Richie Alan  Naggar, agent & author  (people first...then business Ran Right Realty )

Spam prevention
Ambassador
3,158,850
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

That has never been a problem.  I had ample funds to start my business. Money management takes discipline. I rarely buy things I do not need. I've never been a big consumer.  My father taught me well. Saving seems to come naturally to me.

I know of many people that spend money before they earn it. I only buy when I have the money to pay for my purchase. No credit card debt for me. Thank you.

Dec 19, 2021 09:02 AM
Rainer
155,427
Karen Climer
Demetree School of Real Estate - Orlando, FL
Teaching people to pass the real estate exam

Like Carla Freund , I encourage people to save money, but equally important is not to touch your savings unless you absolutely have to.

You do not absolutely have to go out to eat.  You do not absolutely have to buy the new iphone that just came out.  You do not absolutely have to subscribe to a movie streaming service, or even cable.  If you are using savings to pay for that stuff, you need to figure out the difference between wants and needs.

Pull from savings when you can't afford any food (not just going out to eat), or when your car breaks and you don't have a way to get around, or when you phone breaks and you don't have a phone (very different than wanting the latest model).

There are two ways to have more money: make more or spend less.  New agents should focus as much on spending less as they do on making more.

Dec 19, 2021 08:47 AM
Rainmaker
816,750
Carla Freund
Keller Williams Preferred Realty - Raleigh, NC
Carolina Life RealEstate & Relocation 919-602-8489

When I speak with a new agent, I always recommend having savings to use so you never get into the habit of living closing to closing. I keep a certain amount of operating expenses in my account to cover my expenses. It can be very stressful if you don't have funds saved up.

Dec 19, 2021 08:13 AM
Rainmaker
7,039,508
Roy Kelley
Retired - Gaithersburg, MD

Diversify. There are many things you can do to generate income and equity. 

When I opened my first office, long ago, I was in the real estate and insurance business. Over the years, I was a builder and developer and invested in financial services. 

Dec 19, 2021 09:18 AM
Rainmaker
696,043
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I was on the ropes at the start of my career.  It took seven months to get my first sale.  Went through most of my savings.  Once that escrow closed I caught fire and had an average of seven escrows at a time up to the 2006 crash.  It took a miracle to make it through the next five years but held on.  This is not a career for those that are meek or self motivated.

Dec 19, 2021 08:53 AM
Rainmaker
1,430,661
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

My advice to people thinking about making that leap is to have 1.5-2 years of major expenses saved up and pad a little for unforeseen medical expenses and start-up costs.  The more they can do of their pre-licensing coursework while working, the better.

After that, it's about building the steady pipeline, focusing on what matters and the leads most likely to succeed.  Creating a business plan and sticking to it.  It also helps if they have a spouse with a stable income or some form of passive income to supplement.  I'm also realistic with people about how long it takes to get a closing in this market.

Dec 19, 2021 09:40 AM
Rainmaker
945,991
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

I have ALWAYS had more than one income stream . . . and anyone in real estate should. 

Dec 19, 2021 09:24 AM
Ambassador
2,784,629
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate Brokered by Real - St. George, UT
St. George Utah Area Residential Sales Agent

Until it records, it is not mine, closing is the meeting of all parties to sign, anything can happen. Have not depended on a closing to pay the bills, thankfully. I do use the funds to put back into my business, however.

Dec 19, 2021 09:22 AM
Rainmaker
1,056,363
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

I have a budget and curtail unnecessary spending

Dec 19, 2021 09:19 AM
Rainmaker
550,303
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I learned that sometimes even when you are closed, the commission may not be safe.  One lender in a foreclosure sale told me to return the commission or they would not release the lien on the house, though I did everything above board and followed their written rules.

Lump sums need supervision and to be saved for a rainy day!

Dec 19, 2021 09:50 AM
Rainmaker
1,358,663
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I have been self employed for 33 years and it's always been seasonally affected income, I've gotten used to living on a budget and 9 months income per year as a result. I always throw a little dirt into the valley when I'm on top of the next mountain, it cushions the decent and through the years the valleys aren't so deep and the mountains not so tall.

Dec 19, 2021 11:23 AM
Ambassador
3,077,530
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I had a lot of savings when I started.  And tucking away money has never been a problem for me.  My husband also works outside of real estate and has another source of income monthly as well.  So we've never lived paycheck to paycheck or not been prepared for emergencies.  My parents raised me this way.  My husband learned to save from me.

Dec 19, 2021 11:19 AM
Rainmaker
539,589
Steven Nickens
Hawaii Life Real Estate Brokers - Wailea, HI
R(S)GRI ABR, Maui Real Estate Hawaii

I have always been self employed. There is always ups and downs in the market. Stay out of debt, it gives you more freedom. When the market is good be wise and don't get nuts spending, save for the down times.

Dec 19, 2021 01:08 PM
Ambassador
5,756,455
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

I have been an entrepreneur since childhood, real estate and the business cycles are easy, having a regular job would be tough for me.

Dec 20, 2021 04:43 AM
Rainmaker
1,025,002
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

When I opened my first escrow, my wife was excited about having some cash to spend. She learned form me right away that nothing gets spent until the escrow is closed, the commission check has been deposited and all the other bills are current.

That was long time ago.

Now, commission checks help to pay for my travels…and other stuff.

Dec 19, 2021 05:21 PM