Become agent or keep job and invest part time

Real Estate Agent
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Become agent or keep job and invest part time

Juliano Albazi
Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote

Hello everyone. I currently sell cars for a living and I have found my passion in Real Estate. I am 27 years old and single and I do not have any kids. I like what I do but I don't love what I do. Life is too short to not do something that makes you happy. I know Real Estate will be my career and wealth building vehicle. I am looking at becoming an agent where I can learn the industry and make connections and then become an investor as well (multi family and fix and flips).

I have a dilemma though. I understand it takes time to build a business as an agent and it might take time to close some deals and make some money. I am not married so I have one line of income which is mine where I work. By the time I would start working under a brokerage I would have about 12-16 k saved up and my expenses are about $1500 a month. So I would have about 10-12 months of emergency funds to cover my bills until I build my business. I work over 50 hours a week selling cars with a rotating schedule so its tough to start part time as an agent and continue my full time job.  So an option for me is to start as an agent with money saved up and build my business full time. Putting in the hours, generating leads, finding a mentor who I already have and trying to become a listing machine. My friend closed 16 deals in his first year and I know its tough but has any one here had success their first year as an agent?

My other option is to keep my full time job and build my portfolio on the side until I can replace my employment income. Im looking at getting in to multi family rentals and building passive income. I just need some advice and feedback on both options. I would greatly appreciate it.

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Mary Clare Archer
Real Estate Agent · Phoenix, AZ · Member since 2015 · 16 posts · 5 votes
10y

Hello Juliano,

I've learned so much from the comments on this thread, so thank you for starting it!

I recently became a licensed agent in Arizona. There is a really good place to get licensed that most people use called the Arizona School of Real Estate and Business (ASREB). If you want to become a REALTOR, you should budget about $2k to take your classes, take the state/national exam, sign up with a broker, and join your local REALTOR board. (It will be a little bit less than that, but I was surprised with all of the fees that came up.)

I decided to sign up with HomeSmart because I get 100% commission and pay a small monthly fee ($25) and a nominal fee every time I make a transaction ($300). I've been happy with the training I've received and the convenience of several offices throughout the Valley. A brokerage with this structure could benefit you since you'll work diligently to generate your own leads in your sphere of influence. The traditional structure is a commission split: the broker will probably generate more leads for you, but might take 50% of your commission when you start. (Commissions are always negotiable, but companies will probably have certain plans you can choose when you sign up with them.)

If you're able to tighten up your spending, then I think it would be worth it to keep your current job for a while longer to build savings. In the meantime, I would find a mentor in Phoenix who can give you good advice about generating leads before you even quit your job. (Buffini & Company has some great free resources on their site.)

If you can take some time off from work (vacation days?), you can take the 9 day crash course at ASREB, which will be the most time consuming part of becoming an agent. I personally took the 6 week course and it took me about 7 weeks altogether to become a REALTOR/sign up with a broker. 

Best of luck and if you want any more advice from someone else who just went through the process, let me know!

Kind regards,

Mary Clare

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  • Aaron Wyssmann
    Springfield, MO · Member since 2014 · 252 posts · 117 votes
    10y

    @Juliano Albazi  You've got some great ideas.  If you are single and work your job then you can definitely find the time to become an agent part time.  If I were you I would get your license through one that is offered online.  I personally got mine at www.realestateexpress.com and it was a great experience.  It will teach you all you need to know to prepare you for the RE test in your state but it won't teach you how to become a great agent.  That is going to come by finding a great company/broker to work with. 

    There are a couple different ways you can go about this.  If you want to be a listing machine, which if you are good at selling cars you more than likely would be good at selling houses, then find a company that offers lots of training and support.  If you want to be more of an investor then find an investor to work for and take it all in.

    I personally would be an agent on the nights and weekends for a couple months to get your "feet wet" and as things are picking up then make the jump.  

    Good job on saving up the $.

    Go get 'em.

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    I really appreciate the feedback. I see that you are an agent/investor. How did you start off? Were you part time until your business started growing?

    0Reply
  • Lee S.
    Northern, CA · Member since 2014 · 674 posts · 444 votes
    10y

    I think that coming from selling cars to real estate would be great for you, the issue that keeps most people from succeeding (fear, selling) you have most likely conquered.

    However, I would recommend that you put one year in doing both.  Kill yourself to replace your car selling income with real estate income and then you are good to go.

    You could also make the argument that you want to go "all in" and live off your savings while you make it happen.  I would say for you I wouldn't be 100% against this because you are single and can probably get another job easily if the funds run out, plus your sales experience.

    Either way, go for it.

    0Reply
  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    10y

    Million dollar question...Do you really want to be an agent or do you really want to be an investor?

    I was in a very similar situation about 10 years ago, I wound up choosing to get my license and become an agent. If I could go back I wouldn't have went that route. I had the same idea as you that I would get my license, and be an agent which would ultimately launch my investing career. 

    Being an investor is fun, being an agent not so much. If your true end goal is building passive income I would honestly stick with selling cars if I were you. You're already making an income that would probably take you awhile to make if you become an agent and that income will help you get to your investing much quicker. 

    So again if you really want to be an agent then yea do so but I can't imagine you liking it any better than selling cars. If you really want to be an investor then keep pumping away at the car dealership to save up the down payment and continue to learn about investing here and with some of your local network. 

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    What route is good for a first time investor? Wholesale to start out? Multi family with using banks money or fixing and flipping my first property? Thanks guys, much appreciated.

    0Reply
  • Joe Calderon
    Miami, FL · Member since 2015 · 92 posts · 24 votes
    10y

    @Chris K. Explain what's the difference between being an agent and investor.

    0Reply
  • James Park
    Real Estate Broker · Johns Creek, GA · Member since 2009 · 870 posts · 664 votes
    10y
    Juliano,

    i believe that everyone has an ideal vocation and career that naturally fits with their gifts and talents.  When i was 27 years old i left my w2 job in consulting and built my own company from scratch in an industry that generated a lot of money but an industry that i was not very passionate about. Just like you, i realized that real estate and investments is what i wanted to do as my life time career. When you mentioned that "life is too short to not do something that makes you happy." I really didnt understand this statement until my father suddenly passed away from a heart attack in 2012. After this incident, I didnt want to waste a day in my life in a career that i did not care for. i think the earlier you start, the better as you will start to build your book of business and clients. Keep in mind that the average age for agents and brokers is 51. My goal was to build a client base of 100 investors. 

    As an investment agent/broker, you will generate income by closing deals for your investor clients, advising them on investing, exchange, depreciation, real estate taxation, and their overall investment portfolio. To supplement your income you can also try to flip around 3 homes a year while bulding your passive real estate income portfolio for your retirement. In my journal in 2012, i wrote, "lord, if you can please show me how to generate six figures in my first year working as an agent, i promise you not to waste this opportunity. Guess what? He gave me exactly the number i wrote in my journal plus or minus couple hundred dollars when i completed my books for my first year in business as a full time agent.

    Hope this information helps.


    Originally posted by @Juliano Albazi:

    Hello everyone. I currently sell cars for a living and I have found my passion in Real Estate. I am 27 years old and single and I do not have any kids. I like what I do but I don't love what I do. Life is too short to not do something that makes you happy. I know Real Estate will be my career and wealth building vehicle. I am looking at becoming an agent where I can learn the industry and make connections and then become an investor as well (multi family and fix and flips).

    I have a dilemma though. I understand it takes time to build a business as an agent and it might take time to close some deals and make some money. I am not married so I have one line of income which is mine where I work. By the time I would start working under a brokerage I would have about 12-16 k saved up and my expenses are about $1500 a month. So I would have about 10-12 months of emergency funds to cover my bills until I build my business. I work over 50 hours a week selling cars with a rotating schedule so its tough to start part time as an agent and continue my full time job.  So an option for me is to start as an agent with money saved up and build my business full time. Putting in the hours, generating leads, finding a mentor who I already have and trying to become a listing machine. My friend closed 16 deals in his first year and I know its tough but has any one here had success their first year as an agent?

    My other option is to keep my full time job and build my portfolio on the side until I can replace my employment income. Im looking at getting in to multi family rentals and building passive income. I just need some advice and feedback on both options. I would greatly appreciate it.

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    Sorry to hear about your father James I'm sure he's happy that you are pursuing what you love. 

    Is there potential to sell 3-5 million in volume first year as an agent? I am a self starter and I would attack my sphere of influence and build clients before I even start under a brokerage. I make good money doing what I'm doing so anything less than 70-80 k would be disappointing. I understand it's building a business but I want to hit the ground running. 

    0Reply
  • Ronan M.Pro Member
    Rental Property Investor · Chicago, IL · Member since 2015 · 352 posts · 281 votes
    10y

    If you are good at selling cars would your employer not allow you to go part time ?

    If you can sell cars and I was your boss I would prefer to have you some of the time if not all of the time.

    Your 12-16K nest egg might not be enough to sustain you in the first few years. And then does that 12-16K have to support your investing as well as living or you have more set aside for that ?

    I don't know how much you make selling cars. But if you could go part time and keep maybe 50% of that income so you are not on the bread line..it would free some time to start in real estate while not putting too much pressure on yourself.

    Plus...as a newbie banks/lenders tend to take some comfort that you have a steady reliable income of some sort until you can prove yourself in fix & flips etc.

    Best of luck to you.

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    part time would not be an option in the car business unfortunately. It has been slow last few months but I average 7-10 k a month and I have been there for a year and 2 months 

    0Reply
  • Chris K.Pro Member
    Investor · Baltimore, MD · Member since 2012 · 1k+ posts · 655 votes
    10y
    Originally posted by @Joe Calderon:

    @Chris K. Explain what's the difference between being an agent and investor.

    An investor buys and/or sells real estate with the purpose of making a profit or income

    An agent represents people who are buying and selling for a percent of the sale price

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Juliano if you average 7 to 10k a month for the last 14 months that is 98k to 140k gross before taxes and you say you have 12k to 16k saved up.

    That Is not very much for that amount of income. It sounds like you might want to take a hard look at your spending and living habits.

    Lenders look at not only how much you make but how you use that money. Someone can make nearly 200k a year and have nothing to show for it in 5 years and someone making 100k a year can live frugally below their means and have 300k by that time with prudent investing.

    Living a 100k lifestyle when you make 1,000,000 a year income isn't a big deal but living a 75k lifestyle on 100k income will not get you very far. In your younger years ( 20's ) many people think about they have a great income and the job will last forever so why save etc. They take on debt based on the job that pays high money will always be around. Then when that job goes away the high lifestyle debts still remain.

    This is why sports figures about 80% of them file bankruptcy within the first year of retiring. They are used to spending money but not saving much and when the income goes away they keep living a way in which they have not set themselves up to keep affording.

    I am an investor and a principal broker but I do commercial real estate and love it.

    In residential if you work with buyers you have wacky hours and take them all over creation. In my 20's I thought work until you drop as I was young and had all the time in the world. I am still young at 40 but as you age you start seeing things differently. Quality of life becomes more important and creating amazing memories that give you long term happiness and fulfillment.

    If you need to make quicker money and keep costs low you might think of going to work full time sitting a subdivision. You will have a set product and then sell it over and over kind of like a car dealership. Some friends I know make a few hundred k a year that way. You do not drive buyers all over creation and can use your time more effectively.

    Working with investor buyers on residential submitting tons of offers lowballing properties to make a tiny commission might not be the best route for you to take starting out. You could also go work for a investment company full time and learn the ropes of investing in that niche and then try and talk them into a JV on your first property.

    Good luck.      

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    1Reply
  • Aaron Wyssmann
    Springfield, MO · Member since 2014 · 252 posts · 117 votes
    10y

    Juliano,

    You've got some great wisdom here in this thread, all of which are options. How I got my start is that I went to work for a broker that is an investor himself. 

    There is a differing of opinion out here on BP as to whether it is good for an investor to be an agent, for me personally it is the only way to go due to the access to the MLS. I'm able to pull comps and know the minute houses hit the market.

    Go enroll today in an online course and get your license, this process will at least take about two months. By the first of the year you can be working as an agent on the weekends or at least going to look at possible investments. 

    In terms of what to start doing you really need to find what you like and are good at. For me personally I love projects and repairing things so flipping is what I love but for others they love finding the property and working to wholesale it, not my cup of tea. 

    Just get started, go fail and fail often until you figure it out. Just keep at it. 

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    Weekends are big days in the car business and that's why I only get one Sunday off a month. How is the market in phoenix area for an agent?

    0Reply
  • Kenneth CraycraftPro Member
    Electric Grid Operator · Bay Area, CA · Member since 2015 · 12 posts · 1 vote
    10y
    Originally posted by @Juliano Albazi:

    part time would not be an option in the car business unfortunately. It has been slow last few months but I average 7-10 k a month and I have been there for a year and 2 months 

    The person I bought my car from works part time, so it is an option.  Is it that option doesn't exist at your dealership, or it is difficult for you to give up the time and potential income right now?

    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    Not at my dealership. Its not about the money but the obligation I have with the store. Let me ask a question which will get a lot of different answers and is totally based on the person. I have extensive sales and negotiating skills, a big sphere of influence and a very strong work ethic. Can someone like me put in the time (50+ hours) and effort  and make 70-100k in the first year of being an agent? I know there a lot of factors and variables that go in to play but have you seen or have any experience yourselves with making good money in your first year as an agent. I keep hearing 20,30 or even 15 k for your first year and that scares me, but I am not going to have a part time mentality and waste any time not doing something productive.

    0Reply
  • Nancy Brook
    Investor, Realtor, Writer, Podcaster · Billings, MT · Member since 2013 · 175 posts · 97 votes
    10y
    I recently became licensed. I'm finding home sales super simple compared to my corporate sales job. In less than a month, I have one closed sale and another under contract. I'd recommend that you 1) get your license; 2) find an independent broker who will have a more generous commission split; 3) get a strategy to market to potential buyers and sellers. I'd not recommend starting part time unless you're strapped for cash. Working 50 hours a week won't allow you time. Go get 'em!
    0Reply
  • Juliano Albazi
    OP
    Automobile Sales Consultant · Surprise, AZ · Member since 2015 · 11 posts · 1 vote
    10y

    I'll have about 15-20 k saved up when i start. I want to build my business and part time will hurt me. 

    0Reply
  • Paul Santos
    Sarasota, FL · Member since 2014 · 151 posts · 80 votes
    10y
    Originally posted by @Aaron Wyssmann:

    Juliano,

    You've got some great wisdom here in this thread, all of which are options. How I got my start is that I went to work for a broker that is an investor himself. 

    There is a differing of opinion out here on BP as to whether it is good for an investor to be an agent, for me personally it is the only way to go due to the access to the MLS. I'm able to pull comps and know the minute houses hit the market.

    Go enroll today in an online course and get your license, this process will at least take about two months. By the first of the year you can be working as an agent on the weekends or at least going to look at possible investments. 

    In terms of what to start doing you really need to find what you like and are good at. For me personally I love projects and repairing things so flipping is what I love but for others they love finding the property and working to wholesale it, not my cup of tea. 

    Just get started, go fail and fail often until you figure it out. Just keep at it. 

     Just a slight correction, in Arizona you cannot take online RE courses for your pre-license education requirement, courses have to be "in-classroom." 

    0Reply
  • Grant Greene
    Lender · Tucson, AZ · Member since 2015 · 279 posts · 91 votes
    10y

    Juliano:

    Good evening, and welcome to BP!  Your plan is solid, and the fact you acknowledge the need for a mentor says a lot about your maturity - way to go!

    We work with a number of RE investors and agents/brokers who are very successful.  If you would like some referrals - just people to talk to and "interview" - I'd be more than happy to point you in their direction. 

    Grant

    0Reply
  • Bevla Reeves
    Real Estate Agent · Scottsdale, AZ · Member since 2011 · 471 posts · 296 votes
    10y

    Hi Juliano!

    I started out as a wholesaler and rehabber then got my license.  i personally feel have a license has been a hinderance to my investing.  I think about letting it go but I'm giving myself until the end of the year to make that decision.

    You don't need a license to invest. Find a good investor-friendly agent (me) and start out by investing first... but keep your day job!!! ;))

    0Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    10y

    Everyone will have an different opinion. Personally I use my current job and invest on the side in real estate. It too is demanding and takes away from full time investing. On the other the W2 income is AMAZING and has helped me do some amazing leveraging. 

    0Reply
  • Mary Clare Archer
    Real Estate Agent · Phoenix, AZ · Member since 2015 · 16 posts · 5 votes
    10y

    Hello Juliano,

    I've learned so much from the comments on this thread, so thank you for starting it!

    I recently became a licensed agent in Arizona. There is a really good place to get licensed that most people use called the Arizona School of Real Estate and Business (ASREB). If you want to become a REALTOR, you should budget about $2k to take your classes, take the state/national exam, sign up with a broker, and join your local REALTOR board. (It will be a little bit less than that, but I was surprised with all of the fees that came up.)

    I decided to sign up with HomeSmart because I get 100% commission and pay a small monthly fee ($25) and a nominal fee every time I make a transaction ($300). I've been happy with the training I've received and the convenience of several offices throughout the Valley. A brokerage with this structure could benefit you since you'll work diligently to generate your own leads in your sphere of influence. The traditional structure is a commission split: the broker will probably generate more leads for you, but might take 50% of your commission when you start. (Commissions are always negotiable, but companies will probably have certain plans you can choose when you sign up with them.)

    If you're able to tighten up your spending, then I think it would be worth it to keep your current job for a while longer to build savings. In the meantime, I would find a mentor in Phoenix who can give you good advice about generating leads before you even quit your job. (Buffini & Company has some great free resources on their site.)

    If you can take some time off from work (vacation days?), you can take the 9 day crash course at ASREB, which will be the most time consuming part of becoming an agent. I personally took the 6 week course and it took me about 7 weeks altogether to become a REALTOR/sign up with a broker. 

    Best of luck and if you want any more advice from someone else who just went through the process, let me know!

    Kind regards,

    Mary Clare

    2Reply
  • Lawrence Ferguson
    Facilitator of deals · Pittsburgh, PA · Member since 2015 · 20 posts · 2 votes
    10y

    Wow, great comments here.

    I am sort of in a similar situation to the OP. I decided to get my RE license and join a broker but I am also keeping my current sales job (a plus is that it is an outside sales job) and using my RE commissions + Corp commissions to launch my investing. 

    Glad I found this topic to get more feedback along the way.

    0Reply
  • Adrian Fajardo
    Rental Property Investor · Killeen, TX · Member since 2017 · 337 posts · 100 votes
    5y

    @Chris K. I'm coming in 5 years too late but I'm in the same situation as well. If I had to assume what @Juliano Albazi is thinking, he wants to invest but want to have a "job" in the Real Estate Industry. If anything, it allows him to network with lenders, PM, and other investors. At least that's my reasoning.

    If you don't mind me asking, what made you focus more on being an agent than investing while as an agent?

    0Reply
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