Dentist looking to become real estate agent

[Zachary Kingsberg]

I am a 31 year old dentist in Dallas Texas. I have always been attracted to real estate and doing deals. About 4-5 years ago I took the 180 hour real estate course online to get my license but I have yet to take the test to receive a license. Now that I am 5 years into my career I have started investing (currently own 4 condos all paid cash, average purchase price about $90k). I am looking to continue to invest in SFH and eventually dive into MFH and commercial as I build up enough cash and liquidity. I am not a full time

Dentist (I own 2 offices with my wife and we have associates that work at both offices), so this will allow me the flexibility to pursue real estate. Is it possible to be a successful real estate agent while balancing another career? Do you have to do a certain amount of deals in dollars to make it worthwhile? Just looking for some advice and feedback. Thanks in advance.

[Joel Owens]

I have lots of doctor clients. If regular dentist with a few locations typically pulling in 400k a year profit after expenses. To do that as a broker or agent you would be in the top percentiles.

My doctor clients have no interest in being a broker or agent. They make seven figures a year as surgeons or at the very least 500k to 600k. They have normal business hours.

Now some brokers like myself in commercial do very, very well but are a small percentile at the top of the field.

In commercial starting out you tend to be licensed and start at a commercial brokerage firm that does listings and 3 people on a team. Out of 100k commission on a deal typically 50% goes to the brokerage. It's not like residential. Knowledge is highly specialized by deal size and asset class. So now down to 50k split between brokers and agent on team. Senior person gets 27k, middle person about 15k, junior agent 8k. So to likely equal 400k you would need about 48 deals a year.

That is a crap ton of running on that Hampster wheel versus what you are doing now. I do not think you have really thought out being a commercial broker. It is not something moonlighting on the side. You have bought some small balance residential but that is not a skillset for people worth tens of millions putting down millions on a property and a loan for the rest. Those clients want to work with experts top of their  field to insulate against risk and using their knowledge and expertise with network to find the best properties to buy.

Almost 17 years in I own my firm so I get the money. I can do 10 deals a year or more and pull down seven figures and have an excellent life. I put in the time to get there. If you get licensed and go work for a catch all smaller firm dealing with houses and sub 1 million mom and pop commercial then maybe you get some business.

Most of my clients build a practice up and then eventually get bought out for locations and then stay on for a number of years thereafter to help with the transition.

I don't know why you would not just keep doing what you are doing and grow locations and income and then invest in real estate that way. You can always learn about commercial without it being a career. There are CCIM courses, ICSC, SIOR, multifamily organizations, etc.

Most of my clients learn through me as they purchase and we grow the relationship from there.

Is the wife a dentist also?

If she is just doing the books then an option might be to log hours working on the real estate portfolio and then claiming real estate professional status as a married couple for tax purposes.

You would have to check with your tax professional for guidance. No legal advice given.