Just starting real estate school what are some pitfalls to avoid in becoming a new agent?
- JeffreyLv 71 decade agoFavorite Answer
You will need financial and emotional support from family and friends. It takes a year to break even, if you are lucky! Second year to make a living. Third year to start making some good money. Four to five years to make serious money.
If you do not have financial support, you will need a years worth of living expenses plus 3-5 k to promote yourself, etc. If you have a spouse, you need your spouses support or you will fail.
It is very important to choose the broker you will be working for wisely. Some Brokers have good reputations, some has bad ones. This reputation is both how they deal with the public and their agents/sales associates. Each Broker has a philosophy about new agents. Some have the view; new agents come and go, some have training and support structures, because they see the importance of you not failing. Each Broker has a different way of how they get money from you. Some will charge desk fee's (charge you a monthly fee for a desk, telephone, copies, etc.) but give you a better split on your commissions, and others will not charge desk fee's but take a higher % of the commissions. Think of it as they are going to take as much money from you as you will let them. Commission fee splits are negotiable!
You need to network and do not waste your time in farming (picking a geographical area and handing out flyers, etc.). I spent 14 months on farming (what they teach you to do in real estate schools/the old ways of doing things) but it is no longer effective in this day and time.
There is an organization I found just when I ran out of money to support myself and it is called BNI (Business Network International). I believe there are similar organizations around but this is the one I found. Basically you form a group of friends who are business owners who referrer customers to each other. Example, a person calls you the Realtor and wants to buy a house. In your group you have an exterminator, a loan officer, an electrician, remodeler, etc. See the amount of people you can refer this new contact to and visa versa. BNI only allows one person from each profession into the group. It cost about 4-5 hundred a year but I have no doubt I would have made it if I had known about this type of networking was available to me.
Feel free to e-mail me if you have questions. I enjoy helping people succeed.Source(s): Been there done that! Over 90 % of new real estate agents will not make it to year two. I will make it the second time around when afforded the chance.
- ?Lv 44 years ago
You don't have got to be 21, or no less than now not in a few states. I obtained my truly property license on the age of nineteen and feature been/and shall be running as an "assistant" till this summer season whilst I will begin being a whole time truly property agent. Most most likely a organization will take you in, however hold in brain that promoting "highly-priced residences" and gaining "appreciate" shall be more difficult than you in the beginning imagined, chiefly if you're simply promoting as a part process.
- Anonymous1 decade ago
Have at least 6 to 9 months of your living expenses accumulated BEFORE you expect to make commission on any transaction.
Study hard for your state exam and enjoy the industry!Source(s): Best advice I got when I was in real estate school.
- SAINT GLv 51 decade ago
dont trust anyone. it is cut throat, and people will rip a sale off you as many agents have no morals. My sister in law was one, and she was too nice, she was constantly scammed by the more experienced agents and they would smile while they ripped a sale off her. too many wolves in sheeps clothes there. just be careful, there is good money to be made from hard work and people skills, but beware of your peers.