A Freak In The Sheets: My Financial Reality as a New Real Estate Agent

As I gain experience as a new agent, I’m beginning to realize the hidden barriers of getting into the real estate industry. Yes, everybody and their grandma has a real estate license, but not all turn the endeavor into a career. It typically requires a phase of working two jobs, which eventually turns people the other way. The largest group that leaves real estate when times are tough are the individuals who can work full time making the same, if not more, without real estate.

Calculating risk, debt, and how much Ramen I can stretch into a business plan.

Well, at this moment, I could definitely make more money elsewhere, but the idea of creating something that no one can take away from me is the ultimate satisfaction. I’m writing this blog to show you the hidden costs in real estate and what makes 70% of agents turn their heads to pursue another profession. This time of mine has been money strapped, but at the same time the most fulfilling experience.

In order to enter the real estate profession, you need to keep your living costs low and have a savings account that can buy you at least three months to earn some form of pay. I’m lucky. I don’t have kids, a car payment, or a mortgage. All I have is my dog, rent (which is low because I rent from my grandpa), and my own mouth to feed.

I’d like to say it’s easy to get by, but even with low living costs, I struggle to buy myself time to build my business. I think of this time like I’m going back to school, but this is a real-world education that’s probably more beneficial than any class I’ve taken. The stress comes and goes, while the excitement of building fills my heart and keeps me going.

I haven’t had health insurance or a regular paycheck since January 2024. I know my commitment and heart won’t be my downfall in this industry, it’ll be the simple depletion and exhaustion of resources. I’m extremely grateful for my family and girlfriend; they’ve let me take the leap and given me the patience to strive for something against the grain.

Real estate costs are hidden because if the industry were transparent, there’d be hardly any agents. You’re not just purchasing a license, you’re launching a business, and even worse, not getting hired by one. You’re paying for access (MLS, associations, etc.), credibility (license), marketing (website, business cards), and ongoing operations (brokerage fees).

Real estate is a simple game of pay to play. If you want a seat at the table, you have to cover the costs of the table, the chair, and the wine before you’re invited to dinner. Unlike corporate jobs, there’s no onboarding, salary, or benefits. Everything is out of pocket, but the sky is the limit.

If you’ve ever had the thought of going out on a limb to try something scary, I encourage you to. It’s a thrill well worth taking.

So how much do you really need in reserve?

Well, this question isn’t simple. We’re all in different places in life, but what I can do is break down my finances for transparency and give you an idea of what it’s taken for me to create my own business.

This is my real breakdown - no fluff, no theory. Just trial and error.

Throughout the last couple months, I’ve spent $2,674.05 to get licensed, join a brokerage, and put together some basic marketing tools.

My living expenses at the lowest are about $1,300–$1,500 per month to maintain my lifestyle. That’s the absolute minimum; rent, dog food, and boxes of Ramen. I haven’t even mentioned the $5,000 I racked up in credit card debt, which I paid off by borrowing against my stock account at 11% APR with no monthly payment.

I’m fine… but it freaks me the f*ck out not having insurance or a retirement plan.

If you’re thinking about doing this, I recommend having $5,000–$7,000 in the bank to cover your bills and business expenses in those early months. If you don’t have that kind of reserve or a reliable side hustle, this industry will eat you alive before your first commission check clears.

One of the hardest parts about all this isn’t the money, it’s how it looks from the outside. When you’re not clocking into a job, people assume you’re just “figuring things out” or wasting your potential. Family might understand, and friends might think you’re just in a weird phase. But what they don’t see is the backend of this endeavor, the hours of learning, planning, designing, promoting, and self checking that go into building something from nothing. Remember, building a business from zero looks like failure to people who only understand paychecks.  I’d be a liar to say I don't doubt myself. In times, the doubt starts to creep in because everyone else seems so… stable. This isn't instability, it’s what the foundation looks like. I’m not unemployed, I’m unpaid for now. Big difference.

At the end of the day, you’re not just investing in real estate, you’re investing in yourself. You’re betting that your vision, your work ethic, and your ability to adapt are going to take you further than any traditional job ever could. 

Yeah, the startup costs are steep. Not just financially, but emotionally too. You’ll wrestle with doubt. You’ll stretch every dollar. You’ll second guess everything. But the ceiling? There is none. 

There are moments when it feels like you’re doing this all alone, but then there are the people who remind you you’re not. The people who see what you’re building even when it’s not clear yet. My family, my girlfriend, and my dear friends; they may not understand every step, but their support has given me fuel when I need it most. I hold onto those moments, the encouraging words, the small celebrations, the simple belief in me, because it reminds me I’m doing something right. 

This venture isn’t easy, and is sure as hell isn’t clean. And if you’re the type of person who’s willing to go out on a limb, then surround yourself with people who remind you it’s worth it. 

If you’re thinking about starting something like me, please reach out. Follow along as I document this in real time.