If you can get rich from real estate, why don’t more people do it?

It seems more people from all lifestyles are entering the real estate business. Countless stories of successful and rich real estate agents are everywhere.

However, if real estate is the pathway to millionaire status, why is not everyone doing it? The short answer is the path isn’t smooth sailing. The long answer revolves around happenstance and sacrifice many will hesitate to gamble.

Unpredictable income

Money earned as a real estate agent fluxgates depending on sales. One year could provide a six-figure income ($100,000-$999,999) because the agent is nailing sale after sale. The next year could provide the low end of a five-figure income ($10,000-$50,000) due to consistent bad luck. The vice versa might occur with the low end happening one year and the six-figure income occurring the next year. Other probabilities include remaining at the five-figure income for both years and remaining at the six-figure income for both years. The two years don’t speak for upcoming years, unfortunately. In closing, the unpredictability is why real estate is a tough profession to try a get-rich-quick scheme.

Devotion

Are agents willing to work overtime to get rich? Part-time agents treat the industry like a job because their mind splits between real estate and the second job. It’s difficult to give 100% in an allotted time. Full-time agents live and breathe real estate, envision this path since childhood, and give 110% to excelling in the industry.

Marketing, open houses, staging, and communication are part of building real estate revenue. Agents must spend time marketing the home on various websites, print media, radio stations, and local TV stations to lure buyers to the property. It’s a piece of building revenue. While not all buyers and sellers strike a deal, marketing and client-agent communication did lead them here. That’s progress. Communication with clients is important. Prompt service encourages clients to stay. No one likes to wait. Respond within a day as real estate is sometimes a fast-paced environment.

Devotion can equally describe an experience. Veterans of the game can adapt to stale or failing marketing methods. They know the market climate well and are on top of new real estate trends. Newcomers may not obtain the quick reflex now, but over time, the devotion will reduce company, client, and website missteps. The experience extends to networking where meeting valuable connections equal business friendships rather than ‘what’s in it for me.’

Money

In the game of life, you must pay to play. If you want a chance to become a millionaire, you must spend money. Even then, there is no guarantee a seven-figure deal is coming your way. From office supplies to ad space, everything costs money. Agents must spend money understanding that the breakeven point may not come immediately. Therefore, agents should have at least six months worth of finances as a backup in case contracts fall through or nothing sells. This ensures agents to avoid desperation when rent and bills are due.

Agents assume their training and on-the-job expertise will eventually brand them a millionaire with little effort. The reality is much harsher. Nonetheless, don’t let the downsides of real estate drive you away. Let it power you to excel toward superb financial stability for you and your family whether the ‘millionaire’ dream comes true or not.

—

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.