How to make 6 figures as a Real Estate Agent
Real estate is one of the top 10 highest paid industries. If done at a high level the sky is the limit. Unlike corporate America the real estate industry offers so much opportunity to those who are willing to invest the time and do the work. Being a Real Estate Agent is not easy, but it is worth it.
When we talk about real estate, the first images that flash in our brain are beautiful buildings, a tremendous amount of earning potential, and a lavish lifestyle. It is the reason why real estate is one of the most admired careers. There are multiple ways to make money in the real estate industry. If your homework is sound, the possibility of earning a 6 figure income is quite high.
Ways to make money in Real Estate
The real estate industry is full of job opportunities and offers several roles to make money. Some of the main ways to earn from real estate include becoming a real estate appraiser, wholesaling real estate to earn referral fees, and finally, the most lucrative real estate career- becoming a real estate agent. While other careers in real estate can also be profitable I choose Real Estate because I saw the most opportunity to inject my entrepreneurial mindset. Investing is another method to earn in the real estate industry. In my opinion the investors actually make the most money in this industry, but that game requires investment capital and being a agent is the perfect place to learn while acquiring that capital by selling homes for other people. It requires a hustle to find the active sellers and buyers but the paydays can be big.
Becoming a Real Estate Agent
A real estate agent is a licensed professional who is responsible for arranging real estate transactions. The job of a real estate agent includes putting the buyers and sellers on the same table and acts as a representative of one party in that deal. The compensation of a real estate agent is completely dependent upon the commission earned from the deal. Thus, the most important skill an agent can learn is the ability to negotiate and keep his commission.
The licensing process includes pre-licensing classes and training, examination and licensing fees, etc. Once you get your license approved, you are ready to start your career as a real estate agent by paying an ongoing membership fee each year to be an active member of the board realtors.
An agent earns a commission that is generally a certain percentage of the property’s sales price. Thus, the profit an agent earns is proportional to the amount a property sells for and the commission he or she can negotiate. You get what you can negotiate in this business.
Making 6 figures as a Real Estate Agent
Real estate is an industry that can help agents make six-digit earnings with some hard work and effort. All you need is to do is hustle and make a well-planned strategy. There are some basic tactics that can make you an effective real estate agent and help you cross the $100,000 barrier that many admire in their career paths. Following these principles can help you achieve these heights in your real estate career.
Here are some basic tips that can help you earn more in your real estate business:
1) Get on the phone
Yes, this is the most simple, traditional, but effective method. If you are someone who is comfortable talking to people, you’ve hit the bull’s eye. Communication is the most efficient tool to get sales closed. Calling is one method that is convenient and effective but there are many other methods you can choose by utilizing text, mail, and email to connect with prospects.
If you are not comfortable talking to people, you can definitely miss the train. The more you talk to people, the more people know about you and your business. All sales happen with trust, and to gain the trust, contacting & communicating is the key. So get up, train your communication skills, and start dialing.
2) Build a system for an efficient sales funnel
If you are aiming at the $100,000 mark, you need to improve your business’ internal processes. You can manage things manually when you first start out as a real estate agent to keep your fixed expenses down. But as the sales scale up, it becomes hard to deal with your clients effectively. Improper handling the clients can damage your business image and restrict your future deals. Thus, to be effective, you must have a great follow up system in place to handle your real estate leads.
Your system defines how effective your sales funnel will be. It begins when a prospect calls you for the first time and gradually takes that inquiry call to close a deal. There are many steps that need to be followed while converting a cold lead into a client and these steps need to be in a systematic order. Identify those steps for your business and lead flow to keep getting new clients in the door.
3) Time blocking
To be successful, be it real estate or any other business, time management is the most crucial factor. How you use your time defines what returns you are going to get out of your business. As a self-reliant real estate agent, no one is going to tell you what to do. You must become the master of your own productivity and schedule.
For more details, you can watch my YouTube video –
Conclusion
Becoming a successful real estate agent is not as easy as it seems. But if you start with the right approach, you can earn as much as you desire. You need to work both hard and smart to build your contacts, develop interpersonal skills, and real estate knowledge.