Introduction: Starting a career in real estate can be challenging, especially in the first year. However, a recent study published in the 2022-2023 Real Estate Income Report offers a promising incentive for perseverance: on average, real estate income doubles after that initial year. This article delves into the details of the study, highlighting the significant increase in earnings and providing valuable tips for new agents to succeed.
Real Estate Income Grows for Many Reasons
Other factors, aside from longevity, play a role in determining an agent's income and can contribute to the likelihood of doubling real estate earnings down the line. Variables such as the number of working hours, geographical location, and specialization all impact an agent's annual income. Nevertheless, it remains clear that the longer an agent stays in the business, the higher their earnings become.
3 Tips for First-Year Agents to Double Real Estate Income
1. Have savings to rely on in your first year
Starting a real estate business requires some investment capital. In addition to pre-licensing real estate classes and brokerage fees, agents must allocate funds for marketing their services and developing leads. Having substantial savings before entering the industry enables agents to endure the initial phase of their career and wait for their income to double. Budgeting apps like Mint and auto-saving tools such as Digit can help agents manage their finances effectively.
2. Find a supportive brokerage
A supportive brokerage can be instrumental in an agent's success. Collaborating with experienced agents and leveraging their wisdom and resources can expedite learning and increase the likelihood of doubling real estate income after the first year. Key considerations when choosing a brokerage include their track record of support and inclusivity, as well as their commission split policies.
3. Create a mentor relationship
Having a mentor to guide and advise during the early stages of a real estate career is invaluable. Cultivating a mentor relationship may involve offering your expertise in areas such as website building or social media management in exchange for valuable insights into the industry. This reciprocal arrangement benefits both parties, allowing for growth and enhanced earning potential.
Earning Double Real Estate Income Is Possible
The statistics tell a promising story: a significant majority of agents who weather the challenges of the first year eventually double their real estate income. By learning crucial lessons early on, recovering from mistakes swiftly, and continuously improving, agents can position themselves for long-term success in the industry.