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Should I get a real estate license (Becoming an agent)

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SUMMARY:

What are the pros and cons of getting a real estate license? What unique opportunity is available for real estate investors? Find out in this video!

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Today I want to talk about a topic that a lot of you have brought up, which is, should I get my real estate license? There are a lot of people every year who get their real estate license so they can buy and sell properties. That makes a lot of sense, it’s a cool career that gives you a lot of control over your income. A lot of people see the silver lining of that job and see that it’s a great opportunity compared to their nine to five. 

The process of actually getting your license can be daunting, but compared to other careers that require a four year degree that could cost you over $10k, it doesn’t take that much time or money. Typically, you are looking at a couple months, maybe a year or so, and it will cost a couple thousand dollars. Now, the problem is that most people find that it can be a lot of work getting into the business. One of the challenging aspects is that its definitely a feast and famine type cycle. 

A lot of people who I work with come from a real estate background. The challenge they always bring up is that it’s very cyclical. Some months, you’re going to do really well, earning $10k, $20k, $30k in commissions. But consistency isn’t built into the model of buying and selling real estate. If you do really well one month, that doesn’t mean you’re going to do well the next month. So a lot of real estate agents have the problem where the majority of their annual revenue is generated in a few months of the year, making it hard to budget and control spending, because you don’t have a predictable stream of income. 

It’s also an exceptionally competitive industry, so a lot of people in real estate work themselves into the ground and suffer from burn out, because it’s hard to take the foot off the gas when you don’t know what the next month is going to look like. There is potential in real estate, but there are also a number of really big downsides. On the flip side of that though, a lot of real estate investors end up coming to me to learn how to manage Airbnb properties. Whether you’re looking at adding that onto your portfolio, or you want to get out of real estate into something with more consistency, less risk, and less competition, then property management, specifically Airbnb property management is a great way to do that. 

The really nice thing is that when we manage properties on an ongoing basis for upwards of one to two years, we’re going to be able to earn consistent income from that property month after month without the hustle every single month. With Airbnb, the demand for these services is very high, with low competition. While you still need to carve out a niche for yourself, the rewards are much higher when you do that effectively. 

While this is a great opportunity for anyone, including people who have little to no experience in this industry, it’s an even better opportunity for those of you who are already in the real estate space, because you have the connections and the potential for referrals. I’ve had students who were able to build their business up to 5, 10, 20 properties in record time because they had the existing connections to grow the business quickly.

VIDEO TRANSCRIPT:

What's up guys, it's James here, and it's today's video, I want to talk about a topic that a lot you were brought up with me recently, which is, should I get my real estate license, there are obviously a ton of people every single year that go to get their real estate license, so they can buy and sell properties. Now, that makes a lot of sense, it's a really cool career that allows you to have control over your income. And so a lot of people see the silver lining of that and see that it could be a great opportunity compared to their nine to five.

Now the prospect of getting your license can be a little bit daunting as it takes some time and some money. But it certainly doesn't take that much time or that much money. When you compare it to other careers you might want to go into where you might require a four year degree that's going to cost you 10s of thousands of dollars.

Typically, to get your real estate license, you're looking at a couple months, maybe a year or two, and you're going to be able to do it pretty easily, you're going to be able to spend a couple thousand dollars, depending on the pace you go through, it's not gonna take you too long. And for all intents and purposes, you can be a real estate agent and be selling houses full time.

Now, the problem with that is that as most people find when they get into the business, it can be a lot of work. Now, with real estate, one of the challenging things a lot go run to is that it's always going to be time for money. And there's very much a feast or famine cycle that a lot of real estate agents go through. Now a lot of people that decide to work with me come from a real estate background. tons of them have no background whatsoever with real estate.

But naturally, there are a lot of people that want to get into Airbnb coming from a real estate background. Now the challenge that they always bring up these agents I speak with people who are in the business of helping people to buy and sell homes, is that it's very, very cyclical. Some months, you're gonna do really, really well, if you hustle and you work really hard that month, you can have a really great month where you're earning 10 1520 $30,000 in commissions. The challenge is that consistency is not really built into the model of buying and selling real estate.

If you do really well, one month, it does not mean you're going to do really well the next month. So a lot of real estate agents have this problem where the majority of their annual income is concentrated into just a few months out of the year. This makes it really hard to predict how much money you're going to be able to spend and how much how you can really afford to live your life because you don't have a predictable stream of income. And it also makes it really challenging to take time away or take your foot off of the gas.

At the end of the day. All the time that you take away from your business is costing you a lot of money and opportunity cost suddenly that $4,000 two week vacation actually cost you $14,000 because you missed out on a potential deal. So that's a really hard stomach thing to stomach. If you're going and spending that kind of money when you factor in the cost of the holiday. And the opportunity costs there. Suddenly, it's costing you a lot. And so as a result, a lot of real estate and suffer from burnout. A lot of them work themselves into the ground by working really hard, really long hours without taking a break.

Because they realize that the opportunity cost is just exceptionally high in real estate. Not to mention the fact that when you get your license, it does not automatically mean that you're going to be able to be successful. You even going on with a good brokerage oftentimes does not mean that you're going to be successful in real estate.

Because the reality is it's exceptionally competitive as an industry, you know, you're going to have to nice yourself down no matter what business you're starting and becoming a real estate agent, you are starting your own book of business, you're going to need to really niche yourself down and focus on a specific group of people to try to become the best at serving so that you can beat out all the other competition out there.

Now, it's not to say that you shouldn't get into real estate. I'm not saying that real estate doesn't have potential, I'm just saying that there are a number of really big downsides. When you look at the level of competition, the amount of feast or famine, the unpredictability of the income, and the amount of hustle you're going to have to put in to earn those kind of great commissions that you're probably expecting. Now on the flip side of that, if you start managing Airbnb properties, like a lot of real estate agents end up coming to me to learn how to do and again, there's a link down in the description below.

If you want to learn more about how to start managing properties on Airbnb, that is a really great way of counteracting a lot of those challenges. So whether you want to add that onto your portfolio, if you're currently a real estate agent, were looking to become a real estate agent and want to do this on the side. Or if you want to get out of real estate in favor of something that's going to give you a bit more consistency, a bit less risk a bit less competition, then property management can be a really great way to do that specifically Airbnb property management.

The really nice thing here is that because we are managing properties ongoingly and our typical customer is going to stick around with us for upwards of one to two years. That means that when we put in work for one month hustle hard to get a property, we're going to be earning consistent income from that property month after month after month, for a year, two years, three years into the future. So there's a lot less of that inconsistency and unpredictability that you get with being a real estate agent.

Now, same thing goes for that lumpy income, the feast or famine, if you work really hard early on, you can have a sustained high level of income for years to come without having to constantly be putting in that hustle month after month after month after month. Now, it's not to say that you're going to get rich quick or get rich, easy for that matter, either you do have to put the work in early on. But the nice thing is that there's residual income that comes in from that, rather than just a one time single payment for that one transaction that you worked really hard for.

So there's definite pros there. And the other big Pro is that there's substantially less competition and substantially more demand relative to the competition that there is, you know, with buying and selling a home, there's only so many who are buying and selling homes, and there's exponentially more people helping to facilitate with those transactions, ie real estate agents than the market really needs. But with Airbnb property management, there's a large number of people that are in demand of those services, but very few people around to service them.

The reality is it's an underserved market right now, the competition is quite low. And so you still need to niche yourself the same way that you would in real estate. But when you do that, effectively, the rewards are much, much higher. Again, if you want to learn more about how to add this into your portfolio, or how to get started in this, even if you don't have any experience with real estate, or if you want to get into real estate regardless, if you want to add this and start managing properties for other people on Airbnb, and earn a full time income doing it, then I highly recommend you check out the link down below to the free training that I've put together that shows you through step by step by step exactly how I built this business from the ground up.

The reality is that this is a really, really great business to get into. Regardless of what kind of experience you have, or what kind of background you have. However, it's an even better opportunity. If you're already in the real estate space, I can speak from experience. And the more I got into this business, the more clients I brought on, I realized after a certain amount of time that every single client that I brought on, was actually worth two to four clients in the long term because referrals are a really big part of this industry.

And so if you're already well connected in this space, I've had people started work with me, students come into our program to start working with us building this business and be able to build their business up to 510 20 properties in record time, because they already had a few small connections that allowed them to grow the business very, very quickly. The reality is if you're selling a property to a real estate investor, or you're helping to facilitate that transaction, and they want to use it for Airbnb, who better to work with to do that, that's when they already know like and trust.

Now again, you can also get referrals from them to different people in their network, I can speak from my own experience, not having come in with any background real estate, but building up a great reputation, I would work with a client for a couple of months, they would see the results that I would get be really thrilled with me. And a lot of times they would know other people that were just like them and had other properties that they had on Airbnb, as you know, as a small tight knit community of real estate investors vacation homeowners, Airbnb hosts out there.

And so once you can get a name for yourself and get known as the person that can deliver really great results, like we show you how to do in our training, then the sky's the limit and you can really grow the business quickly and exponentially. So again, if that's something you're interested in, then I recommend checking out the link in the description down below. If you liked this video, if you got value from it, then just give it a quick like pressing that like button does wonders for me, it really really helps me out with the YouTube algorithm.

So if you could take half a second your time and just click that like button, it would really really help me out a lot. Also, if you're new to the channel here and you want to stay up to date with all of our future videos, just click the button there to subscribe to the channel. We post two new videos every single week and I'd love to see you around here in the future. And as always, I hope that everything goes really well for you in the next couple days. And I will see you in the next video.

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