So, you want to get into real estate? You might be fed up with your current job and you’re ready for a change. Maybe you binged Selling Sunset and thought “I could do that.”
The truth is: yes you can do that! Although, it will require a perspective shift, getting into real estate is doable.
Don’t be discouraged by the random Reddit thread with commenters saying “don’t do it” or “just do sales instead.” They’re nay-sayers and criticize any career in sales.
For some, this industry is a path to financial security. For others, it could be their only opportunity for a long-lasting, fulfilling career.
This guide will show you how to get from where you are to a full-time career in real estate. Are you ready? Let’s jump in.
What’s it like to work in real estate?
Real estate agents spend most of their time finding new work. This can look like many things. They may have a list of phone numbers that they cold call for upwards to 2-hours every day. They may publish content on social media. They could knock on homeowners' front doors selling themselves.
This is called lead generating. A real estate agent's job is mostly finding their next client.
When they have a client, they must negotiate, coordinate with other parties, answer questions, be "on-call," and consul and advice. Agents must always be alert and ready to help their client buy or sell a property.
Agents do a lot of communicating. Their whole job is built on it. To be successful, they must always sell themselves to more people. Often, agents could go months without finding new clients. But, when they do, they can earn huge commission checks.
But, there is one unique and incredible perk of working in real estate. It's malleable. Agents can shape their own career in real estate. Nobody tells the agent what to do or when to do it. They dictate their own direction.
This allows someone to create multiple income streams in their career. It's common for a real estate agent to become an investor, a property manager, or both. That's because there is an immense amount of freedom in real estate.
How do you make money as a real estate agent?
Agents make money when their client buys or sells a property. It’s a small commission of the home’s sold value.
The majority of the work agents do is finding clients. This work is repetitive with a high failure rate. This is why finding clients is a numbers game. A real estate agent searches their database of contacts until they find someone who wants to buy or sell.
Even then, agents will search for more clients even when they're representing someone. This is the only way that agents ensure a steady income.
How do agents find clients?
Ultimately, this comes down to contacts. Phone numbers, email addresses, actual addresses (for door knocking), targeted social ads, or simply talking to someone at a coffee shop. Agents contact people to see if they want to buy or sell real estate.
What it really looks like to find leads and get clients in real estate
Agents spend the majority of their day calling, texting, or emailing people to build a new relationship, maintain a friendship, or deepen the connection with someone.
Acquaintances, friends, or family, it doesn’t matter because real estate rewards those who are good company. So long as agents find leads, contact them, and understands their needs, they will find a client.
Richard Schulman’s idea of “coffee dates” is a great visual of effective lead generation. He schedules short 30-minute catch-ups with folks in his network to get face-to-face time with them.
Inevitably, these conversations come back to real estate. He will see if they need any services, whether it’s looking for a new home or just a referral to a great electrician.
This is how someone stays “top of mind.” When the time comes for them to need an agent, they’ll think of their real estate agent friend.
Examining social interactions like this makes it feel sleazy, manipulative, or weird. The message is, when you're a kind, caring friend, people will want to work with you. People will choose the person they know and like over the experienced real estate agent they don't know.
How many clients should you expect to get?
The truth is, you might not find that many clients in your first year of real estate. It’s not impossible to find clients. A lot of people do it! But, don’t expect to make hundreds of thousands of dollars like they do on Selling Sunset or Owning Manhattan.
Those are luxury agents who focus on the most expensive properties in the US. If you want to get their status, then you must move to an area with high land value.
Most of us will work with clients who are families in need of a suburban home or one in their town. That’s the norm. Most agents work with real estate valued between $200,000 - $450,000 and walk away with $2,500 to $8,500 per sale.
Now and then, I hear from an agent who made 2-3 transactions (sometimes none) in their first year. A NAR report stated that agents had a “median annual transaction sides of 12.”
You probably won’t earn a 6-digit income in your first few years. It’s certainly possible to make $100,000+ your first year, but most agents won’t. If you don’t, there’s nothing to worry about.
As I said earlier, real estate is malleable.
What dollar amount do you need to survive and meet your bare minimum of happiness? That should be your goal number.
This helps you hit your goal without burnout and resentment. Being grounded and realistic will cover your bases and grow a sturdy, well founded business that pays dividends to you and your family.
Now that your expectations are set, let's explore how to get into real estate.
How to get into real estate (with no experience)
To become a real estate agent, you need a real estate license. Getting a license is the same throughout the country:
- Be at least 18 years old
- Enroll in an accredited pre-licensing program
- Submit an application to take the state real estate exam and an application to get a license
- Pass the exam
- Sign with a real estate brokerage
This process takes about 3-6 months. Considering the credentials and education, this industry has a low barrier to entry.
Some states may also enforce a “post-licensing” requirement. This means additional coursework after you get your license and before you renew your license.
Most people get into real estate with no experience. During their brokerage interview, they may ham up their “sales experience” to get hired. That’s fine. But, not required.
The reality is that most big name brokerages will hire you with no experience. However, there are boutique brokerages who seek more seasoned and experienced agents.
How do you get into real estate when you have a full-time job?
You’re unhappy with your full time job and think real estate sounds like a fulfilling career. You want to make the change, but aren’t sure about the time and financial investment.
How do you balance real estate school with a full-time job and a family? How are you supposed to financially afford transitioning from a full-time income to full-time work and no income?
Let's explore how to change careers into real estate.
Taking real estate classes with a full-time job
Your best option is to take online classes. Most students who come through our school are transitioning from a full-time job or raising a family. They can’t take time out of the day to attend an afternoon class because they have to pick up their kids from school or finish the last few hours of their workday.
Online classes help them fit the required education into their schedule. Whether it’s online live training classes in the evening or taking our online-only program.
The second part is studying for the real estate exam. Make this part easy for yourself. You don't have to review your notes, textbooks, and freebie online material.
We have an exam crash course (both live and in video format) that you can join to learn everything that’s on the real estate exam. Most people join our crash course the weekend before their exam and pass on the first try. That way, they fit all of their studies into one weekend or week.
We also have an exam prep package that is all online and comes with unlimited practice exams, vocab flashcards, an eBook study guide, and thousands of question-and-answer videos.
These two program make it easy to study for the exam. I recommend it because it cuts the time down on studying A LOT.
It also means you don’t have to commit to another person’s schedule. You can study when you want.
Going from full-time job to full-time real estate agent: Plan A
How do you go from a full-time income to full-time work with no income?
If you want to work full-time as a real estate agent, the best option for you is to save up a nest egg. This amount should be at least 6 months of expenses. It allows you to work fully as an agent without worrying about paying your rent.
Expect to not earn any money during this time. You certainly can! But don’t be dependent on making money. You could be setting yourself and your family up for a catastrophic failure. Don’t take loose and fast risks here. Stay calm, be sturdy, and remain optimistic.
This is the hardest period of everyone’s career. Most people leave at this point because they can’t afford to stay in. But, if you prepare for this period, you increase your chances of long-term financial success.
Going from full-time job to full-time real estate agent: Plan B
The second option you have is to work full-time or part-time. This is the safer option and one most people take when transitioning into real estate.
This option lets you keep your steady income while growing your business. Then, when work comes in more frequently, you can afford to quit your day job.
The downside: you spend less time in your real estate career. This makes growing it harder. You also lose free time, which increases the rate of burnout.
Not to mention, if you search for leads at night, you run the risk of bothering people while they're winding down. When you do find a client, you must be available even when working your day job. What happens when a client wants to sell a house, but you're stuck at the office?
This is why people opt in for part-time, flexible work while balancing their real estate career. Some will do Uber or Lyft – it's a great way to learn a town.
Whatever your schedule is, make sure the client has priority. If you leave a great impression on a client, they will want to work with you again and recommend you to friends. Make them your priority above your other job.
Let’s now learn what it takes to establish yourself.
The reality of becoming a successful real estate agent
The truth is, real estate school won’t prepare you for your career. What you do day-to-day is vastly different from what you learn in school.
You will do a lot of on-the-job training through trial and error, learning from mentors or coaches, joining a team, or through training seminars.
In your first year, this is critical. Learn as much as you can. Don’t expect to jump into this career solo and make hundreds of thousands of dollars.
That’s why I recommend learning as much as you can. When you learn everything about the industry, you become an expert. This expertise helps you become more confident to make decisions that benefit you, your client, and your family.
What brokerage should you join?
I recommend that you join big name brokerages, like Keller Williams, Coldwell Banker, C21, ReMax, etc.
Big name brokerages have the most resources. For new agents, access to training sessions, mentors, coaches, and third-party recs (lenders, title companies, escrow companies, etc.) gives them everything they need to succeed.
Smaller, boutique brokerages can’t provide this. They just don’t have the bandwidth to do so. I recommend working at a big-name brokerage for the first two years. Then, you can switch brokerages.
In these first two years, approach every opportunity as a student, ready to learn. Find a mentor or a coach who can help you with specific, unique opportunities and join a team.
Here’s why I recommend joining a team.
Should you join a real estate team?
I recommend you join a team because you get a few perks: lead access, colleagues who share your experience level, and access to a team leader for advice.
You can access the team’s leads to expand your clientele. You get to know your fellow teammates and learn from their experience. Finally, you have a leader who can help show you the ropes because they want you to succeed.
When you pick a big brokerage and join a team, you get a strong foundation of support.
Keep in mind, that you split your commission on teams. This split is in addition to your brokerage split. So, you will make less money. But, it's worth it because you’re getting insights, training, and a wider support system than you would solo.
Which brings me to my final, important point.
Slow and steady
Most people want success now. Realistically, that ain’t going to happen. Take the time to lay the bricks of a long-term, sturdy career that can’t be taken you.
Focus on building a slow, high-quality business to feel more confident in yourself. That confidence will enhances your work ethic and personality.
Remember to come back to your ideal lifestyle. What does your ideal lifestyle look like? Real estate is malleable is malleable.
You can get a license to invest in real estate. Use it to buy a property, fix it up, and rent it out to people. Then, if a friend or family member wants to buy a house, you can help them.
You can use your commission check to pay for your children’s college, finance a new jacuzzi for yourself, or sponsor the local little league. You can use it to reinvest in your community, to invest in local businesses, and build up those around you.
That’s the amazing part of owning a real estate license. You can paint the picture that you want to live – and live it.
