Real Estate Agent in COS: To Be or Not To Be?

[Kelsey VanSleen]

My long term goals are to build a real estate portfolio, with a mix of long term and short term properties. Long term hold on multi-family properties using the BRRRR strategy are my ultimate goals. I don't currently make what I want and as I consider my next career moves, I am exploring options as a real estate agent. This move aligns my short term goals of increasing my earnings with my long term goals of real estate investing in pursuit of financial freedom. For years, I've disregarded this career path because of hesitations around working nights and weekends (I come from a hospitality background and dreaded this) and general work-life balance concerns. However, I have complementary skills that would make this move smart: I come from a construction background, I have years of experience and a passion for home construction/renovation, and I already have the discipline to work autonomously. I also have changed jobs a lot in my life, so I am hesitant to jump in despite so many green flags (hello access to MLS to kick-start my first investment property!).

Real Estate Agents: What is a "day" in the life like as an agent? What was your transition like to this career when you first started out? Is the COS market saturated with agents? Truly appreciate any insights you can provide!

[Michael Dumler]

@Kelsey VanSleen, "I also have changed jobs a lot in my life", to me, this is a bit of a red flag. If you're going to pursue sales, you better be in it for the long run. Becoming a full-time real estate agent means running a business 24/7. It takes years to develop a pipeline of clients. David Greene, host of the BiggerPockets Real Estate Podcast likes to say, "As an agent, you're never working, but also always working." This couldn't be more true. What is a day in life like as an agent? 80%-90% of your day will be spent prospecting for business. Needless to say, no one is going to give you their business right off the bat. To acquire someone as a client, you need to first add value to them in some form or fashion, then and only then, is it appropriate to ask for their business. I highly recommend that your read "SOLD" by David Greene to understand the concept of the sales funnel and how important prospecting is. I can't speak on behalf of the COS market, however, I'm almost certain that every market across the U.S. is saturated with agents. The successful agents in the industry share 80%-90% of the business while the "unsuccessful" agents fight over the remaining 10%-20%. That is the pure reality of our industry. Your first year will most likely be slow. In year two, you'll acquire some business. In year three, if you make it this far, you'll know for certain whether or not you'll remain in the industry. Other honorable book mentions are "SCALE" by David Greene, "The Millionaire Real Estate Agent" by Gary Keller, "The ONE Thing" by Gary Keller and Jay Papasan, and "Pitch Anything" by Oren Klaff. As a side note, while it's not impossible, it's a lot harder to finance deals as a 1099 self-employed individual than W2 employed. What is your current profession?