate because it was costing them more money than they were making. It is worth the time to do your research before you take the plunge
Real estate is flexible, and can bend and mold to fit your changing lifestyle. It can also be a lucrative career, but there are no guarantees, so if you are in, commit to being in, no matter what your schedule looks like.
Remember, you are unstoppable. You can be, door have anything you desire. If real estate is part of your plan, JBREA was created for you. JBREA.net to see how we can help.