Have you been dreaming of starting as an agent in Los Angeles? What’s keeping you from getting started? Here are some insights about getting started in the real estate industry in L.A. and how to succeed in a competitive market.
Key Takeaways
- The Los Angeles real estate market offers significant earning potential, with an average salary of around $90,000 and a median home price of $830,000. However, it’s highly competitive, requiring dedication, persistence, and realistic expectations for success.
- Starting as a real estate agent in L.A. can be challenging. Closing the first deal and building a client base may take time. New agents should be prepared for lean months and set aside funds to cover expenses for the first 3-6 months.
- Selecting the right brokerage is crucial for training, pay, and reputation. Building a strong knowledge base of local market trends, real estate laws, and regulations is essential for long-term success.
- To become a licensed real estate agent in California, candidates must complete 135 hours of pre-licensing education, pass a background check, and pass the state licensing exam. Afterward, obtaining sponsorship from a licensed broker is required to begin practicing.
Understanding the Los Angeles Real Estate Market
Working as a real estate agent in Los Angeles can be highly lucrative. You already know this if you’ve watched Million Dollar Listing Los Angeles or Selling Sunset. However, what’s the reality of the L.A. market? Is getting your license worth it in L.A.?
According to Indeed, the average California real estate agent’s salary in Los Angeles is around $90,000 a year. Keep in mind that the income of a real estate agent is based on the property’s sale price. This means you don’t have to oversee the sale of many homes to make an excellent salary or side hustle.
Yes, getting your real estate license in L.A. is definitely worth it. The market is one of the largest and most lucrative in the country, with the median home price in Los Angeles County currently around $830,000. This provides significant earning potential for agents who are willing to put in the work. However, it’s also highly competitive, so dedication and persistence are key to success. – Yosef Adde, South Bay Realtor
L.A. has a great housing market! Learn more by reading Real Estate Trends in L.A.: Los Angeles Real Estate Market Forecast 2024
Are you ready to work? Here are some tips for getting started in the L.A. real estate market.
Tips for Getting Into Los Angeles Real Estate
We know you’re overwhelmed. There’s a lot to do to get started in real estate. Start by enrolling in online real estate classes. They’re fast, affordable, and required for anyone who wants to help clients buy and sell properties.
Here are some tips from people who did it – who made it in real estate in L.A.
Navigating the first year
Earning your first commission check will take time. We tell you this not to discourage you but to help you plan. If you are quitting your day job to explore this career, consider setting aside enough money for three to six months of expenses.
Starting out, it’s important to have realistic expectations. It might take time to close your first deal, so be prepared for some lean months initially. Building a solid client base and a steady income stream can take time—often a year or more. But with hard work, dedication, and the right approach, you can achieve success in this competitive market. -Yosef Adde, South Bay Realtor
Setting realistic expectations
During your first months as an agent, you may work more hours than ever before without earning significant commissions. That’s ok. It’s critical to build a healthy foundation of knowledge, spend time meeting other agents and leaders in our community, and create marketing materials to showcase your brand.
One should set attainable objectives at this point. Real estate may be slow during the first year as you connect with people and learn how things work – though not always. If approached correctly coupled with determination results may start being realized between 12-18 months. – Yosef Adde, I Buy LA
Related Article: 6 Things to Know Before Becoming a Real Estate Agent
Choosing the right Los Angeles brokerage
Real estate agents operate independently, but they must work under the supervision of a broker. Choosing a brokerage is an important decision – your choice will impact your pay and training and can even affect your reputation.
Learn more about choosing the right L.A. brokerage as a new agent by reading How to Choose a Real Estate Brokerage to Work For.
Building a strong knowledge base
You’ll learn about real estate law and regulations by taking California pre-licensing courses from a reputable real estate school. While having a strong knowledge base of this required information is crucial, it’s also critical that you know your local market.
Starting out in real estate was definitely challenging, but I approached it with a strategic mindset. One of the biggest hurdles was building a strong network from scratch. I tackled this by actively participating in local real estate events, joining industry associations, and connecting with potential clients and colleagues on social media. Another challenge was getting up to speed with the local market. I dedicated time to research neighborhoods, understand property values, and keep up with market trends. Additionally, managing the paperwork and regulatory aspects of real estate was daunting at first. To overcome this, I sought guidance from experienced agents and invested in learning the necessary procedures. Developing a solid marketing strategy was also crucial—I focused on creating a professional online presence and utilized various marketing channels to reach potential clients. – Justin Tanos, We Buy Houses In Orange County
Overcoming common challenges
Another thing that you will have to learn as a new real estate agent is how to overcome rejection and common challenges. It’s hard hearing “no,” or “I’m not interested” over and over again.
When I first started, one of the biggest challenges was building a network and gaining clients’ trust. I overcame this by focusing on relationships—attending local events, connecting with other professionals, and being active in the community. Consistency in communication and delivering results for my clients helped build my reputation over time. – Yosef Adde, South Bay Realtor
Celebrating milestones and small wins
At first, your “wins” might be small. Perhaps you’ll schedule a few listing appointments or assist another agent with a sale. Acknowledge these milestones and small wins. Use them as motivation to keep moving forward.
Realistically, the first few months as a new real estate agent will involve a significant learning curve. Be prepared to invest time in understanding the market, building your network, and learning the intricacies of real estate transactions. Income can be variable in the beginning, so it’s important to budget carefully and have a financial plan to handle the initial uncertainty. Patience is essential—success in real estate often takes time and persistence. Finally, stay adaptable. The real estate market can change quickly, so being flexible and willing to adjust your strategies as needed will help you stay competitive. – Justin Tanos, We Buy Houses In Orange County
Getting Licensed in L.A.
The California real estate licensing process is straightforward and involves these six steps.
Step 1: Meet the general California real estate license.
Are you 18 and honest and truthful? Then, you’ve completed the first step to earn your license.
Step 2: Complete 135 hours of pre-licensing education.
We know 135 hours sounds like a lot, but it’s not long when you consider that’s all the time you need to start a new career.
Step 3: Apply for the Real Estate salesperson examination.
You must take a test to prove you know enough to work as a real estate agent. Don’t worry. Your real estate school will help you prepare!
You must go to a test-taking center to complete the exam. When you apply, pay attention to the rules about what you can bring, your required IDs, and how long you have to complete the exam.
Step 4: Submit fingerprints for a background check.
Real estate agents must pass a background check to get licensed. You must submit your fingerprints electronically through the Department of Justice (DOJ) Live Scan Program, which takes and transmits fingerprints to the DOJ and the Federal Bureau of Investigation. There is a fee for fingerprint processing.
Step 5: Successfully pass the California Real Estate licensing exam with a score of at least 70%.
Are you worried about passing your California licensing exam for real estate? Allied Schools has some of the best exam prep in the industry.
Allied Schools offers:
- Exam Cram webinars
- Cram videos and workbook
- Progress exams
- Final exams
- Custom exams
- Audio topic reviews
- Digital Flashcards
In fact, we are so confident in our exam prep program that we offer a Pass or Don’t Pay Guarantee.
Step 6: Obtain a sponsorship from a licensed California broker.
In California, real estate agents must work under the supervision of a broker. Attend an Allied School Career Expo to connect with a broker in the L.A. area.
You should be excited to start your new career in real estate. It’s an excellent market with many opportunities.
My advice is to be patient and persistent. The L.A. market is fast-paced, and success doesn’t happen overnight. Focus on learning the market, understanding your clients’ needs, and building strong relationships. Don’t be afraid to seek mentorship from experienced agents, and always keep improving your skills. – Yosef Adde, South Bay Realtor
Ready to get started? Enroll in a California real estate pre-licensing course with Allied Schools today.
