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Thread: So you want to be a Real Estate Agent?

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    Member Sitri's Avatar
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    Default So you want to be a Real Estate Agent?

    I have seen a lot of questions over the years regarding employment status, tax returns, my Clark Kent vs Superman personsa or your Kara Danvers Personna vs. your Supergirl personna. So maybe getting your Real Estate License will solve a lot of these issues. I sold my business and got bored hanging around the house and saying I was retired at my age. I didn’t want to become someone’s employee and punch a clock and I certainly did not want to start a business that would drain cash. Besides my son was getting tired of saying his dad was retired. I did a lot of research and got my Real Estate License a few years ago. I wish I would have done it years earlier.

    So what are the advantages?
    First, you are an independent contractor. You set your hours and you get a 1099.
    You usually work from home if you need to do paperwork. You don’t have office hours.
    You have business cards and an occupation on your tax return.
    Most Realtors do only 1 or 2 deals a year so it is not like a high pressure job.
    Expenses are tax deductible. Your broker may help you form an LLC which could take income from all sources.
    You have access to the MLS service to see all the details on condos and houses. If you buy or sell real estate, you do it really cheap.
    You have plenty of time to do other work. Many agents have other day or night jobs.


    How do you get licensed?
    Most states require you to take a 2 week course with 80 hours. I had to actually take the class. Some states now offer the classes on-line. So, do it from home.
    You have to pass an on-line national and state test and get like 70%, It had real estate terms and some simple math. It was not hard.
    You have to be sponsored by a real estate broker. They are always looking for sales reps and it is not very hard to find one. BUT, you better pick one that works for you. More later.

    How do you pick a broker?
    Legally, you have to be under a broker for supervision as an agent. They provide you with the independent contractor’s agreement and all the tools to buy and sell real estate. Here is how it works. Depending on the broker, you get a split of what you sell. Of the usual 3% commission, you may get anywhere from 50% to 90% of the 3%. In addition they will charge you various fees or royalties. My first broker charged my $50/month for my office fees including copy machines, a tech fee of $300, and $500 for E&O insurance. In addition, I had to join the National Association of Realtors, Multiple Listing Service, and lock box. The total cost for being a Realtor is about $3000/year.
    You have to be careful as how they have commission plans varies widely. One national firm actually charges you a range of like $500-1,800/month like a quota. You could actually go in debt to this national firm.
    Training and administrative support is critical to have as they teach you how to do contract offers, agency disclosures, listing agreements, etc. Once you do a couple its no big deal. But you need to do it right.
    The broker I currently have charges me $85/month for everything and I get 85% of the 3%. They have excellent training and systems. If you want detail I can be PM’d.
    You can visit any real estate office and ask them for an interview to see how it works. Check out their website and look at their agents.


    Anyway just an idea I wanted to share.

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    Default Re: So you want to be a Real Estate Agent?

    Well hello there, long time no see.

    BTW I need to add some agents do it as a second job, as sales can be unpredictable.

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    Member Sitri's Avatar
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    Default Re: So you want to be a Real Estate Agent?

    Hello back. I guess I went dark for a few years. Thought I would just share. I live in a very hot market in Ohio. I know a lot of female agents here without college degrees who are knocking down $200,000 or more a year. A lot of listing agents will let you host open houses and you get clients by working the people who come to the open houses. I remember when I lived in Miami there was a club in Ft. Lauderdale call the Pink Pussycat. Anyway there was a dancer named Rita who was basically buying houses for rental property and doing well. I wont say what year it was, but I bet before most people on this site were born.

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    Crossfingers Re: So you want to be a Real Estate Agent?

    Quote Originally Posted by SnuffleUffleGrass View Post
    Well hello there, long time no see.

    BTW I need to add some agents do it as a second job, as sales can be unpredictable.
    It is great to see you back on here as well, Sitri!!

    & THANKS, I was actually thinking of doing this, as a kind of 'exit plan'/backup..

    I drove past a RE office, (forgot to look today tho ) that said they reimburse people that take the class(es) for this, I guess they hire too?

    Is there a lot of social media involved in doing this?

    Thanks again.


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

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    Default Re: So you want to be a Real Estate Agent?

    Do you guys have recommendations as to how to sign up for classes?

    I'm looking for my region now and it looks like there is the local university option, community college option (which is mostly online) and for-profit/specialty school options? I guess what I'm asking is whether one school is more recommended than another?

    Any companies reimburse you for classes?

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    Member Sitri's Avatar
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    Default Re: So you want to be a Real Estate Agent?

    I have used this company before it is good.
    https://www.theceshop.com/
    This is the company where I sat for classes. 2 weeks straight.
    https://www.hondros.com/
    You would have to talk to a broker to see if anyone reimburses for classes.
    I visited multiple real estate firms and asked about their training, compensation, administrative support, monthly fees, etc. A company may reimburse you but their overall compensation or split may be bad.

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    Default Re: So you want to be a Real Estate Agent?

    @Sitri: How is Real Estate in comparison to Insurance Sales? Are they similar in regards to income potential and having lots of freedom in how and when you work? Would you say it’s easier or more difficult than selling insurance? If anyone else knows please feel free to offer your input Im trying to go into Insurance Sales but I’m also open to doing Real Estate Sales

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    Default Re: So you want to be a Real Estate Agent?



    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

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    Member Sitri's Avatar
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    Default Re: So you want to be a Real Estate Agent?

    Quote Originally Posted by EastCoastDancer01 View Post
    @Sitri: How is Real Estate in comparison to Insurance Sales? Are they similar in regards to income potential and having lots of freedom in how and when you work? Would you say it’s easier or more difficult than selling insurance? If anyone else knows please feel free to offer your input Im trying to go into Insurance Sales but I’m also open to doing Real Estate Sales
    I started out from college selling life insurance. It sucked.

    I owned an Insurance Agency from one of the big 2 companies. The job owned me. I had to staff it from 9-5. I made ok money but now you also have to become NASD licensed to sell Mutual Funds with finger printing, etc. The job owned me for time. I couldn't wait to sell that agency. When I sold life insurance it was the most miserable time of my life. With all the internet and easy ways to buy insurance it is now a commodity. With Real Estate, every house is unique and people are always looking to buy or sell. It is very satisfying to help people find a home and negotiate a good deal. I love it.

    Bottom line, People like to buy houses, people hate to by insurance.

    The income potential is not even close. I had one client that I sold their home for $345,000 and they bought a home for $485,000. so $830,000 gross sales, $24k gross commission and I got 70% or $16k off of one couple. Another new home in contract for $560k so about $12k commission. You are lucky to make 10% off of insurance sale or maybe $300. Insurance is a mass numbers game and people shop and cancel. You don't worry about that with real estate. They buy a house and you get 1 big check. Real estate is so much easier and less time consuming. Once you get into your market you can do real estate forever.

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    Default Re: So you want to be a Real Estate Agent?

    The gloom and doom, But people have to live somewhere and so far we are still growing in population. You can always buy rental properties and rent out if people decide not to own. But everybody has to live somewhere.

    In this article, pending sales up over 1% and still the writer says

    Still, Cardone insisted to Yahoo Finance that “real estate is the only place” he’d invest money in right now.

    “I buy real estate that produces income. I rent where I live and I own property that pays me money. I will only buy a piece of real estate if it produces cash flow for me,” the investor added.

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    Default Re: So you want to be a Real Estate Agent?

    Thanks a lot for your input!


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

    -Eartha Kitt

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    Featured Member EastCoastDancer01's Avatar
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    Default Re: So you want to be a Real Estate Agent?

    Thank you, that was very helpful! Good to know

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    Default Re: So you want to be a Real Estate Agent?

    Not to be argumentative, but there are disadvantages too.

    Quote Originally Posted by Sitri View Post
    [COLOR=#000000][FONT=Arial]...
    So what are the advantages?
    First, you are an independent contractor. You set your hours and you get a 1099.
    You file quarterly income tax returns, and pay self employment tax.

    You usually work from home if you need to do paperwork. You don’t have office hours.
    You don't have an office. You do need a nice car, and you need to keep it clean and neat.

    You have business cards and an occupation on your tax return.
    Offset printing is not expensive, I paid less than $50 for my last batch of business cards from on offset printer. She also did my letter head, and envelopes. I think it looks classy For all three, I was out less than $200.00.

    Most Realtors do only 1 or 2 deals a year so it is not like a high pressure job.
    A realtor doing only two deals a year won't be making much money, probably not enough to afford the cost of quarterly tax return preparation.

    Expenses are tax deductible. Your broker may help you form an LLC which could take income from all sources.
    ORDINARY and NECESSARY (emphasis added) business expenses are deductible. See your accountant, and pay her. The good news is, it's deductible. The bad news is, you are still out the full amount of the expense and the deduction is barely worth 30% of what you laid out. Anyone who says they are doing a deal strictly for tax purposes is trying to fool themselves.

    [COLOR=#000000][FONT=Arial]You have access to the MLS service to see all the details on condos and houses. If you buy or sell real estate, you do it really cheap.
    Flipping takes time and effort. It's a full time job with high up-front expenses and an uncertain return.

    You have plenty of time to do other work. Many agents have other day or night jobs.
    I know a couple of people who sell real estate as a side gig, they are not rich, nor are they getting rich. If you want to get rich, selling real estate is not a bad way to do it. But, it takes a full-time 100% commitment. Don't think you are going to do it on the side and get rich. You have to learn the market, you have to continuously update your market knowledge, you have to be a good sales person. You have to have a good head for finance. And, you have to be able to close the deal.

    The secret to getting rich is working hard, I mean really hard. Then, put your money to work as hard as you do.

    XOXO
    Z

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    Default Re: So you want to be a Real Estate Agent?

    Since I now know what state I would like to reside in, I am considering getting a real estate license.

    Would this be a helpful step before buying property? I really want to buy/invest in property but am not financially ready yet and it just occurred to me that having a real estate license could be an asset in helping me offset some of the costs associated with buying. Am I correct in thinking so?

    For those of you who are licensed real estate agents, are you satisfied with your career? I have a college degree, so ideally, I'd like to do something where I'm using my degree, where I'm using my mind, where I'm being challenged. Does real estate fit the bill?

    I feel that so many millenials, myself included, find themselves stuck in jobs that are mundane and boring and lowly paid. I would not want to invest in getting a real estate license, if real estate is a more professionalzied version of yet another low-skilled, boring and unfulfilling job.

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    Default Re: So you want to be a Real Estate Agent?

    Have you considered real estate appraisal? You have to have a degree, (doesnt matter what) which stops many people. Some people are both brokers and appraisers. (Obviously you can not broker and appraise the same transaction, but you become familiar with the market in a specific area.)

    Easiest thing to get may be a salesman's license. You can make a living while you study for your brokers license. When you get your salesman's license you will have to work for a broker, and if he is a member of the Board of Realtors, you will have to join. This costs money, but enables you to get a lot of information not otherwise available.

    After you have the salesman or broker license you can work on the appraisal license. That takes more study and an appraisal trainee wich amounts to an apprenticeship (which can pay well) . On second thought maybe you should go straight to appraiser trainee status. The good thing about working as an appraisal trainee, the real selling is the appraiser does the selling of his services and you do the work.

    Another thing to remember is most people who get salesman licenses, are out of the business a year later.

    The number of appraisers is declining due to retirement, and they are not being replaced, despite the demand for new ones.

    Anything can be what you make of it. Some real estate brokers sell interesting things, here is one with a $250,000,000 asking price.

    "Mesa Vista Ranch comprises over 100 square miles of prime Eastern Texas Panhandle ranch land and represents almost 50 years of Boone Pickens’ assemblage, improvement, and devotion."

    https://hallhall.com/property-for-sa...91Y00001vwnfb/


    You can get the classes you need for the real estate Agent/Broker and Appraiser licenses online here.

    https://www.mckissock.com/
    Last edited by slowpoke; 07-02-2019 at 06:21 PM.

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    Default Re: So you want to be a Real Estate Agent?

    Is there Snakes there tho?^

    I knew a guy who bought/sold RE on the side, he had a broker's license & didn't have to pay the fees.


    MANY MEN WANTED TO LAY ME DOWN, BUT FEW WANTED TO LIFT ME UP

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    Default Re: So you want to be a Real Estate Agent?

    If you take the class online you dont have to worry about snakes.

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    Default Re: So you want to be a Real Estate Agent?

    My state does not have classes with that program. I think if I were to get the license, I would take the courses at my local university which would cost around $1300 and is around 90 hours in my state.

    From what I gathered, you need an associate's degree at minimum to become an appraiser, though brokers are increasingly requiring a minimum of a bachelor's degree to be signed on as a real estate agent with the firm.

    Medical supply sales and pharmaceutical sales is something else I'd considered. I've gotten so so much negative feedback about the profession of real estate from elsewhere that I definitely have my doubts but something to maybe consider in the future.

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    Default Re: So you want to be a Real Estate Agent?

    Most of the people who get a salesman's license are not in the business a year later.

    You can work for an appraiser and make good money without a license, but you can not do anything on your own. If the appraiser dies or quits, you are stuck.

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    Default Re: So you want to be a Real Estate Agent?

    Do you guys know if the brokerage helps you get leads? Does it function much like the strip club in that the strip clubs brings the customers to you?

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    Default Re: So you want to be a Real Estate Agent?

    That would be a way of looking at it.

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    Default Re: So you want to be a Real Estate Agent?

    I have read stacks of books on real estate flipping/investing and my ultimate goal is to buy several properties I can rent when I retire. I just finished grad school and was looking at becoming a real estate agent part time.

    The appraisal thing is interesting. A quick google search shows 2000 hrs/internship. Do you have to complete 2000/hrs before working? Can appraising be done part time?

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    Default Re: So you want to be a Real Estate Agent?

    It means you have to work as an appraisal trainee for 2,000 hours before you can get your license. You can make good money as a trainee. It would be better to work full time as an appraiser, and you can buy properties on the side. You will run across opportunities while you are doing your regular work.

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    Default Re: So you want to be a Real Estate Agent?

    It means you have to work as an appraisal trainee for 2,000 hours before you can get your license. You can make good money as a trainee.

    Work full time as an appraiser. You can buy properties on the side. You will run across opportunities while you are doing your regular work.

    I don't think trying to work as an appraiser part time is feasible. Your business depends on your reputation and integrity. You probably cant maintain that part time.
    Last edited by slowpoke; 07-19-2019 at 12:41 PM.

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    Default Re: So you want to be a Real Estate Agent?

    Oh ok so you can be paid for the 2000 hours. You have to get a real estate license first, though?

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