Real Estate Agent

How it works

You are licensed to represent buyers and sellers and paid a share of the commission on completed transactions. Income is entirely variable and heavily front-loaded with costs. The often-overlooked advantage is deal flow — agents see undervalued property before the public does, which is why many successful investors started here.

How to start

1. 01

   Get licensed and budget for the ramp

   Licensing requirements vary by region. Plan for six to twelve months with little or no income while you build a pipeline, and have savings to cover it.

2. 02

   Choose a brokerage for training, not for split

   A better commission split on no training is worse than a lower split with mentoring. In the first two years, learning is worth more than percentage points.

3. 03

   Pick a geographic farm and own it

   Deep knowledge of a few neighbourhoods beats shallow coverage of a city. Local expertise is what generates referrals, which is what generates income.

4. 04

   Build a system for generating leads

   Waiting for the brokerage to hand you enquiries is how new agents fail. Consistent outreach, content and follow-up is the actual job.

5. 05

   Use the access to invest yourself

   Seeing every listing first, understanding true values and knowing motivated sellers is a genuine edge. Many agents build more wealth from their own purchases than from commissions.

Honest trade-offs

Risks and failure modes

• Market downturns reducing transaction volume sharply and quickly
• Long unpaid ramp period, which is the main reason new agents quit
• Regulatory and commission-structure changes affecting how agents are paid

Common questions