Becoming part time real estate agent?

Question

Anyone out there still maintain a full time W2 job while starting to sell real estate part time on the side?  If so, how has your experience been with this?  Thank you!

Christopher Phillips · Answer

@Kyle Davis

Most (80%+) agents fail because they try to go part time. Near impossible to build a business that way. Being an agent is a business. You wouldn't buy a shoe store and then only open it for 4 hours on Saturday morning, and especially without inventory...

Being an agent isn't hard. It's just not easy. It pushes you out of your comfort zone. I know agents that are very good with people, but don't know how to use a computer and it trips up their business. I know agents that are good with people but are super disorganized.

The best agents keep it simple, make a business plan, are super focused and stick to their plan, and are coach-able.

Most people fade out after 90 days at my office. Horrible attrition rate. Most of those are part timers. They join, show up for the basic training, then get distracted by their 9-5 because nothing is happening in their real estate business. National average, 50% of agents in the country didn't do a single transaction last year. That holds up regionally and locally.

Here's a full time agent's day:

5AM up to exercise. I know some agents in a 4:30AM club to go jogging. Read and other motivation stuff to get your head glued on straight. Head to the office. 7:30AM roleplay scripts and dialogues. Some of this depends on commute time and other stuff.

8AM to 12PM telephone lead generation (expireds, FSBO, FRBO, make me move, probate, pre-foreclosure, personal sphere, past clients, neighborhoods). Some follow-up calls at the end of that. No leads, literally no business.

Also, having a lead doesn't mean business. For listing appointments, you might go on 4 appointments and get 1-2 listings. 50% would be a decent goal. For some agents it's 1 out of 10 just because of the competition in their area.

For buyer leads, you might go through 100 leads to get 1 to 2 actual buyers that are ready, willing, and able to buy. Even if you get a good lead, you still have to be able to find them something and get through the transaction. Deals fall apart all the way up to the closing table.

Lunch/training. 2:30PM to 8PM time for appointments (buyers and sellers depending on your business). Some agents will door-knock in the afternoon if they don't have appointments.

Weekends are usually more appointments, open houses, training, travel. You have to work around everyone's schedule.

As far as expenses go:

It will cost you $700 per year just to be a local board member and gain access to the MLS ($$s depends on the board). $70 per month for technology fees to the office. Agent professional designation annual dues if you get those. Minimum of 22.5 hours of continuing education over 24 months (sometimes vendors will chip in). This is the basic to maintain your active license even if you don't sell anything. More if you pay rent for a desk or office at the company.

I stress that the 22.5 hours for continuing ed is the basic minimum. It should be more. You don't want to be the one that pays $50,000 for a fair housing violation....

If you buy buyer leads from Realtor dot com or Zillow or Homes dot com or any others, it can run you $1,000 to $5,000 per month depending on your area and how popular your zip codes might be. They charge by the zipcode, not the county. So, if you're on Long Island with a lot of zips in a county you have to pay for the few you really need.

If you do lead-gen on the phone, you'll need to buy the data from RedX or Vulcan 7 or Coles. That can run $300-$1,000 per month depending on what features you're selecting (expireds, FSBO, probate, preforeclosures, etc.).

Then you still have coaching programs, mentoring programs, general training seminars, company national or regional gatherings. Car, regular clothes, clothes with company logos, computer gear, printing and shipping services.

Then there are fees for your database CRM, business cards, Google Adwerx, Facebook/Instagram ads, yard signs (lots of vandals), professional photography, staging services, open house flyers and buffet, list goes on and on.

Brandon L. · Answer

@Kyle Davis I have a full time job, and I am looking to network with other agents in my area to start a group to support each other. maybe you can do the same in your area

It absolutely can be done on your own, but I feel it would be easier with a group of agents in similar situations.

I consider my job to be "on the side" not the other way around. My job supports my real estate activities

Steve Bracero · Answer

@Christopher Phillips

Excellent post!

Corey Zant · Answer

I've been a full time agent for 5 years now. None of it was ever fun or easy. Honestly, it still isn't. It's just a job. The only time it's fun is when you have an offer accepted (halfway to payday) and when your broker cuts you a check after closing.However, if investing is truly your heart, it's a great compliment. But there's a lot of industry gurus that sell the idea of making millions as an agent you have to be careful of. Try not to get caught in the "you can be a millionaire real estate agent" trap-- as it's just a transactional job and takes time away from your investing goals.Being self employed is quite a struggle. But also rewarding. If you're an investor/agent, you're going to be fully dependent on yourself. So is your family. Not dependent on anyone else. Keep that in mind.I will say being an agent has taught me a lot about the process (offers, escrow, closing), and most importantly how to negotiate/deal with clients. I'm grateful for that experience... It's given me immense confidence to invest and communicate within the process. But I've seen other people self educate themselves and never were agents--and they were just as confident and competent.

Also remember, it costs to be the boss! I pay about $430 a month in dues/fees. So add that into your monthly expenses if you're seeking to be financially free.

Christopher Giannino · Answer

What @Christopher Phillips just said is gold..  Read that 5 times if you need to

Jessica Freesia · Answer

Wow, thanks to both Christophers for the perspective.  It is very helpful.

Christopher Phillips · Answer

@Christopher Giannino

Thank you...

Christopher Giannino · Answer

@Jessica Freese

So it really all depends on the agency you sign on with...  There are some brokerages that require a monthly payment usually referred to as a "desk fee."  In return, you tend to get a higher commission split.  Then there are some brokerages that require no monthly payments but in return give you less of a split.  So as you can see, it really depends.

I recently switched from an agency where I paid a monthly fee to an agency where I don't have a monthly fee.  Part of the reason for the switch was to reduce my expenses and then the other part of the switch was to join a top producing team in the area.

Just as a FYI.. there are other monthly/yearly costs associated with being a realtor such as marketing, continuing education and NAR dues just to name a few.

Jessica Freesia · Answer

@Bob Okenwa, so does that mean you buy properties but don't sell them?   You don't have to have a license for this?  But you must be selling if friends and family are in the market.  I'm trying to understand what's going on.

@Christopher Giannino, I'm interested to hear what kind of fees you have to pay monthly to be a part-time agent.  And how do you get hooked up with an agency that is willing to take you on as an agent on a part time basis.

@Kyle Davis, thank you for asking these questions.  I have the same ones.

Christopher Giannino · Answer

@Kyle Davis

I currently work a full time W2 job and am selling real estate "part-time" on the side.  I put part time in quotations because I feel like real estate sales is not really a part time job.  If you become an agent you'll learn it's a very demanding job.

Anyway, when I first decided to get my real estate license it was strictly to help with my investing career.  In my eyes, the perks of holding a real estate license and investing in real estate are amazing so it just made sense.  After being an agent for a couple of months, I realized I might as well try to monetize the fact that I have my license.  Since making that decision, I've been actively prospecting to try and grow my business.

What specific questions do you have about being an agent?

Becoming part time real estate agent?

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