Becoming a Real Estate Agent

Becoming a Real Estate Agent is really not that hard.

The question is "Why do you want to become a Real Estate Agent?"

Are you looking to get rich quick?

If so, stop right there. Yes it's possible to get rich, but like everything else it takes a lot of time. Just the education to get your license can be substantial depending on what state you live in. Then many Brokerages require additional education and training. Three years is not atypical.

And the real money is in Commercial Real Estate anyways, which means more education and more licenses. But the downside to that is that it can months to years to close a deal depending on how complex it is.

The nice thing about being a Real Estate Agent is that startup costs are actually pretty minimal. The basics can be done for about $2000 total. But do you want to join the National Association of Realtors so you can be a Realtor instead of just a real estate agent? If so, more money and more time.

Flipping

Based on all those reality TV Shows and the radio ads blaring all over the country, you'd think buying distressed houses, refurbishing them and selling them is easy.

It's not. I know a lot of people who are becoming real estate agents with this in mind. In theory it's a great idea. You get access to all the houses coming on the market. You can keep the commission on the house for yourself to add to the down payment.

But you need to know the area and the market. In my neighborhood there have been roughly ten properties on the market in the past two years. Of those, three have been purchased by flippers and remodeled. Two of them very nicely, with one being a nice triplex. The rest have all been on and off the market since then with little to no interest from buyers. Prices on these properties have fluctuated all over the board. Some are even at pre-recession price points!

All of the properties purchased by flippers are currently sitting empty. The Triplex has been empty for over six months now, not including the six months worth of renovations. Imagine the lost profits those flippers are looking at!! They still have to pay the mortgage.

On the face of it, my neighborhood is a great place to buy houses. It's got a great Walkability score of 85%. It's near a major city that is growing fast. Its full of older homes with established families. It has good schools.

But, it's bordered on two sides by major roads and a major freeway on the other all of which are bad traffic corridors during commuting times. This also means there is a lot of cut through traffic as commuters try to avoid the traffic. Bus routes have been slashed drastically over the past few years. Nearby restaurants are either low quality or VERY ethnic meaning very little walk by traffic actually enters them. Grocery stores are a bit far away for most people. Most properties still are still appraised higher then their actual value by the tax office.

All of these factors drastically affect the the sale of these properties, and is a reason why there have been few sales in the past couple of years.

Ok, so how do I actually do it?

That being said, it's a fun job. Especially if you're a people person, are willing to make contacts anywhere you can, and are willing to live without a pay check for periods of time.

First step is to take some classes. Contact your local real estate company and your local community colleges. Both usually have classes or access to resources that do provide real estate classes. Talk to a few different real estate agents and find out where they recommend classes.

Second step, usually while you're taking the classes, is to find a brokerage you're wanting to work with. Again, talk to agents and find out who seems to enjoy the companies they're working with.

Third, and by far the most important step, build your contacts list. Hand out cards to everyone. Expect to do a lot of leg work to build up that list. Make sure friends are referring you. And once you do land a client, treat them like gold. If they like you, they will recommend you to someone else.

And lastly, expect to be available on weekends and during weeknights to clients. This is when most of them have time to deal with buying properties, so you need to be ready for that also. 

So in closing, Becoming a Real Estate Agent is not a get rich quick scheme. But it is a rewarding career that involves a lot of work, and a bit of luck!