Before you get signed up with that real estate school and leap into the real estate industry as a new career, cautiously consider these frequently overlooked pieces of wisdom.
Here are a few considerations for making the choice to take the jump to the real estate as a new career choice.
Thousands and thousands of brand new realtors open their own businesses each year, plus they’ve high anticipation for income from helping individuals to purchase and sell homes.
Most people think they will get rich as a real estate agent once they get their license.
It is those high-income expectations without a lot of planning and hard work that gets many realtors into financial trouble.
Did you know that: 87% of all agents fail in real estate?
Yes, you could make good money in real estate, but the reality is that the median income of a realtor only around $44,000 per year. It’s hard to do part-time.
Yes, there are part-time brokers and you may do deals when you are not at work.
But if your work schedule resembles most of your customers it is going to be challenging to hook up with them and provide the kind of service they require.
They’ll need your evenings, so get prepared to work 7 days a week. You’re an independent contractor.
Although you’ll need to work with a sponsored broker who sponsors your working permit, you’re in business for yourself and are your own boss.
This usually means you will keep up with taxes and laws to ensure you do not end up crossways with the IRS and have to pay taxes you didn’t expect.
You can select a broker who’s willing to supply you with great training and a few leads through their office out of obligation, but if you do not hustle and get good at generating your own real estate buyer and seller leads, you are going to have a rough time becoming successful.
Working full time can be like riding an income roller coaster. That $44,000/year income figure isn’t for the first year of a new agent, it’s the average.
Therefore, even when you do it through that year, that number isn’t evenly spread out at $3,600 per month. The income will come and it likely will, but it’s going to be more like half in a 3-month busy season and the remainder sporadically across the rest of the year.
Your agent doesn’t care much about your own success. Sure, your broker wants you well and needs you to be successful.
On the other hand, the prices a broker that adds you as a brand new agent are low.
They already have the office and overhead, and giving you a booth in the corner is inexpensive so that they will take a chance on you.
If you make it into top manufacturer status, you will be capable to make a deal with your agent for a better commission cut along with other goodies.
Until then, but you are on your own,
and you better generate leads, produce sales,
or those dreams will belong to someone else.
If you are in service and like the work, you will succeed. If you are into homes, showing them, the process of selling and dealing and helping individuals to purchase and market, you are probably going to succeed and create a ton of cash over time. Just get into the industry with a realistic mindset and income expectation.