Did you know that you could be a really successful Realtor and never represent a buyer or seller in a transaction? Or that you could build a real estate business for yourself that includes four distinct sources of revenue? Or mix and match those four elements to create something that's the perfect match for your interests, strengths, goals, etc.?
People often think of being a real estate agent as only representing clients in the purchase or sale of a property. That's how I started my career, and may be how you start yours too. But it doesn't have to be the only way you put your skills to work.
I'm a big fan of variety and of diversifying sources of income, including building in some passive income where I can. I thought I'd share with you today some of the ways you can do that as a real estate agent. Keep in mind that my experience has been with Keller Williams exclusively, so the opportunities I discuss below are the ones available with this brokerage. I don't know for sure what other brokerages offer. Okay, caveat out of the way, so here we go.
Option 1: Representing Buyers and Sellers. This is pretty straightforward. As a real estate agent, clients will hire you to represent them in the purchase or sale of a property.
Option 2: "Flipping" Properties. This is where you buy a property, invest in renovating it, and then sell it for a profit (hopefully!). There are several shows on HGTV profiling people who do this. As a licensed real estate agent you can represent yourself as buyer and seller and you'll have access to new properties as they come on the market. Keller Williams has a book to help agents learn how to do this successfully. It's called, appropriately enough, "Flip."
Option 3: Investment Properties. This is where you purchase a property and then rent it out to a third party. Again, Keller Williams has educational materials to help agents do this successfully, maximize their earning potential, and avoid some of the mistakes people commonly make when starting out as landlords. It's called, "Hold."
Option 4: Referrals. I know agents whose entire business is built on Keller Williams' Referral Program. Keller Williams has agents licensed to sell homes anywhere in the world. If someone approaches you wanting to purchase or sell a home outside of the area in which you work, you can refer them to a Keller Williams agent in that region. If that client hires that Keller Williams agent and they purchase or sell a property, you could receive 25% of the commission on that sale. Just for referring that client. Pretty great, right? I've done it several times and it's a win-win-win experience. I know I'm referring someone to an agent who is going to provide them with excellent service; a great KW agent gets to serve someone that may not have otherwise found them; and I get a nice financial thank-you.
Option 5: Profit Sharing. Okay, this one is a unique option within the world of real estate. When you close a transaction, you pay a percentage of your commission to Keller Williams, until you've paid the company dollar CAP in commission in a calendar year. After that commitment is met, then you keep 100% of the commissions you make. Here's where the profit-sharing comes in. The person who "referred" you to Keller Williams gets a thank you for sending you to KW. So, if you go into business with Keller Williams and then you recommend it to a friend or acquaintance and they join as an agent too anywhere in the world), you could get a portion of the commission. You're fully vested after 3 years and the benefit can outlive you and be passed along to your heirs.
Option 6: Salaried Positions. For whatever reason, maybe you want a more predictable 9-5, salaried job. Keller Williams hires licensed real estate agents to provide administrative and transaction support to our Realtors. So, you could use your knowledge and skills in this way as opposed to representing buyers and sellers. Or maybe you're a great leader and want to take on additional responsibilities on top of your work as an agent. KW has formal curriculum for people who want to pursue a leadership role, and there is additional income associated with those opportunities.
Was any of this news to you? Did one or more of these options make you think about a real estate career in a different way? Please share your thoughts in the Comments section below or contact me here if you want to talk more about real estate or Keller Williams.
Thanks for reading and I'll see you here again soon!