So, you want to get into real estate? You might be fed up with your current job and you’re ready for a change or you binged through Selling the OC and thought “I could do that.”
The truth is, yes you can do that. Although, it will require a perspective shift and reset of expectations, getting into real estate is doable.
Also, don’t be discouraged by the random Reddit thread with commenters saying “don’t” 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 themselves and their family. For others, it could be the only opportunity they have for a long-lasting, fulfilling career.
Whatever your reason is, this guide will tell you how to get from where you are to a full-time career in real estate in a grounded, realistic, and safe way.
Are you ready? I am. Let’s jump in.
What’s it like to work in real estate?
Real estate is unlike most industries because it’s malleable. It’s malleable to your needs because there’s no schedule that someone else makes you follow.
Most people get into real estate to be real estate agents, which is what this article will assume. But, you can get a real estate license to become a house flipper, real estate investor, property manager, or a little bit of all of this.
If you don’t know what you want to become but know you want to “do real estate,” you can still make a career for yourself. At the end of the day, that’s the great thing about a real estate license, and I will explore that topic in a moment.
As far as what you do day-to-day, that is up to you. You dictate that part. How you decide what to do depends on how you make money. So, let’s explore that part.
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 you 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 want to find new clients when they are already representing someone. This is the only way that agents ensure a steady income.
How do agents find clients?
Since we know that client representation is how agents make money, what are the factors that help them find clients?
Ultimately, this comes down to contacts. Whether it’s 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.
That’s why people who have large networks have the most immediate success. They have a list of people to contact. This is especially true for someone who has a large network of wealthy people. Agents like this, will enter the industry with a long list of people who know them (warm leads), trust them, and have fewer financial hurdles to buy or sell real estate.
The good news is, that even if you don’t have a big network of rich friends, you can still make it work. Albeit, with a little time, stronger skin, and grit. Because, at the end of the day, all it takes is talking to people. Let me explain a little further.
What it really looks like to find leads and get clients in real estate
Agents will spend a good portion of their day (or all of it, depending on if they have other responsibilities) calling, texting, or emailing people to either build a new relationship, maintain a friendship, or deepen the connection they have with someone.
Whether they are 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 understand their real estate needs, they will get closer and closer to finding a client.
Richard Schulman’s idea of “coffee dates” is a great visual of good lead generation. He schedules short 30-minute catch-ups with folks in his network to get face-to-face time to catch up with them.
Usually, these conversations steer back to real estate where he will see if they need help in real estate, whether it’s looking for a new home or just a referral to a great electrician.
This is how someone can stay “top of mind” and relevant in their leads’ lives so, 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, and weird. What I’m trying to just tell you is to be a kind, caring friend to people and they’ll want to work with you. At the end of the day, people will choose the person they know and like over the complete stranger – especially in a field that relies on trust.
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 representing the most expensive properties in the US. If you want to get their status, then you will need to move to an expensive city to do that.
Most of us work with clients who want a home for their family in the suburbs or inside 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. This depends on how much their brokerage takes.
Now and then, I hear from an agent who, in their first year, made 2-3 transactions (sometimes none.) 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 amount of money do you need to survive and meet your bare minimum of happiness? That should be your goal number, not uber wealth.
This will allow you to hit your goal without burnout and resentment to your career. Being grounded and realistic will cover your bases and grow a sturdy, well founded business that continues to pay dividends to you and your family.
Alright, so now that your expectations are set, let’s explore how you actually get into the real estate field.
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 start in real estate without experience. During their brokerage interview, they may ham up their “sales experience” to make a convincing reason to hire them. That’s fine. But, it’s not required.
The reality is that most brokerages will hire you without experience. There are boutique brokerages who seek a specific type, perhaps more seasoned and experienced. We’ll talk about this in a moment.
Okay, so we know the legal requirements to get into real estate. So, what about the practical one?
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 to change from full-time income to full-time work and no income for a few months? Can you make it work?
Let’s take a moment to explore these topics right after taking a deep breath.
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 allow them to fit the required education into their schedule. Whether it’s online live training classes in the evening or simply taking our online-only program, they can fit the education requirement into their schedule.
The second thing I will add to this is studying for the real estate exam. Make this part easy for yourself. You shouldn’t have to review all of 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 products seriously make it easy to study for the exam. I recommend it because it cuts the time down on studying A LOT and makes it easy so you can carry on your day.
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
Here is the part that has the most risk. 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 make a plan that is dependent on making money. You could be setting yourself and your family up for a catastrophic failure that you can’t come back from. 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 continue working full-time or part-time. This is the safer option and one most people take when transitioning into the industry.
This option lets you have steady income come in while growing your business. Then, when your business takes off, work comes in more frequently, you can afford to step away.
You can probably predict the downside. You spend less time in your real estate career, which makes growing it harder and also you miss out on personal free time.
Not to mention, if you search for leads at night, you’ll be bugging people while they’re winding down and relaxing. Then, when you do find a client, you might not be able to help them when they need it because you’re working your 9 to 5.
Nothing is worse for the client when they’re ready to see a house and their agent is stuck at the office.
This is why people opt in for part-time, flexible work while balancing working as much as they can on their real estate career. Some will even go as far as to be Uber or Lyft drivers. Hey, that’s a great way to get to know 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 their friends. So, make them your priority above your other job.
Now that you know how to change careers, or at least how other people change careers, let’s talk about what you should do when establishing yourself.
The reality of establishing yourself as a real estate agent
The truth is that real estate school won’t prepare you for a career in real estate. What you do day-to-day is vastly different from what you learned in school.
You will do a lot of on-the-job training through learning from experience, learning from mentors or coaches, joining a team, or learning through training seminars.
In your first year, this is everything. You must 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 that you take the route that will teach you as much as you can. When you learn everything you can about the industry, you quickly become an expert. This expert knowledge helps you become more confident and empowered to make decisions that benefit you, your client, and your family.
So, what does this path look like? Let’s explore that.
What kind of brokerage should you join?
I recommend that you join big name brokerages, like Keller Williams, Coldwell Banker, C21, ReMax, etc.
The reason why I recommend this is because they have the most resources. For new agents, access to training sessions, mentors, coaches, and third-party recs (lenders, title searches, escrow companies, appraisers, inspectors, etc.) will give you access to foundational knowledge.
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 at least your first two years. Then, if you find it beneficial, 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 also 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, others who are on your experience level, and access to a team leader for advice.
You can access the team’s leads which help you build relationships with people you might not know. You get to know your fellow teammates and learn from their experience. Finally, you have a leader who can help show you the way, because they want you to succeed.
When you pick a big brokerage and join a team, you set up a strong foundation of support for yourself. This allows you to make the smartest, most calculated decisions that help you become an experienced, professional agent.
Keep in mind, that you split your commission on teams. This split is an additional one on top of your brokerage split. So, you will make less money. But, 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.
Be slow and steady
Most people want success now. Realistically, that ain’t going to happen. Take the time to lay the foundational bricks to build a long-term, sturdy career that is built strong and can’t be taken you.
Focus on building a slow, high-quality business to feel more confident in yourself which 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, well, a real estate license is malleable.
You can get a license to make investing in property easy for yourself. Use it to buy a real estate property, fix it up, and rent it out to people while paying yourself a commission. 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.
