Real Estate Mentor – Can A Realtor Make a $100k?
I have been a real estate mentor and investor in Broward and Dade County Florida for over 40 years.
I ask you this important question, do you think it is more likely to earn $100K a year as a Realtor® or a real estate mentoring student / real estate investor?
How do I know it isn’t easy as a Realtor® to make $100,000 a year? I know because of the one million plus licensed agents and almost 92% are unable to do it. Why? Well, I have heard tons of excuses and the “too many agents, too few listings” crop up all the time. This number of agents issue is likely a major contributor but not the only cause.
Somehow there seems to be a personal resentment that sellers have when they hear 5% or 6% commission. The word commission seems to run chills up and down a buyer’s spine. The agent will add his commission on to the sale price and that often prices it above market value and the property doesn’t sell.
Then the agent has to try and convince the unmotivated seller that he should reduce his price which often results in the seller cancelling the listing agreement. Otherwise the seller just may wait until it expires but in either case the seller has a bad taste in his mouth for listing agents. I would say that 60% of the sellers I speak to tell me to wait until the listing expires and then call back. Besides being illegal, it’s very unfair to the agent.
Even worse are buyers who have to see every house for sale in the county and wind up buying through another agent after having the agent put 200 miles on his car chauffeuring them around the county. Not only are the buyer’s actions disrespectful but it may also come because buyers know they are paying a commission and not able to negotiate with the seller directly. If they have a real estate mentor this could all change quickly.
Then to top off the day-to-day problems that agents face, I recently heard some regulatory bodies talking about reducing agents’ commissions to 3%! These incredibly uninformed people are likely on a cushy salary and looking to save the world by transferring the reduced commission income they “saved” back to the seller. What are they thinking?
The solution is simple and exactly what many agents constantly tell me is the reason why they became Realtors® – that was to actually become an investor and be close to the market. I always ask “How’s that working for you?” and the answer is always, “It’s NOT!” and the reason is that agents are trained in archaic ways to go after the few prospects there are to get listings.
The best agents often are the best telemarketers and the best closer. But using these tactics often ensures they get the listing but the actual sale is done by another agent – if at all. Great business plan but not everyone has the stomach for it.
The simple solution is to integrate using real estate mentor tactics into your work habits and find deals where you can make double or triple what you would make as a commission. Motivated sellers are glad and often excited to knowingly sell to investors under market value to solve their problem with their property. This is what agents don’t understand – motivated sellers need solutions, not the full market value of the property. Time is the motivated seller’s enemy and investors are cash buyers who close quickly. They prefer time over money and the unknown of how long it takes to sell a property versus a specified closing date and with a cash buyer! A good real estate mentor shows you these exact methods to get deals done.
An agent can always take a listing from a seller as a default but an unlicensed investor cannot. Agents have the advantage of first trying an investor solution to the seller’s problem, or if there is no urgent problem, simply take the listing. In my real estate mentor program investors learn how to find truly motivated sellers, not market testers, and offer legal solutions that benefit everyone involved, the seller,the buyer, the closing agent and even the listing agent if there is one.
To your limitless success,
Real Estate Mentor Program Founder