Budgeting tips for new real estate professionals
If you're a new agent and the money isn't flowing yet, budgeting is key. Here are some budgeting tips for real estate professionals you can use to stay in the black until your business takes off
You know that guy who told you to get into real estate because the money is “SO good” and “SO easy?”
You’ll have time to catch up with him later, hopefully.
In the meantime, since the money doesn’t flow as promised (at least not at this point), you’ll be wanting to hang on tightly to the bucks you do have.
And, since Easy Agent Pro wants to see you succeed, we’re about to offer up some budgeting tips for real estate professionals to do just that.
Can you imagine starting a real estate career back in 2008? Pity the poor rookie with a spanking new license and absolutely no clue as to what to do next. Finding out the real estate market was tanking must have really sucked.
One of the best things you have going for your early career is our amazing economy. In fact, our economy is in the longest expansion period in history.
The reality is, you picked a fine time to jump into real estate sales
Sure, our economy is way past overdue for a recessionary period and, it may just come to pass this year. But the oddsmakers are saying it won’t impact the housing market as it did during the last recession.
This doesn’t mean your buddy was right, however. The money won’t flow like manna from heaven unless you are either really lucky or you work very, very hard.
We do hope one of those comes to pass. But, let’s get to protecting your finances until then.
Without a consistent paycheck, your most pressing concerns will center around eating, shelter, staying warm and transportation.
And that’s where we’ll start with these budgeting tips for real estate professionals. Once we’re done, you’ll have a clear picture of where you stand right now, how much money you need to bring in and how much, if any, you can devote to business expenses.
Creating the budget is just the first step. Keeping to it, diligently, is beyond tough, but if you hope to be slinging property by this time next year, adhering to your budget is mandatory.
Once your financial situation is in front of you the next best step is to look for ways to cut spending. Logical places to cut, or look for less expensive options, include:
Don’t forget to build into your budget some emergency savings.
Wanna be your tax preparer’s favorite client? Open a business checking account and devote one credit card to paying your business expenses only. Not only does the IRS demand that you keep personal and business expenses separate, so might your accountant or tax preparer.
As a rookie, you won’t have many business expenses, but it’s important to have even a small budget (especially for listings) for when your first client rolls around.
Consider creating the following expense categories:
As long as you remain aware of how much you’re spending and follow these budgeting tips for real estate professionals faithfully, you won’t starve.
“Expenses should create income. If an expense doesn’t create income, it should be eliminated,” Tom Wheelwright, CPA told Inman.com’s Dani Vanderboegh.
If you don’t truly need to make a particular purchase, don’t. It’s bad for your business.
How much should you spend on ads? It depends – here’s how you can determine what your budget should look like:
Are your real estate marketing ideas evading you at the moment? Here is a list of 200 real estate marketing ideas to get you more leads this month.
Is your pipeline as dry as the Sahara Desert? Try these 53 HUGE lead generating ideas for real estate agents. PS: There is 1 lead gen idea that is so secret it will make your head explode.
Just starting Real Estate Branding? Most realtors fail consider... when working on their brand. Meanwhile, the top real estate agents always...
Let’s boost your lead gen.