New Agent, seasoned investor...REALISTIC income expectations?

New Agent, seasoned investor...REALISTIC income expectations?

Rental Property Investor · Lansing, MI · Member since 2017 · 58 posts · 18 votes

I am considering leaving the corporate world (day job) and doing real estate full time.  As part of my "plan", I am considering becoming an agent.  Obviously I would be starting from the bottom, but I feel my past experience in the business world and as a real estate investor would help me hit the ground running a little more so than a typical "new" agent.  I've been investing in real estate for over 15 years.  

What is a reasonable expectation for income the first year?  Second year?  I would be working in the Metro Detroit area to give you some context on property values.

I'm looking for realistic numbers, not guru hype or monster success stories.

If my goal was $100-125k/year initially, what does that look like?  Hours/week?  How many months would it take to get to that pace?

I've done all the math and calculating how many listings (listing agent & buyer agent) it would take.  So I know how many homes I would need to close based on average property values.  But I know that volume doesn't just happen over night.  I realize it takes time to grow your network, establish your "brand" and learn the ropes of the profession.

At the end of the day I'm trying to determine if I should explore the agent option, or just stick with investment properties.  Most likely it will be a hybrid of both.

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  • Rental Property Investor · Metro-Detroit · Member since 2017 · 34 posts · 14 votes
    7y

    @Jason Munger

    I admire your passion for wanting to leave your corporate job as I also dread the corporate world and cannot wait till i'm pursuing my goals of real estate full-time. 

    A big problem I run into however that keeps me at my corporate job is capital. How are you planning on getting the capital you need to invest into the Metro Detroit market? You stated that you would be starting from the bottom and working as an agent at the same time. However, you also are moving to Michigan so how much can you actually save after expenses? Your initial goal may be very extreme, that is a huge number of properties if were considering cash flowing rentals that require a ton of capital. If were consider flipping realistically that number may be hard for your first year regardless of all the news about Detroit having the highest return on investment when it comes to flipping. I would say realistically first year would be near 40k but that is very subjective as I'm not a full-time investor.

  • Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
    7y

    Hi Jason,

    It will depend on your market place, avg price, and DOM.  Expect that you may not close a deal in your first 6 months.  Takes time to cultivate and close deals with new clients.  If you want it bad enough you will make it happen.  If your current rentals pay for your lifestyle and you don't have to worry about money, go for it no-brainer. 

  • Rental Property Investor · Lansing, MI · Member since 2017 · 58 posts · 18 votes
    7y

    Point of clarification...my question only pertained to the real estate agent portion.  Time/income/etc 

    All the investments would be considered separate.  I only mentioned that as context to me familiarity with the word industry 

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