Are you looking for a career in real estate but don't know where to start?
We have information and classes available whether you are looking to start your career, doing your continuing education or a seasoned agent keeping current on the continuely changing landscape of real estate. Keep reading for useful tips to help your real estate career or CLICK HERE to go straight to our resource links.
What should you do before starting a career in real estate?
Before starting your real estate career; get in the right mindset, do your research, start a budget and create a plan.
1. Get In The Right Mindset
Know that you are about to start your own 100% commission based business with a high fallout rate where, You are the boss and you have to convince others to use your services. If that excites you, this is a great place to start!
A little nervousness is normal but this could be a great life changing decision. You may be breaking into entreprenuership for the first time and That's why mindset is key! This is the first step in turning an opportunity into something amazing for your future. Take some time to answer these questions for yourself:
- Why? What are the driving forces that have led me to this decision?
- What do I most want out of this business?
- What most interestes me about real estate?
- What will my success in real estate ultimately do for me and my family?
- What is my motivation?
- Do I attract people? Do conversations come easily?
- How is my health, energy, drive, motivation and overall well-being?
2. Do Your Research
You may have talked to a few real estate agents by now, but have you reached out to a local lender, real estate attorney, title rep, inspector or stager?
Make the effort to talk to several people within the real estate industry who's oppinions you value to discuss their experiences.
This engagement can strengthen your resolve to move forward or make you re-evaluate your decision. It is important to know yourself and where you are on your journey. No one who only dips their toes in is ever satisfied. These resources are great tools to help educate yourself and grow your mental muscles and to give you a road map if you are ready for the journey.
3. Be Finacially Prepared
You need a financial cushion! There are varying opinions on what that looks like for each person. It is a great idea to talk to a financial advisor or mentor who can help you determine your budget needs. Many suggest up to 6 months living expenses covered so that you and/or yours won't feel the stress as you are growing your business.
You are building a network and pipeline. Most every paycheck in real estate will arive 60-90 days from signing sales or listing paperwork. That pipeline you are building will need to be tended to and grown over time so that it can multiply and create the revenue stream you are working towards. This is why it is so vital to begin building your connections and data base now - even before you get your license.
Learn how the system works, how commissions work and what percentages you should expect as your actual income. Be knowlegeable in what percentage you request in your contract, what your commission split is with your broker and/or the listing agent, also how much to determine set aside for taxes.
Starting any business can be expensive. Rest assured, if we compare the start-up fees for real estate to other traditional businesses out there, it's actually quite cheap. Here are some expenses to consider budgeting for:
- Pre-license: required classes, exam prep, application fees
- License: License fees, local board and MLS dues
- Dues for C.A.R. (California Association of Realtors) and N.A.R. (National Association of Realtors)
- Business expenses: Lockboxes, signs, business cards, marketing tools, various technologies, professional services (i.e. professional photography or staging) and continuing education.
Your chosen brokerages may provide some of these resources so be sure to inquire about them during your interviews.
As a business owner there are a lot of expenses that can become a tax write off. Be sure to read up and maximize on your opportunities and minimize expenses.
4. Have A Plan
Now that we've got the right mindset, have done our research and have made a budget we need to create our game plan.
Spend some time outlining the following:
- How much money do I need to make?
- How much money do I want to make?
- What are my 30-60-90-180 day goals?
- What is the average commission in my area?
- How many closings will I need to hit my goals?
- What brokerages have I interviewed? What training do they provide? Will my broker provide mentorship opportunities?
- Do I want to be a solo agent or join a team?
- How will I spread the word about my services?
- Who is my target demographic?
- What kind of real estate am I targeting? What aspects of real estate does my broker serve if I want to expand?
- Who are the top 100 people I know most likely to buy or sell real estate this year?
- Do I want to be a full-time or part-time Realtor?
Original article material found here at inman.com
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- Della Meyer