Attn: All current/past RE Agents/Brokers.... - Posted by K_AZ

Posted by Matt B on April 12, 1999 at 08:38:38:

Good advice, Mike. Some of us don’t have the patience for a job, though. If it won’t kill you to stay, it’s not too bad of a strategy. I’m very happy that I quit my job and hopped into the RE biz full time, but it was very rough going at first. Definetly not for the timid.

What I really liked in your post was

I’m writing those words down and posting them on my wall! Thanks.

Attn: All current/past RE Agents/Brokers… - Posted by K_AZ

Posted by K_AZ on April 11, 1999 at 22:59:50:

My long term(within 2 years)goal is to be financially indepenant enough through part-time RE investing to maintain doing it as my sole source of income. However,I’m contemplating a career change now due to corporate burnout syndrome. My question is…would it be a benefit to my personal investing career to sign on with a RE Agency, get my license and try and make a go of that as a temporary career. My thinking is that it will help me and give me access to some potential deals that I wouldn’t ordinarily get first look at. Aside from those benefits, I realize that I’d have to be interested in this as a JOB as well, at least for now. Could you current agents/brokers give me some insight into this? By the way, the market is very active here in Phoenix right now and should easily maintain for the next 2 to 5 years. Please advise and thank you in advance.

Re: Attn: All current/past RE Agents/Brokers… - Posted by Carmen

Posted by Carmen on April 15, 1999 at 15:14:27:

As a former RE Agent (Florida requires that you have an Agent’s license for a year before becoming a broker), let me say that RobFL is absolutely right.

First, very few brokers will take you “part time”. And don’t expect to get ANY training. Also, if you don’t list (which is not your main interest, I don’t think), you won’t last long. And I hated listing. And driving people around all day (taxi driver - without the fare) looking for that “perfect” home - plus, everything that goes wrong - yep, it’s your fault.

So I did it for two months, made two sales (a tiny condo, and a cheap house) - a whopping $1800 total for two full month’s work - then got smart, and kept my license active, but am concentrating on investment. I found another job (doing something I really enjoy) and my husband quit his job (doing something he really didn’t enjoy). I now have the benefits of all the info in the MLS - and despite a lot of posts to the contrary, since I started using the MLS the right way I have seen much better results than previously. But, we do still have one income coming in until we get out of the “rat race” (passive income exceeds monthly expenses). So we can still get bank loans, etc. and my husband does not need to disclose - the best of both worlds?!

There is no right answer, but being an agent is being self-employed - in the best case, if you sell a house your first day out, your first paycheck will be 30 days later. You can do it part-time, but it’s difficult - your time is not your own; to sell homes, you must be available when the buyes are out - and surprisingly, few weekend “lookers” are really “buyers” - the serious buyers are those looking for homes on the weekdays, 9 to 5.

Regards, Carmen

Re: Attn: All current/past RE Agents/Brokers… - Posted by Rob FL

Posted by Rob FL on April 12, 1999 at 19:55:52:

You should realize if you don’t already that being an RE agent does mean a big change in lifestyle. I am a part-time RE broker and in speaking with many of the other local brokers they always recommend to their new agents to have at least 6 months income set aside to pay their bills before becoming a full time agent.

The reason for this is because it may take you that long or longer to even make a dime. It is not the easiest thing in the world. I know many people who have tried and busted their tail trying get listing or locate buyers and many times they run out of money because unlike a job, you don’t make any money as an agent unless you can make sales.

The numbers are a little staggering. An agent can sell $1,000,000 worth of real estate at 7% commission and after splitting half with the other brokerage and half again with their broker nets them a wopping $17,500 before taxes or expenses. Not a lot for being a million dollar producer. After taxes and expenses they might only bring home $10,000. Yikes.

I don’t want to scare you at all. Just think about what I am saying.

Best wishes in your ventures.

Re: Attn: All current/past RE Agents/Brokers… - Posted by dk

Posted by dk on April 12, 1999 at 18:11:32:

I read the follow-ups to your posting and they all offer some very good advise. I will be leaving my corporate job in a couple weeks to work full time as a RE broker (been a part timer for years). I already have a handful of multi units though. You may want to pick up some buildings before you quit to do RE brokerage. Leaving a regular job will effect your ability to obtain properties. Being a broker does have many disadvantages as the follow ups mention. But, it does allow you to be part of a network of people doing the same thing you want to. Many brokers in my area are wheeler dealers too and they’re not all your typical pain in the butts. And yes, throw away your TV!

Re: Attn: All current/past RE Agents/Brokers… - Posted by Mike Oldfield

Posted by Mike Oldfield on April 12, 1999 at 02:51:50:

Would not recommend. Benefits are far outweighed by the disadvantages. Please dont do it. I have a better idea.



There are two good reasons not to quit yet.

#1 Financing - The bank wants to see you at the same job for two years. Leaving now would severely handicap your ability to borrow. And you will need this ability bigtime!

#2 Time - Spend every spare moment of your time investing. Don’t spend precious investing time learning a new job. You are settled where you are now. Take advantage of that and Invest Invest Invest

My 1st deal when I was 23 Cash flowed $378 per month. Hardly a full time living. Over the next two years I had enough income to quit my job and invest full time. YOU MUST OF COURSE THROW AWAY YOUR TELEVISION AND CONCENTRATE ON INVESTING LIKE A KILLER STALKING PREY, but it can be done and it’s a blast!

I am now 31 I have accumaulated 125 rental units 3 motels and 2 trailer parks mostly in the first 3 years.

Don’t quit your job Invest Invest Invest then quit. Inside deals are a fictional benefit. Plus you must disclose that you are a broker on every deal. The sellers you are negotiating with think that you are going to rip them off because you know something they don’t and you SCARE THEM OFF. THey are much more receptive if they think you are real estate ignorant like they are. Wear blue jeans drive a decent but not great vehicle and talk slowly simply and clearly and you will laugh all the way to your bosses office to quit your job in 2 to 3 years Good Luck Write me at if you like MIke Oldfield