what are the downfalls of becoming a realestate agent?
The two biggest concerns are whether you are adequately capitalized to start a business and whether you have the necessary discipline to save money when times are good so that you can stay in business when the real estate market slows down, as it inevitably will. Real estate is a very cyclical business.
When you are just starting out, you likely will have more expenses than income for the first 6-12 months. So, you need to be financially prepared to pay for advertisements, business cards, networking, driving around, etc. Even if you get a sale in the first few months, it takes 30-60 days to get your commission paid (at closing).
Right now, the housing market is in a down cycle. But if you have enough money to stick it out, and you’re genuinely interested in the work, you can turn these circumstances to your advantage. During a down market, the agents with staying power are the ones who benefit once the market makes a comeback.
Once that happens, it is very important that you stash some extra money away for the times when the market cycles down again.
Good luck!