Also, depending on what part of the country you practice in, it may be easier to achieve an income of $100,000 or more without doing all these steps. Copyright 2021 Kyle Handy, all rights reserved. My First Year Real Estate Agent Income in a New State. Well, you can and I'm living proof! I was building my confidence as I familiarized myself with the transaction process, using forms, and working with different clientele. Let me know in the comments below! We're talking almost eight or so a day that you need to meet in order to reach that twenty five hundred people at the end of the year. So number of people in your database is 0. I would also offer to do, My marketing consisted primarily of Google Ads. However I can guarantee you you are going to produce a lot more by using the strategies of trying to build your network and build your database than you would if you did not do any of these strategies and then you can count on the next year if at the end of one year you have 100 people in your database that you are interacting with on a regular basis then you can count on that one hundred thousand dollars in your next year. As an aspiring real estate agent (I'm in the process of getting my license right now), it gives me a realistic view of what it's going to take to become successful in the industry. They each have 780+ credit scores 4. Maybe you met an agent at a conference and exchanged numbers. [00:07:20] Thanks again for listening this episode. Combined Lisa and Todd earn $100,000 per year 2. In my first year as a real estate agent in Illinois, from January 31 to October 31, 2017, I grossed $50,000! Real Estate Facebook Posts – 21 Ideas For Max Engagement, kvCORE (Kunversion): The Ultimate Guide (2020). Typically, I’ll refer two lenders I recommend to my clients. That year I started my brokerage as an LLC under a sponsoring brokerage. [00:01:53] Now as we jump into the numbers there's two assumptions that we have to make. This won't cost you anything but it helps me to offset the costs of publishing helpful content, like hosting, virtual assistants, and equipment. How to Make $100,000 Your First Year as a Real Estate Agent 1st Edition by Darryl Davis and Publisher McGraw-Hill Education (Professional). You will then need to meet 10 people a day. Go to training and conferences, watch youtube videos, and network with people who have been where you are now. If it takes meeting 25 people to add one to your database, then 25x100 = 2,500 people you need to meet. Not sure how to get started? How To Make $100k Your First Year in Real Estate Video. I've helped hundreds of real estate agents, team leaders, & brokers all over the country, increase their business & build additional revenue streams. But if you start to break it down it's actually quite achievable. Here I was coming from a desk job where people sought me out to buy a home and transitioning to a career that, in essence, was just the opposite. Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. Staying top of mind within your network can create a domino effect that impacts your business significantly. In this post, I’ll detail my experience as a newbie real estate agent and give you practical ideas on how to make $100k your first year in real estate. How to Make $100,000+ Your First Year as a Real Estate Agent is more than just an introduction to the ins and outs of the industry; it's a step-by-step guide to beginning your career, with insider advice on how to build a lucrative real estate practice. So you can trust the numbers you can know that this will work. To reach $100,000, you need 100 households in your database. And then that should equate to 100 people or households entering your database which then equates to if you plan on interacting with them in the proper way as will be outlined in the show notes then you can expect to have one hundred thousand dollars at the end of the year. The important thing here is that you are working to build a relationship that will bounce back into their memory when they - or someone they know - goes to buy or sell. I have a lot more freedom in my day to give back, help agents, and continue building my brand. And we're going to break it down based on that number. And remember we're assuming that this person doesn't have anybody in their database who doesn't know anybody in their community. I did see a few referrals come in from clients I had helped in new home sales, but not nearly as many as I had anticipated. Product Information. Why is real estate my top choice for investing $100,000? My advice to an agent who is just starting is to take every networking opportunity possible and to keep learning. I really appreciate it. McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. Another big deduction category comes from office supplies, which can range from your typical paper and pens to a new camera, tv, or even your phone bill. I would bounce between several communities each weekend, bringing coffee, offering to bring them lunch, or just popping in to visit for a half-hour here or there. It’s no secret that effective marketing can work wonders for your business. This goes up to $38,141 between years one and three. One of my favorite ways of expanding my network was to make friends with new home builders. Here’s how you can make $100,000 your first year as a real estate agent, step-by-step, and the process involved day-to-day to hit that goal. I wish I would have kept the momentum up with this, as it was a great way to build traction, boost production, and gain confidence in what I had to offer. And a top producer gives you call and you can ask them anything on your mind. So you need 100 people in your database in order to reach that amount. With that in mind, the math looks like this. So what do we have to do. Because the truth is, the hustle pays off and will give you the flexibility down the road to do more of the stuff you love and less of the stuff you don’t. If you haven’t downloaded the Rev Real Estate School business plan, you can download in below. Because the truth is, the hustle pays off and will give you the flexibility down the road to do more of the stuff you love and less of the stuff you don’t. , which I used to pinpoint people looking for homes in the surrounding zip codes. I will have our thirty three touch plan linked up in the show notes as well. What do you know now that you wish you knew then? Of course if you're in a market where your average sale price is two hundred thousand it's going to be a little bit different than if your average sale price is a million. I was hot off the press from my career in new home sales, and eager to make a name for myself. Real Estate. One thing I want to make clear, if you do not want to make over $100,000 in your business, that is OK. Maybe your goal is to make $50,000? If you are selling $100,000 houses and paying 40 percent of your commission to your broker you would have to sell over 50 houses a year to gross $100,000 a year. So these numbers that we're going to use here and how this math is broken down has worked to an absolute T in my business as well as a lot of our agents and a lot of people that have used a structure like this have seen these numbers work perfectly. I'm your host Michael Montgomery. As many tenured agents can attest, the first year in real estate can be grueling. See what they are up to and tell them what is going on with your new career. VP of Growth at Bigger Pockets, Brandon Turner shares what you can do with $100,000 in real estate: “$100,000 could do a few things for you in the real estate realm, depending on your risk level. My business today looks much different than when I first started. Well If one in 25 then the one hundred times twenty five which puts us at twenty five hundred people so we have to meet twenty five hundred people in order to get our database number up to 100. There are many ways to invest money into real estate and that is one reason why I love to buy houses. McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. Instead, I learned the importance and effectiveness of staying “top of mind” within your current network. than when I first started. I didn’t realize the potential until later on in the year, but I did see two transactions came from lender referrals in 2013. And one of the great things about renters is that they usually turn into buyers at some point or another, and if you keep in touch, you’ve just secured some repeat business for the future. And you are exactly right. [00:01:30] It becomes a little bit more enjoyable when you're dealing with people that you know like and trust, yourself. Jump-start your real estate career! 1. It works absolutely perfectly almost every year in my business and I've seen it work absolutely perfectly in brand new agents agents that are new to markets all sorts of things. This goes up to $38,141 between years one and three. Another great relationship to foster is your network with other real estate agents in the area. I’d bring tacos or donuts to the sales meeting, and go over my background, my unique marketing plan, what I would do for sellers, and the details of my move-up program. How To Make Your First $100,000 As A Real Estate Agent (2018) For more real estate investing, agent videos, be sure to subscribe to the channel. If you follow our 33 Touch Plan, then you are putting yourself in a position to each $1,000 per household. Your success will depend on how effectively you exercise these qualities. If you're in a slower market or you're less in touch with your database you can see that number drop maybe to about 850 or so. Again this will be broken down in the show notes in case you're driving or something like that you may not be able to run through the math but this is how it looks. If you plan on working 6 days a week and 50 weeks/year, that gives you 300 days to meet 2,500 people. If you don't know anybody: so zero people in your database. One of the most important things I took away from that first year had nothing to do with cold calls or outward prospecting. by Kyle Handy       Updated October 29, 2020. I invested $22,000 in Google Ads that year, with a return of $19,324. Instead, look at this as an investment, and keep your eye on the overall cost here. Or you reached out to agents from your hometown. So how do you make $100,000 on the sale of your first home? One way to do this is to pull up expired listings and For Sale by Owner. For instance, if it costs you $5 to get an online lead and you have to sift through 50 leads to get a deal, that amounts to $250, which is more than worth it when you consider the $6,000+ commission that can follow. [00:05:56] I've seen this work absolutely perfectly. [00:07:38] This episode of Rev Real Estate School has come to a close. Think of how many people you know. Jump-start your real estate career! Your email address will not be published. But don’t let that scare you away. To break it down, I had helped twenty-one buyers and represented seven listings. How to Make $100,000+ Your First Year as a Real Estate Agent is more than just an introduction to the ins and outs of the industry; it's a step-by-step guide to beginning your career, with insider advice on how to build a lucrative real estate practice. That means on each work day, you need to meet 10 people! Meals and entertainment that involves a client are tax-deductible at 50% value. While maintaining a strong presence in your network is essential, there are other ways to boost your referral base and build your network. So three or four deals, that’s all you need. But toward the end of the year, I learned there are ways to generate more listings early on and transform your business more quickly, to where you don’t have to show houses from 9 to 5 every day. Jump-start your real estate career! Lisa owns her own business and Todd has a normal salaried job 3. It may be strange to ask your preferred lender to send business your way, but in the end, you are both working toward a common goal. started my brokerage as an LLC under a sponsoring brokerage. We're going to use one person or one household equals one thousand dollars in GCI. However just for the sake of argument we're going to break this down on two hundred and fifty days that you plan on working this year. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. How to Make $100,000+ Your First Year as a Real Estate Agent is more than just an introduction to the ins and outs of the industry; it's a step-by-step guide to beginning your career, with insider advice on how to build a lucrative real estate practice. When Torres first got into real estate in 1997, he was making only about $25,000 a year working at a construction company. That didn’t make a massive drop in the bucket as far as commissions go, but it did get me active and in the game. That agent will, of course, help the seller in Mississippi, but will reach out to you to help the client find a home they love in Texas, putting money in your pocket. My daughter only went to daycare 2-3 days per week, and my husband travels a lot for work. How many people do we have to meet in order to put 100 people into our database? Daydreaming about being a multi-millionaire might feel good, but it doesn’t move you … Todd has $50,000 in his 401k at work 5. If you'd like more information about how to earn over $100,000 in your first year in real estate, watch the video I made. However, the bulk of my business that year was from referrals, topping out at $97,000 in GCI. Most people think of sphere of influence - or direct business from family and friends - when they think of starting a business in real estate, and there is merit to this. And then number of people that you're going to require in your database in order to hit one hundred thousand will be 100 because 100 times 1000 will equal one hundred thousand. Let us know where you did that. I had worked in new home sales for five years, and while I gained a great deal of industry knowledge from that position, I knew that general real estate would be a whole new ballgame. {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}, __CONFIG_colors_palette__{"active_palette":0,"config":{"colors":{"62516":{"name":"Main Accent","parent":-1}},"gradients":[]},"palettes":[{"name":"Default Palette","value":{"colors":{"62516":{"val":"rgb(232, 105, 30)","hsl":{"h":22,"s":0.81,"l":0.51}}},"gradients":[]}}]}__CONFIG_colors_palette__, Actionable real estate sales training and lead generation strategies, __CONFIG_colors_palette__{"active_palette":0,"config":{"colors":{"f3080":{"name":"Main Accent","parent":-1},"f2bba":{"name":"Main Light 10","parent":"f3080"},"trewq":{"name":"Main Light 30","parent":"f3080"},"poiuy":{"name":"Main Light 80","parent":"f3080"},"f83d7":{"name":"Main Light 80","parent":"f3080"},"frty6":{"name":"Main Light 45","parent":"f3080"},"flktr":{"name":"Main Light 80","parent":"f3080"}},"gradients":[]},"palettes":[{"name":"Default","value":{"colors":{"f3080":{"val":"rgb(238, 129, 65)","hsl":{"h":22,"s":0.84,"l":0.59}},"f2bba":{"val":"rgba(238, 127, 63, 0.5)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}},"trewq":{"val":"rgba(238, 127, 63, 0.7)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}},"poiuy":{"val":"rgba(238, 127, 63, 0.35)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}},"f83d7":{"val":"rgba(238, 127, 63, 0.4)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}},"frty6":{"val":"rgba(238, 127, 63, 0.2)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}},"flktr":{"val":"rgba(238, 127, 63, 0.8)","hsl_parent_dependency":{"h":22,"l":0.59,"s":0.84}}},"gradients":[]},"original":{"colors":{"f3080":{"val":"rgb(23, 23, 22)","hsl":{"h":60,"s":0.02,"l":0.09}},"f2bba":{"val":"rgba(23, 23, 22, 0.5)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.5}},"trewq":{"val":"rgba(23, 23, 22, 0.7)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.7}},"poiuy":{"val":"rgba(23, 23, 22, 0.35)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.35}},"f83d7":{"val":"rgba(23, 23, 22, 0.4)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.4}},"frty6":{"val":"rgba(23, 23, 22, 0.2)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.2}},"flktr":{"val":"rgba(23, 23, 22, 0.8)","hsl_parent_dependency":{"h":60,"s":0.02,"l":0.09,"a":0.8}}},"gradients":[]}}]}__CONFIG_colors_palette__, How To Make $100k Your First Year In Real Estate. Let’s break down to path to $100,000 using the math from the business plan. Jump-start your real estate career! And you may have heard these numbers break down in different ways and how many people you need in your database in order to reach a certain income goal. Remember you can always ask a top producer anything all you do is write and review the show and then head over to the free coaching section on our website. This strategy required persistence and effort, as only about 2% (or 1 out of 50) of the leads were qualified buyers. The main reason I love real estate is the great returns you can get if you are willing to do some work. And if you up that to six days a week that you plan on working, now we're talking about 300 days throughout the year. Typically, that first year is all about the buyer, and my business was no different. They have $150,000 in cash savings (from flipping real estate, sale of stocks… It really depends on how you interact with your database. You can do this with or without previous experience in the industry! So you gotta get your money, your people and your deal together and if you can do it three or four times in the year. #RealEstate #RealEstateAgent #Entrepreneur Can you make over $100,000 your first year in real estate? Working with lenders is an integral part of the real estate process. The following section is not formal tax advice, so please be sure to get in touch with your CPA for more information and guidance. One hundred thousand dollars and having zero people in your database and how you can get up to that number in about 1 to 1 and a half years time and this will be an enjoyable path to one hundred thousand dollars if you've been following the show and listening to our podcast you know a lot of what we're talking about is relationship building and building a database and then building a sales structure through people that know like and trust you. Although rentals weren’t particularly lucrative for my business, I would say there are pros and cons to investing your time here. Take Action. How to Make $100,000+ Your First Year as a Real Estate Agent is more than just an introduction to the ins and outs of the industry; it's a step-by-step guide to beginning your career, with insider advice on how to build a lucrative real estate practice. [00:04:42] Now let's look at how much you might want to work throughout the year and let's say that you plan on working even 250 days of the year. My primary goal was to build a working relationship and see how we could work together to achieve the common goal of selling houses. That means on each work day, you need to meet 8.3 people! Having a commission goal of $100,000 is a common number that most new and growing real estate agents will set for themselves and you can hit this goal even if you don’t have any people in your database. [00:00:00] Hello and welcome to Rev Real Estate School. You could buy a nice house in the suburbs for around $100,000 and just collect the cash flow on that home without needing to pay a bank. Maybe you're a brand new real estate agent or entering a new market. This includes basically two weeks of a location plus not necessarily weekends so you might not even do this you might be working more than this. OK. We'll see you back here for the next lesson. People Needed in Database: 100. Together, we can make this year your best yet! The hustle was real, but it paid off. So you can trust these numbers. And then within a year's time to two years time you should see a hundred thousand dollars in GCI. My journey in real estate began in October 2013, right before the birth of my first child. In that first year, if I wasn’t hitting the streets talking to people and networking, I was at home working systems and mastering the art of marketing. Lisa has $30,000 in her Roth IRA 6. Here’s a snapshot of Lisa and Todd’s financial situation as they begin their journey to create income from rental properties. And if you're in a strong market or you're like a database wizard then you could see that number go up to about 1250 or so or even higher. Thanks again for listening and we'll see you in the next lesson. Check out my Partner Page for details on the benefits of working with me at eXp Realty. I have a lot more freedom in my day to give back, help agents, and continue building my brand. So with no people in your database you need to meet between eight and 10 people a day depending on how many days of the year you plan on working. Especially if you can make this year your best yet the press from sphere., which require hard work, diligence, and the list goes on used to rejection... You reached out to agents from your friends and family, family friends, past,. Hundred thousand dollars that year that 's one year helpful customer reviews and review ratings for to! 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