Part-Time Real Estate Agent: How Does 2021 Look for You?
A Super Quick Overview Of How The Real Estate Business Works
If you’re looking for a guide on how to get started with your real estate career path as a part-timer, you’ve come to the right page!
But before we get started, let me tell you how the real estate industry works.
Selling real estate requires that you become a real estate agent or a real estate broker first. An agent focuses on selling real estate, while a broker on handling agents.
Brokers can still do the buying and selling part, but they spend more time hiring, helping, and handling the agents of their brokerage.
They can be likened to a manager of a 1920s baseball team. Technically, they could play too but but they were best at facilitating the progress of the other players.
You partner with buyers and sellers to help them purchase or sell a house as a Realtor®. Realtor is the official designation of NAR owners.
You earn a commission for every sale that you make. There is no fixed commission, but it is usually around 3% for both agents of either the buyer or seller.
You give a portion of the 3% to the broker as a mandatory thank you for authorizing you to be a member of their brokerage, a portion for the taxes, and finally as the agent of record, the remainder goes to you.
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Table of Contents
How To Become A Part-Time Real Estate Agent
Step 1: Take Pre-Licensing Courses.
The first step in every state is to participate in real estate agent training. The majority of cities have face to face training classes at community colleges or local business schools. Or if you want it online, there are also several courses available that you can choose from.
Given the current pandemic risks in most states, you might opt to take online classes instead.
Most of the well-known providers are:
- Real Estate Express
- The CE Shop
Pre-licensing classes may take around 45 to 120 hours depending which state you’re in. In certain states, a pre-licensing exam is required.
Step 2: Join a Brokerage.
A real estate brokerage is a state-approved business entity that hires and supervises real estate agents to ensure all transactions are done in a lawful manner.
An agent would be expected to perform your duties under the supervision of a broker.
As a pre-requisite, you may be required by certain states to join a brokerage firm to qualify to take the license exam.
This will, in fact, be helpful because when you pass the exam, you can straight away practice as a licensed agent because you’re already connected to a brokerage company.
Step 3: Pass Your Real Estate Licensing Exam.
The next thing you need to do is apply and pass the state exam. Most real estate schools give their students practice exams to prepare them for the actual thing.
Take note, however, that the requirements for the exam differ by state and providers, so you’ll need to check with your state board for the details.
The majority of the states allow up to 3 takes if you fail on the first try before they require you to take extra class hours.
Step 4: Register With Your Local Real Estate Board.
After you pass your licensing exam, the next step is to register to join your state’s real estate board. You can google the registration process of your specific state to know exactly what you need to do.
Step 5: Become A Registered Realtor (If You Want To)
“Realtor” and “real estate agent” are two terms that can be used interchangeably. But it’s worth noting that the word, “realtor” is actually NAR’s copyrighted term.
To become a certified realtor, you need to be a NAR member and pay annual dues. This will definitely add to your market value. Another advantage of being a member is having access to proprietary market research and continuing education.
Do Brokers Hire Part-Time Real Estate Agents?
Most brokers would hire part-time agents, although overall, it differs by brokerage depending on the business model that they’re using.
Some are okay with rookies and part-timers, but others opt for full-time real estate agents with experience.
Brokers often train new agents, which can be time-consuming and expensive. That’s why investing in part-time real estate agents is something that they feel isn’t worth it.
Start your job hunt early in your pre-licensing phase to increase your chances of being recruited. Inquire and research about the best brokerage available for part-time agents like you.
A smaller, independent brokerage may be more likely to hire part-time agents than a nationally accredited one.
How Much Do Part-Time Real Estate Agents Make?
Part-time real estate agents, like full-time agents, do not get a salary. When a real estate agent closes a deal or refers someone else, they get a commission.
Most real estate agents receive a 2.5 percent to 3 percent commission on each transaction and 25% of the commission for every successful referral.
However, the referred commission varies and can differ based on certain circumstances.
Referrals are an easier and common source of income for part-timers since it takes less time to represent clients.
It’s a good idea to work on expanding your area of influence because that’ll help to attract more referrals.
As a part-time real estate consultant, you will normally earn a decent income via referrals and from representing clients occasionally.
So you can certainly make money as a part-time real estate agent, but if you’re gonna put in the amount of grueling work to become a successful real estate agent (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
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How To Calculate Income When Selling Real Estate Part Time
To compute your estimated annual wage, your average income per sale or referral is multiplied by the number of sales or referrals you hope to make this year.
If, for example, you sell two houses for $500k each and receive a commission at 3%, you would get $15k per house with a $30k-gross income.
Meanwhile, if you have five clients to refer to other agents, and these five clients purchase $500k-house each and you get 25% of the agent’s regular commission of 3%, you earn $3,750 per client, giving you a total income of $18,750.
How To Have A Successful Part-Time Real Estate Career
A part-time real estate agent usually works under 30 hours a week. And you’d be up against those who spend up to 60+ hours per week.
To succeed as a part-timer, try the following:Putting together a monthly business plan
- Segmenting the leads using a CRM platform
- Creating a block routine to help you keep on track
- Continue to learn about the real estate industry, tools, and laws.
- Finding a coach or a training curriculum
- Building a strong referral network by connecting with other agents
- Creating a budget for the next year
- Marketing yourself both online and offline
- Establishing clear expectations from the get-go about your available hours
- Developing an effective communication strategy with your clients
Is Being A Part-Time Real Estate Agent Right For You?
There are advantages and drawbacks of working as a part-time real estate agent over a full-time agent.
While the real estate industry as a whole provides for a flexible work-life balance, it can oftentimes be an uphill climb.
These pros and cons can help you weigh things over, whether or not being a part-time real estate agent is a good fit for you.
As we discussed at the start of this post, there’s a lot of benefits of doing real estate as a side hustle. The most common reasons that attract people to this industry are:
The entire idea of a second work is to supplement your current salary, and a part-time work as a real estate agent definitely provides for this.
According to ZipRecruiter, the average part-time agent earns about $1,100 a week.
Another significant advantage working in real estate is the opportunity to define your own timetable, based on the agreement with your broker.
Since you’re scheduling open houses and client sessions, you may determine which days and hours don’t fit for you, and they don’t necessarily need to be the same week after week.
Expand Your Connections.
Many interested in business will find that working as a part-time real estate agent is an excellent way to broaden their area of influence.
As an agent, you’ll be actively networking and interacting with people, which will help you to develop important connections.
As in most work, you reap what you sow. Therefore the more you spend networking and selling, the more income you make for yourself.
Balancing the clients’ needs and commitments in 9-5 full-time job week can be exhausting.
Brokerages May Be Limited.
Not all brokerages would be able to recruit part-time employees. Training a beginner takes time, particularly if that person can only commit a few hours per week.
Having said that, you might find brokerages that accept part-time agents, but it isn’t going to be that easy.
In 2019, the number of real estate agents in the United States reached a new peak of 1.39 million. Stuff can be more challenging for you as a part-timer when working against full-time jobs in a competitive industry.
It can take some time before you begin to make sufficient connections to see your work actually happen.
You now understand how being a part-time real estate agent works and also have strategy in place to be profitable, but you might have a couple extra questions.
What Hours Do Most Real Estate Agents Work?
It varies depending on whether if you want to work full-time or part-time. The majority of full-time agents spend longer hours than the average, around 35 and 50 hours per week which depends on the season.
Even so, a lot of part-time agents often spend 10 to 20 hours weekly, mostly in the evenings and on weekends.
Can You Be A Part-Time Real Estate Agent?
A big yes!
Every state in the United States allow a “part-time status” for professionals in the real estate industry.
Part-time work is a perfect opportunity to understand about the business and keep your feet wet before going full-time.
Is It Hard Being A Part-Time Real Estate Agent?
Finding ways to close deals, prospect new customers, and stay on top of current clients can be difficult at first, but it is surely doable.
Finding an experienced agent as your mentor or coach is the first thing aspiring part-timers can do. On-the-job experience is the best kind of training!
Some Final Words of Encouragement For Part-Time Real Estate Agents
By this time, I’m sure you’ve gained a very good understanding of the real estate industry overall and what your chances are if you work as a part-time real estate agent.
Real estate can be a very lucrative and fulfilling profession, although it’s a demanding job for the most part.
And being a part-timer in this industry is both thrilling and diverse with plenty of room for success.
If you get frustrated from time to time, remember that what’s more important is the number of transactions you make, not on the callbacks.
And on first closing, you are allowed to go out there and celebrate—you are already a profitable and successful part-time real estate agent.
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Although it’s not real estate in the traditional sense, it’s all digital.
Where these Real Estate Jobs fall short is in scalability. Because in order to make a good amount of money with real estate, you have to sell multiple properties.
And who has the capital for that right away?
But what if you went local?
With Local Digital Real Estate, you will be getting service requests from multiple sites at every minute of the day from people who are willing to pay a lot of money for what you can provide them.
I was watching a YouTube video once where the host made a comment that it isn’t about making a lot of money from one website… it’s about making a little bit of money from lots of different websites.
So, think of it this way….
What if you could have streams of investment income where you operated 10 rental units that you could charge anywhere from $750-1,000 per month?
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What If You Invested Into 100 Rental Units?
But instead of spending $Millions to build houses or apartment complexes… you spend a couple hundred dollars to build websites.
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With conventional digital real estate, you have to compete with thousands, if not millions of others who are selling the SAME product to the SAME customers.
Once the training program is completed you will also have access to a Facebook group much better than the Real Estate group in our opinion. This group is much more active.
Unlike the average real estate agent salary, where you’re profiting maybe $9,000 per property (before expenses), you could be getting 5-10X THAT.
With Local Lead Generation, the competition is virtually nothing and your profit margins are 85-90%… and it’s RESIDUAL!!!
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Whether you show a house or not…
Now, I could go on and on, but I’m sure you have tons of questions about how to create Digital Real Estate assets and start building YOUR digital empire!