All Forum Posts by: Johnny L.

Hey @Johnny L.,

Great question. I'm in Philadelphia, and I'm a full time realtor. I've been a realtor for about  years and it's been anything but easy. However, the money is there. My company is different in that I get to keep 100$ of my commission, I just pay $65 monthly. So that helps and I did that for a reason.

So here's how it breaks down for me: I spend about $500/month in marketing and I do about 2 transactions a month ( 1 buy/sell side + a rental or 2 buy/sell sides or two rentals).

My average sale price is $180K, so at 3% that's $5,400. 

My average rent price is $1,200 and I keep %42 of that so thats $500 ish.

I'm at $5,900 - $500 (expenses) = $5,400. 

I sale about 12-15 houses a year so on the low side that's about $64K.

The only thing that sucks is if you want to buy a house, you have to forgo your normal deductibles come tax time so you show higher income ... that blows so hard and I can't find a work around ...

I'd be considered a crappy agent! There are agents out there that do what I do annually on a monthly! That is very motivational. So to answer your questions, there's actually a boatload of money in being an agent, it's just about mastering your systems and being disciplined. I am not there yet but by studying the business of other highly successful agents, I will get in about 2-4 more years. Plus there's nothing like helping someone buy their first place and getting that invite to the housewarming and just seeing what they've done with the place and knowing you made it all possible. #Winning. 

What I've done to move forward in my business is to hire a real estate coach and work on building proven systems and stop trying to reinvent the wheel. Wish me luck :-)

Johnny

I believe the hard part is developing an effective system and evolving it to make it better. Once you have a system that works it takes consistency and persistence. Consistency and persistence are not easy for all but is what I know to be some of the key factors to success.

Giving yourself the option to close deals in a multitude of ways is very smart, but it wont be nearly as effective if you don't get many leads coming your way.

Keep in mind the market is hot hot hot right now what will you do when it goes soft???

@Johnny L. Stay motivated and tell EVERYONE you meet you are in real estate. I'm somewhat newer agent and I'll tell you from first hand experience it is not easy or cheap to get started. I work with a brokerage that assigns mentors and has great training for new agents to get started. Although training and mentors are great nothing is given to you, you need to hit the streets and make it happen! I work in Los Angeles where there is a lot of competition but on the flip side when I do close a deal it pays off well. I've been an agent for going on two years and have already seen a huge percent of agents get started and quit before they even close a deal. Being an agent is not a part time job if you want to be successful especially in the very beginning. Door knocking, social media and open houses are great free ways that will get you started in your marketing.

I can tell you when I first started out about 12 years ago it was very tough. Some days you felt like what am I doing?? Is it really this hard??

You reach a point where you either quit and give up on the dream or you say I am not going to listen to the naysayers and I am going to learn and outwork everyone else to make it happen.

It will be a roller coaster in the beginning where you are building a business from the ground up. Super highs and lower low's. I remember the days when I thought getting a 20k or 30k commission check was the pinnacle. Now I average six figures a deal.

I haven't had a 1 million commission check but I want to do that eventually. I will frame that one for sure when it happens. I tried residential when I started out and didn't like it. Lot's of weekends and nights and first time home buyers because you are not established yet. That comes with high splits to the broker while getting trained and low price points with the buyers you are working with. That makes for having to do a ton of volume just to keep the business going the first year.

95% WILL FAIL the first year in the business. I can tell you when you become the 5% it feels awesome that you are doing something not many people can do successfully long term.