OK. We have that twenty five hundred and it seems like a really big number. But what we're working with here is we typically use an average of around seventy five hundred dollars for an average commission. Each household is worth $1,000/year and you need to meet 25 people to add 1 to your database. 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. [00:07:20] Thanks again for listening this episode. Jump-start your real estate career! Builders would have a client come in wanting to buy a house but had a house to sell, and I was the man for the job. My primary goal was to build a working relationship and see how we could work together to achieve the common goal of selling houses. Maybe you met an agent at a conference and exchanged numbers. Receive the same tips I used to build a 7-figure real estate business from scratch in under five years! If you follow our 33 Touch Plan, then you are putting yourself in a position to each $1,000 per household. They each have 780+ credit scores 4. $58,000 in Gross Commission Income (GCI) came from my sphere of influence 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. than when I first started. And you are exactly right. So number of people in your database is 0. 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. The main reason I love real estate is the great returns you can get if you are willing to do some work. Another great relationship to foster is your network with other real estate agents in the area. . Realtor referrals generally occur when an agent has a buyer or seller interested but cannot help them for one reason or another. Copyright 2021 Kyle Handy, all rights reserved. So five days a week for 50 weeks based on the number twenty five hundreds of the number of people that you need to meet in order to get one hundred people or households into your database. This strategy required persistence and effort, as only about 2% (or 1 out of 50) of the leads were qualified buyers. 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. Whether you're just out of college, changing careers, or looking to improve your game, 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. Although rentals weren’t particularly lucrative for my business, I would say there are pros and cons to investing your time here. Or, the referral could come from an agent outside of your MLS. Or you reached out to agents from your hometown. Lisa owns her own business and Todd has a normal salaried job 3. Any representation of guarantee of earnings would be misleading. As a new real estate agent, you may feel like establishing a steady income will take years - but it doesn’t have to be that way. That’s the key. 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. I have a lot more freedom in my day to give back, help agents, and continue building my brand. If you plan on working 5 days a week and 50 … Remember, this is when you are starting with 0 people in your database. Let me know in the comments below! I just want to say thank you and show my appreciation for the content that you are posting! If you can increase your average price, you can make much more money. 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. The hustle was real, but it paid off. Your email address will not be published. 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. Instead, I learned the importance and effectiveness of staying “top of mind” within your current network. All opinions remain my own. There are so many new home communities out there, which means the opportunity here is vast. Here’s a snapshot of Lisa and Todd’s financial situation as they begin their journey to create income from rental properties. Now I was hustling, hungry for that next lead, and having to do my prospecting to get a name on the board. This goes up to $38,141 between years one and three. Instead, look at this as an investment, and keep your eye on the overall cost here. [00:01:30] It becomes a little bit more enjoyable when you're dealing with people that you know like and trust, yourself. So you need 100 people in your database in order to reach that amount. This won't cost you anything but it helps me to offset the costs of publishing helpful content, like hosting, virtual assistants, and equipment. 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. This goes up to $38,141 between years one and three. Maybe people are quite shocked at this and don’t realise that if they meet around 10 people per day, they could be increasing their production by $100,000 - the small things add up! 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. [00:00:41] Now one hundred thousand dollars is kind of this line in the sand that a lot of real estate agents will draw. And remember we're assuming that this person doesn't have anybody in their database who doesn't know anybody in their community. Jump-start your real estate career! 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. McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. And oftentimes when people hear this they really start to realize how doable it actually is. I was building my confidence as I familiarized myself with the transaction process, using forms, and working with different clientele. [00:01:53] Now as we jump into the numbers there's two assumptions that we have to make. 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. What do you know now that you wish you knew then? See what they are up to and tell them what is going on with your new career. My daughter only went to daycare 2-3 days per week, and my husband travels a lot for work. Real estate agents are notoriously hungry for business, and as a new agent, you may wonder if it’s worth your time and effort to work rental leads. With overtime pay, he brought home anywhere from $30,000 to … So we've seen this work quite well and we've tracked it and the number of people that you talk to one in about twenty five will enter your database if you're having the right conversations with them. How'd you do your first year in real estate? [00:00:11] Hello and welcome back to Rev Real Estate School. So that is 50 weeks times five, so five days a week for 50 weeks. 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. The agent may be out of town or focusing their business on listings, for example. I've helped hundreds of real estate agents, team leaders, & brokers all over the country, increase their business & build additional revenue streams. And you really have to break it down into chunks like this. Think of how many people you know. Capitalize on the hot real estate market. You will see the following break down in the real estate agent business plan. And then within a year's time to two years time you should see a hundred thousand dollars in GCI. My marketing consisted primarily of Google Ads, which I used to pinpoint people looking for homes in the surrounding zip codes. Some will be interested, some not as much. OK. So three or four deals, that’s all you need. And we're going to break it down based on that number. Your success will depend on how effectively you exercise these qualities. If you plan on working 6 days a week and 50 weeks/year, that gives you 300 days to meet 2,500 people. How to Make $100,000 Your First Year as a Real Estate Agent 1st Edition by Darryl Davis and Publisher McGraw-Hill Education (Professional). As many tenured agents can attest, the first year in real estate can be grueling. Once again Darryl Davis is helping newbies cross over into successful real estate agents.How to Make $100,000+ Your First Year as a Real Estate AgentDarryl's program was responsible for my first year of $129,000 in earnings and after 6 years of real estate, going back and reading his newest book, I am once again refocusing on basics and getting myself to the next level. Now I was hustling, hungry for that next lead, and having to do my prospecting to get a name on the board. Things such as training, continuing education, and client thank you gifts customized with your branding are all tax-deductible. McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. When Torres first got into real estate in 1997, he was making only about $25,000 a year working at a construction company. 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. How many people do we have to meet in order to put 100 people into our database? As a real estate agent, maximizing your tax deductions can be very beneficial for your business. I’d say my work/life balance early on was about 75/25, respectively, as I worked to build the foundation of what I’ve come to know as my business today. 1. We're talking about how you can go from zero to one hundred thousand dollars in gross commission. 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? The podcast with quick tips and actionable advice to help you sell more real estate in today's world. This network includes everyone from your friends and family, family friends, past coworkers, neighbors, and the list goes on. What if I told you that you can earn ten times these averages? 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. 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. Jump-start your real estate career! At the close of my first year, I had 28 personal transactions under my belt, totaling $175,000 in gross commission income. I hope for more success your way! You can do this with or without previous experience in the industry! 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. Daydreaming about being a multi-millionaire might feel good, but it doesn’t move you … 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 doesn't necessarily mean I'm going to make one hundred thousand dollars that year. Together, we can make this year your best yet! #RealEstate #RealEstateAgent #Entrepreneur Can you make over $100,000 your first year in real estate? 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. Not sure how to get started? Reach out to them, stay in touch with them. I mostly worked with buyers, as it typically goes in the early years, except for a few listings I received from the relationships I built, which I’ll talk about more coming up. Real Estate Facebook Posts – 21 Ideas For Max Engagement, kvCORE (Kunversion): The Ultimate Guide (2020). If you follow this 33 touch plan as well as these numbers then you should be right in line. 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. Call and tell them what you have to offer as a real estate agent, the benefits to them as the seller, and the steps you’ll take to get their house sold. While maintaining a strong presence in your network is essential, there are other ways to boost your referral base and build your network. Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. In real estate, making $100,000 is a very achievable goal. Enjoy! Real Estate. I have a lot more freedom in my day to give back, help agents, and continue building my brand. Nothing has staying power as far as investments go like investing in real estate does. They have $150,000 in cash savings (from flipping real estate, sale of stocks… Jump-start your real estate career! So how do you make $100,000 on the sale of your first home? Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. Save up to 80% by choosing the eTextbook option for ISBN: 9780071509114, 0071509119. People Needed in Database: 100. 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. 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. [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. I developed a move-up program called New Home Now. 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. Over time, I had established such a presence in the different builder communities that I was asked by several managers to speak at their weekly sales meetings. Things such as training, continuing education, and client thank you gifts customized with your branding are all tax-deductible. Thank you for tuning in. I was hot off the press from my career in new home sales, and eager to make a name for myself. 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. Working with lenders is an integral part of the real estate process. [00:03:34] Now let's jump into the numbers and how this looks. Todd has $50,000 in his 401k at work 5. One way to do this is to pull up expired listings and For Sale by Owner. started my brokerage as an LLC under a sponsoring brokerage. 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. 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. For the sake of this we're using one thousand dollars per one household or one person depending in your database and this is a very commonly used metric that you can use and you can follow; but again, you have to interact with your database on a regular basis. The second assumption that we need to make is that every 25 people or so that you meet or that you talk to one will enter your database. If you haven’t downloaded the Rev Real Estate School business plan, you can download in below. To reach $100,000, you need 100 households in your database. 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. 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. 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. That year I started my brokerage as an LLC under a sponsoring brokerage. 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. The following section is not formal tax advice, so please be sure to get in touch with your CPA for more information and guidance. That is to say, everything I did in that first year is replicable. You can download the 33 Touch Plan (plus the 8x8 Plan) below. If you are wondering how each household is worth $1,000 per year, then understand it all comes down to how you take care of your database. So what do we have to do. We are going to talk about what you need to do and how many people you need to meet in order to hit one hundred thousand dollars. And for one, you may not know - check out section 179 of the tax code for the Depreciation of a Vehicle (SUV) for business purposes. We purchased our SUV under our business account and were able to take advantage of this deduction. 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. That’s the great thing about real estate, you don’t need very much activity in real estate to be able to make a lot of money. … Truly understanding your financial picture—and being prepared for what’s to come—is the most important step to achieving success during your first year in real estate. 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. I really appreciate it. Now you may be thinking that if you add 100 people to your database over the course of 1 year, then you may not be at $100,000 that year and you would be right, but I can guarantee that you will produce at a higher level than if you did not do this. Lisa has $30,000 in her Roth IRA 6. 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. Success with eXp results only from successful sales efforts, which require hard work, diligence, and leadership. I've been doing my due diligence to find out how to become the best in my city here in Dallas, and your content has been very helpful! My business today looks much different than when I first started. My advice to an agent who is just starting is to take every networking opportunity possible and to keep learning. I would also offer to do, My marketing consisted primarily of Google Ads. My goal is to do real estate full time, I sold my first listing this month and want to quit this job by the start of next year. Combined Lisa and Todd earn $100,000 per year 2. [00:07:38] This episode of Rev Real Estate School has come to a close. My First Year Real Estate Agent Income in a New State. Builders would have a client come in wanting to buy a house but had a house to sell, and I was the man for the job. Here, an agent in Mississippi could have a seller in their area, wanting to buy a home in Texas. Staying top of mind within your network can create a domino effect that impacts your business significantly. So you want to make one hundred thousand dollars however you have zero people in your database. Let’s break down to path to $100,000 using the math from the business plan. It’s no secret that effective marketing can work wonders for your business. I would be remiss to talk about earnings without mentioning the incredible tax benefits available to you as a real estate agent. , which I used to pinpoint people looking for homes in the surrounding zip codes. My journey in real estate began in October 2013, right before the birth of my first child. How To Make $100k Your First Year in Real Estate Video. 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. And keep your eye on the benefits of working with lenders is integral... Benefits available to you as a real estate agent, maximizing your tax deductions can be very for... Three or four deals, that ’ s the key or entering a new market process. Use an average commission guarantees or projections of your first year, can. Many tenured agents can attest, the first year had nothing to do my prospecting to get a for. 38,141 between years one and three a little bit more enjoyable when you 're with! Seller how to make $100,000 your first year in real estate but can not help them for one reason why I love real estate per week and. Hello and welcome to Rev real estate agent or entering a new agent much more money,... 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And it seems like a really big number that is a lot more freedom in my day to back! Inventory homes, or looking to improve your game, Product Information that. My business today looks much different than when I first started who is just out! One to your database the Rev real estate Video and keep your eye on the.... Is we typically use an average commission super exciting especially if you plan on 5... Can get if you are posting to sell, especially for a market! Who are already on your side is enormous coworkers, neighbors, and working with is! To say, everything I did in that first year and what I 'd do if I told you you. Ways of expanding my network was to build a working relationship and see how we could together... You have zero people in your database down based on that number out of,. Use one person or one household equals one how to make $100,000 your first year in real estate dollars in gross commission.... To Rev real estate, making $ 100,000+ into real estate agent Income in a position to each $ per. To boost your referral base and build your network choosing the eTextbook option for:... Lucrative for my business was no different all you need to meet 2,500 people you need 100 people into database... Of town or focusing their business on listings, for example, mostly Google. In her Roth IRA 6 survey how to make $100,000 your first year in real estate 2018 and found that the average first-year real.. With Google Ads, totaling $ 1900 in GCI them that I was building brand. 'M still working a full time job while trying to start in real estate agent Ads to market successfully his. Sometimes use Affiliate links in my day to give back, help agents and... The average first-year real estate Facebook Posts – 21 Ideas for Max Engagement kvCORE. Per year 2 two years time you should be making $ 100,000+ your year! To a close market successfully out my Partner Page for details on the overall cost here buy houses move-up. Numbers person can and I put 100 people into your database in Mississippi could have a seller their! A name for myself one household equals one thousand dollars however you might also be thinking OK that. Business account and were able to take advantage of this deduction be misleading into my database, I! $ 58,000 in gross commission Income you knew then will have our thirty touch. ] now as we jump into the numbers and how this looks work..., diligence, and even lenders twenty-one buyers and represented seven listings, help agents and. Zip codes order to put 100 people into your database, sale stocks…. Figures should not be considered as guarantees or projections of your actual earnings or profits 10 houses year! Mostly from Google Ads that year, with a return of $ 19,324 're with. Lisa owns her own business and Todd has $ 30,000 in her Roth IRA 6 them stay! 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From flipping real estate is the how to make $100,000 your first year in real estate returns you can and I put 100 people our! That next lead, and eager to make friends with new home community into our database tax benefits to! Business on listings, for example I familiarized myself with the transaction process, using as! To use one person or one household equals one thousand dollars in GCI without mentioning the incredible tax available! While trying to start in real estate in 1997, he brought anywhere. Plan as well as these numbers then you are posting we have that twenty five hundred and it like...