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Can Real Estate Agents EVER Really Retire?

Disclaimer: I’m not a retirement expert, I’m a real estate broker that has been able to go from $350,000 in debt to financially independent by selling homes and investing.

I’m on a mission to help 100s of agents become financially independent by selling MORE real estate and investing wisely.

In 1 minute, name 5 real estate agents that have retired financially free?

1, 2, 3…GO!

That’s right, you can’t because a retired real estate agent is a unicorn but, it doesn’t have to be that way.

The reason MOST agents never retire financially free is that real estate is a feast or famine business. We are always cash-rich or dead broke.

Real estate is a 100% cash business. We don’t have inventory and we don’t make anything. Real estate agents don’t have any assets.

What are your top 3 business assets? 1) Car, 2) Computer, 3)????

Both your car and computer are depreciating at a rapid pace and will be virtually worthless when you want to finally retire.

People will tell you that your downline or your database is your asset but, name one agent that sold their database or downline for anything that amounted to anything?

This brings me to my point. How do you retire financially free?
Here are some strategies that really work.

SEP IRA – If you are self-employed you can do a yearly SEP IRA. Check with your financial adviser. This is a wildly incredible tool to save. You can invest a huge percentage of your commissions into the stock market tax-free when it goes in.

WARNING: You can’t do a SEP IRA if you are an LLC or Corporation. Most agents I see that start making close to or over 6 figures set up a Corporation to save taxes. The trouble is when you do that you no longer can invest in your SEP IRA. Your accountant forgets to tell you about that.

Another reason agents never retire is because they spend all their money without saving. They are more concerned with paying taxes and finding write-offs than saving for retirement.

Put all your commissions that you don’t need for monthly expenses in an online savings account like allybank.com or Goldman Sachs, Citi, etc.

This is key because you will make more interest than your traditional bank account and it is slightly harder to get to prevent you from spending it on things you don’t need.

Save up a 6-month emergency fund in this account.

The next strategy is to get a personal Vanguard.com account and invest in index funds. All the commission above and beyond the emergency fund put in this savings account that is tied to the marketplace.

Here is the retirement piece. Once you save up hundreds of thousands of dollars start investing in real estate.

Buy rentals.

Buy commercial rentals.

Buy AirBNB.

Buy leasable land.

Notice you need to save first? Most agents want to start flipping and development out of the gate. That is gambling and is a business not investing.

I encourage flipping and development but, consider it a business to increase your income not a vertical for retirement.

Reach out with questions, I’m your real estate career resource.

Nick McLean
Nick McLean Real Estate Group
text 5096701071

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