We see many students come through our school, many already have a sponsoring Broker and other’s do not. We recommend those who do not, talk to as many as you can before you make the decision, in fact this should be the least of your worries while contemplating this new career in Real Estate? There is way more than choosing the right Broker.
One of the first things you need to realize when getting into real estate, you are not starting a new job. You are starting a new business. There is a big difference!
You do not get paid unless a house gets sold
You may go months with out seeing a paycheck. creating a budget can be challenging. In the corporate world you know exactly what day you will get paid and how often. As a real estate agent you will not know for sure when the next commission check will come in. However, you do not need to worry about the company cutting cost and reducing your hours or being laid off.
You would have to fire yourself. In the corporate world you do not have any control over how that business grows and if you do, are you working towards your success and dreams or someone else? As a real estate agent you make the decisions. You decide your own success and how long you will be in the business.
Are you sitting on a nest egg before you start your business?
When a house goes into contract it takes on average 30-60 days to close. Even if you were to get a deal within the same week that you got your license it will still be at least a month or longer before you see an commission check. It takes time to build your business. How much you need to save depends on your cost of living, how prepared you are to start your career, and how much time you will put into starting you business.
Aside from supporting yourself, you will also have some expenses. You will need to join an Multiple listing service (MLS), marketing, signs, lock boxes, business cards, and other forms of advertising. Exactly what you will need to pay for largely depends on what agreement you have made with your broker. Some brokers will help with some of the start up cost, some brokers will offer a larger commission split. When interviewing with brokers talk to them about what you can expect in terms of start up cost and what will they do to help you build your new business?
How can you start to build a nest egg?
Try paying yourself first, 10% of every dollar you make should be going into a savings account. It’s only 10%, but it will grow your savings and net worth more quickly than you might think. Murphy’s Law predicts that unexpected expenses will come up. Even if you don’t believe in this law, being prepared for the unexpected is wise counsel. If you want your finances to change, you are going to need to change something about your finances.
What are some of the activities real estate agents do?
f you have this vision of driving your client around and showing houses like the agents on TV, you really should take a closer look. This may have been true 30 years ago but today the real estate business is no longer a transactional business. Here are some of the activities, skills and mind-sets you should expect from a successful real estate agent.
- Understands time management – Uses time efficiently and knows how to control attitude
- Knows their business numbers – 85 % of new agents run out of money within their first year of business
- Setting up a systematic database and understands how to build it through various activities
- Networking, prospecting, contacting your center of influence (COI)
- Is comfortable with setting realistic goals (SMART Goals) Smart, Measurable, Achievable, Results-focused, Time-bound
- Listing presentations, how to get price reductions and creating an effective CMA (Cost Market Analysis
- Knows how to handle stalls, objections and conditions – knows what to say and when to say it
- Knows how to negotiate an offer and best represent their client
This will give you an idea but by no means is a complete list and many of these activities will be taught by your sponsoring broker. There is more than one way to make money in real estate. You can work with commercial properties, work with corporations, you maybe selling high end luxury homes, short sales, and/or foreclosures. You may manage properties. One day you may become a broker and manage a team of agents. The list and possibilities are endless.
What are the minimum requirements to getting your real estate license?
Be at least 18 years of age
Be a citizen or be a legal permanent resident
Have no felony convictions
Complete the 75 hour Qualifying Course
Successful completion of the course requires 90% attendance and passing the school final exam.
Pass the NYS Department of State (DOS) Salesperson licensing exam ($15)
Have a sponsoring New York State Broker (not required to attend course, must have to apply for license)
Apply for Salesperson license ($55 for two years)
How about a different path or approach to just doing the minimum?
Most real estate schools would encourage you get your license first and rely on your sponsoring Broker to help start your business. Most real estate schools measure there success by the number of courses they sell. They will tell you all the great benefits to becoming a successful real estate agent; Unlimited income potential, be your own boss, create your own schedule, never miss your kids soccer game again, do what you love, and all of these things are true IF you become a successful real estate agent.
Getting your real estate license does not give you any of these things. There is a big difference in being a licensed real estate agent and being a successful licensed real estate agent. Having a license is like having a car. It will get you no where if you do not know how to use it. Manfred Real Estate Learning Center is different from your traditional real estate school. We measure our success by agents who create successful careers. It may surprise you that we suggest NOT getting your license right away. The number one reason agents fail is because the run out of money before they are successful. More Than Choosing the Right Broker.
Do Fall for the Traditional Path
The key is understanding that success is a result of action steps created at an earlier time. The traditional path is that an agent will get their license and then start building their business. The problem with this method is that agents run out of money before they get to the first closing.
We recommend you start building your business before you get your license, more than choosing the right broker. That way once you get your license you will be able to dramatically reduce the amount of time it take to get to your first closing.
Choosing the sponsoring Broker should be the very last step to creating your business! For more information regarding a successful career in Real Estate and how our process is different from all the rest, please feel free to contact our school at (518) 489-1682 and speak with John and Heather Manfred, we always make ourselves available for our students and always happy to help? You can also try our free online course, Look Before You Leap, to learn there is more than choosing the right broker, take it one step further and consider reading our book called “The Real Estate Business Launch: New York Edition”