How To Start Making Money As A Realtor – Part 2
Greetings, this is Mark Weithorn here, your real estate trainer, with your 2-minute tech tip. This video is step two on how to start making money as a Realtor.
A positive cash-flow is the most important part of any business. You want to make a profit so you can pay your bills. The easiest way to start generating income is to start doing rentals. Rentals are fast dollars.
Although rental commissions can vary in different parts of the country, here in South Florida, the typical commission on a rental is one month’s rent. Now you will be splitting this with the listing agent, but it’s still good money.
Let’s look at the math. If a property rents for $2500, the full gross commission (that is before your broker gets their split) is $2500. You will split that with the listing agent leaving you with a gross commission of $1250. You do one rental a week and you can earn around $45,000 a year.
The best place to advertise rentals is Facebook Marketplace. First talk to your broker and get permission to advertise the company’s listings. Most broker say yes. Next go to the MLS and look up a listing. Start copying the photos to your desktop.
Next go to Facebook Marketplace. Click on Create a New Listing. And start inputting the information about that listing. Try to upload one or two listings a day. This will get your phone ringing. One tip I tell all my students is to use a mouse. It’s hard to copy and paste using your fingers and a track pad.
Now the rule in sales is one in ten. For every ten phone calls you get, one will be good. Your job is to pre-qualify each phone call. In a nice friendly manner talk to these people ask them about themselves. Where they are looking to live. You can not ask them if they have children, equal housing laws, but you can ask them how many people will be living there, do they need to be near any schools or work, do they have any pets, etc. If you think they are a viable client, then arrange to meet them and show them 6 properties. Do not email them properties ahead of time because now they don’t need you.
This will take some practice but in time you can make a nice living just doing rentals. Add in a few sales every year and you’re on your way to being a successful Realtor.
Lastly let’s talk about renewals. You do a rental, and a year later they renew. Are you entitled to the commission on the renewal? It depends on 2 things, first if it’s in the contract and then if you follow up. If it’s in the contract that you are entitle to the commission on the renewal and you don’t follow up, do you think the other Realtor is going to mail you a check. Set up a reminder in your calendar to contact the tenant 10 months after they move in. You will have to call or text them 6 times. You do 40 rentals this year, you will do 20 renewals the next year. Some will renew, some will rent elsewhere, and some will buy. Today’s renter is tomorrow’s buyer.
Well, that’s it for step 2. Please stay tuned for step 3 on how to start your real estate business. My name is Mark Weithorn with Showcase Web Sites. We have been creating web sites for Realtors for close to 20 years now. You can visit us at DPIshowcase.com And please remember to subscribe and like my YouTube channel to get updated videos. Thanks for listening to my 2-minute tech tip and have a great day.