Money Matters: Becoming a Property Agent
I’m sure many of you are curious about this: what is the cash flow situation like for a property agent? I’m here to break it down to you the various money matters involved with becoming a property agent.
First, you need to think of this as a business. Prior to gaining back revenue through sales, you first need to invest capital. Not only do you have to invest in RES courses and registration admin fees to even become a property agent, the work itself does incur costs. For instance, you would need to purchase a package with websites such as Property Guru to advertise the various properties under your belt. This can be quite costly, depending on which package you buy.
Nonetheless, advertising is all about the money you put in. It might be a worthy investment to pump in cash into advertising of properties to get the sales you need. You will also have to consider the costs of viewings, such as transport costs to visit houses, and your time.
Next, let’s say your advertising efforts have succeeded and you’ve made a sale. That’s great, but bear in mind you need to pass some of that commission to the company. This is a cyclic process of pumping in cash to get back greater rewards that ultimately must also be re-distributed back to the company.
In a sense, you’re working for the future and you need to spend before you earn. For many young property agents starting out, I would recommend that you have a solid amount of savings so that you can invest in advertising and other necessary matters when starting out. It is also ultra-important to have money discipline – don’t get too excited when the first batch of sales bring in a rush of money to your income. Bear in mind that this income is to sustain your continued investment into things like advertisement and other costs incurred, and may need to last you for the next couple of months.
Bottom-line is: treat this as a business, and draw up profit-loss sheets monthly. Exercise money discipline and have enough savings to invest in good advertising of properties to bring in the sales. As a property agent, you are always working for the future, so you do have to exercise discipline and restraint when spending your funds!