Good Afternoon! :)

My name is Simon, and I'm 14 years old. Ever since 3rd grade I've been interested in real estate, but my obsession didn't really start until I began watching "Flipping Out" and "Million Dollar Listing" about a year ago. I'd really like to be in the real estate business because you seem to be up and on your feet, especially as an agent or broker. The idea of being restrained to a desk and working with people you may not like, is not something I would like to relate my future to. I’d much prefer being “out in the biz,” loving my job, and working with people who appreciate what I do. My ideal market would be Las Vegas or Henderson, Nevada, but I’ve heard there are 16,000+ agents in the valley alone and that competition is fierce.

I’m not 100% sure I want to become an agent or broker though, mainly due to the fact that my parents think it is a huge risk (real estate market crashing, etc.) and something you can only get so good at. They also have referred to it as a “service” job (providing your service or expertise to clients) which I don’t only think is snobby and elitist, but completely wrong; no matter what your job is, you are always working for someone, be they a manager, a CEO, or a client. I’m also concerned about my level of income if I choose this career path. While I’m certainly not snobby, I would love living in a nicer (or luxury) home and be able to drive an Acura or Lexus.

If anybody would be willing to answer any, or all, of the following questions, I’d really appreciate it!

1) Would being a real estate agent allow me more freedom than if I was working at a “desk-type” job?

2) Is Las Vegas really that competitive, or do you think I could succeed in working there?

3) Is being a real estate agent a huge risk? What if the real estate market crashes?

4) What is the average level of income for agents just starting their careers, more experienced agents, and “pro” agents? What about brokers?

5) What is the difference between a real estate agent and a REALTOR? Are REALTOR’s more experienced, taken more seriously, and do they make a substantial amount of money more than regular real estate agents?

6) How important is a college education to a real estate agent? I’m planning to go to college, but I’m wondering if it would be more beneficial to get into the business earlier and skip college, or later and go to college. Also, what courses should I look into taking? I was thinking in the area of marketing, sales, and finances.

7) What should I expect in terms of start-up costs? What would/should most of these costs go towards?

8) Could you have a “side” job while being a real estate agent? I was imagining house flipping and managing my own rental properties.

9) How long is the average real estate agents’ work day? I’m not too keen on waking up a 5 AM and coming home at 6 or 7 PM.

10) Does being an agent allow for any family time at all? What days off could I expect (Saturdays, Sundays, maybe after hosting an open house?)

11) What happens when an agent wants to take a vacation? Does another agent cover for him/her, or is he/she expected to answer all phone calls and e-mails while on vacation?

12) What should aspiring agents look for in an agency or brokerage? Do most agencies have benefits such as computers, cell phones, company cars, free websites, etc. or would the agent have to purchase these items him/herself?

Thanks for any answers, advice, or opinions!

~Simon :)

1.Yes if you work your schedule correctly

2.Everywhere is comeptitive and every profession is.Make a committment to be the best and learn everyday and help clients and the money will follow.

3.A few markets were overinflated but most states have stable appreciation 5 to 6 percent a year.

4.Average agent about 30k,average broker about 60k.Remember these averages are adding in people that make 200k a year with people making 3,000 a year so the numbers are off a little.You will find in any profession most get by and a few at the top excel and do really well.

5.The perception varies from person to person on what having the REALTOR designation does for you.As far as the differences being a REALTOR subscribes you to the code of ethics whereas liscensed agents only have to be in compliance with the law and are not bound by ethics practices.

6.College isn't important to real estate.All you do is rack up massive debt with Sallie Mae student loans that are the worst bill collectors known to man-Just look them up on youtube.Unless you want to be a Doctor or Lawyer etc. it's not worht it.At 18 you can become an agent so you could try it for a year and then go to college and do something else if it did not work out.

7.Start up costs won't matter because 4 years from now will be different from today.figure on 6 months reserves to survive starting out.So if it take syou 3k a month to live when you become an adult you will need 18 saved up to start.

8.You need to decide if what you really wan tto do is be a full time investor rather than a real estate agent-2 different animals completely.

9.Varies

10.Depends on if you want to do residential or commercial real estate or go into property management.

11.That's up to you and how you run your business.

12.Some freebies offered but not at the level you are mentioning.The brokerages are not the red cross (charity) and want to make the most profit possible off of you.

The reality is your 14 and won't even remember this idea in a week but I remember awhile ago when I was your age curious about many things in life.So I answered them anyways for you.

Now go be a teenager and have some fun!

All of your questions vary per the individual. Except the Vegas market. There are a few vegas agents here. From what I undersstand it is very competitive, but rewarding. But that's real estate everywhere.

Most of your questions will depend on your own personality traits, organization and ability. However, you can always learn things to be a better agent. It is good to have an idea of what you want to do at young age, however t.v. is never realistic and there is a great chance you won't be making 200k a sale, and flipping houses is a whole completely different business. Stay on the net, and maybe meet some people here and there that do what youre interested in. But I agree, by the time you reach 18 you may be on to something else that you saw on t.v.!

Simon

I'm going to suggest a change of plan. I started investing in real estate one week after my 16th birthday. You had to be 21 back then to have the capacity to contract, but I teamed up with my older brother who was 19 and married so had the legal capacity to contract.

My suggestion is to start studying the investor sites starting with the one here and maybe creonline.com and others. You can use your mom or dad to sign deals. Maybe start out as a bird dog and then expand your activities when ready. All the knowledge and skills can be transferred to a real estate sales career when you hit 18 and get licensed.

Simon,

I am very impressed with the way you have expressed yourself here; you sound much more mature than what I would expect of a 14 year old (are you home schooled? ) No matter what you end up deciding to do with your life, I am sure you will be very successful.

1) Would being a real estate agent allow me more freedom than if I was working at a “desk-type” job?

Yes and no - depending on how you work your business you may find that it consumes you and your time. Customers are very demanding and expect more from you than a typical 9-5. They expect you to be available 24/7...and if you're not, they may "fire" you and choose someone else.

2) Is Las Vegas really that competitive, or do you think I could succeed in working there?

Just because an area is competitive, doesn't mean you can't succeed there. It would depend largely on you - I believe that the cream rises to the top, or it buys its way to the top. I think it's possible for a good dedicated agent to succeed anywhere. I think a new agent is going to face "fierce" competition anywhere - if there is no competition that means that nobody is buying or selling there...and thus, though you might be the main agent, if nobody buys or sells there, who cares?


3) Is being a real estate agent a huge risk? What if the real estate market crashes?

Real estate will always be bought and sold. Agents who know how to survive and generate business in lean times as well as tough times will survive; you need to be able to roll with the flow. Real estate goes in cycles; the market goes up, the market goes down. But there will always be people needing to buy or sell. The role of a real estate agent however may be vastly different in 5 years than it is now...just like it's vastly different now than it was 5 years ago. The Internet has really changed a lot about real estate, and the old dogs who refuse to learn new tricks are having problems.

4) What is the average level of income for agents just starting their careers, more experienced agents, and “pro” agents? What about brokers?

That depends a lot on their market. In my current market (where average sale prices are 150,000 - 210,000) a rookie is lucky to earn $20,000 in their first year. In other markets, it's not unheard of to earn $60,000 in their first year...in my market a few years ago, it was nothing to earn 30,000 to 40,000...

5) What is the difference between a real estate agent and a REALTOR? Are REALTOR’s more experienced, taken more seriously, and do they make a substantial amount of money more than regular real estate agents?

A real estate agent has received a license to practice real estate. Most agents need to join the National Organization of Realtors in order to practice real estate in their market area - local MLS boards may only accept members of NAR.

Realtors like to say that they are more professional or experienced than "ordinary real estate agents" but I don't buy that. Some are, most are just real estate agents who joined the club. I know that I will get slammed for that but, sorry - there are doofus realtors and being part of the club doesn't make them smarter or better. Just paying members, thanks.

6) How important is a college education to a real estate agent? I’m planning to go to college, but I’m wondering if it would be more beneficial to get into the business earlier and skip college, or later and go to college. Also, what courses should I look into taking? I was thinking in the area of marketing, sales, and finances.

Many agents with only a high school diploma can make it and make it well, but education is always important. The better educated you are, the better your chances at success in life - that's a fact. Of course all the education on the world won't help you if you're a jerk and people don't like you (we're not all lucky enough to be Donald Trump...) I am in favor of requiring all real estate agents to have at least two years of college.

You should consider courses in basic architecture and photography as well.

7) What should I expect in terms of start-up costs? What would/should most of these costs go towards?

Any numbers will be irrelevant by the time you do this - but it's not unusual to expect 8,000 - 10,000 in expenses....now...

8) Could you have a “side” job while being a real estate agent? I was imagining house flipping and managing my own rental properties.

House flipping is not as easy as it seems on Tv. Many agents start out part time and succeed. In my area a lot of teachers are also realtors.

9) How long is the average real estate agents’ work day? I’m not too keen on waking up a 5 AM and coming home at 6 or 7 PM.

This is where most of your flexibility comes in. Some go to the office early to get started. I get up early to blog and read message boards...LOL

10) Does being an agent allow for any family time at all? What days off could I expect (Saturdays, Sundays, maybe after hosting an open house?)

If you're a buyer's agent weekends will be busy for you. Listing agents have much more free time.

11) What happens when an agent wants to take a vacation? Does another agent cover for him/her, or is he/she expected to answer all phone calls and e-mails while on vacation?

This is why it's important to make good friends within the industry and have a "you watch my back and I'll watch yours" going.

12) What should aspiring agents look for in an agency or brokerage? Do most agencies have benefits such as computers, cell phones, company cars, free websites, etc. or would the agent have to purchase these items him/herself?

You buy almost everything - the office may provide you with use of their office equipment, but you are basically in business for yourself and should have all your own stuff.

Hope this helps....

Hi Everyone! :)

Thanks so much for the great responses! I really do take them seriously, and can definitely see where most of you are coming from.

Super Realtor: You were so close to being right about me forgetting this idea. Thanks for your great answers! :)

Merkaba: I am very aware that nearly everything seen on TV is not possible in the real world... I mean, "Keeping Up With the Kardashians?!" Come on, what on Earth do those people do for a living? That show is nothing more than following around a woman with an abnormally shaped bottom... ;)

Bay Area Brian: I don't really understand what you mean by "investing in real estate." Do you mean to buy a property, keep it, then sell it at a profit when demand is up and people are willing to pay more, or are you referring to flipping properties for profit?

Perky REALTOR: Thanks! No, I'm not home schooled (8 hours a day with my mom? NO THANKS!) but I love writing non-fiction stories. Your answers were excellent!

~~~~~~~~~~~~~~~~~~~~

Alright, I have given this a bit more thought. I was looking on the Los Angeles MLS yesterday, and found my dream home. It's a 2 bedroom, 2.5 bathroom, newly renovated, and professionally designed loft apartment in a relatively new building in the Hills. The design is dead-on with the style that I like (very similar to the style used in Jeff Lewis' homes, especially Valley Oak 1) and I would love to sell properties like that. I know you can't jump into selling $1,000,000 homes right away, but in L.A., that doesn't get you very far in terms of residential homes (not condos or apartments.) Is L.A. infested with wanna-be "Million Dollar Listing" type agents, or is it more undesirable than depicted on television or in movies?

Thanks! :)

Hi Simon,

I am an agent in the Las Vegas/Henderson area and I have been in this business for over 3 years. I am 26 years old and I consider myself young in this business. Most people that are in this business here locally are much older. I am not saying that it's a bad thing to be young. It is just another obstacle to get through because people tend to look at you with less trust and respect.

Las Vegas is a great market for the real estate business! It is known as one of the best real estate markets in the nation. It is also one of the hardest markets too. The competition in the Las Vegas area is very fierce. We do have over 16,000 licensed agents here. Over half of these agents do not even practice real estate though. They just hold a license for their own investment purposes or they have other jobs that are priority to them. The other half of agents are trying to compete with each other. We consider ourselves a 90/10 market though, meaning that 10% of the agents do 90% of the business. So in this market, if you are not in that 10% that is doing the majority of the business, you should not be in this business.

I like your attitude though. At such a young age, you have motivation and ambition. That is awesome! If you keep that ambition and use it when you are able to do what you want to do with a career, you should definitely be able to succeed. It is never too early to start learning about something that you are really interested in doing. In fact, if you still think like this in 4 years when you are 18, call me up and you can come work for me in Las Vegas.

By the way, there are always going to be homes that need to be bought and sold. So no matter what type of market you are in, this business is not going anywhere. You will just need to learn to adapt. Most people cannot handle what this business takes to succeed and get pushed out of the business within their first 2 years. Even some veterans cannot handle this current market because they will not adapt to it, so many people have quit within the last year or so.

I will try to answer your questions from my perspective as well...

1) Would being a real estate agent allow me more freedom than if I was working at a “desk-type” job?

Yes, but you will need to earn that freedom. Of course you can work the hours that you want, but as a rookie you will need to do whatever you can in order to make money. You will be at the mercy of your client's schedules as well. The best part is that you are not being told what to do with someone else looking over your shoulder. To me that is freedom.

2) Is Las Vegas really that competitive, or do you think I could succeed in working there?

Las Vegas is extremely competitive! That doesn't mean you will not succeed though. You will just need to adapt to our market and learn how to survive.

3) Is being a real estate agent a huge risk? What if the real estate market crashes?

Being an agent is definitely a risk, especially if you will be relying on your income in this business to survive. You will need to learn to conserve money and spend wisely. Just because a market crashes, there will still be a need for either buyers or sellers. People are always buying or selling. In this current local market, Las Vegas is a great buyer's market. There are many buyers that are scoring some great deals. Obviously there are not as many sellers as buyers right now, but there are sellers that still MUST sell. So you focus on what is there.

4) What is the average level of income for agents just starting their careers, more experienced agents, and “pro” agents? What about brokers?

Just to differentiate the term agent and broker for you, a broker has the ability to supervise other agents under him. But any broker can still act as an agent as well. So unless you plan on having your own brokerage with other agents under you, it makes no difference whether you are a broker or agent. Your first year will be the toughest. This is where most agents should be learning the business via training, reading, etc. It will all depend on the market you choose to work in to know how much you will make. On average in Las Vegas currently, you will be lucky to make $20,000 your first year. Depending on how well you do and how much you know, the sky is the limit here as well. You can make tons of money if you put everything you have into it.

5) What is the difference between a real estate agent and a REALTOR? Are REALTOR’s more experienced, taken more seriously, and do they make a substantial amount of money more than regular real estate agents?

A REALTOR subscribes to their local and national Realtor associations. We are held to a higher strict code of ethics than anyone else. Income is not based off of either being a REALTOR or just a licensed agent though. As far as that goes, it makes no difference.

6) How important is a college education to a real estate agent? I’m planning to go to college, but I’m wondering if it would be more beneficial to get into the business earlier and skip college, or later and go to college. Also, what courses should I look into taking? I was thinking in the area of marketing, sales, and finances.

Any schooling is good. Obviously the more you learn about what is involved in this business the better. I had dreams of being in this business at a very young age as well. I believe I was about 16 years old when I decided that this is what I want to do. Instead of going to college, I just tried to learn everything I could before jumping into this career at 18. I took a few more years off until I was 22 before I pushed myself into the business. So I don't believe college is the most important thing. The important thing is if you are great at learning. Once you get into the business, you will find that you will need to learn things certain ways in order to succeed anyway. So if you are a great learner, college is not necessary.

7) What should I expect in terms of start-up costs? What would/should most of these costs go towards?

It depends. If you are going to jump into this career full time and rely on your income, you will want at least 6 months to a year in savings in order to survive. You will probably not have tons of business starting off, so you will want money to help you get through the tough times. Plus this business is very expensive to be in. You will need money to join your local and national associations, your local MLS, your licensing fees, your lockbox key fees, any advertising costs, marketing costs, gas money, etc.

8) Could you have a “side” job while being a real estate agent? I was imagining house flipping and managing my own rental properties.

Totally seperate business than selling real estate. If you are not in this business full time, it will be that much harder to succeed, especially in a tough market.

9) How long is the average real estate agents’ work day? I’m not too keen on waking up a 5 AM and coming home at 6 or 7 PM.

When you start your career, you will want to wake up as early as possible and go home as late as possible. This is crucial that you work very hard in the beginning. When you finally get some business flowing, you will then feel more relaxed to reduce your hours a bit and at your convenience. I wouldn't recommend on being too relaxed with your schedule when you first start out.

10) Does being an agent allow for any family time at all? What days off could I expect (Saturdays, Sundays, maybe after hosting an open house?)

Depends on how you plan your schedule. You will decide on how much you want to work or not. Nothing in this business is handed to you. So you control how much income you make and how much freedom you have.

11) What happens when an agent wants to take a vacation? Does another agent cover for him/her, or is he/she expected to answer all phone calls and e-mails while on vacation?

You are thinking too much about your freedom at the moment. Start thinking about how much you WANT to work in this business, not how much you dont want to work. Not to scare you, but I haven't had a vacation in a long time. I have chosen to put my business first many times. It is all your preference. If you leave to go on vacation though, you can have it however you want it. If you want someone else taking your client calls, then just have someone do that. Personally, that is not my style.

12) What should aspiring agents look for in an agency or brokerage? Do most agencies have benefits such as computers, cell phones, company cars, free websites, etc. or would the agent have to purchase these items him/herself?

If you DO decide to jump into this business, be prepared! Remember, you will need to treat this business as a BUSINESS! You should have all of those items you just listed. If you don't have a car or a cell phone, don't even bother thinking about this business, because it just won't work. A real estate company is not going to give you these things. You are expected to invest in these items yourself. Again, it is very expensive to get into this business. There are certain things you SHOULD look for in a company before joining though. The number one thing I always tell a rookie is to look for a copany that has GREAT TRAINING! That should be at the top of your priority list when starting out as a new agent. There are company commission splits to look out for as well, but training should be the number one factor when choosing a company as a new agent. Before you get into the business you will want to make sure you are PREPARED as much as possible. You will want those high tech items, such as a computer, cell phone, reliable car, etc. It will be YOUR business, so you will need to treat it as a BUSINESS, not a job.

I hope all of this helps. I know I sounded a bit brutal, but I am being completely honest with you. I want you to really think hard if this is the business for you before you jump into it and waste a lot of your time and money.

-Len

Thanks so much for the great reply Len! It's great to get an opinion and some information from a Vegas agent! :)

Hello Simon,
You may be young but you have wonderful questions that many people would be interested in having answered.

1. Would being a real estate agent allow me more freedom than if I was working at a “desk-type” job?

That depends on what the “desk-type” job is. Real Estate agents are usually “independent contractors” and it is up to them when and where they want to work. The Broker of the company the agent works for has an interest in protecting the license of the “broker of record” with whom the agent “hangs” his license and should be giving guidance and direction to the “newbies.” Some offices want their agents to attend office and board meetings and these may interfere with your “desk-type” job. Real Estate is very much
multi-tasking and can be time consuming depending on how you have structured your business. That “desk-type” job would be best as one that you don’t “take home” with you and it probably won’t pay much. If working part time, you would need a job that won’t interfere with appointments that you make with “clients”.

2. Is Las Vegas really that competitive, or do you think I could succeed in working there?

I don’t personally have information on the Las Vegas Market but I do know that in every market there seem to be more agents than there are buyers and sellers but enough work for anyone wanting to work in real estate. The competition and “market” changes will always keep us on our toes.

3. Is being a real estate agent a huge risk? What if the real estate market crashes?

There are always risks no matter what you do. There are a lot of costs to being in the real estate game. It is up to the agent to prepare himself through education that is provided by Title Companies, Inspection Companies, California Association of Realtors and the National Association of Realtors. Some education is free and some have a cost. The market is always changing but there are always people that need to buy or sell no matter what the market is doing. You need to keep up with the “trends.” The banks stay in business by coming up with new ideas to make money available to the market.

4. What is the average level of income for agents just starting their careers, more experienced agents, and “pro” agents? What about brokers?

Income varies tremendously. It is difficult to say what an agents’ income would be since not all agents are the same. Some spend a higher percentage of their income on education, marketing and tools than other agents. There are agents that are so social that they spend very little on marketing because they have a “sphere of influence” that produces enough business so they don’t have to “prospect” for business. A new agent has quite a lot to learn about the real estate business even if they have bought and sold real estate in the past. There are always legal changes that will effect how business is conducted. Having a “mentor” can be helpful if they are willing to educate you rather than take advantage of your help with their business.
5. What is the difference between a real estate agent and a REALTOR? Are REALTOR’s more experienced, taken more seriously, and do they make a substantial amount of money more than regular real estate agents?

A REALTOR® is a member of the National Association of Realtors. This is a professional organization advising high ethics of their members. Most of the larger real estate companies require that their agents are members of N.A.R. This only means that they subscribe to a “code of ethics” and do not necessarily have more experience. But . . . N.A.R. also provides a wonderful web site for their members with a lot of information and resources that they can use to learn more about how to do help their clients and customers.

6. How important is a college education to a real estate agent? I’m planning to go to college, but I’m wondering if it would be more beneficial to get into the business earlier and skip college, or later and go to college. Also, what courses should I look into taking? I was thinking in the area of marketing, sales, and finances.

My personal opinion is that college would be a benefit to your real estate career. People owning high end homes usually have college degrees and can be more comfortable working with someone with a degree. Plus, taking courses in business, finances and marketing can give you an added advantage when selling yourself to buyers and sellers.

7. What should I expect in terms of start-up costs? What would/should most of these costs go towards?

Costs vary by what you feel is important. Stick with a budget and be flexible with where your money is going. Be realistic and consistent on your marketing. Starting out you will have to join a “real estate board” and the “multiple listing service.” And then you have to decide on what tech toys you will need to keep up with your business. Decisions on cell phone or PDA . . . tablet, laptop or desktop . . . internet access is a must . . . there are all kinds of marketing companies that want your business and will contact you once you obtain your license.

8. Could you have a “side” job while being a real estate agent? I was imagining house flipping and managing my own rental properties.

During a down market a lot of agents get side jobs to keep them afloat during hard times. Flipping needs to be done carefully and usually not a lot of room for mistakes or “re-do’s.” Many agents get into real estate in order to put together a portfolio of rental properties to allow themselves to retire comfortably.

9. How long is the average real estate agents’ work day? I’m not too keen on waking up a 5 AM and coming home at 6 or 7 PM.

Again, how you run your business is up to you. More hours are usually needed in any business startup. At some point your growth may need an “assistant” in order to help you with some of the business while you work on other “stuff” that is important to you. A “virtual assistant” can help you stretch your time and budget until your business grows enough to afford a part or full time assistant.

10. Does being an agent allow for any family time at all? What days off could I expect (Saturdays, Sundays, maybe after hosting an open house?)

You set the time that you wish to spend with your family and work. Some agents actually make an appointment for family time on their calendar. An open house can be done during the week to catch people on their way home from work. You may even alternate every other weekend for open houses. It all depends on where you are most likely going to find your clients . . . door knocking, FSBO’s, expireds, open house, sphere of influence, marketing in newspaper or local magazines.

11. What happens when an agent wants to take a vacation? Does another agent cover for him/her, or is he/she expected to answer all phone calls and e-mails while on vacation?

Agents do a lot of “networking” and some negotiate with another agent or their broker to watch their business while they are unavailable. But with cell phones and internet connections, a lot of agents check on their business even when out of town.

12. What should aspiring agents look for in an agency or brokerage? Do most agencies have benefits such as computers, cell phones, company cars, free websites, etc. or would the agent have to purchase these items him/herself?

Most agents choose to be “independent contractors” and work on “commission splits.” The agent provides his own “tools of the trade.” Some Companies are set up to provide some of the tools and the “splits” vary with each office. You would have to interview the broker to find out what their company or franchise provides and then do a comparison of all the companies that you interview.

you're very good at asking questions. maybe you should consider a career as a lawyer or police detective?