Real Estate Agent Salary

Real estate agent is sort of broking job. A real estate agent should work out a deal for a property sale between a prospective buyer and a prospective seller. It can be a job of high earning potential. But the real estate agent should work hard to achieve that. A lot of real estate agents work as consultants. It may not be their full-time job. This can be done during the free time of another full-time job. But such juggling of jobs needs high-energy quotient and expertise in time management. Since it is not a full-time job, there is no fixed salary. The real estate agent gets a fixed percent of total amount of land sale from both the buyer and the seller.

There is absolutely no limit for the salary of a real estate agent, when working as freelance consultant. As they say in advertisements, sky is the limit for the salary of land brokers. The harder one works and more sales one engineers, the more will be the money one earns. But for earning a good monthly income, the freelance real estate agents should be highly industrious and have good inter-personal communication skills. In general, real estate agents should be well versed with the value of a property. They should be able to do a quick valuation of the property and should be able to explain the aspects that influence the price of the property and convince both parties about a reasonable price.

There are plenty of real estate firms and agencies that employ real estate agents. In such firms, the agents have a fixed monthly salary. The salary varies from agency to agency. Usually it depends on the volume of business done by the agency. There are some agencies that provide a pay based on the number of real estate sales materialized by a particular employee. In general, the annual salary of a real estate agent, who works in any of the established firms, varies from $25000 to $75000. There are a minority of real estate agents who earn a salary even less than $25000. Some agents working in start-up companies only earn an annual salary of only $10000. Such a large variation of salary can be explained by the fact that some real estate agencies have more business volume than some of smaller fish in the real estate fray.

Also the commission-wise salary and sales-wise salary affect the annual pay. There are some months, especially in the winter months of November, December and January, in which conventionally real estate business are somewhat fewer. So in the case sales-wise salary structure, the salary suffers a dip in those months. But the sales move up from March to September. So will be the salary in those months.

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Real Estate Job: Top Three Factors Determining a Real Estate Agent Salary-Lucrative Job!

Since the economy started to spiral down in 2008, many people had difficulties finding jobs because their skills, training and experience that used to be in demand are no longer sought-after or salable. Hence, people have explored other possibilities such as undergoing retraining and having a career shift. On the other hand, while other professions have gone less in demand, people in the real estate market are steadily growing in number. In fact, according to the Bureau Labor of Statistics, the number of agents will increase up to 16 percent at the end of 2018. Despite the bad economy, the real estate agent salary remained fixed. They get 6 percent of the total value of the house they sold or found for a buyer or seller, and they divide it to half to their broker. Their service is very much needed these days because people are selling their properties and homes and they need professional help to be able to dispose their homes to their advantage.

An average agent’s salary is as high as $45,000 per annum. The majority of them earn $65,000 per year, and there are some who earn above $95,000 annually. A real estate agent’s income highly depends on three factors-who they work for, where they are located and the number of deals they closed.

Company

The common place of employment of agents is at a broker’s office. A broker makes money after his agent sells or finds a property for a client. The broker gets 6 percent of the price of the property sold and splits it with his agent. The real estate agent salary is estimated to be around $45,000 to $ 65,000 per annum for those who work under a broker. Agents who work in companies that also have an insurance business on the side earn higher (e.g. those who work in leasing offices and with developers).

Place

The location of properties affects their value and demand. Naturally, the agent’s salary also depends to their location. Agents in New York, Illinois, Vermont and North Carolina earn $65,000 to $85,000 per annum.

Closed Deals

Agents do not have a fixed salary. They receive commissions per successful transaction. An agent’s ability to close deals largely depends on his/her marketing strategy, personality, training and experience. People from all walks in life can become agents if they get training and pass the state licensure exam. People can even enroll in an online program to get a certificate to prepare them for the state exam. It is cheap. For 150 hours online training, you will only spend around $500. For more information about a real estate agent salary,

What’s the Best Corporate Entity for a Real Estate Investment Business?

Perhaps you’ve been a real estate investor for decades and you’re working within an older corporate structure. Or maybe you’re a newer investor and want to learn what kind of corporation makes the most sense for your business. Or maybe you don’t have any interest in setting up any kind of formal corporate structure and want to do business under your own name. Whatever your unique situation might be, the kind of corporation you set up – or don’t set up – will have a huge impact on how much money you end up sticking in your bank account at the end of the day.

Recently a couple of successful real estate professionals, one a seasoned transactional real estate attorney and the other a very successful real estate investor, put their heads together and discussed the pros and cons of various corporate structures specifically for the real estate investing business. It turns out the best corporate entity varies depending on what you want to accomplish with your business. Here are a few corporate options to consider.

-Limited Liability Corporations (LLC)

An LLC is a legal entity that provides the same limited liability as a corporation with the tax benefits of a partnership. Many investors like working within LLCs for some very good reasons:

1. Liability protection – The LLC gives the owner personal liability protection. For example, in most states if you form an LLC and run it as a separate business concern you’re afforded the protection of a C Corporation. Meaning the owner/investor is going to be protected from any claim or personal liability that results from the day to day running of the business, and any business conducted or transactions performed on behalf of that company.

2. Tax benefits and streamlined operation – LLCs provide the legal protections of corporations but are taxed as though they were sole proprietorships. Another advantage of LLCs is they provide you with a lot of flexibility in operating your company. The laws for LLCs are newer, whereas C Corporations often deal with archaic business models that were being used in the 50′s or even earlier.

3. An LLC will give you the flexibility to structure your company similar to a partnership, but give you the liability protection. And by working with an accountant you can realize a lot of tax benefits.

4. Flexibility – The LLC gives you the freedom to run your company as though you were running it personally as an individual, but it gives you liability protection.

C Corporations (C Corps)

The C Corporation is the corporate structure most commonly used, especially by larger companies. However, these days many real estate pros consider the C Corp an unsatisfactory corporate entity for a real estate investment company for a number of reasons, although there are some positives as well. Here are some pros and cons:

1. Double Taxation – With C Corporations you are paying taxes twice. C Corps are taxed separately from the company’s owners, as opposed to an S Corporation which typically isn’t separately taxed. After the C Corp is taxed, any money that then goes out to shareholders, either as a dividend or a draw, must be claimed as income by the shareholder and is taxed as such. So essentially the owners are paying a tax twice.

2. Old stockholder laws – In a C Corporation, the owners are considered stockholders. Shares of stock are issued to the owners when the corporation is formed. When you deal with this kind of stock there are a lot of old laws to which you must adhere.

3. Issues when selling property – If you hold property for a long time in a C Corporation, like a rental property, it may be harder to sell than if it’s in another kind of entity.

4. Lots of paperwork – Usually there are annual corporate filing requirements which vary by state. Sometimes these can be a paperwork headache without professional help.

5. Reinvestment advantage – While the double taxation issue noted above is a drawback, a C Corporation provides the ability to reinvest profits in the business at a lower tax rate.

S Corporations (S Corps)

S Corporations are standard corporations which elect, for tax purposes, to pass income and losses through to its shareholders. S Corps combine the legal setup of a C Corp with a tax structure similar to a partnership.

1. Tax benefits – The income, tax credits, and deductions of an S Corp pass through to shareholders on an annual basis. Meaning income is taxed at the shareholder level instead of the corporate level. The IRS treats the S Corp as a pass-through entity. So you have the S Corp election, and income that is earned by the corporation passes through to the shareholders directly, thus taking out one of the taxes that occur with a C Corp.

2. Officer’s salaries dilute corporate income – In an S Corp, the officers have to take a salary, so they get a W-2 every year. Anything the owners take as a salary is going to dilute from the net income on the profit and loss statement, which reduces the amount of income for the business to be taxed. You’re paying an employment tax. You want your salary to be consistent with 40 to 50% of what the business is earning. If you do that, you can avoid that self-employment tax.

3. K-1 and W-2 forms – The owners of an S Corp get a K-1 form which reveals profit and loss for their share of the business. They also get a W-2 it they’re taking a salary. The K-1 is for the profits and W-2 for the salary. A K-1 form is issued when the S Corp has more than one member. If you’re a single member you can file a C-1 to your 1040. A K-1 is distributed when there are partners. The salaries are deducted from the net income of the business before the K-1 is issued, so the tax liability of the K-1 is reduced by the salaries paid to the owners.

Sole Ownerships

A sole ownership, also called a sole proprietorship, is a business owned by one person. In this type of setup there is no legal distinction between the business and the owner. The owner controls all the assets, but is legally responsible for all debts and other liabilities.

1. Owner has total control – The owner gets all the profits from the business (less any taxes owed) and has total control of the business, including the responsibility for any debts and losses.

2. Difficult to raise private capital – When it comes to raising private money to fund your business, the government – whether it’s the federal SEC or your state SEC – wants you to raise money via a corporation rather than as a sole ownership-d/b/a. So the federal SEC and the state securities offices, when they issue rulings regarding in-trust state offerings and federal offerings, don’t want you to raise money in your own name. They want you to raise money through a legally established corporation. Meaning all your registrations – whether it’s notice filings, a state offering where your state wants to be advised that you’re raising money in that state or doing business in that state, on an intra-state offering or the federal SEC on a federal filing – need to be done under a corporation. You have to establish an LLC or a corporation within which you raise money.

3. Difficult to buy property – For the same reasons The federal SEC and state SECs want you to buy property through a legally recognized corporation and not through a d/b/a or sole ownership. They know that buying and selling property is your business, and should operate under the structure of a corporation.

The takeaway

Deciding on which type of corporate entity to use for your real estate investing company is one of the most important business decisions you can make, so it’s a good idea to consider your options very carefully. The consensus of the two real estate professionals noted above seemed to favor the LLC, but you should make up your own mind after careful consideration of your goals.

Strategic Real Estate Coach is led by Josh Cantwell. Josh is a full time real estate investor from Cleveland, Ohio who’s personally been involved in hundreds of profitable real estate transactions. He’s also been a mentor to students who’ve closed thousands of wholesaling, rehabs, rentals, foreclosure, pre-foreclosure and short sale transactions over the past 8 years. Josh has been training and teaching apprentice partners and students since 2004. Josh has vast knowledge and experience in helping coaching clients, mentor students and apprentice partners from across the US in finding, structuring, negotiating and closing various types of transactions for a profit.

Real Estate Careers – Information about a Career in Real Estate

Real estate agents are independent licensed professionals. Many people call this a job but it really is an entrepreneurial, independent position, IE: Business. It is better classified as a business because it carries the following characteristics:

1. It has multiple start up costs.

2. Licensed by State or Province.

3. Many agents operate under business names.

4. Expenses such as: Shuttling potential clients around, dinners & lunches with potential clients, advertising costs & office expenses etc.

5. Most agents right off most expenses as a business for tax reasons.

Jobs on the other hand are generally free to find & get started. You do not have the opportunity to right off expenses because you will be classified as an employee.

How much can you make as a real estate agent?

First of all real estate agents get paid by commission. They usually get paid anywhere from 5 to 10 percent of the selling price of the home. This can be good for you if you are a good salesman. The more homes you sell, the more income you can make.

Here are the 2006 US Estimates from the lowest to the highest:

o The lowest 10 percent earned less than approximately $20,170.

o The average agent (25 – 50 %) earned approximately between $26,790 – $39,760

o The top 5 percent earned approximately $111,500 +

How much does it cost to become a real estate agent?

It may cost you anywhere from $2,000 to $5,000 to go through the full licensing procedure depending on what state or province you are located. This is only the bare requirements of obtaining a real estate license. Find a licensed school near you for more detailed information on obtaining your license.

How many positions are there?

Based on the constant up & down real estate market, it would be very hard to say exactly how many positions there are currently. You would have to take in to consideration how many agents may be potentially leaving this industry, the amounts of properties for sale & the current market (buyers or sellers).

In 2006 in the US there were approximately 432,000 positions. You would also have to take in consideration to what area you are planning to business in. Generally if you are in a big city there will be more positions available but also a lot of competition as well.

What does it take to succeed in real estate?

The real estate agents who do extremely well are usually in the top 5 percent. You can drive down any street in your neighbourhood & plainly see the main names of these top earners almost everywhere. Most of these people have one thing in common. They are achievers & very good in sales. More than that, they are very good communicators, quick thinkers, organizers, & excellent in customer service. It takes a special breed to become a top realtor. It all starts with a burning desire or passion for this business. Many have gotten in to this industry & out just as fast mainly because of the transition from employee to entrepreneur. It takes a lot of courage for anyone to make this transition because of the whole principal behind this. Most people want job security & have a hard time digesting the fact that their commissions are not guaranteed. The flip side on this issue is that the top real estate earner has surpassed this level of thinking & reaps the rewards of being an entrepreneur.

If you are considering real estate as a career & are prepared to do what it takes to succeed then this can be a very rewarding career move. If you are the type of person who wants to stay safe with a steady pay check this may not be for you. Please keep in mind that anyone who makes $100,000 + per year most likely has made a commitment to their business & themselves.

The top realtor’s have gone the extra mile in this career & are highly compensated for their efforts.

Other options instead of real estate:

1. Life insurance agents.

2. Mortgage specialists.

3. Car Sales.

4. Travel Agents.

5. Direct Sales Consultants (Home Based)

What Is the Average Real Estate Agent Salary?

Many people are interested in entering the field of real estate. In times past it has been a booming business. There is certainly promise in the profession now, but there are a few things you will need to keep in mind before beginning a career in this field. The average property agent salary varies from state to state, but you can make a fair amount of money, if you take the time to do your homework.

For many years, property agents have been able to keep a fixed income by selling commercial and non commercial properties. In many cities across the nation, the rate is around 6 percent. This of course is split between the buyer’s agent and the seller’s agent.

It is a difficult thing to explain economically how these rates have stayed steady for such a long period of time. It is a possibility that some agents band together and black list other ones, but this notion is not a certainty. There are a wide range of factors that can affect an agent’s salary. Whether an agent uses his license to make his own deals is one factor, another is whether or not an agent serves as a manager in a brokerage.

Also an agent will make a bigger salary if he is involved in a sales role as opposed to just a management position. A regular broker usually acts as an agent that sells. They also employ other people as well. An agent’s work ethic also plays a key role in a real estate agent’s salary. Some agents only work part-time on the weekend, while many agents are employed in the commercial realm.

To be successful in real estate business it is important to work efficiently and consistently. It is even possible to earn a six figure salary if you apply yourself to the profession. It is important to note that many real estate agents also work as contractors while receiving pay for closing deals. It is also harder to get started as a commercial agent than as a residential one but if you are a hard worker then you can really excel as an agent, in this field.

If you take some time to research your options online, you can find the best options available to you when it comes to the world of real estate. There are many possibilities available to you to make a good living selling real estate if you apply yourself and work hard at it.