Q. I read your column and really wanted to connect with you as I am looking into pursuing a career in real estate. Think you could offer any tips?
As a salesman, you MUST work for a Real Estate Company. So find a real estate agency office that needs you (not a huge office somewhere where high producers rent their desks and run their own mini-corporations with lots of staff and won’t even learn your name for the first year). You may not believe me, but passing the license exam will only allow you to work in real estate. In fact, you won’t know anything. A smaller office will have the time and desire to train you.
When picking who to work for, you may be surprised that each Realty Office offers different “splits” to their agents. Some will offer 50–50, some 60-40, some as high as 100 percent. But if you’re a newbie, don’t worry about getting the best split from the broker until you’ve proven that you like the business and have a few sales under your belt. Then you can renegotiate your split, or go somewhere else.
Focus on residential homes until you’ve cut your teeth. Then, if you have the desire, consider expanding to commercial or leasing. The laws are different in different states, but, in general, your single license will allow you to practice in all those categories. You will soon come to understand that working up a lease or a contract might be thought of as practicing law. And most states do not want you to practice law without a license.
There are a few other reasons why you might consider commercial real estate. Residential agents are busiest on weekends and many may only take Monday and/or Tuesday off. If you have small children, you will have to decide who will get your time. Commercial Realtors generally work 9 a.m. to 5 p.m., Monday through Friday. But even though the commercial deals are larger, there are fewer of them. It’s not unusual for a commercial agent to make a check for $50,000, but not get paid for 12 to 18 months. Most agents can’t wait that long to get paid. But if you have invested you time wisely, and have “deals” in your pipeline, it’s a good living and commercial may be the way to go.
Lots more tips in my old columns, most of them are posted here. Look back to see them
Unfortunately, with the economy sitting the way it does, a full-time office job during the day is my only option as of right now. I have some savings to help with a transition but it won’t be for a few months yet.
Watching the economic climate and larger cities that are beginning to rebound, I think now is the time to get vested in the industry, but with my bills, unemployment just isn’t an option right now.
I’ll have to read some of your older blogs to really get a sense of what I have to do. Commercial real estate is definitely something I will look into.