How do you become a part time real estate agent? Deciding to become a part time real estate agent can be challenging, especially since most new agents may not receive their first commission check until they close their first sale. This can be particularly difficult if you have kids, mortgage and other adult responsibilities (like health insurance benefits) that you can’t just walk away from in an instant. However, if you still dream of owning your own real estate business, becoming a part time real estate agent while keeping your full time or another part time job, may be a solution of keeping a steady stream of income.
If you do decide to become a part time real estate agent as a side hustle until you build enough steady income to go full time real estate, there are a few things you should consider before starting.
How Do You Start to Become a Part Time Real Estate Agent?
How you become a part time real estate agent is the same as full time real estate agents. Each state requirement may vary, but essentially you will have to:
- Satisfy your state licensing requirements
- Sign up and complete your real estate pre-licensing courses
- Pass your state (and often national) real estate license exam
- Submit your real estate license application to your state’s real estate board for approval
- Research and select a real estate brokerage that supports part-time agents. Look for a brokerage with a flexible schedule and a positive reputation. Consider factors such as training, mentorship, and commission structure.
- Find a mentor, preferably one who was also a successful part time agent, but ones who started full time may also have valuable information how to scale up your business quickly, if your goal is to go full time.
- Create your real estate business plan. It does not need to be set in stone, but having a direction is a good start.
- Don’t be a secret agent. Let all of your friends, family and personal connections know that you are a real estate agent! Continue to build these networks of connections and referrals will be the key to your success.
First, most states will require you to work under a licensed broker to gain experience and knowledge of the industry before you are allowed to become your own broker. The benefits of joining a brokerage includes having access to mentors, essential real estate training, and the tools you need to successfully launch your real estate business.
After Becoming Part Time Real Estate Agent Will Brokers Hire You?
This will depend on the brokerage and their business model. Brokers will need to train new agent, and it can sometimes be not as cost effective to invest their valuable time and resources to someone who is only working as a part time agent.
The way to finding the right brokerage for you is to start your research early on in your pre-licensing journey. Reach out to agents you personally know and ask what are the best real estate brokerages for part time agents. However, finding the right brokerage that aligns with your personal goals is imperative to your success. For questions to ask when interviewing a brokerage, click here.
What can you expect to make as a part time real estate agent?
There is no salary for part time real estate agents, just like full time agents. The main source of income comes from earning commissions when you close a sale or refer a client to another agent who then closes a sale. The typical real estate agent earns a commission of 2.5%-3% on each side of the sale. Check with your brokerage what is generally accepted for your area.
Referring clients to other agents can be good source of income for part time real estate agents. This is less time-intensive than representing clients personally, especially since your time will be with your full time profession. You can generally expect to collect 25%-30% of the commission on the referred side.
Are you still unsure if becoming a part time real estate agent is right for you?
There are pros and cons to becoming a part time real estate agent. While you can have a flexible work-life balance, this industry can be demanding at times. See below to find out if becoming a part time real estate agent is still the right choice for you.
Pros of Becoming a Part Time Real Estate
- You will earn additional income as a side hustle. There are many ways in real estate to earn money as a side job to supplement your full time job. Whether it is with closing real estate deals, managing and/or owning rental properties, flipping houses and referral business. There are endless ways to utilizing your real estate license to make additional income.
- You will learn valuable experience in the real estate industry. You will learn from other real estate agents who are already successful in the industry. Moreover you will build knowledge of what is going on in the real estate industry and become the “neighborhood expert”.
- You will build your sphere of influence. You will start to build connections with potential clients from your close friends and family. Furthermore, you will also connect with other agents and local vendors. Furthermore, you will start broadening your social circle, which is a powerful source of potential client referrals.
Cons of Becoming a Part Time Real Estate
- You will have expenses. Just like any business, it takes money to make money. You will need to come up with the funds for the costs of licensing, education and training, advertising and marketing, and a mode of transportation. The good news is that you have a stead stream of income from your full time job, but you will need to come up with a budget to cover these costs in the interim there is no commissions to cover these costs.
- You will have competition. You are working against other agents in the field how have more time, more money and more experience. Working your sphere of influence and developing your niche market is how you combat this problem.
- You only have so many hours in the day. Your availability may make it more difficult to meet clients at their preferred times or to respond in a timely manner. Luckily, most people buying houses also work full time jobs, and as long as you are up front with your availability and develop a system of responding to people on a daily basis, you will succeed.
Developing what works and what doesn’t work in your business plan is key when deciding to become a part time real estate agent. The road is not easy, but if you truly want financial freedom and time freedom, there is no better path than to start your real estate journey!
For more articles, tips and data on how to be a successful real estate agent, visit our blog homepage.
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