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Hello Everyone, My name is Jeff..
I was pointed in this website's direction for assistance.
I'm a Full-time Network Engineer based in New York City, however I would like to break into the Real-Estate field as a side gig. I was advised to look into becoming a Referral Agent; as it can be used as a way to get my feet wet.
So this is my attempt to reach out to experienced Agents/Brokers/referral Agents for assistance and or advise.
You do realize that the nation is at the tippy-top peak of a real estate "boom" (other words are used to characterize it) that's lasted something like ten years now? At some point, and it's not going to be all that long, this will stop expanding, and when that happens it's going to be tough for real estate agents. The really good ones will stay in the business, but newbies and the less competent are going to get shaken out.
Back in 2006 you practically had to beg an agent on bended knee to even deign to show you a property, and if you asked them to do any research or provide you with any actual information on a property they'd just stop returning your calls. By 2009 they were seeking you out. Same story, different year.
I have to say I don't really want "referral agents" out there. You bird dog and take money from agents out there actually doing work. If you want to become an agent do it. It's hard. It's competitive. It's stressful. There is no salary or benefits.
It can be rewarding. The schedule can eat you alive or it can be flexible. The pay can be great or it can be awful. People can be great or they can be awful. Go meet some Brokers in Charge and find out if it's something you want to pursue. Good luck either way, but don't become a "referral agent".
Yeah....what the RE market really needs is more "side gig" agents. That is really great for consumers....
Referral agents are a thing....but they tend to be folks of retirement age who have worked in RE full-time for a long time and have a built up client base and deep knowledge of the market area with regards to agents and neighborhoods they serve; not someone just trying to "get their feet wet"
You do realize that the nation is at the tippy-top peak of a real estate "boom" (other words are used to characterize it) that's lasted something like ten years now? At some point, and it's not going to be all that long, this will stop expanding, and when that happens it's going to be tough for real estate agents. The really good ones will stay in the business, but newbies and the less competent are going to get shaken out.
Back in 2006 you practically had to beg an agent on bended knee to even deign to show you a property, and if you asked them to do any research or provide you with any actual information on a property they'd just stop returning your calls. By 2009 they were seeking you out. Same story, different year.
interesting....you're not the first person to tell me that..Pardon as i'm generally a Tech-person..still learning Real-Estate...think this "boom" will be worse?
interesting....you're not the first person to tell me that..Pardon as i'm generally a Tech-person..still learning Real-Estate...think this "boom" will be worse?
Seriously, a crest in real estate is not a real concern for you, as you will be dabbling part-time.
It actually will be as good a time as any to get licensed and learn the business.
Getting licensed and oriented is a very cheap step anyway, and you are not planning to walk away from your primary income.
You will be educated and experienced, and ready for whatever the market does.
All that said...
Yeah, not many full-timers favor part-time/referral players.
Seriously, a crest in real estate is not a real concern for you, as you will be dabbling part-time.
It actually will be as good a time as any to get licensed and learn the business.
Getting licensed and oriented is a very cheap step anyway, and you are not planning to walk away from your primary income.
You will be educated and experienced, and ready for whatever the market does.
All that said...
Yeah, not many full-timers favor part-time/referral players.
The "crest" isn't the concern, it's the ensuing "dip" (I am avoiding more inflammatory terms).
During the "dip", experienced high quality real estate agents will continue to get and sell listings, but they'll have to scrap for each one. Inexperienced agents, agents without a big good network, and poor quality agents will not get listings and will leave the business. I would not suggest getting into the real estate business (especially as a part time dabbler) at a time when anyone with eyes in their head can see a slowdown is inevitable and pretty soon. You could do all the education and licensing and then sit cooling your heels for a very long time without any results whatsoever. That would not be gathering experience.
Around here it costs about $2,100 in annual memberships, dues, and brokerage charges just to be an active broker/agent.
Plus we have to pay ALL of our own expenses for marketing materials, signs, etc.
I won't tell you you can't do good work as a side business, I just wonder how it would be affordable to keep up all those fees, some of which are monthly, some of which need to be paid all upfront for the year, for just a side business.
I will second, third, fourth the advice to avoid becoming a Referral Agent. IMHO, they're really parasites to good agents. Referrals are a good service to offer to people you know, they are not a good source of income as a business model, nor is it really a fun job. They basically cold-call people, and whoever doesn't just hang up on them outright, they sell to a local agent for a cut of the fee that agent might eventually make on the deal if they close one. We got suckered by one of these who called us early on, claiming to have a hot lead... Signed his referral paperwork and then I got the phone number of someone who had been told there was a buyer interested in his house and who was pretty annoyed to hear I did not have such a buyer. I'd been told the guy wanted to list his house. Perhaps some sharkish agent could have sold him on listing with the right scripts, but that's not really our style, it's not what we do. I let the guy go, and then ignored the referral agent's followup spam emails for the next year asking if I'd ever closed a deal with that person. That's what you'd be doing, chasing people all the time. Not fun.
Last edited by Diana Holbrook; 12-20-2018 at 08:36 AM..
The "crest" isn't the concern, it's the ensuing "dip" (I am avoiding more inflammatory terms).
During the "dip", experienced high quality real estate agents will continue to get and sell listings, but they'll have to scrap for each one. Inexperienced agents, agents without a big good network, and poor quality agents will not get listings and will leave the business. I would not suggest getting into the real estate business (especially as a part time dabbler) at a time when anyone with eyes in their head can see a slowdown is inevitable and pretty soon. You could do all the education and licensing and then sit cooling your heels for a very long time without any results whatsoever. That would not be gathering experience.
You err greatly in your analysis and advice.
We lost a great many fine people, full-time licensees, between 2009--2011.
Because they were all-in on their real estate careers and brokerage was their sole or primary household income.
An agent making a $75,000 W-2 equivalent income might be getting by, after buying family insurance, etc.
But, let it drop to $40,0000, with a couple of kids and a SAHM?
Time to get onto a regular payroll.
These were the people we lost from the brokerage community. Sole or primary income and a drop in income. Family people.
The OP has a day gig that he can cover his bills while having a real estate hobby. Holding a hobby license is cheaper than playing golf or owning a boat.
And, one or two referrals in a down market? Even in NYC? Easily covers his annual licensing nut.
I don't know about NY, but in NC, one doesn't even hang license at a firm to operate as a referral agent.
You only need three basic things to go into real estate:
1. Cell phone.
2. Laptop.
3. Partner or spouse with a good job and insurance benefits. This applies to many very fine agents. It also applies to most part-timers who aren't all-in on real estate. The latter group is the group that survived the recession.
It would appear that the OP can cover #3 himself, and enjoy improving his hobby skills.
If we have a solid downturn, licensing school volume will shrink. NAR membership will shrink. New headlines will max out despair.
And, the part timers will stick it out.
Are we headed for a solid downturn?
I dunno.
I do know that good indicators of over-exuberance are proliferation of bandit signs on utility poles and at intersections and a stampede to get licenses, all because the market is hot.
Last edited by MikeJaquish; 12-20-2018 at 10:32 AM..
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