- Despite what reality TV tells us, most agents are not millionaires.
- The real opportunity for wealth is in owning real estate.
- Agents' familiarity with the business give them a leg up in the investing realm.
If you are like most real estate agents, you make killer commission checks. I’m talking about $20,000 to $100,000 every time you close a house. What? Not in the little town you represent?
But on TV, all the agents are millionaires!
So, the “standard” commissions in your mid-sized market average around $5,000, and your broker gets a chunk of that, too? And then Uncle Sam takes a piece?
So, how much are you making every time you sell a house or find a buyer — $1,000 to $3,500?
Well, I guess that’s OK as long as you’re closing one or two houses every week.
What’s that you say?
You close about three deals every month? And only in spring and summer months? And in the fall and winter you average one a month?
Are you telling me you make about $50,000 per year?
Money on the side
Don’t you wish there was a way for you to be involved in real estate, make steady income every month and use those commission checks as a yearly bonus instead of a yearly salary?
Have you ever thought about investing in real estate?
Surely you’ve noticed the really successful agents in your area also own a real estate portfolio.
Have you ever heard that landlords make money in their sleep?
It’s time to wake up and realize that the big money in real estate is in owning and controlling the real estate.
Every agent needs a real estate portfolio for three reasons:
- Representing buyers and sellers is one way to make a living, but it won’t set your family up for generational wealth.
- You won’t ever be able to take a vacation and make money in your free time unless you own a real estate portfolio.
- Real estate agents are more than qualified to transition themselves into real estate investors.
You have the market at your finger tips. You make pennies on the dollar when you represent investors. You watch them buy a property, fix it and sell it. You might have collected $5,000 if you represented them on both transactions. They made $50,000.
Breaking the agent-only mindset
What are you waiting for? Real estate agents have the skill set, the connections and the industry knowledge to be the most successful real estate investors, yet fewer than 25 percent of all agents own real estate.
It’s time to change that statistic. Nothing creates empathy for your represented parties like actually living in their shoes as the property buyer and seller.
Once an agent experiences the thrill and excitement of being in control, there’s no turning back. Making that big money is addicting.
Most agents wait until they’re ready to retire to start buying and renting property.
Don’t become that statistic.
Buy land now. I don’t care if you have $1,500 to invest or $100,000 to start your portfolio, just start it today.
Ten years from now, you’ll send me a thank you email.
Twenty years from now, you’ll send me a beautiful bouquet of flowers for giving you that kick in the rear end to get out of your “agent-only” mindset and into the role of money maker.
Fifty years from now, I fully expect your kid to call me and say, “What am I supposed to do with all these properties?”
Warning: If you don’t train your kid on what they should do with those properties, I will buy them for half price and take away your kid’s “headaches” from the inheritance you so carefully created for them. Once you know the secret to generational wealth, teach the next generation!
Whitney Nicely is the queen of real estate in east Tennessee. All Real Estate, All the Time with Whitney Nicely is a podcast to learn about flipping, flopping, listing, buying and investing. Follow her on Instagram @WhitneyBuysHouses or Facebook.