(**) Disclosure: This post may contain affiliate links, meaning our company, JCHQ Publishing will get a commission if you decide to make a purchase through the links, but at no additional cost to you.
Real estate can be an incredibly rewarding and lucrative career – but is it really a good side hustle? With so many stories of sales agents earning big commission with real estate, it’s easy to think that this is something everyone should do.
Unfortunately, that’s not always the case. Before you go jumping into the industry, it’s important to understand what it takes to be successful in real estate.
Working as a real estate agent can be an excellent side hustle for those with interpersonal skills, problem-solving abilities, and knowledge of laws/regulations. Agents also have the chance to meet people from all walks of life and create connections. It can open up new doors and provide unique opportunities for financial or personal satisfaction.
In this blog post, I’ll go through the benefits and provide you with realty checks for becoming a real estate agent as a side hustle.
Since you’re looking for real estate as a side hustle, chances are there are other commitments you need to fulfill. Becoming a real estate agent as a side hustle can be an incredibly flexible option, making it perfect for those with another full-time job.
You are able to set your own hours and work when it suits you. You don’t have to stick to the traditional 9-5 schedule, meaning you can plan your days around other commitments or family life.
The beauty of being a real estate agent is that you can take on as much or as little work as you like. If the market is slow and there aren’t many clients coming through, then you can adjust your working hours accordingly.
On the other hand, if the business is booming and new listings are coming in left, right, and center, then you can decide how much time and energy to dedicate to this work – without impacting any other jobs or responsibilities.
It gives agents an opportunity to create their own income stream while still having time for other interests and activities outside of work.
You’re not tied down to regular office hours or meetings, so there’s more flexibility available than ever before. As a real estate agent, you’re able to choose when, where, and how much you want to work – giving you control over your own destiny!
Reality Check: Without proper time management, flexibility can be a trap of procrastination and lose out on potential clients or opportunities. For those who are not used to planning ahead or setting realistic goals and sticking with them, this can be a challenge.
On the other hand, the flexibility of overworking can also be a problem for some. I’ve met many Realtors who do not take any vacations because of the fear of losing out on opportunities. Especially, in the beginning phase of the career.
However, I must emphasize that exhaustion is not the answer to a successful real estate business.
It’s necessary for agents to take regular breaks in order to ensure they remain productive throughout the day; an hour of rest in between appointments can give you a renewed sense of energy and focus.
Proper time management will help ensure that you maintain productivity while also taking care of your own well-being.
Low Barrier to Entry
Becoming a real estate agent is a relatively quick way to start a side hustle or career in the property industry. Unlike becoming a doctor, lawyer, or accountant, you don’t need to complete years of study and obtain formal qualifications in order to get started.
In most cases, all you need is to register with your local real estate board and meet their licensing requirements.
This usually involves completing an approved course and passing a licensing exam – typically, it can take from around 60 hours up to several months of study before you’re ready to apply for a license.
Once you’ve successfully completed all the necessary education and examinations, obtaining your license could be as quick as two weeks!
Reality Check: Yes, getting a real estate license can be relatively easy, but competition is INTENSE!
I met way too many people who entered the industry out of misconception. When they cannot find a job or get laid off, somehow, their number one choice would be to get a real estate license.
However, succeeding in the industry is still no small task.
Just remember, the Roman empire is not built overnight, nor is a real estate business.
Low Overhead Costs
One of the great things about being a real estate agent is that the overhead costs are relatively low compared to other businesses.
There’s no inventory or employees. And you don’t need to buy or rent expensive office space; All you need is your laptop and phone.
This makes getting started very easy and inexpensive, as there aren’t any upfront fees or out-of-pocket expenses associated with setting up a shop.
Realty Check: Although the startup expense is relatively low, there are others that many often forget to account for.
For example, the licensing fee, continuing education, E&O insurance, car expenses, website, advertising, cell phone, and office desk fees. All these could add up to thousands of dollars every year.
Great Earning Potential
The commission rate for real estate agents is usually quite generous – often around 4-5% of the total sale price.
Depending on the market, it’s possible to make a significant amount of money simply through a single deal, making it ideal for those who need some extra income.
Reality check: Closing a sale might not be as easy as it initially seems. For real estate agents, there is a lot of work that goes into closing a successful sale.
Agents must keep up-to-date with the latest market trends, cultivate meaningful relationships with potential buyers and sellers, and often work long hours to make sure all their paperwork is in order before the sale goes through.
It’s not uncommon for sales to take several months from start to finish, so patience and persistence are key if you want to close deals successfully.
Experience a Different Type of Work Satisfaction
While the typical 9 to 5 job may offer security and stability, it often lacks the flexibility and rewards associated with entrepreneurship – something which being a real estate agent can provide in abundance.
Working as an agent also gives individuals a chance to meet a variety of people with different backgrounds, beliefs, interests, and clients from all walks of life.
This can help broaden a person’s horizons, provide invaluable networking opportunities, and create connections that may serve them for years to come.
It can greatly help to develop important interpersonal and communication skills, such as relationship-building, problem-solving, and negotiation.
Reality check: Working as a real estate agent can be stressful at times, especially when it comes to dealing with the expectations of different clients.
It is not uncommon for agents to experience frustration in their transactions with buyers and sellers who may have unrealistic expectations or who are difficult to work with.
Agents must be able to identify these situations and ensure that they do not become too emotionally involved in the transaction.
Additionally, they must manage multiple competing interests while keeping a positive outlook on the whole process. This can be quite difficult when clients are disagreeable or lack understanding.
At the end of the day, being an effective real estate agent is no easy task – but if you are fine with managing other’s people expectations, it’s certainly one that comes with its own set of rewards and satisfaction.
Develop professional real estate knowledge
Being a realtor can also be beneficial to those looking to invest in real estate for personal use. Having a thorough understanding of the market trends and local areas will help realtors make informed decisions when making property investments, allowing them to take advantage of exclusive deals or better prices in targeted locations.
With their broader knowledge, agents could even find opportunities that other people may have overlooked. As a result, they may be able to acquire better deals on properties with higher returns on investment.
Furthermore, knowledge gained from being a realtor can also help agents identify potential problems and have solutions ready before signing any contracts.
Realty check: Keeping up to date with all the frequent changes in real estate standards, regulations, and market trends can be an added stress experience for some sales agents.
Not only do agents have to continuously stay informed about new developments, but they must also adjust their strategies accordingly.
This includes updating their marketing materials, utilizing digital services such as social media, and making sure that they are compliant with local laws and regulations.
The sales process can be made much more difficult if a realtor is not properly aware of the latest updates in their field.
If you are reading up to this point, I bet you must be interested in getting a real estate license. Your first step is to complete the pre-licensing courses. You should select one that has an excellent reputation and long-term track record of satisfying students. The Colibri is exactly that! You may click here to check it out yourself. (**)
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Disclaimer: The information in this post is for general information only, and not intend to provide any advice. They are subjected to change without any notice, and not guaranteed to be error-free. Some of the posts on this site may contain views and opinions from individual not related to JCHQ Publishing. They do not necessarily reflect our view or position.