Having a commission goal of $100,000 is a common number that most new and growing real estate agents will set for themselves and you can hit this goal even if you don’t have any people in your database. 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. If it takes meeting 25 people to add one to your database, then 25x100 = 2,500 people you need to meet. [00:01:53] Now as we jump into the numbers there's two assumptions that we have to make. Maybe you met an agent at a conference and exchanged numbers. Read honest and unbiased product reviews from our users. 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. I hope for more success your way! If you haven’t downloaded the Rev Real Estate School business plan, you can download in below. You will see the following break down in the real estate agent business plan. So how do you make $100,000 on the sale of your first home? 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. 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. So that is 50 weeks times five, so five days a week for 50 weeks. 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. 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. This network includes everyone from your friends and family, family friends, past coworkers, neighbors, and the list goes on. Investing in real estate is a very common option for those … How to Make $100,000 Your First Year as a Real Estate Agent 1st Edition by Darryl Davis and Publisher McGraw-Hill Education (Professional). 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. [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. Regularly getting in front of them showed them that I was hungry for business, and I was willing to work for it. I would be remiss to talk about earnings without mentioning the incredible tax benefits available to you as a real estate agent. 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. Or you reached out to agents from your hometown. How To Make $100k Your First Year in Real Estate Video. **Affiliate Disclosure** - I sometimes use affiliate links in my content. 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. And while some agents make big money very early, many don’t. Jump-start your real estate career! That is a lot of houses to sell, especially for a new agent. That means on each work day, you need to meet 10 people! That doesn't necessarily mean I'm going to make one hundred thousand dollars that year. And a top producer gives you call and you can ask them anything on your mind. Product Information. My journey in real estate began in October 2013, right before the birth of my first child. 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. Today we are talking about something super exciting especially if you are a numbers person. It works absolutely perfectly almost every year in my business and I've seen it work absolutely perfectly in brand new agents agents that are new to markets all sorts of things. Most people think of sphere of influence - or direct business from family and friends - when they think of starting a business in real estate, and there is merit to this. People Needed in Database: 100. The main reason I love real estate is the great returns you can get if you are willing to do some work. Jump-start your real estate career! Staying close and relevant to those who are already on your side is enormous. I will have our thirty three touch plan linked up in the show notes as well. 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. The following section is not formal tax advice, so please be sure to get in touch with your CPA for more information and guidance. One hundred thousand dollars and having zero people in your database and how you can get up to that number in about 1 to 1 and a half years time and this will be an enjoyable path to one hundred thousand dollars if you've been following the show and listening to our podcast you know a lot of what we're talking about is relationship building and building a database and then building a sales structure through people that know like and trust you. That first year I represented seven renters, mostly from Google Ads, totaling $1900 in GCI. To break it down, I had helped twenty-one buyers and represented seven listings. OK. We have that twenty five hundred and it seems like a really big number. But if you start to break it down it's actually quite achievable. Combined Lisa and Todd earn $100,000 per year 2. But I’ve stuck with it, using it as a tool to build my database, and now it is paying off. That year I started my brokerage as an LLC under a sponsoring brokerage. 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. You will then need to meet 10 people a day. There are many ways to invest money into real estate and that is one reason why I love to buy houses. So number of people in your database is 0. I really appreciate it. To reach $100,000, you need 100 households in your database. Success with eXp results only from successful sales efforts, which require hard work, diligence, and leadership. The hustle was real, but it paid off. Meals and entertainment that involves a client are tax-deductible at 50% value. How many people do we have to meet in order to put 100 people into our database? Copyright 2021 Kyle Handy, all rights reserved. Capitalize on the hot real estate market. Nothing has staying power as far as investments go like investing in real estate does. In my first year as a real estate agent in Illinois, from January 31 to October 31, 2017, I grossed $50,000! Each household is worth $1,000/year and you need to meet 25 people to add 1 to your database. They each have 780+ credit scores 4. 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. Things such as training, continuing education, and client thank you gifts customized with your branding are all tax-deductible. 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. If you plan on working 5 days a week and 50 weeks/year, that gives you 250 days to meet 2,500 people. My advice to an agent who is just starting is to take every networking opportunity possible and to keep learning. by Kyle Handy       Updated October 29, 2020. I would also offer to do, My marketing consisted primarily of Google Ads. It really depends on how you interact with your database. I would also offer to do open houses on inventory homes, or sit in on their model home as needed. 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. Although rentals weren’t particularly lucrative for my business, I would say there are pros and cons to investing your time here. In all, I lost money upfront with Google Ads. I own 13 rental properties and fix and flip about 10 houses a year. 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. Let us know where you did that. And oftentimes when people hear this they really start to realize how doable it actually is. 1. What if I told you that you can earn ten times these averages? One of my favorite ways of expanding my network was to make friends with new home builders. [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. Todd has $50,000 in his 401k at work 5. 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. 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. Another great relationship to foster is your network with other real estate agents in the area. I’d bring tacos or donuts to the sales meeting, and go over my background, my unique marketing plan, what I would do for sellers, and the details of my move-up program. Not sure how to get started? Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. Thank you for tuning in. Well If one in 25 then the one hundred times twenty five which puts us at twenty five hundred people so we have to meet twenty five hundred people in order to get our database number up to 100. Instead, look at this as an investment, and keep your eye on the overall cost here. In this post and podcast, you will learn how you can go from have no people in your database to $100,000 in real estate commission in 1-2 years. I was building my confidence as I familiarized myself with the transaction process, using forms, and working with different clientele. Maybe you're a brand new real estate agent or entering a new market. Dave Dinkel: Presents - The 3 Part Series: "How to Make $100,000.00 Your First Year in Real Estate Wholesaling..." at 218-862-1300 Pin 913175 on Wednesday Mar 30, 2011 at 8:55PM So what do we have to do. 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. Learn from them. Whether you're just out of college, changing careers, or looking to improve your game, As you have certainly gathered by now, real estate is all about relationships. This strategy required persistence and effort, as only about 2% (or 1 out of 50) of the leads were qualified buyers. Here’s a snapshot of Lisa and Todd’s financial situation as they begin their journey to create income from rental properties. [00:00:11] Hello and welcome back to Rev Real Estate School. Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. 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. 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. I invested $22,000 in Google Ads that year, with a return of $19,324. However, the bulk of my business that year was from referrals, topping out at $97,000 in GCI. That means on each work day, you need to meet 8.3 people! 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. At the close of my first year, I had 28 personal transactions under my belt, totaling $175,000 in gross commission income. I wish I would have kept the momentum up with this, as it was a great way to build traction, boost production, and gain confidence in what I had to offer. 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