How Long Does It Take to Start Making Money as a Real Estate Agent? (2024)

FAQs

How Long Does It Take to Start Making Money as a Real Estate Agent? ›

As a new real estate agent, you can make money in three to six months. Tait Militana, a writer at Realtyna, says you should be making consistent money after your first year and it takes around 18 months to be able to live from real estate alone.

Years three to five are typically where most real estate agents start achieving greater levels of success and earning a more lucrative income.

It can take one to five years to see short-term but still potentially high profits, such as those gained from flipping properties in fast-appreciating markets. For those who purchase rental properties, it can take between five and 15 years to generate substantial income.

Key Takeaways. Working as a real estate agent or broker can be fulfilling and financially rewarding, but it's not easy. A career in real estate requires drumming up business, promoting yourself, tracking leads, handling complex paperwork, providing customer service, and much, much more.

That being said, you do need a strong work ethic and time to make money in real estate, especially in the beginning. If you want to wholesale, buy, or flip a property, you need to make sure it has potential. Further, suppose you're going to work with a business partner or other type of private lender.

The fastest way to make money as a real estate agent is to nurture buyer leads. However, getting your first client to buy a property can take three to six months. A good way to make money fast while you wait on your first commission, or right after it, is to manage short-term rentals (STR).

In the demanding and stressful world of real estate, agents often grapple with effects that can ripple through their physical and mental health, personal relationships, and job performance.

Can you make $1 million in your first year selling real estate? It can be done. In fact, it has been done.

In affordable housing markets, $100k would be enough to cover a 20% down payment plus closing costs and holding costs until your new renter moves in. In a really affordable market, you might even have enough cash on hand to cover the necessary renovation costs as well.

How hard is it to get started in real estate? ›

Key Takeaways. You can become a real estate agent in less than six months, depending on where you live and how much time you dedicate to the process. The general steps to earning a license include taking the real estate prelicensing course and licensing exam, activating your license, and joining a brokerage.

The area of the exam that is considered the most challenging varies from person to person, but many people find that the Practice of Real Estate and Disclosures section is the most difficult.

Real estate investing “for beginners” is absolutely achievable, and passive real estate investing may be a great next step beyond a traditional 60/40 portfolio. Real estate investing has long been a favored route to wealth creation, and for good reason.

Earning opportunities: While working in real estate provides a reasonable average annual salary, there are opportunities to earn considerably higher with commissions. If obtaining a higher-than-average salary is one of your goals, consider seeking positions with an agency offering 6% or higher in commission.

Sure, we've seen real estate boom-and-bust cycles in recent decades, but over time, owning real estate has made thousands of people rich in every part of the United States. All in all, it took me 51 years to be a real estate millionaire. But it only took me 11 years from the day I bought my first home!

Learning how to become successful in this field can take a great deal of practice and experience, and even the most experienced agents can benefit from learning new ideas and methodologies. If you'd like to thrive in this business, reading about strategies for success may help you do so.

Being a successful real estate agent is easier said than done. After all, there's a reason 87% of real estate agents fail. However, knowing the mistakes these realtors make, such as failing to follow up with clients or not having adequate funding, can help you prepare and grow a successful real estate business.

By continually flipping or renting the homes you live in, your net worth will probably hit the $1 million dollar mark within another 10–15 years and you can continue to get rich in real estate, while everyone else you knew at age 25 is still plodding along with little to nothing in the bank.

Texas is a gigantic state full of massive opportunities for new real estate agents. According to the most recent census, of the 15 fastest growing cities nationwide, 7 of them are in Texas. Those cities include McKinney, Frisco, Odessa, Pearland, Cedar Park, Georgetown and San Marcos.