Real Estate Agents, Loan Officers & Lack of Income

Why So Many Real Estate Agents & Loan Officers Quit Real Estate: Lack of Income

So, What's the Deal?

Ever wonder why so many real estate agents and loan officers leave their careers?  Is it because, "you just can't make a living working on commission"? Good question.  The real reason isn't because commission is the problem.  It's a matter of scope and marketing.

The old way is a "cookie cutter" agent and loan officer way of doing real estate transactions: bring all cash or get approved for a loan to do a real estate transaction.  Talk about keeping your options narrow.  There are so many other transactions that can be done to expand an agent (or loan officer's) income it really isn't funny and is often overlooked.

People who are lazy who look for the "cookie cutter" deals put a terrible limit on their income.  In fact, using cash or loans as the ONLY way to get transactions closed will greatly limit income - and in some cases, so severely, an agent or loan officer will need to quit and find an hourly job just to try to make ends meet.

Another Option

The fact of the matter is that there are so many other ways "to do" real estate is that it isn't funny.  If you know what you are doing, it can (and does) open the door to hundreds - if not thousands - of dollars in extra income.

By the Numbers

Don't think that the market is big enough for "other types" of real estate transactions?  Think again.

• In 2013, 65.2 % of families owned their primary residence, according to the Federal Reserve’s Survey of Consumer Finances
• Nearly 50% of all borrowers have scores less than 680 FICO according to www.valuepenguin.com 
• 33% of Americans are renters.
• 20 million Americans live in mobile homes.
• 17% of Americans live in apartments or condos.

Most Americans Prefer Single Family Homes

The fact is that most Americans prefer single family homes.  In fact, of those who can afford it, many home seekers (particularly on "Housing Wanted" in Craigslist) are seeking single family residential homes.

More Than One Way...

There are a number of "other" methods that work with regard to getting more people into homes.  This blog considers just a few of these methods that can (and do) result in a real estate commission or referral fee.  Here's just a "quick list" of how these "other" transactions can work (some you may have heard and others are a bit more "unknown"):

• Rent
• Rent-to-Own
• Rent with Option
• Contract for Deed
• Real Estate on Layaway
• Loan Assumption
• Tax Sales
• Mobile Home Bills of Sale
• Installment Contracts
• Note Sale
• IOU
• Wrap-Around Loan
• Bridge Loans
• Contract for Deed
• Deferment
• Down Payment Installments
• Partnerships
• Assignments
• Seller Payment to Sell
• Retainer (Search) Fee

These are just some of the many ways in which a person can make additional money in real estate.  Obviously, some of these activities require work. Sometimes, real estate mentoring by a seasoned investor who is acquainted with various and creative (yet legal) real estate strategies maybe the next step.

Getting Started

The only way to get started is to start and the first step is learning about what other creative options are available for real estate agents and loan officers. Remember, if one simply is willing to consider the creative ways to help future renters and homeowners find affordable housing, then it can end up being a win-win for everyone involved. There is no other way to make more money than "thinking outside the box" and consider more options to help more people.

Want to Learn More?

Consider joining the Home Sweet Home Real Estate Network:

https://www.meetup.com/Home-Sweet-Home-Real-Estate-Network/ 

This network was designed to help real estate agents, loan officers and investors acquire more clients and use more real estate techniques to close more business than ever.