Become agent or keep job and invest part time

[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.

[Mary Clare Archer]

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