side biz - real estate agent or broker?

[obi_wang]

Hi all,

i currently have a 9-5 dayjob and am exploring ways for other employment options where i would get to choose my own hours and make more money. i would like to keep my dayjob right now, but may explore doing something on the side, like as a real estate agent. is this feasible to do something 5-10 hrs a week like this, to gain experience and just dip my feet in? can someone point me in the right direction to even begin something like being a real estate agent or broker? resources? thanks...

[SossMan]

unless you have a very large sphere of influence who would give you deals just because you are you, then I would be hesitant to 'dabble' in Real Estate. It would likely be a waste of your and your potential client's time.

In order to be good and gain the transactional knowledge base you will need, you simply have to take the jump and do it full time.

[Tien]

I agree with Sossman.

I know agents that do this job part time and still make a decent living out of it, but you will be losing a lot of clients as well as throwing money away because you are unable to be attentive to the property as well as the buyers.

You can definately do it part time and then when you establish yourself after 1-2 years you can jump fulltime into it, but don't count on making much money working that many hours.

[Tien]

The Millionaire Real Estate Agent by Gary Keller is a book I would recommend to you.

I have not read it, but I have read the millionaire Real Estate Investor by the same author and Gary Keller knows his stuff cold. As well as does a ton of research before writing his books.

[nyc999]

My real estate agent (I'm currently selling my house) told me the average income of agents in NJ is around $15K due to part-time brokers - keep in mind it's one of the most expensive states for real estate.

It's not a lot of income compared to the amount of time you'd likely have to put in. You said 5-10 hours per week, but even if you're selling one property the open houses, attending to clients, etc. will take at least that much time. Not to mention the other research that needs to be done (e.g. comps, evaluating trends, etc.).

[squiffy]

Good question. It's something I have thought about myself.

First, real estate is a very cyclical business. And there are very high start up costs. It can take you many years to learn the ropes and build up enough clientele to survive.

So it's very risky to give up a steady 9-5 job.

As I see it, ideally, you would get into real estate very young, when your parents could support you initially. Or you would need to have a spouse with a steady 9-5 job to support you, while you took the risk of jumping into real estate 100%.

If you are a single person with no experience in real estate, I would think twice before leaping into real estate. Not to mention, you are getting into the game while real estate sales are DECLINING.

If you want to get into real estate, I see nothing wrong with dabbling a bit at first, to see if it is for you. Furthermore, it may be awhile before the market recovers. So you may have 3-5 years to learn the basics.

You may discover you dislike it. Or you may discover that you can gradually build a solid client base and may be ready to jump in full time. You may find that brokers don't want to work with part time agents. There are just a lot of unknowns.

But I am a big proponent of people TRYING new career paths that they may be curious about. You can learn a lot about yourself, your likes and dislikes, strengths and weaknesses.

And you can learn a lot about the real estate game and real estate markets.

Having said that. Don't build up some false fantasy world or illusions that you will make a killing in real estate and retire early.

It may take you many years of long hard work to learn what you need to learn. And basically, if you don't sell, you don't eat. A commission business can be a difficult career financially, particularly when the market is slow.

So I would encourage you to try it. But don't risk your entire career on one roll of the dice

You can limit your losses if you limit the size of your bet.
I wouldn't bet my whole bankroll on a new real estate career, certainly not in the middle of a down cycle.

But it wouldn't necessarily hurt you too much to play a few hands at a low limit.

Try and see if you can get into it part time. If you can't make it work you can't. If you don't like it you can quit.

But I wouldn't go full time until you get more info about the career and about your likelihood of success in it.

[squiffy]

So if you are curious, give it a shot. But realize that it will only be a side business and don't give up your day job.

If you can sell 1 home every 6 months to supplement your income, fine. If not, no big deal.

[obi_wang]

hmmm... thanks for the tips and advice.

and the mind continues to turn...

[talentdeficit]

unless your '9 to 5' is really '40oish hours, whenever i want' i don't think you have much chance at making money as a part time realtor. you need to be available pretty much round the clock to be competitive with the pros. you might average 5-10 hours a week, but to actually close a sale, you'll need to put in more than 40 hours in the week leading up to closing.

[SurferEd]

I'm an agent in San Diego.

I was working a full-time job and decided to quit my job and either sink or swim.

If you do it part-time, you simply will not have enough time to immerse yourself in all of the education.

However, you could get your license and when someone you know is looking to buy or sell, you can refer the clients and collect 25-30% each time with minimal effort!

Best of luck to you either way.