Should I start as an agent?

Question

Hi BP members. Currently I work a Blue Collard job that I can’t leave just yet. I currently fix and hold properties in Wisconsin, but I want to start real estate here in California. I currently live in the OC. I fell in love with the world of Real Estate and I had an idea of becoming a Real Estate agent here in my hometown. However I have a few questions and I’m wondering can someone help me. Is being a “Part Time Real Estate Agent” a thing? Also in what ways will becoming an Agent negatively affect me if I want to invest here in California in the future? Thank you.

Ke Nan Wang · Answer

Being a "part time real estate agent" is definitely a thing and doable but you won't make as much money as you could potentially make and you have to be okay with that.

In my area, all you need to do is one deal a year to break even and some for the cost of maintaining a license and pay your MLS dues.

Most "part time agents" start with family and friends and have the entitlement mindset that their family and friends owe them a deal. In reality, nobody owes anybody anything. If the "part time agent" is not dedicated into improving the skills involved as a real estate agent, the agent can easily cost their clients thousands if not tens of thousands of dollars in a transaction. Some real estate transactions are clean cut and they feel like walking in a park picking up a big fat check while other transactions are full of landmines require the knowledge and experience to navigate through the process. Unfortunately the agents don't get to pick and choose the scenarios.

As far as the benefits towards real estate investing, definitely yes if you only plan on investing in the local area. The cost of the benefits would be keeping your license active. If you invest outside of your local area, you still may earn some cash with referral fees.

Here are the immediate benefits (keep in mind your broker has to allow you to do these):

1. earning the buyer agent's commission when buying properties.

2. gain access and view properties without needing a real estate agent.

3. Being able to set the commission if you need to sell your own properties without negotiating with an agent.

4. have market data at your finger tips that you can easily pulled from the MLS. Most of the data is also available on popular real estate websites.

5. Being able to help others and most importantly, GET PAID. Otherwise, you are legally limited to help others you want to help but doing it for free.

I'm a full time real estate developer and investor in my local market and I found having my license valuable. Since I got my license and working as an agent, I have learned to appreciate all the work behind the scene on a transaction that I wouldn't know otherwise. I am always eager to learn, get trained on, and attend real estate market meetings offered by my firm and I'm genuinely interest in helping others in any shape of form that I can. This year is my third year and I grossed close to 6-figure in commission YTD from being a seudo "part time agent." It's nice money as a side hustle for sure. I see top producer in our market make 300-500k a year being a full time agent doing nothing but prospecting and do deals as much as possible. That's not something I want to do or become. I'm happy with my current state, being a full time developer/investor and using my license/knowledge/experience to help me and others.

Cayden Standlee · Answer

Hello @Miguel Hernandez,

Being a part time real estate agent is a thing. Actually most agents start this way so that they do not have to take the leap without having another source of income to start. Also, if nothing else, you will gain a lot of knowledge on the smaller aspects that you may not have pickup up on. When it comes to down side, there really is not much in terms of direct issues, but you may start off with a higher cost to get into items and areas.

Eliott Elias · Answer

Having your license is so powerful, you can submit as many offers as you want, as low as you want, can make 3% on every transaction. Only negative is you have to disclose you're a realtor, which I don't think is really a negative

Diya Wahi · Answer

The short answer is yes! You can get your license and do business as an agent part time. I am a Realtor in the OC and this is how I started. I am full time now and make a decent living. I think you need to be crystal clear about what you are hoping to gain by becoming a real estate professional. Do you see yourself working with clients and helping them buy or sell? Do you like the idea of the big commissions? This can be a thankless job. Are you ready for those rough moments in the business as well? Being part time will not prevent you from dealing with the low moments in the business. But you can definitely learn a lot and build up a network of contacts that can help you with bigger goals.

Hopefully that helps!

Melanie Thomas · Answer

You will hear arguments for and against becoming an agent here on BP. I personally believe getting your license and going through the training to gain the knowledge is the way to go. Same thing for and against doing it part time. It all boils down to your personal goals and what you want to spend your time doing. Think long term and make your decision based on that. Good luck and happy investing!

Ashton Hines · Answer

I have a W-2 job and also am an agent. The hardest part initially is to rebrand yourself within your friends and family group as someone who can do a good job for them as an agent when all they have known you as is something else and you are still that person in their eyes if that makes sense. That is why I have loved investing/flipping etc. I generate my own business and in the process get to post about it and building social credibility which in turn has brought in business from my network.

Like anything, if you do the things other people are not able or willing to do then you can be successful. A lot of agents only know the success of the last few years and have not had to grind out a downturn. They have not had to negotiate much or handle stressed sellers and houses staying on the market for several months. So you being new now is not a huge disadvantage compared to a lot of agents. Don't be intimidated by a "full time" agent if you know you are putting in the hours and trying to serve your clients at the highest level possible. I think it's a no-brainer for anyone who loves real estate and likes to help others solve problems.

Corina Eufinger · Answer

There are two schools of thought to this....if you are wanting to become a real estate agent to serve others the era of being successful as a part-time agent is coming to a close. To really be successful in your career as the market becomes less of hunger games free for all, you have to be able to 100% focused on real estate.  The last thing on earth you want is to spend $3000 in the first year and only close on 1 property (that analogy is based on WI expenses for becoming a realtor).

If you are looking to do it to write your own offers in CA, then yes it makes sense IF you will produce the volume that offsets the expenses (i.e. monthly MLS fees, annual Realtor dues).

Once you get an idea of who much it costs to start up AND then continue as a Realtor in CA you may be able to make a more sound decision.

Diya Wahi · Answer

The intimidation/fear will go away with education and experience. You will do well as long as you work on becoming a great agent. I would suggest ordering David Greene's book SOLD. It will be a great instruction manual for you.

Feel free to reach out if you have questions.

Should I start as an agent?

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