Transitioning to RE Agent - Dual Career?

Question

Hello Everyone,

I am a newly licensed real estate agent around Chicago IL.  I am sure some of you transitioned to real estate out of other careers.  Did you find it very difficult?  How probable it is to manage two jobs?  Anyone a real estate agent for their side hustle?

I know these are very broad questions but I extremely curious as to others experiences.  I make an OK living but I want more out of life. Also, I have kids and a mortgage so I can't just quit my job and take on real estate full time to begin with, though I do want to make the jump once I am more comfortable. Motivation is not an issue. Thanks for reading!

Matthew McMahon · Answer

@Larry Majkrzak I am a full time firefighter and I am a Realtor in Chicago. It is very difficult managing both but if you can manage your time well and put in the hours needed to succeed as a realtor, it can be done. I think my situation is unique in the fact that I have more time off in my career than most. As a firefighter, we work 24 hours on shift and 48 hours off shift. I am fortunate to have those 48 hours, and I make the most of my time. I think there is a big misconception in the real estate world, that once you become an realtor you will instantly be making money. Prepare not to receive your first commission check for 4-8 months and also there are a lot of expenses getting started. The main thing you need to focus on is converting leads to clients. So focus all your energy on acquiring leads and becoming knowledgeable on market trends, contracts, negotiations, and networking. Everyone and their mother knows 2 or 3 realtors already, so you have to put in the extra time and show value to your clients. Something that helped me out was the fact that I had good people around me when I first started showing me the ropes. Find out who does the best in your brokerage and try to learn from them. Good luck to you.

Russell Holmes · Answer

@Larry Majkrzak it really all depends on your current work schedule and what freedoms you may have while working there. If your current job wouldn't be the best, there's no problem in looking for a new job that may better suite a start into part time Real Estate. I'm at the tail end of doing both RE and another career for about 13 months, about to step into being a full time Realtor.  Today was supposed to be my jumping off point, but it's been postponed into next week due to weather (seriously...outside business in FL, can't help it) .  What I'm stepping away from, though, is almost 12 years running a mobile auto detailing business I started in 2007 at 21 years old.  No desk, no colleagues to let down, I worked either alone or with my wife and could stop at almost any point to return a call or email. It was a slight issue at times not to have my laptop with me, but I could at least send PDF files by smartphone.  I'd miss a call or something while running equipment, but could return it right away.

For me, as soon as I got licensed, my Real Estate clients took priority and I worked to be sure my detailing clients didn't realize that. It would have been really difficult if I had long shifts I was unable to get to my phone.  I'm sure with some effort to express available hours, it would be possible.  But I was almost able to 'hide' the fact that I wasn't full time, and my early clients have appreciated it.  I probably looked like a teenager checking social media all the time, but was in fact doing real estate business by phone while shampooing minivan carpets.  Not ideal, but it worked. Early on my RE clients knew I did both, but after awhile I stopped telling them I still detailed cars and was sure to be always available.  Lots of rushed stops at home to shower and change clothes to run out the door to a meeting.

I got my Real Estate license in February 2018 and at the time had only about 10-15 hours per week that I could devote to RE.  I 'found' more hours in losing out on some sleep and putting in some long nights until 2:00 or 3:00 in the morning on BP, reading, deal analysis, or anything else I could devour. I've also got 5 kids I like to spend time with as much as I can, so I can't and don't work non-stop.  I'd be 'off work' with my family for hours in the afternoon and early evening, and then get right back to it. I'd be up the next morning and out of the house by 6:30.  By mid-year last year, I had cut back my detailing work (and my income) and had increased my RE input to 20-25 hours per week, still working my other business 40+ hours.  I was submitting offers for clients, showing houses, making connections, meeting new clients, but hadn't sold a single house.  My first closing wasn't until 7 months after I was licensed in November, and my second closing was a week after that in early December. That would have been much much sooner had I jumped in full time, but I'm sure still a few months at least.  My combined net commission from both of those first sales barely covered my startup costs, but I had some transactions under my belt and had learned a massive amount in under a year.  I've still been doing both, swinging the lever much further toward Real Estate but still putting 25-35 hours per week into my service business until this week.  Next week I have about 15 hours of work for that business and then I'm done for good.

My third closing happened 4 months later in April and I'm in escrow for my fourth to close in June.  I've also listed three and have two others I will be listing after rehab.  I've been continuing to hustle and am at a tipping point, I'd be crazy not to jump in full time and my old business is also driving me crazy.

3 active listings totaling about $550k on the MLS getting showings and offers

1 under contract with buyer clients to close in early June for $160k

2 rehabs for clients that I'm helping to manage before sale, both will finish in June with a combined ARV of $400-420k

And in addition, now I have been in talks with one of those rehab clients to form a 50/50 partnership to flip  and BRRRR houses moving forward, his funding and my hustle/ project management.  Capital is the only thing that has held me back from my own investing, and now that I'm going full time as a Realtor, I've hustled my way into an opportunity to also begin cash investing with liquid capital, something I thought I was at least 2 years from.

So on paper....technically, I've sold three properties covering both sides on one. However, I've also got over a million in real estate either listed, to-be-listed, or under contract, and a quarter million dollar budget after we sell a rehab to go flip and BRRRR properties myself.  I couldn't have survived financially without my other business along the way, but it also held me back from faster growth in Real Estate.  It is going to be a juggle, it is going to be tough, but keep your mind open to different types of jobs to do that allow you to make being a Realtor your top priority.  Also consider joining a team as a buyers agent to start.  If you do that, you may have to work a night job so as to be available for daytime Real Estate needs.  There are a lot of moving parts, but it is possible with determination. Some teams may be open to taking on a part time agent, but most want full time commitment.

Tom Campone · Answer

PM me and I'd be more than happy to chat.

Larry Majkrzak · Answer

@Jeff Burdick - I wish I could cut back at my job but it's difficult because I'm salary. I work for a Chicago sports team in the ticket area.  It's not a terrible job, I just want more out of life like working on my own time.

My game plan is to go thru a year or two of working all my nights and weekends until I am making enough to make the plunge.  My goal is similar to yours in that I want to be an investor first, broker as a means to that end.

Linda Carretero · Answer

Hello @Larry Majkrzak,

I work full time with a weird schedule, where some days I work 1-8 and others I work til 3pm.  I also recently became a Realtor February 2019.  I have my first deal closing next week.  If you take the time and make the sacrifices while your not working at the other job and put your clients first you will go far.  It is not easy but, it is possible.

Best of Luck!

Larry Majkrzak · Answer

@Russell Holmes

Thank you so much for taking the time to explain your journey.  You should be proud of your success so far and thru determination I am sure you will find light at the end of the tunnel.  Time is going to be one of the hardest things for me to overcome.  Not for lack of wanting to work, but just transitioning from my current job.  In my off season I can get away with working 40 hours a week but from April - September I can easily put in 70+ hours a weeks and that is going to be hard to get a way from.  I am currently studying weeknights and trying to network and work on the weekends.  I think after I start getting acclimated with the field and feel confident in my market knowledge (and have about 6 months net income stored away) I will jump in the deep end of the pool.

My end game plan atm involves setting up shop in Florida in some form so perhaps we will run into each other in the future.  Thank you again for sharing!

Jeff Burdick · Answer

I taught in CPS for six years while developing a small portfolio with my wife...working hard to expand it right now.  I left teaching and got licensed...but I kind of see myself as an investor first, broker second.  I also have a job now tutoring kids...all the things I loved about teaching and none of the things I hated about it and the pay is great!  I also dog sit and make a surprisingly decent amount of money doing that as an additional side hustle.  What field of work are you in?  Could you cut back your hours in your current field as you develop as a broker?

Larry Majkrzak · Answer

@Matthew McMahon - thank you very much for the advice.  This all seems very sound.  My schedule will be the hardest thing to over come for sure.

Transitioning to RE Agent - Dual Career?

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