REAL ESTATE AGENT: PT-TIME STRATEGY

Mock interview with part time agent:

Question #1:
What is your full time occupation and why did you get your real estate license?
I am an financial analyst working full time for a government agency. I often saw the ability for me to get in on real estate deals being an analyst and living in NYC. So I obtained my license back in 2002 with the intent to use it part time to earn extra income on the side.

Question #2:
What are 3 ways you use your real estate license to make extra money on the side?
The 3 Ways I use my real estate license part time are:

-Finding rental apartments for friends and family
-Saving money on my own purchases
-Finding investment deals for myself and other investors

Question #3:
Can you walk us through (step-by-step) the process you do to find rental properties for friends and family members and how much time do you spend each month showing apartments?
Here is my process that I have set up to show apartments part-time:

Step 1:
Signed up with building management companies in my neighborhood to receive all the available unit listings. The list will include owner paid units which does not require the renter client to pay a fee. I typically seek these out when showing friends and family, they save money and I get paid directly from the building management company.

Step 2:
Anytime a friend or referral from a friend is looking for an apartment I will e-mail them a list of the current available no fee units.

Step 3:
I have them select which units they are interested in viewing.

Step 4:
We then set up a date and time to view the units, I typically show units on nights and weekends as I am working full-time and they are as well.

Step 5:
Once they select the unit they are interested in I’ll submit their application to the building management company. If approved by the building management company they will sign a lease with the client to finalize the deal.

Step 6:
The building management company will send a commission check to my Real Estate office, which is typically equal to one month’s worth of rent, and I will then obtain my percentage as agreed upon with my office. The time devoted to this process for each client is typically anywhere from 4-6 hours.

Question #4:
What is the commission split with your real estate office?
I have a different agreement with my office depending on which borough my deal is in. Rentals are a great way to turn a quick buck as there are no closings to be scheduled in the process. And in Manhattan rental clients have to act fast because most units don’t stay on the market too long.

Percentages typically start out around 30%-50% for new agents (depending on experience), but can increase over time as you make more deals.

Rental Commission - Real Estate License Part Time

Question #5:
How did you find your own investment property and how much money did you save in the process?
I have automatic notifications set up through the multiple listing services that I am registered with. Anytime a new listing is posted I see it right away and can act on it if the deal is right for me. I brokered the deal myself so I was able to get money back at the closing.

So essentially a discount of the elected commission off the sale price. For my first deal I saved about 1.5% off the purchase price.

Question #6:
Do you have any advice for new agents regarding using their license on the side?
I found that it’s a good thing to hold and maintain because opportunities in your day-to-day life or business will allow you to take advantage of your license and make money in the process. Depending on the opportunity, it may not demand any more of your time.

Having your license is also a great networking device. I have obtained many opportunities through other real estate agents in my network.

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