The real estate industry offers one of the best careers I could ever imagine. Low start-up costs and it gives someone an opportunity to run their own business. It offers freedom of time to come and go as you please. It allows you to escape a 9-5 job with flexibility and the ability to earn a very lucrative income.
Many times I have seen people jump into the industry with unrealistic expectations. Putting themselves behind the 8 ball early, so I have put together a short list of things that you should be aware of before committing to a real estate career.
Real estate agents do not get paid weekly
This may come as a surprise to some but real estate agents are not paid by the hour but by the sale. This means no weekly paycheck! Helping someone buy or sell a home allows an agent to receive a commission based on the sale price of the home. Typical commissions range anywhere from 3-6% or more, with the buying and selling agent splitting the commission. Obviously, budgeting your income is very important as sales of homes may not be regular throughout the year.
Lead generation is your top priority
Once you are licensed as a real estate agent, lead generation is your top priority to having a great career. Without leads and opportunities, you will not be able to work with clients and ultimately earn money. Obviously customer service is very important as well, however without the leads coming in, you may find yourself waiting a long time for your next client.
6 months salary saved before you get into real estate
Even if you find a client to work with you and you get an accepted contract signed, it is highly unlikely that you will receive any earnings until the property closes. This could be 30, 60, or even 120 days away. This is the reason that you need a little nest egg saved up to make sure you can keep going until some money does come in to support you.
Attributes that make up a successful agent
Many attributes make up a successful agent. Do you think you have what it takes?
- Self starter, motivated
- Good communicator/listener
- Able to work from a plan and have goals
- Professionalism and integrity
It costs money to sell real estate
You are starting your own business and there are costs associated with running a business every month. You have fees to pay to the Broker that you are associated with. You have car payments and cell phone bills. You also want to be putting money back into your company for lead generation purposes as well. Advertising, web presence, flyers etc. The business doesn’t have to cost you a lot of money but there will be costs none the less.
Real estate is a full time career
There are many people who sell real estate part time that do well. However, the really successful agents understand that this career requires a full time commitment. We live in an age where instant response is crucial and working part time limits your availability to your clients. Sure it can be done, but the more time you spend on your business, the more you will get from it.
P.S. Check back soon for my upcoming newsletter with more valuable tips that will help you in launching an exciting and very profitable real estate career.