If your idea of the real estate industry comes from watching shows on HGTV than you may need to look deeper before committing to real estate as a career. Although negotiations, social interactions and appearances are in fact part of the job, real estate is much more than this.
85% of agents run out of money their first year. This is because they did not do a thorough evaluation of their finances prior to starting their new business. They did not create a sufficient “nest egg” or savings to cover life expenses while their business grows. Running out of money for basic living needs will kill your dreams of creating a career in real estate.
Remember to also have some money set aside for expenses like MLS strategies, marketing tools and ongoing education.
When you get your real estate license, you are signing up to become a business owner. Having your own business means you have more earning potential and the ability to create a schedule around your personal desires and needs. However, building a business that makes good money and allows for flexibility does not just come over night. For at least a few years, you will have to dedicate a lot of time and effort into your business. During this time, you will be building relationships with members of the community by spending hours a day networking and making calls.
You will also want to dedicate time to education and training. The Manfred Membership program is great for keeping yourself educated, especially in the first years! The more time invested, the more you can grow your business. After you have some experience, you may be interested in getting your brokers license and building a real estate team so that you can make more money and have a lot of time for your personal life. When you are ready to start your new brokerage, how you approach that goal is key, it's more than just taking a State licensing course. Creating a plan, forming a business entity, start up costs and finding your nitch are just a few important considerations
As a salesperson, you will split your commissions with your broker for every sale you make. Not all brokerages are going to offer you the same value or the same commission splits. Try not to choose a brokerage solely based on money. Some brokerages offer more support, resources and a better community reputation than others.
It should also be made clear that although you should expect to get some value from your sponsoring broker, the brokerage itself will not hand you business or clients. This common misconception could lead to failure in real estate.
Real estate is all about talking to people and building relationships. Not everyone you talk to will want to buy or sell a home. However, your goal is to have as many people as possible think of you when they are ready to sell. People do not typically buy and sell homes carelessly. It is a major life decision. For every 100 people you talk to, one might be considering this important life decision. This is why real estate is not a get-rich-quick scheme. You might talk to someone today who wants to sell 2 or 3 years from now. Hopefully when that time comes, your name is the first in their minds to handle this transaction. Real estate salespersons and brokerages with the best long-term reputation will have the most lucrative careers. Bottom line, if you are intolerant to rejection or hard work over a long period of time, real estate is simply not for you. On the bright side, the more “no’s” you hear each day, the closer you get to a “yes.”
As a real estate salesperson, you will need to regularly “cold-call” potential clients. Cold calling is when you reach out to someone who is not expecting your call to essentially talk them into trusting you to handle their real estate transaction when before they were planning to handle it themselves. Cold calling can also be used to simply let people in the community know that you are a real estate expert and that when they are interested in selling their home, you can make the process easier for them and more financially responsible. You must be willing to create “scripts” and have a pitch ready to convince people that it is worth hiring you. Let’s face it, this doesn’t sound easy! Unless you are very outgoing, real estate will likely require you to kick your comfort zone to the curb!
Here at the Manfred School, we never want to profit from our students’ failure. We want our students to be prepared for what they are getting into so that they can be successful. Your success is our success! Remember, you can do anything you set your mind to. Having a solid plan in place will ensure that you will enjoy great success in this industry!
Author - Sydney Roy - Marketing Strategist @Manfredschool