Investor thinking about becoming a part time real estate agent

[Liu Cheng]

Hey, this is my first time posting here, and I'm really hoping to get some advice.

I hold an MBA and work for a tech company in the Seattle area. I've been into real estate investing since 2015 and currently own four properties, three of which I rent out. Recently, I passed the broker exams, and I'm pondering what to do next. I haven't fully mapped out my plan for the license yet. It was relatively easy for me to pass the exams, but figuring out the next best course of action seems to be the hardest part.

While I have a decent salary at FAANG, I'm still quite a ways from achieving Financial Independence, Retire Early (FIRE) goals, especially with two young children to raise. So, I'm considering real estate as a side gig until one day it surpass my current full time job income. I want to make the most of my license without jeopardizing my current career. My primary interest lies in the commercial real estate sector, given my finance and data analytical background. However, I'm struggling to figure out how to break into commercial real estate as a part-time newbie agent. It seems like I could really benefit from a mentor, but I'm not sure where to find one who'd be willing to teach me while I help with their transactions in return. I do not mind my mentor taking a bigger split as long as I can tag along and learn from every transaction. 

I should also mention that I'm bilingual, which might be an asset in the real estate world. Additionally, I'm interested in buying and selling a couple more properties myself in the coming years. Any guidance or suggestions would be much appreciated!

[Bruce Lynn]

When new agents tell me they want to do commercial I always say what kind of commercial.  There are lots of different specialties and more and more I see the successful agents specializing.  So buy side or sell side, landlord side or tenant side, hotels, multi-family, warehouses, medical office, office office, retail, land, strip centers, restaurants, and maybe plenty of others.   Once you decide that, there are usually a handful of big players in each space.  80/20 rule.  Go after that.

My other thought is that just like most professions it really is a full time job.   When do you want to be mentored if you have another FT job?  After 6pm?  Sundays?   Do you have full flexibility in your current job to handle prospecting.   Typically new agents for commercial work (and should be that way in residential too) are given a list of lets say all the hotel owners in the area.  You call and prospect for business 4 hours a day or more.   Can you do that from 9a-1pm or 2-6pm?  Can you go to breakfast, lunch, happy hour to meet with the players?  Can you go to 2-3 day conferences to meet the players?   You have to be out and active and as we say shaking hands and kissing babies, knowing the players, them knowing you, and being top of mind when they are ready to transact.

You're probably only getting a split to write home about if you're bringing in the business, not assisting the person who did...and it won't be much.  That's why you need to be the one bringing in the business.   If you are bi-lingual that can help.  You either have to get to know the buyers or the owners in your language group.  Then again you're meeting them, calling them, knowing what they want, and being in front of them when they are ready to sell or buy or lease.

Also realize commercial is a very long term business in many cases.  Often 1 year or more from start to finish.  Just talked to a broker earlier this year that worked on a deal that took 20 years to complete.  Huge-life changing deal.  So FIRE for him is 65, but the problem is now that he did that deal he has another 5-10 years worth of huge deals lined up behind it.   Do you give up millions at that point to retire?   For that 20 years he had a lot of expenses and no income from that deal.  That's probably the exception, but probably plenty of examples like that.  Also just heard a small speech from one of the largest land brokers in north Texas.  His story is similar.  He says it only took him 40 years to be an overnight success. Today everyone wants to talk with him, but he has been building his database and getting to know the area landholders for 40 years.  Not everyone ready to sell the day you call.