Should I become a real estate agent?

Question

Hi guys! I’m new here but I’ve been listening to bigger pockets for a while now. I’ve been considering getting my license in real estate but I was a bit discouraged when I heard the amount of people that quit early on into their career. My aunt is a real estate agent & she kinda scared me off from it when I considered getting my license a year ago. My ultimate goal is to invest in real estate in the future so I thought getting my license would be beneficial for that as well. I guess I’m wondering what the realities are becoming an agent & what makes someone a good agent?

My family is pushing me to go to school which starts soon but it will take a good chunk of my savings (10k) & im just not sure it’s the right move. Any thoughts & advice is greatly appreciated. :)

Russell Brazil · Answer

Being an agent is a great career, but few become successful at it. 87% of agents fail out of the business within the first few years. This is right in line with the failure rate for all small businesses, which is 90%.

Why do agents and small businesses fail? Id say 2 main reasons.

1) Lack of understanding of how to properly run a business

2) Lack of capital.

Most small businesses that succeed dont turn a profit til their 3rd year in existence. Yet they obviously take capital to run their business while they are losing money in those 1st two years.

So learn the fundaments of running a business, and have capital to run your business til you can make a profit. If you do those two things, you have a much better chance of being part of the 13% and not the 87%.

Lauren Stark · Answer

It's a great question! The answer is different for everyone. I got my license 2 years ago because I knew I would be buying and selling my own investment properties. I wasn't sure how much I'd like being an agent for other people, and I also have a full-time W2 job. I'm honestly surprised how much I've enjoyed having real estate as a side hustle, and I could definitely see myself doing it full time in the future. I work with both investors as well as home-buyers and if you enjoy all aspects of real estate like I do, I'm sure you'll like it as well! I would not recommend doing real estate part-time like me if you are hoping to make actual money and scale your business. I'm fine selling to family/friends/co-workers right now and connecting with local investors. I'm OK with the slow build of my network due to my full-time job, but I do really enjoy the work and meeting new people. There is a lot more I could say, so feel free to shoot me a DM if you want to chat more!

Caleb Brown · Answer

If you are going to stick to being an agent for a couple years to get going then do it. It is slow to start(unless you have a huge database or get lucky). Most agents do quit because its not what they thought, it's not easy. People think you just show up and a deal falls into your lap but you have to find leads, nurture them and get them to the closing table. Before making a decision I'd intern with a local agent(find a producer) and also find agents on Youtube to start learnng the business. There is also teams you can join who will train you, pass some leads your way and give you support. No matter what do some research. Being an agent is not for everyone, you will have to create your own schedule and keep yourself accountable. I love being an agent and would not change a thing. I got licensed at 18.

John Slater · Answer

@Madison Malek I vote for getting your license.  I started on the investing side in 2013, got my license in 2018, wasn't excited about getting my license, but from a cost perspective, you're only talking about one transaction to cover your really costs and make a profit (friend of family member).  It can also create opportunities to represent yourself in transactions thus putting any commission into your pocket.

Sure, the market isn't hot right now which makes being an agent a tougher place.  It comes down to your mindset, your work ethic etc, there are people selling, there are people buying, but this lull will weed out a lot of agents.  There's a super high percentage of agents who quit in their first year... it turns out it's not as easy as people think, but when was making good money ever easy????

I would sign up for a simple online course in your state to do whatever pre-requisites they require to take the final exam.  "Kaplan" will be a little more expensive than others, but a good company.  I wouldn't sign up for classes in person, too expensive and time consuming... doing online means you do it in your spare time while focusing on whatever else you do for work.