Investor thinking about becoming a part time real estate agent

Seattle, Washington
Real Estate Agent
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Investor thinking about becoming a part time real estate agent

Liu Cheng
Member since 2021 · 1 post · 1 vote

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!

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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
2y

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.

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  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    2y

    Start by networking with experienced agents, seek mentorship from industry professionals, and focus on a specific niche. Join local industry organizations and learn from others. Work hard when you find a mentor, and use your existing skills to your advantage. Begin part-time to learn the ropes and build relationships, eventually leveraging your background for specialization. It's a challenging journey, but with dedication, you can succeed. Best of luck on your career path!

    [email protected]832-889-5607
    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    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.

    5Reply
  • Brandon VukelichBusiness Member
    Real Estate Broker · Tacoma, WA: 🏢 27 LTRs 🏡 3 STRs · Member since 2018 · 546 posts · 456 votes
    2y

    @Liu Cheng Congrats on holding a few investment properties, sounds like you're already on a decent path to building a portfolio. It's tough to become extremely competent as a PT agent, IMO.  If you intend to only do transactions for yourself, PT is fine but not so great if you intend to serve investors looking to transact millions of dollars. I'm happy to chat further if you send me a DM. Curious, which other language(s) do you speak?  Either way, best wishes on your journey!

    Broker at Multifamily Properties519 Reviews
    WebsiteView Page
    2Reply
  • Margo Sultenfuss
    New to Real Estate · Boston, MA · Member since 2021 · 13 posts · 3 votes
    2y

    Congratulations on getting you license and taking that first step! I'm in a similar boat in that I'm in tech and an investor but haven't yet gotten my RE license. Getting quite scared at the transition, as the more people I talk to confirm the above ^ in that if you're going to be successful, you can't do it part time. But that being said, ~6 months of literally no income is not going to work!

    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    2y

    I'll second @Brandon Vukelich - with a full time tech job (which I'll assume is relatively demanding) you're going to have to hustle hard to make it work as a part time agent, and even then you will struggle. We have some great part time agents on the HouseHack Seattle team, but most of them are not yin your life stage - I have two kids with a third on the way, and know that "young kids" life stage will be very tough to work as a part time agent. If you're going part time I'd say limit it to a 3-6 month trial to see if you like the work before quitting your job - it sounds like you have some savings and investments, so rather than be mediocre and stretched thin, it would be better to do it fully or not at all. Its a tough side hustle, and the people that probably get hurt by your PT schedule will be your family, and your clients.

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    5Reply
  • Adrian Chu
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    2y
    Quote from @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!


     We have a similar background. I transitioned from tech to real estate full time. Let's chat. 

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