How do realtors retire?
This is a question that many people in the industry are asking. The answer, however, is not always straightforward.
The truth is…there is no easy way for real estate agents to retire.
There are a few different ways to retire as a real estate agent, and each one has its own set of pros and cons.
In this blog post, we will take a look at the 4 most common ways to retire from real estate: selling your business, becoming a referral agent, owning a brokerage, or joining eXp Realty. Let’s get started!
Read Our Article About the #1 Retirement Plan for Real Estate Agents
How do realtors retire?
Many people believe that real estate agents have an easy job. They just show a few houses, help people find their dream home, and then collect a commission check.
However, the reality is that real estate agents have a very difficult job. Not only do they have to deal with difficult customers, but they also have to keep up with changing markets and laws.
In addition, most real estate agents are self-employed, which means that they don’t have the same retirement benefits as employees of a company. As a result, many real estate agents find it difficult to retire.
Realtors have to work hard for years before they can retire
Becoming a successful realtor takes a lot of hard work. In most cases, it takes several years of long hours, late nights, and early mornings to build up a client base and earn a good reputation.
Keep in mind that this is simply to earn an income as a real estate agent to fun your current lifestyle.
When it comes to retirement, realtors often have to start saving much earlier than the average person.
This is because they don’t have the same retirement benefits, such as a 401k or pension.
Many realtors dream of retiring early and enjoy a long, leisurely retirement. However, in order for this to become a reality, realtors need to start saving early and invest in their future.
In order to live off of a meager $3,000 a month, real estate agents will need to have saved over $1,000,000 over the course of their careers.
As a result, most realtors do not retire until they are in their 60s or 70s.
Are you ready to retire as a realtor? Click below to learn how eXp Realty can help you do just that!
What should you consider when planning for retirement as a realtor?
When it comes to planning for retirement, realtors have unique concerns that must be taken into account. Perhaps the most important factor is your income.
As a realtor, your income may fluctuate from year to year, making it difficult to predict how much you will have to live on in retirement. Additionally, because you do not have access to employer-sponsored retirement benefits, such as a 401(k) or pension you will need to be proactive about saving for retirement on your own.
Another key consideration is your health insurance coverage. As a real estate agent, you may already be paying for your own health insurance or paying out of pocket for any health-related issues. As you get older, this could make it difficult and expensive to obtain the coverage you need in retirement. Long-term care insurance is also something to think about as you get closer to retirement.
To learn more about how you can get health coverage at a discount as a real estate agent, click here to read our post about health insurance for real estate agents.
Retirement is a time to relax and enjoy life
Lastly, it’s important to have a plan for what you will do in retirement.
For some people, this may mean continuing to work part-time or starting a new business venture. Others may want to travel or spend more time with family and friends.
No matter what you plan to do in retirement, it’s important to have a solid plan in place so that you can make the most of your golden years.
Read Our Article on How to Become Financially Independent as a Real Estate Agent
What is the Best Retirement Plan for Real Estate Agents?
If you are considering retiring as a real estate agent then you need to have a plan in place that is not simply saving your current income that you are earning from commissions towards your own savings or retirement account.
As we mentioned earlier, in order to live in a style that you are comfortable with, you will have to have saved well over $1,000,000 throughout your career as an agent.
So what will you need to do to retire comfortably and live a financially free life?
Here are the top 4 ways for real estate agents to retire:
1) Sell your business
2)Become a referral agent
3) Own your own brokerage
4) Join eXp Realty
1) Sell your business
As a realtor, you have worked hard to build up your business. You have developed relationships with clients, referred them to other businesses, and helped them to buy or sell real estate.
However, there may come a time when you are ready to retire. When that time comes, selling your business may be the best option.
This will allow you to receive a lump sum of cash that can be used to enjoy retirement or pursue other interests. It also allows you to maintain some control over the business and your reputation by choosing the buyer and setting the terms of the sale.
You should keep in mind though, that selling your business can be a difficult task, especially as a real estate agent.
Although for many small business owners, selling their business is the exit strategy they have been planning for years, for realtors finding a buyer who is willing to pay top dollar for a business that is largely based on commission can be difficult.
There are a few reasons for this.
First, the real estate market is notoriously volatile, and buyers are often reluctant to invest in a business that could lose value quickly.
Second, the vast majority of revenue generated by a real estate business comes from the sale of just a handful of properties each year. This makes it difficult to provide potential buyers with a consistent stream of income to value your business.
Finally, most realtors are independent contractors, which means they do not own the property or the client list – both of which are key assets of the business.
For these reasons, it is important to consult with a business broker or other professional before putting your real estate business on the market.
While selling your business may be the best option for some realtors, it is not always possible to find a buyer who is willing to pay top dollar.
2)Become a referral agent
One way for realtors to retire without having to sell their business entirely is to become a referral agent.
Referral agents are real estate professionals who receive commissions for referring clients to other realtors. This can be a great way to generate passive income, as referral agents can continue to earn commissions even after they have retired from active real estate work.
Additionally, becoming a referral agent can be a good way to stay involved in the real estate industry while scaling back your work commitments.
If you are interested in becoming a referral agent, read our article on how to become a referral real estate agent here.
Becoming a referral agent is a great way to generate passive income and stay involved in the real estate industry after retirement.
However, it is important to keep in mind that referral agents do not have the same level of control over their business as they did when they were active real estate agents.
This means that once you have handed a client off to a realtor that you have referred them to, you are no longer in control of the sales process.
Additionally, referral agents will only earn a small percentage of commissions from each closing that the active real estate agents generate from the client you referred them to, typically only 25%.
3) Own your own brokerage
If you want a little more control over your business and income than just being a referral agent one of the best options is to own your own brokerage. This way, you can maintain a degree of control over the business while still enjoying the financial freedom that comes with residual income.
While owning your own brokerage comes with a lot of responsibility, it can be a great way to ensure that you have a steady stream of income in retirement.
One of the most important things to consider if you are thinking about owning your own brokerage is whether or not you have the time and energy to commit to running a full-time business for many years and growing it to a point where you can actually step out and retire.
Many real estate agents who retire by owning their own brokerage do so by gradually scaling back their work commitments over a period of several years before eventually handing the business off to a successor and fully retiring.
If you are interested in owning your own real estate brokerage, we have an article that outlines how to start your own real estate brokerage here.
Some downsides to owning your own brokerage are that it can be a lot of work to get it off the ground and you will have a lot of liabilities that come with both your legal responsibilities as a managing broker and financial responsibilities.
In fact, brokers don’t actually make much money at all because of all of the overhead expenses that they have in order to run and maintain their business. Most independent brokers actually make less money than agents who work under them.
Another thing to consider is that you will need to get your broker’s license if you don’t already have one.
You should only attempt to get your retire real estate license Tennessee if you are truly dedicated to owning your own brokerage and are prepared to put in the time and effort to make it successful.
Additionally, if you eventually decide to sell your brokerage as an exit strategy, it can be difficult to find a buyer who is willing to pay top dollar.
Owning your own real estate brokerage can be a great way to retire with residual income, but it is important to consider the downsides before making the decision to do so.
4) Join eXp Realty
eXp Realty is one of the fastest-growing real estate companies in North America, and it offers a unique opportunity for experienced realtors to enjoy a worry-free retirement.
One of the biggest advantages of joining eXp Realty is the company’s revenue sharing program. Under this program, eXp Realty agents receive a percentage of the company’s monthly revenue through the agents that they attract to the company, which can provide a significant supplement to their retirement income.
The revenue share model is a way for real estate agents who want to enjoy the benefits of having a residual income that a broker or a referral agent without having to carry the legal, financial, and time liabilities that a traditional real estate broker does.
In addition, eXp Realty provides full discounted health and dental benefits for its agents through a partnership with clearwater benefits.
And lastly, if you are an agent who wants to retire from real estate one day without having to do anything else than sell real estate, at eXp Realty, you are actually able to earn equity in the company through stock awards based on your annual sales performance.
This gives real estate agents something that they never had before, equity in their business.
In the past, real estate agents spend years building a business for their broker and end up at the end of their career with nothing more than a thank you.
Now at eXp Realty, agents can actually build equity in their business by doing nothing more than what they are already doing and have a nest egg retirement account waiting for them at the end of their careers.
As a result, experienced realtors who join eXp Realty can enjoy a retirement that is both financially secure and professionally fulfilling.
Are you ready to retire as a realtor? Click below to learn how eXp Realty can help you do just that!
How do you choose the right retirement plan for your realtor business?
There are a number of different ways for real estate agents to retire, and the one that is best for you will depend on your individual situation. In this article, we have outlined four of the most common ways to retire from real estate.
Each of these retirement plans has its own advantages and disadvantages, so it is important to carefully consider which one will work best for you before making a decision.
Are you ready to retire as a realtor? Click below to learn how eXp Realty can help you do just that!
Learn More About the Best Retirement Plan for Realtors
