Million Dollar listing real estate agent looks great as a television show. But over 80% of real estate agents do not make any money after 5 years. a remaining bunch make 36,000 a year. A huge group just quits under 2 years. Why? because people are shown a TV show and not real life.
Now the real work. Well rounded office, multiple deals and income streams. Why through recessions and booms some real estate offices stay open and make gains? Because they are on a more realistic model.
A Property Management Office, that finds deals to flip, sale, and Hold. The office has the opportunity to use the licensed agents to sell properties that wont fit in their rental side of things, bringing in more cash flow for the business.
These companies are usually family oriented. Starts with a Licensed agent, and a husband/spouse or contractor. The licensed agent finds deals and the contractor works on them to make the either a flip/sell or HOLD/rental. Well that contractor can also be temporary maintenance until full time maintenance is needed.
Step two send out over 3000 letters for over 6 months trying to build your property management side of the business into at least 50 to 100 units. At 8-10% of the monthly rent the returns can be great. This is where a office manager or front desk executive assistant comes in to answer calls, receive applications, set up appointments, handle emergencies and receive rent payments. At this point you also have a maintenance guy and a HUGE list of people you work with for emergencies.
Step three grow healthy. If you need more staff add where you can, stabilize. Having a company with 100 properties to manage. Then additional 10 properties in process of being sold, or being added to portfolio.
I would say your ultimate goal is 100 properties you and your family OWN. Regardless of clients coming and going you have a well rounded portfolio. As well as future growth into managing apartments.
Structure and a Plan is necessary to be successful. Check out the One Page Business Plan to get your Company the lines of business Credit it needs to function.