Picture this, you are now working in a career that is flexible, you choose your hours and schedule, and you have the potential to earn $100,000 a year or more. Does this sound like a dream? These are some of the many reasons that people choose a career in real estate, and if it sounds like something you would enjoy, you should too! Remember though, every story has two sides, and a career in real estate is not any different. So here is a look at the pros and cons of a career as a real estate agent that is straightforward.
Getting Started in Real Estate
Here are some of the pros and cons of getting started in a career in real estate.
The Pros:
– It can be a fairly quick and painless process to become a real estate agent in California.
– A new career in real estate can, in most states, begin in a matter of weeks of education to a few months to take the state licensing exam, depending upon the regulations of your state and your college experience.
The Cons:
– Investment is required, investment of time, effort, and money are required.
– There are no guarantees.
– The exam itself is difficult and it requires you to understand many topics that are complex and you need a skill set that is varied to succeed.
Real Estate Agents Are Their Own Boss
Being a real estate agent means you answer to yourself. There are pros and cons to this as well.
The Pros:
– Real estate agents are independent contractors and control their own book of business.
– A real estate agent makes all the decisions, add a solid work ethic and a good attitude, and an agent will virtually have no limits to how much their real estate business can grow.
The Cons:
– As an independent contractor, you are on your own, and you have to learn the market and your business yourself.
– It is important to realize how much work is put into being successful as a real estate agent. You have to maintain the needs of your clients, build a lead list for yourself, network relationships, market the business, as well as manage the everyday needs of your office.
Real Estate Agent Income
The way in which agents earn their money must be understood as they do not get paid like normal employees or business people. There is a good and bad side to this as well, and before diving in, you need to understand both.
The Pros:
– Income for a real estate agent is not limited to having an hourly wage or a salary range that is dictated by a corporate company.
– Income in this business is based mainly on the time you choose to invest in your business. Add an assistant or obtain the license appropriate for your business that will allow you to build a brokerage of your own and grow your business.
– The potential to make a significant amount of money as a real estate agent is huge.
The Cons:
– The start of your direction for cash flow will be out. It is best to start a career in real estate investing with a little nest egg. This is because sales can take time and it may be a few months before you are able to cash the first check.
– The market you cover and the relationships you create will determine whether you will succeed or fail.
An Agent In Real Estate Will Have a Flexible Schedule
Schedules are not really a thing for real estate agents. They can choose when and what time they wish to work and much of it is in fact dependent on the times clients can meet. Now the important thing is to know how flexible you are in order to meet the needs of the clients. This will decide what the cons as well as the pros are of this part of becoming a real estate agent.
The Pros:
– Say goodbye to the mundane work schedule of 9 to 5. A real estate agent can set a schedule for work that works for them.
– The majority of the time for a real estate agent is spent meeting people, socializing and creating relationships.
The Cons:
– Being flexible as a real estate agent also means that you need to be flexible for your clients to meet their needs. This can be stressful, as a consistent schedule may be difficult to achieve.
– Real estate agents have a tendency to work even when others do not. You may need to drop everything and attend to the needs of a client.
Real Estate Agents Deal with the Largest Transactions Most People Make
A home is one of the largest purchases that an individual will make, and it is your job as a real estate agent to make it as easy and painless as possible.
The Pros:
– You can obtain genuine satisfaction from helping a client to find a good deal.
– This time is very exciting for both the sellers and the buyers and you, as a real estate agent, will be who they look to as an expert to help them manage through the processes with services that are excellent.
The Cons:
– Though transactions in real estate are exciting, it is also one of the most stressful times for your clients and you, as an agent, will need to show confidence in your abilities and skills, even when things do not go as planned.
– You do not want an unhappy client. That spreads to others and it can affect your bottom line and referral network.
Is Real Estate a Good Side Income?
There are many people who choose to become real estate agents because it has synergy with their current occupation. Among the many available occupations, real estate can be a good way to increase your income. It is common for agents to report making anywhere from 20,000-30,000 each week with less than 20 hours of work. Having a license in real estate will drastically increase your earning potential.
When you are already working a full-time job and want to do something on the side, being a real estate agent makes a lot of sense.
Careers That Would Benefit From Real Estate Licenses
A real estate license is useful in a lot of careers, but we’ll focus on a few situations where it’s perfect.
Contractors
Almost every contractor has a contractor’s license, but a real estate license could boost their business. With a real estate license, you can buy, renovate, and ultimately sell homes as part of your business.
The process of obtaining a real estate license is fairly simple and could increase your company’s profit considerably. Rather than just repairing or building properties, you can purchase properties and sell them on your own. By cutting out the middleman, you’ll have more money in your pocket.
A company’s growth can be difficult, but expanding into the real estate sector is very easy if you have the capital. Building relationships with clients in the construction field can lead to seamless transitions into the real estate field.
A license you don’t use will be the worst-case scenario here. Regardless of whether you are successful, you will gain an understanding of how the real estate game works and thus have an advantage over the competition.
Property Managers
Getting your real estate license can be very beneficial for property managers. You will be more prepared to do business if you have a real estate license and use it to build credibility.
It is the owner of a property who assigns a property manager to manage it. State laws may require property managers to hold a real estate license. The licensing process will make it easier for you to obtain additional properties if you like managing properties.
Property managers, as well as real estate agents, have a lot in common. Clients from each side will help the other find more business. When you are just starting out, this type of collaboration is invaluable.
This type of opportunity is highly valued by small business owners.
Property Owners
Getting a real estate license can help you expand your business if you own property that you rent out. Whenever you sell or buy property, you can take advantage of the extra profit margin.
By expanding their real estate business using contacts they already have, property owners can take advantage of their existing client base. It is a win-win situation. Firstly, if your clients are moving, they can come to you if they are looking to move. You may also have places you own that you can show clients if you are helping them find a place to live.
This level of business integration is very important, as it will expand the company on both ends.
There is a requirement in many states that you disclose that you hold an actual estate license when transferring real estate.
Other Businesses Where You Can Set Your Own Hours
People have a lot of flexible jobs out there. It’s great to have flexible jobs since they can open up many doors for people, such as real estate. Some people work for employers that allow them to work from home, so long as their work gets done, how long they work is up to them. Real estate professionals will benefit from these types of jobs.
There is a lot of fluidity in the real estate industry. Many people dislike the idea that if the housing market crashes, they will lose a lot of money. Some people need a more reliable system than that. This is why many people use real estate as a supplemental income instead of their main source of income. A secondary income from real estate can only be achieved if the agent has a flexible schedule.
The schedule of the agents needs to be flexible since they cannot predict when someone will come see the house that they are trying to sell. An offer could come in the middle of dinner from a potential buyer. If you are unavailable during that time, the buyer may move on to another house on the market and refuse to work with you.
You could make money through real estate in your free time if you have an open job. Others start as part-time real estate agents and then move to full-time because they realize they are good at it and can make a lot more money.
Summarizing: Real Estate is an Excellent Choice for A New Business
A career in real estate is an excellent business decision. This is not an article written to scare anyone out of deciding to invest in real estate or real estate salesperson license, but it was written in order to offer an honest look at both sides of the business in real estate, the failures, and successes.
A career in real estate is not easy, and can be difficult when work ethic or training fails, but it can also be a career that is extremely rewarding for those that are honest, self-motivated, hard-working, and enjoy networking and helping others.
