part time agent, worth the headache?

Question

hello all,

So after the holidays I'm thinking about working on my real estate license.  I am going to keep my day job, and this would be a part time adventure.  Not only would it help me as an investor, but I could make a few bucks in the process. Is it worth my time, effort, and money to try this?  My business parter is a full time agent and has offered to be a team, even though I would only be part time.  Any advice would be appreciated!

Account Closed · Answer

The cost of being a licensed realtor (in Miami) is about $800 per year including MLS access and board dues. If you buy just $50,000 in real estate a year your already saving money ($50k X 3% = 1,500).  In my opinion it's a requirement for any investor. Even if you don't practice you can get a referral from the realtor you decide to use. This is typically 25% of their commission on the deal, but is negotiable.

Jake Thomas · Answer

NA Cummins Short answer is yes. I started in 2014 as a part-time agent and kept my W2 job. I only closed on 1 house that year as I received my license about half-way through the year. Then here comes 2015 where to date I have closed 24 houses (as a part time Realtor) with around $2.5 million in sales at a average of 2.7% commission (you can do the math) which would not have been possible without my license. I still hold my W2 job as I cannot acquire loans just from being a Realtor yet. You never know what will happen and all of this extra income has given us a significant amount of cash to work with on expanding our real estate portfolio. We are growing our portfolio by about 50% faster than I expected all because of the extra income.  So my answer is yes, get your license its worth the headache and I promise there will be some headaches but you will learn more than you ever expected and make new connections that will help you grow in real estate overall.

Good luck!

Gregory Emmer · Answer

NA Cummins Think about it this way...If you you use it only or even twice in your life, and that's to purchase and/or sell your personal residence, you save on commission both times, and probably pays for the license/dues, etc...for those two times...and then some.

Not to mention, there will be times throughout where a friend or colleague needs to work with an agent on a home/condo, etc...and they come to you because they're comfortable working with a friend.

John Weir · Answer

I just started as a part time agent about a month ago. Still working my full time W2 job. Most of my time has been spent marketing and trying to get my name out there, mainly money going out and none coming, but since I kept my job I haven't had any stress about finances. Leads are starting to come in so hopefully I'll get some action soon! Best of luck!

Franklin Romine · Answer

@DJ Cummins

Don't wait until after the holidays.  Decide today and sign up for the classes tonight.  Sounds like this would be a good goal for you.  Don't wait.Frank

Russell Brazil · Answer

I was a part time agent for almost 10 years before I became a full time agent. I think being part time for so long allowed me the time to learn the business, without the stress of needing to make a living from it, till I was ready to become a full time agent.

Steve Kordish · Answer

NA CumminsundefinedMy situation is a little different than yours but, I too, am considering getting licensed. I have no other income now (quit self-emp Jan  2015 after 22 yrs.) and have done a few flips since then to tide me over. I've read as many posts  as I could find on this and I believe the positives definitely out weigh the negatives/costs. Do you have some skills that you've develeoped from life/W2 job that will translate positively to real estate (sales/people skills/marketing)? That would definately be a bonus but not a deal breaker if not. May actually be a positive if you can start with a blank slate without bringing any bad habits - lol I wish you the best of luck in your decision and future!

Azeez K. · Answer

NA Cummins Congratulations on making the decision to pursue your license.

In regards to your question - Is it worth your time, effort and money?

If you are serious it is certainly worth the time, effort and money as there is tremendous potential. However, don't underestimate the time commitment involved.

Couple things to keep in mind:

1. Disclosures: When buying and selling properties in US you will have to disclose that you are a Realtor, disclose N# of things that are required. Some states have more stringent rules than others.

2. Education - You will have continuing education requirements such as Pre-license, Post Licenses, Yearly CPE requirements, ethics etc. Some training could be in person so you may have to take time off from work

3. Investor - If you are an investor and own properties that you rent for $...you will have higher standards when it comes to property management and keeping security deposit. The security deposits need to be maintained in a trust account depending on the state requirements. If you manage your own properties then you may have quarterly requirements that you will have to meet so that you are not commingling funds

4. Cost - Don't underestimate the cost associated with getting your license, keeping it active, paying access for MLS, website, marketing, renewals etc. Things can add up. However, you only need one good deal to cover up for these expenses.

5. Accounting - There will be accounting and tax considerations

6. Marketing - Depending on the state law any marketing to people should be in your broker’s name.

To summarize don't underestimate the time,$,commitment involved. Nearly 75% of Realtors fail the first year so don't become part of the same.

Ryan Igbanol · Answer

Hey Joel, I think you meant "chugging along," not "chucking along." ;P

David Kosiorek · Answer

I'm still a PT agent.  I got my license in April of 2015.  Since then have closed on 5 houses for myself, and have purchased or sold for 3 friends and family.  All in MD fees are roughly say a 1,500$ a year.  I've probably saved/made 25k+.  No brainier for investors and I still think I was better than any agent I previously worked with in terms of knowledge and turnaround times.

part time agent, worth the headache?

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