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So, You Wanna Be a Real Estate Agent… How Much Does it Cost to Go Into Real Estate? Part 2

Guest Post by Jennifer Allan-Hagedorn

 

I hope you were able to complete your assignment from last week to do an honest assessment of your financial situation.

Today I’m going to help you figure out how much it costs to get INTO real estate and to BE IN real estate on a monthly basis. Of course, any figures you see here are purely estimates and will vary widely depending on the state you live in and the office you eventually work in. And, I’m sure I’ve forgotten a few items in my list of expenses and perhaps included some that won’t apply to you. But I did my best ;-]

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  • Real Estate School: $500-$1200
  • Exam, Background Check: $100-$300
  • Activate Real Estate License: $80
  • Join the National Association of REALTORS + Local Board: $400 – $700 (annual fee)
  • Ethics Class: $40
  • “Initiation” Fee: $1,000 (many franchises don’t require this)
  • Initial business cards: $20-$40
  • Open House signs: $100+
  • For Sale signs: $100-$200
  • Lockboxes: $100-$300

Being IN Real Estate Monthly Expenses:

  • Desk Fee (If you aren’t on a split): $500 – $1700
  • MLS Fees: $30-$60
  • Miscellaneous office charges (advertising, copy/printing, voicemail, website): $50 – $400
  • Contact Management System: $35 – $90
  • Printing and postage: $100
  • Website: $50-$100

Of course, you’ll also need to factor in the cost of your gas, increased cost of car insurance (since you’ll be using your car for business), cell phone charges, health insurance if you aren’t covered elsewhere, wardrobe expenses, computer equipment and programs, home office expenses (increased utilities, etc.), and probably other stuff I haven’t thought of, but I hope this makes it clear that getting into and staying in real estate isn’t something to be taken lightly from a financial perspective.

But here’s some good news.

Contrary to what you might hear, you don’t have to spend a fortune marketing yourself in your early days – and it’s not necessary to purchase every gizmo-gadget and techno-toy available. In fact, the majority of effective marketing for new agents costs nothing or very little. If you enroll in the follow-up newsletter to this one, or in one of our rookie training programs, we’ll help you figure out where to spend your precious marketing dollars, but for now, the good news is that you don’t have to factor in a significant amount of money for self-promotion in your early days.

So, how do you feel about your financial readiness to enter a real estate career so far? Please feel free to share your thoughts!

Next time we’ll talk about a part-time versus full-time real estate career.

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Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website buy real viagra online cheap

 

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So, You Wanna Be a Real Estate Agent… How Much Does it Cost to Go Into Real Estate? Part 1

Guest Post by Jennifer Allan-Hagedorn

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So, moving on from our earlier cheerful discussion about the income potential of a real estate agent…let’s talk about whether you can AFFORD to go into real estate right now.

Fact is, it costs money to be a real estate agent and chances are that you will not make any money for several months once you officially begin.

Let me say that again and please “listen” with every fiber of your being: “Chances are you will not make any money for several months once you officially begin.”

Many first-year agents do not make a dime until their sixth or seventh month in the business; some take even longer than that. That’s a fact and should not be taken lightly, or dismissed as something that won’t apply to you because you’re special. You very well may be special; in fact, I’m sure you are, but you MUST prepare for this possibility. If you are among the few who begin making money right away, that’s fantastic, but I’m sure you won’t regret having a nice nest-egg socked away for yourself. But PLEASE do not go into this career thinking that you’ll receive your first paycheck in a month or two because it’s likely you won’t. And all the while, you’ll be paying out money for the privilege of having a real estate license.

A few months ago, a first year agent contacted me to ask about one of my training courses. During the conversation, she casually commented that she felt misled by her early advisors because they failed to mention how many nickel and dime expenses there were to being a real estate agent. Of course, she wasn’t referring to actual nickels and dimes; more like $200’s and $400’s! I felt bad for her, but I confess I had to ask myself why on earth she would have gone into business for herself with so little financial commitment that a few unexpected $200 expenses put her at the brink of failure.

Because, my friend, you ARE going into business for yourself, make no mistake. And you need to take that concept seriously.

How seriously? That is – how much money should you have put away before jumping in?

That, of course, depends on you and your personal situation.

Some new agents have saved up a nice nest-egg for their venture into real estate and will be able to pay their start-up costs, ongoing expenses and household bills for a reasonable about of time.

Some new agents have a supportive spouse or partner who is willing to pay all the household bills during the agent’s non-income-producing months.

Some new agents have taken out personal loans to finance their venture into real estate (I don’t recommend this approach).

Some agents have (and intend to keep) a relatively well-paying and flexible job that they feel will accommodate their venture into real estate.

But some agents have a family to support, with no outside or supplemental income, and no discretionary money in the bank.

Before I continue, I’d like you to spend a little time today being honest with yourself about your own personal financial situation. Please do the following assignments by the end of the day today:

  1. Add up how much money you have saved to invest in your real estate career
  2. Figure out how much it takes to run your household on a monthly basis
  3. Calculate how much income would be coming into the household if you become a real estate agent

We’ll return to this discussion soon!

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Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website buy real viagra online cheap

 

 

 

 

 

 

 

 

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So, You Wanna Be a Real Estate Agent… How Much Money Will I Make?

Guest Post by Jennifer Allan-Hagedorn

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As promised, we’re going to help you determine if a career in real estate is right for you and if so, is NOW the right time to jump in?

So… let’s get started! Let’s (try to) answer that burning question every aspiring real estate agent asks… ‘How much money can I expect to make?’

Do you want the good news or the bad news first?

I’ll start with the good.  A career in real estate can make you rich beyond your wildest dreams.  Well, maybe that’s overstating it a bit, but yes, it is perfectly possible to make a whole bunch of money as a real estate agent.  Personally, I made around $70,000 gross ($40,000 net) my first full year and doubled my income every year after until I was over $300,000.  Okay, so that’s not filthy, stinking rich, but I was happy with it.  I imagine you would be, too.

My “worst” year (once I was up and running) was $179,000, and that was the year I stopped working in August because I was a little burned out.

Of course, there are caveats to those numbers; I worked in a market where home prices were above average, the market was strong, at times even booming, and my net income was somewhat (about 40%) less than those gross figures.  Oh, and just FYI – I was selling between 40 and 70 houses a year to produce those numbers.

So, yes, you can do the math and figure out the potential upside to a career in real estate.

Now for the bad news.

According to the National Association of REALTORS, the median gross income of new real estate agents in their first two years of licensure is (brace yourself) $9,100.

The median gross income of all real estate agents was $45,800, while agents with more than 16 years of experience earned a median income of just under $69,000.

Yowsa.

So there you have it.  Your average real estate agent makes around $22/hour (assuming a 40-hour work week) and there’s no benefits package or vacation time included.  A very small percentage makes over $100,000/year.

Will you?  Maybe… maybe not.  The good news is that your income, to a large degree, depends on YOU.  If this is a career you’re well-suited for, if you’re prepared to work hard and smart and with a little bit of luck, you can, indeed, be in that small percentage making a good living as a real estate agent.

Next up?  How much does it cost to go into real estate?

(look for future posts from Jennifer on this subject)

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Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website can you buy viagra online canada

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So, You Wanna Be a Real Estate Agent?

Guest Post by Jennifer Allan-Hagedorn

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Thinking about taking the plunge into a real estate career, huh?  Excellent!

Helping people buy and sell real estate is a wonderful career – one that can lead to tremendous satisfaction and prosperity, or… sadly become an unfortunate blip on the radar screen of your professional life.

Whether or not you experience the success you dream of will depend on a variety of factors, most of which are 100% within your control.  That’s the good news!  The bad news is that many, many, many real estate agent wanna-be’s disregard these factors when signing up for real estate school.  And the really bad news is that the vast majority of these agents, um, fail… and fail miserably.  Even the ones who were positive they wouldn’t.

Let’s not let that happen to you!

Just the fact that you are surfing online for real information about a real estate career tells me that you have more ambition and brainpower than your average real estate agent wanna-be.  So, no doom & gloom here – let’s take a little journey together.

Watch this space over the next several weeks for tips to help you determine if a career in real estate is right for you and if so, if NOW is the right time to make the leap!

Stand by!

(look for future posts from Jennifer on this subject)

buy cheap viagra online next day delivery

Jennifer Allan-Hagedorn began her writing career after ten years of selling real estate successfully in Denver, Colorado. She was dismayed at the low level of professionalism she frequently encountered in the real estate industry and, with her “soulful” message, hopes to encourage the real estate community to self correct the negative stereotypes of the profession.

Jennifer’s message to agents is that they should strive to be competent real estate advisers, rather than competent real estate prospectors. She urges agents to respect the intelligence of their clients, rather than attempt to insult that intelligence with aggressive closing techniques. She preaches that agents should appreciate the significant commissions paid by their clients, rather than complain that they, themselves, are not appreciated.

Allan-Hagedorn is the author of seven books about real estate and one of the industry’s most popular bloggers. She is also an avid dog rescuer in the Panhandle of Florida.

To learn more about Selling Real Estate with Soul, visit Jennifer’s website can you buy viagra online canada