You’ve Built the Business — Now Build the Wealth
A Realistic Wealth Plan for Agents Netting $120K+
A Realistic Wealth Plan for Agents Netting $120K+
⚠️ Disclaimer
This article is for educational purposes only and reflects what has worked for me personally as a licensed REALTOR® and tax professional. Everyone’s financial situation is different — income, dependents, state laws, and goals all vary.
Before making decisions about tax structure, investments, or retirement plans, consult a qualified tax advisor, financial planner, or attorney who understands your personal situation.
👋 The Scenario
You’ve done it — you’ve built the business.
You’re closing deals consistently, clearing over $120K a year after expenses, and finally feeling like you’re winning.
But if you’re being honest, most of that money still moves faster than it stays. You pay taxes late, cover family needs on the fly, and don’t have a long-term plan for where your income’s going.
You’ve been playing defense.
Now it’s time to play offense — to turn income into wealth.
This is a real, no-fluff guide for agents ready to shift from survival mode to strategy. Each step includes what I personally did at this stage — not a one-size-fits-all plan, but a framework to help you start yours.
🧱 Step 1: Organize Your Money Like a Business
Goal: Stop guessing where your money goes.
Let’s say you gross $220K and net $130K after expenses.
Set up three accounts:
Operating (50%) – for business expenses and marketing.
Tax (25%) – for quarterly payments and payroll taxes.
Personal (25%) – your “paycheck.”
If you’re still Schedule C:
→ Use these splits monthly to simulate payroll and smooth cash flow.
If you’re an S Corp:
→ Pay yourself a reasonable W-2 salary (say $60K) and take the rest as distributions — potentially saving $7K–$10K annually in self-employment tax.
💬 Consistency wins. Wealthy agents don’t “wing it” — they automate it.
What I Did:
When I first hit consistent six-figure income, I used Relay Bank to automatically split deposits into tax and personal accounts after every commission. It wasn’t fancy, but it built control and discipline — two things I’d lacked early on.
💼 Step 2: Build Your Tax Structure Before You Scale
Goal: Stop overpaying and start planning.
If your net income has held above $100K for two years, it’s time to:
Elect S Corp status.
Run payroll through Gusto or QuickBooks Payroll.
Meet quarterly with a tax professional to project and plan.
💡 Your tax plan is your first investment plan.
What I Did:
I’ll be honest — I made my S Corp election too early, before my income and systems were consistent. I thought it made me “look official.” Instead, I ran into IRS penalties and headaches because I didn’t fully understand payroll, distributions, and how to handle taxes from my own business account.
Timing is everything. If I could do it again, I’d have waited one more steady year, built cash reserves, and then made the move with better systems in place. Now, I recheck that setup annually with my accountant to make sure it fits my current stage — not just my ambition.
📊 Step 3: Know Your Real Numbers
Goal: See where your money truly goes — not what’s in your bank.
Monthly routine:
Review your Profit & Loss report.
Calculate your profit margin (target 50–60%).
Review your top 3 spending categories.
Compare to last month’s numbers.
If you don’t know your net until tax time — you’re managing blind.
📈 You can’t build wealth on guesses.
What I Did:
In my early years, I didn’t review my books monthly — only at tax time. Once I started using QuickBooks Online and reviewing my P&L every 30 days, my entire mindset shifted. Seeing my numbers helped me make better marketing decisions and stay ahead on taxes instead of scrambling.
🛡️ Step 4: Secure Your Family and Lifestyle
Goal: Before investing, make sure your base is protected.
You’ve earned the right to breathe — now make life sustainable.
If you have kids or a spouse:
→ Get term life insurance (10–12x annual income) and disability coverage for at least 60% of your pay.
If you’re renting but financially stable:
→ Consider buying a primary residence for both stability and tax benefits.
If your car’s unreliable or unsafe:
→ Upgrade within reason — this is about safety, not flash.
The point isn’t lifestyle creep; it’s family security.
🔑 Stability is the foundation that makes real investing possible.
What I Did:
For years, I thought “grind season” was what success required. Social media told me to outwork everyone — and I did. But the cost was high. I put my family on the back burner while I chased a moving target.
By 2023, we had tens of thousands in avoidable debt, no margin, and no peace. I was sprinting toward nothing, convincing myself it was progress.
It wasn’t until I gave my life to Christ in 2024 that things started to shift. I realized I wasn’t building wealth — I was building exhaustion.
The fact my wife stayed through that season is a miracle in itself. Today, every financial decision starts with one filter: does this honor my family and the life we’re building together?
My True next goal? I want to retire my mother-in-law and hire my sister-in-law to give her a better life with a career she loves.
Faith gave me focus. And focus gave me a foundation.
💰 Step 5: Build Wealth Where You Have the Advantage
Goal: Invest strategically — in what you understand.
You don’t need complicated investments or “expert-only” products. You already have an advantage: you understand real estate.
Start where you know the landscape.
Example Paths
For retirement growth: Open a Roth IRA or Solo 401(k). Automate $500–$1,000 per month into low-cost index funds (like VTSAX or VTI).
For active income: Use your real estate experience to buy small buy-and-hold rentals (2–4 units). Focus on cash flow, not hype.
For families: Double your retirement advantage — two Roth IRAs, one for each spouse, compounding every year.
📈 Agents already live and breathe real estate — that’s your unfair advantage. Use it.
What I am Doing:
I focus on investing $14,000 across two Roth IRA accounts (mine and my wife’s), both in VTSAX, for long-term growth and simplicity. Mainly because i dont have time to worry about what stocks are best, its’s not my area of genius.
I had also built a small rental portfolio early on — but during my “bad realtor year,” I sold every property just to cover expenses. It was one of the hardest lessons of my career.
Now that my business has stabilized, my partner and I are rebuilding our buy-and-hold portfolio starting next year — focusing on 2–4-unit properties with solid cash flow and appreciation potential. The goal: long-term stability through real estate we actually understand.
🔚 Final Word
You’ve already proven you can sell. Now it’s time to build.
At $120K+ net, income isn’t the problem — direction is. The next level of your success isn’t about working harder; it’s about making your money work harder for you.
Start by protecting your family, mastering your numbers, and investing where you know the terrain.
That’s how agents stop surviving commission to commission and start building generational wealth.