OK. We have that twenty five hundred and it seems like a really big number. I go into a bit more detail about that first year and what I'd do if I were just starting out. If it takes meeting 25 people to add one to your database, then 25x100 = 2,500 people you need to meet. [00:07:20] Thanks again for listening this episode. And you are exactly right. How to Make $100,000 Your First Year as a Real Estate Agent 1st Edition by Darryl Davis and Publisher McGraw-Hill Education (Professional). So you need 100 people in your database in order to reach that amount. You can download the 33 Touch Plan (plus the 8x8 Plan) below. Getting started in a new industry can be tricky. Go to training and conferences, watch youtube videos, and network with people who have been where you are now. Jump-start your real estate career! Typically, that first year is all about the buyer, and my business was no different. And if you're in a strong market or you're like a database wizard then you could see that number go up to about 1250 or so or even higher. I have a lot more freedom in my day to give back, help agents, and continue building my brand. 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. And for one, you may not know - check out section 179 of the tax code for the Depreciation of a Vehicle (SUV) for business purposes. Or you reached out to agents from your hometown. 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. Remember, this is when you are starting with 0 people in your database. Now you may be thinking that if you add 100 people to your database over the course of 1 year, then you may not be at $100,000 that year and you would be right, but I can guarantee that you will produce at a higher level than if you did not do this. If you don't know anybody: so zero people in your database. As many tenured agents can attest, the first year in real estate can be grueling. And we're going to break it down based on that number. Well, you can and I'm living proof! Staying close and relevant to those who are already on your side is enormous. Enjoy! Your email address will not be published. However you might also be thinking OK well that's one year. . 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. Jump-start your real estate career! That’s the great thing about real estate, you don’t need very much activity in real estate to be able to make a lot of money. Todd has $50,000 in his 401k at work 5. That means on each work day, you need to meet 8.3 people! Now I was hustling, hungry for that next lead, and having to do my prospecting to get a name on the board. We're talking about how you can go from zero to one hundred thousand dollars in gross commission. Here’s a snapshot of Lisa and Todd’s financial situation as they begin their journey to create income from rental properties. We purchased our SUV under our business account and were able to take advantage of this deduction. 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. 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. The hustle was real, but it paid off. 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. I would also offer to do open houses on inventory homes, or sit in on their model home as needed. Check out podcasts and youtube videos to see how other agents use Google Ads to market successfully. Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. I have a lot more freedom in my day to give back, help agents, and continue building my brand. Nine of my twenty-eight transactions that first year were listings I obtained through the relationships I built in the new home community. Let’s break down to path to $100,000 using the math from the business plan. OK. So number of people in your database is 0. McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. What if I told you that you can earn ten times these averages? I really appreciate it. Read honest and unbiased product reviews from our users. Each household is worth $1,000/year and you need to meet 25 people to add 1 to your database. My journey in real estate began in October 2013, right before the birth of my first child. But don’t let that scare you away. Meals and entertainment that involves a client are tax-deductible at 50% value. than when I first started. With overtime pay, he brought home anywhere from $30,000 to … Instead, look at this as an investment, and keep your eye on the overall cost here. Capitalize on the hot real estate market. So I meet and I put 100 people into my database for that one year. People Needed in Database: 100. And while some agents make big money very early, many don’t. Why is real estate my top choice for investing $100,000? I developed a move-up program called New Home Now. 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. If you'd like more information about how to earn over $100,000 in your first year in real estate, watch the video I made. [00:05:56] I've seen this work absolutely perfectly. … McKissock did a survey in 2018 and found that the average first-year real estate agent earns approximately $15,000. , which I used to pinpoint people looking for homes in the surrounding zip codes. As an aspiring real estate agent (I'm in the process of getting my license right now), it gives me a realistic view of what it's going to take to become successful in the industry. 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. Thank you for tuning in. And it's very market dependent. I just want to say thank you and show my appreciation for the content that you are posting! This includes basically two weeks of a location plus not necessarily weekends so you might not even do this you might be working more than this. You can do this with or without previous experience in the industry! The following section is not formal tax advice, so please be sure to get in touch with your CPA for more information and guidance. We're going to use one person or one household equals one thousand dollars in GCI. Find helpful customer reviews and review ratings for How to Make $100,000+ Your First Year as a Real Estate Agent at Amazon.com. During the first year of operations, he spent 40 to 50 hours per week making videos, even though they weren’t generating much revenue. 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. Maybe you're a brand new real estate agent or entering a new market. How To Make $100k Your First Year in Real Estate Video. I had worked in new home sales for five years, and while I gained a great deal of industry knowledge from that position, I knew that general real estate would be a whole new ballgame. Jump-start your real estate career! Lisa owns her own business and Todd has a normal salaried job 3. I own 13 rental properties and fix and flip about 10 houses a year. Take Action. And one of the great things about renters is that they usually turn into buyers at some point or another, and if you keep in touch, you’ve just secured some repeat business for the future. 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. Success with eXp results only from successful sales efforts, which require hard work, diligence, and leadership. I didn’t realize the potential until later on in the year, but I did see two transactions came from lender referrals in 2013. And a top producer gives you call and you can ask them anything on your mind. Maybe you met an agent at a conference and exchanged numbers. 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 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. Staying top of mind within your network can create a domino effect that impacts your business significantly. One of the most important things I took away from that first year had nothing to do with cold calls or outward prospecting. Maybe people are quite shocked at this and don’t realise that if they meet around 10 people per day, they could be increasing their production by $100,000 - the small things add up! by Kyle Handy       Updated October 29, 2020. Well, you can and I'm living proof! However, the bulk of my business that year was from referrals, topping out at $97,000 in GCI. Or, the referral could come from an agent outside of your MLS. As a real estate agent, maximizing your tax deductions can be very beneficial for your business. If it takes meeting 25 people to add one to your database, then 25x100 = 2,500 people you need to meet. Builders would have a client come in wanting to buy a house but had a house to sell, and I was the man for the job. 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. 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. I would also offer to do, My marketing consisted primarily of Google Ads. My First Year Real Estate Agent Income in a New State. You will then need to meet 10 people a day. So you gotta get your money, your people and your deal together and if you can do it three or four times in the year. So we have to take that into consideration. 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. 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. All opinions remain my own. If you plan on working 6 days a week and 50 weeks/year, that gives you 300 days to meet 2,500 people. [00:06:52] This can work for anybody if you already have people in your database then you already have a leg up on this equation. 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. Think of how many people you know. 1. But I’ve stuck with it, using it as a tool to build my database, and now it is paying off. The podcast with quick tips and actionable advice to help you sell more real estate in today's world. Thanks again for listening and we'll see you in the next lesson. We'll see you back here for the next lesson. So with no people in your database you need to meet between eight and 10 people a day depending on how many days of the year you plan on working. Here, an agent in Mississippi could have a seller in their area, wanting to buy a home in Texas. That doesn't necessarily mean I'm going to make one hundred thousand dollars that year. Together, we can make this year your best yet! Now I was hustling, hungry for that next lead, and having to do my prospecting to get a name on the board. While maintaining a strong presence in your network is essential, there are other ways to boost your referral base and build your network. Regularly getting in front of them showed them that I was hungry for business, and I was willing to work for it. 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. As you have certainly gathered by now, real estate is all about relationships. Investing in real estate is a very common option for those … 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. And you really have to break it down into chunks like this. Jump-start your real estate career! Real Estate Facebook Posts – 21 Ideas For Max Engagement, kvCORE (Kunversion): The Ultimate Guide (2020). **eXp Realty Earnings Disclosure** - The earnings portrayed are not necessarily representative of the income, if any, that an eXp agent can or will earn through his or her participation in the eXp Sustainable Revenue Share plan. I was building my confidence as I familiarized myself with the transaction process, using forms, and working with different clientele. Remember you can always ask a top producer anything all you do is write and review the show and then head over to the free coaching section on our website. Daydreaming about being a multi-millionaire might feel good, but it doesn’t move you … They have $150,000 in cash savings (from flipping real estate, sale of stocks… Receive the same tips I used to build a 7-figure real estate business from scratch in under five years! I've helped hundreds of real estate agents, team leaders, & brokers all over the country, increase their business & build additional revenue streams. [00:01:30] It becomes a little bit more enjoyable when you're dealing with people that you know like and trust, yourself. You could buy a nice house in the suburbs for around $100,000 and just collect the cash flow on that home without needing to pay a bank. [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. So five days a week for 50 weeks based on the number twenty five hundreds of the number of people that you need to meet in order to get one hundred people or households into your database. Some will be interested, some not as much. To reach $100,000, you need 100 households in your database. Now that number can shift a little bit. Realtor referrals generally occur when an agent has a buyer or seller interested but cannot help them for one reason or another. Although rentals weren’t particularly lucrative for my business, I would say there are pros and cons to investing your time here. I sold 20 homes, and this was all while working from home with my preschooler. Let me know in the comments below! Not sure how to get started? One thing I want to make clear, if you do not want to make over $100,000 in your business, that is OK. Maybe your goal is to make $50,000? 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. In real estate, making $100,000 is a very achievable goal. I did see a few referrals come in from clients I had helped in new home sales, but not nearly as many as I had anticipated. This strategy required persistence and effort, as only about 2% (or 1 out of 50) of the leads were qualified buyers. To reach $100,000, you need 100 households in your database. Reach out to them, stay in touch with them. Lisa has $30,000 in her Roth IRA 6. So you can trust these numbers. [00:01:53] Now as we jump into the numbers there's two assumptions that we have to make. I would be remiss to talk about earnings without mentioning the incredible tax benefits available to you as a real estate agent. The agent may be out of town or focusing their business on listings, for example. Here’s how you can make $100,000 your first year as a real estate agent, step-by-step, and the process involved day-to-day to hit that goal. If you plan on working 5 days a week and 50 weeks/year, that gives you 250 days to meet 2,500 people. 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 you follow our 33 Touch Plan, then you are putting yourself in a position to each $1,000 per household. [00:00:11] Hello and welcome back to Rev Real Estate School. 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. So you want to make one hundred thousand dollars however you have zero people in your database. My daughter only went to daycare 2-3 days per week, and my husband travels a lot for work. It may be strange to ask your preferred lender to send business your way, but in the end, you are both working toward a common goal. And oftentimes when people hear this they really start to realize how doable it actually is. 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