Transcript From The After The License Podcast Episode “How Much Money Do You Need To Sell Real Estate Full Time?”:
Hello and welcome back to the After The License podcast, the podcast where we help real estate agents grow their business, especially new agents who just got their license and are trying to figure out what they need to do or what they want to do after the license. You can also check us out online afterthelicense.com we kind of have a Q&A knowledge base article type site setup for common questions new real estate agents have, so you can always check us out there. If you enjoy the podcast, guys, please Like Subscribe, leave a review, give us a rating. All of that stuff helps us in the feeds. Okay, my name is Jeff Buettner. As always, you can check me out at @JeffBuettner on Instagram, or @JeffreyBuettner on Twitter. Today, we are going to talk about how much money should you have saved before you dive into real estate full time. And we’ve talked about similar things in previous episodes, we’ve talked about, “should you be a part time real estate agent and what that looks like.” Today, I want to talk about specifically, you know “what you need, and what you should understand before you jump into real estate full time from a financial perspective.” And I don’t have a specific number for you, but what I like to tell agents is, when you first get into real estate full time, unless you’ve been kind of doing it part time, and you have some clients and you have some things in the pipeline already. If you’re brand new, and you’re fresh, you should expect to not make money for the first six months. And that’s something you need to be okay with, and that’s something you need to be comfortable with when you start out. Now, does that mean maybe you do another job part time on the side? Maybe, right? Does that mean you need to have enough savings that if you don’t have something part time, you can still live, and survive, and pay all your bills, maybe. But six months is a good place to start from an understanding perspective. Because ultimately, even though if you start day one full time being an agent, you might have some hits early on, you might do some open houses, generate some leads, start showing houses, but ultimately, to have a house close takes time. Right? Even if someone decides and tells you today they want to go buy a house, it could take a couple weeks to a couple of months to find that house. And then it can take a month, two months to actually have that house close. And that’s if everything goes right, and you find a client today. So six months is a good barometer to kind of judge, “Can I do this full time without doing anything else?” And if not, it might make sense to do something else part time or something else on the side. Another side hustle so that you can feel comfortable pursuing real estate 40 hours a week, but not actually having any income come in, in the very beginning. So you’re gonna have to figure out what that number is for yourself. You know? If you do any kind of budgeting, you can probably pencil it out and say okay, this is how much I need to live every single month, food, water, bills, rent, and then multiply that by six. And that should be a rough number if you want to kind of have a backup plan, having a savings account where you don’t have any money. But if you kind of subsidize yourself with something part time, some kind of side gig, whether that’s driving for Uber, or Postmates, or Uber Eats, if that can help you get by, fantastic. I’m all about it. But just expect, when you first start out in real estate to not have a paycheck for probably six months. And that’s going to take six months of constant hitting the streets and lead generating and talking to people about real estate and doing the things you need to do, but six months is a good kind of barometer to understand. So, hopefully this was helpful. As always, if you have any questions, comments, please don’t hesitate to reach out to me @JeffreyBuettner on Twitter, @JeffBuettner on Instagram. And you can always check us out afterthelicense.com. Thanks everybody. Talk to you next time.