First Year in Real Estate – How Much Money I Made My First Year as a Real Estate Agent

How’s it going everyone Matt Leighton welcome
back to another real estate video. Ok, today we’re doing something that I never
thought I would do. Today I am sharing with you how much I made
my first year in real estate. And before we get started I just want to say
thank you, I really appreciate everything you’ve done for the channel, by liking,
subscribing sharing, watching really anything. Your support is very much appreciated I hope
you had a great holiday with friends and family and hope you have a great new year. So there’s a few main takeaways for you that
I want to provide, those are – how much I made my first year, what I would have done
differently and the mistakes that I made as a new agent. Let’s start with how much I made. Now I have been a full time real estate agent
since March 2013 so this will be my income from about March 2013 to March 2014. Now my path is a little bit different because
I started out as a rental agent. Yes, I only did rentals, for an entire year. I didn’t really get into sales and purchases
until late 2014. So starting off, let’s take a look at my
first rental deal ever. It was in Old Town Alexandria where I made
$840. And when this happened, I was thinking, that’s
it, I’m going to be a millionaire in no time, $840 is so much money and I would be
living large. Yeah, that didn’t exactly happen. While I did get a few commissions in the high
three figures, $800, $900s, a few in the thousand dollar range, most of my commissions were
in the $400 to $700 range. And that wasn’t exactly terrible, but you
just have to be doing a lot of deals and with renters, they have so many options that don’t
pay you a commission. It’s not like a buyer where they are your
client, with a renter, they might see apartments by themselves on a Saturday where I don’t
get a commissioni and condos on Sunday with me where I would get a commission. So often times I would be working so hard
for a client and spend a whole bunch of times and I would end up with nothing. And that’s not to say that the client made
a bad decision, but the way the business was set up, you had to be sure to only spend your
time with those people that you knew would move forward on a condo or on the rare occasion
we did have a few apartment buildings that we did work with. Ok so here we go, how much did I make my first
year? Guys, the grand total, of my first full year
in the business was $27,073.91. I have the spreadsheet here I can show you
that those numbers add up. And for the record, I thought that was a lot
of money at the time. I knew I could produce more but I wasn’t
quite sure how to increase my income. And then something interesting happened. One of my landlord clients who had been renting
out his condo was thinking about selling. And he asked me to run some numbers for him. So I had no idea what I was doing running
comps, got my broker to help me and sent him the recent sales and what he would walk away
with after commissions and I sent the email but I was looking at the commissions thinking
that this one deal, which was for a 2 bedroom condo in Tyson’s Corner, would have represented
almost 1/3rd of my entire year. I was just thinking, I did about 59 deals
in 2013 – 2014 and made $27,000. And if I did this one sale deal, I would make
about $8,000. And I was just thinking to myself, what am
I doing with my time? Why am I running around town for $250 commissions,
when I could be doing sales for a much higher price? My brokerage that I was with only did rentals. That was their thing, it was a start-up company,
I loved working for them but it also limited me in my ability to get into sales. Some agents say that your brokerage doesn’t
matter, it doesn’t matter if you’re with Century 21 or this brokerage or that brokerage. And I would disagree and say it does matter
what brokerage you are with because if you are with a brokerage that advertises they
only do rentals, it is very hard to pick up clients that are looking to buy and sell real
estate once they go to your renter-friendly website. So I knew I had to change brokerages. And in my free time I would go to open houses
to learn more about the properties for sale in my area. And I randomly walked into an open house and
there was this agent there that was looking to bring someone on and I was looking for
a mentor, and that agent was Shawn Battle, who I am still with today and who I am forever
grateful that he mentored me and still mentors me to this day. And since then my income has doubled a few
times over and earlier in December, I had my best week ever where I was able to make
$20,000 in one week. When just a few years ago, I was struggling
to make $27k in a year so it’s incredible to look back on the journey to see how far
I’ve come and to see the path and the people that have helped me get to where I am now. That being said, there are many things that
I would have done differently if I could do it again. So I’ll get in to them right now. — The first would be that I would have learned
more about real estate sales at an earlier point. It took me way too long to understand how
you can make money and the different ways you are able to help people in real estate. — And you don’t have to start your real
estate career as a leasing agent or doing rentals, but I actually liked it because it
built the experience and the foundation and it was a good way to make a quick few bucks
as opposed to the longer sales cycles of purchases and sales. — I would have also kept in touch with my
clients more regularly. Oftentimes I would close the deal and then
not talk to the client for another 6 months. This is not the way to go about it. You want to build your client bases and consistently
talk with your clients at least every 90 days. — I also would have done more lead generation. The brokerage I was with surprisingly had
a great flow of leads looking back, I always had a pipeline of clients to work with but
I didn’t really market myself to my sphere too much or promote my services to my network
on social media. Being from the area that I do business in
is a huge advantage but it’s only an advantage if people know that you’re in the business. So another huge mistake I made was not telling
more people about my services and working my sphere for more deals. — And finally I would have moved brokerages
sooner. I think the saying goes that the best time
to plant a tree is 20 years ago, the second best time is today. And I feel the same way about real estate
sales. Sure you can do rentals in real estate, and
I still do them to this day, but they make up a very small percentage of my business. I think the earlier I had gotten into real
estate sales the better because it’s a great way to make more money and the problems that
you’re solving are bigger. So there you have it those are my biggest
takeaways from my first year in the business and how much money I actually made. I’m all about transparency on the channel
and I always tell it
like it is. So while I am making more money now, I
still don’t feel like I am where I need to be so hopefully one day I’ll watch this video
again in the future and my income will have doubled once or twice more. So if you’re looking to get into real estate,
I highly recommend it and hopefully in
this video you learned how much I made my first year and you will learn from my mistakes
to make even more than I did in my first year, if you did learn anything, be sure to hit
that thumbs up button. Thank you very much for watching. Until next time, create a productive day. Take care.

12 thoughts on “First Year in Real Estate – How Much Money I Made My First Year as a Real Estate Agent

  1. Hi Matt…..this is super informative and helpful for anyone wanting to get into the field…slam dunk, yet again….Congrats!!

  2. Ah yes, the good old days. My first year I did a lot of rentals too. I remember, like you, I told myself that I was putting in the work. Eventually realized the amount of satisfaction and compensation is much greater in the sale side and it’s the same amount of work. Never looked back since! Great video Matt!

  3. Thank you for making this video and being so transparent. Having a mentor really does make a difference I’m a Loan Officer , any tips? I find it difficult to find a mentor in my area , I actually left the lender I was with b/c they told me they were too busy to help and just wanted me to promote their product no support for me to grow as well .
    If I were to come to an open house with treats for your buyers would that be appreciated or weird? haha

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