Need help with my next steps!!

Need help with my next steps!!

Real Estate Broker · Berkley, MI · Member since 2021 · 62 posts · 47 votes

Good Afternoon BP!

I am stuck between a rock and a hard place. My career path is what got me interested in real estate investing to begin with but I am no longer accomplishing what my mind is seeking through my Job. I have been a Mortgage Banker since I graduated college in 2017 and I have been investing in real estate for the last few years. I have come to a point in my career where there is no longer any growth unless I take on a management position in which I am not interested in doing. As the years have gone on I have become more and more fascinated with every part of the real estate transaction from analyzing properties, to underwriting, to acquisitions, to development, to management, etc. In all of my spare time I find myself reading books, blogs, articles and watching webinars, etc.

The problem is, my professional resume doesn't have any real estate background other than mortgage sales. Commission based income has opened my eyes to financial freedom. I have done a lot of research lately and noticed from what it seems, that a good introduction to the industry seems to be in commercial real estate brokerage. This way I get the knowledge, exposure, and experience to be able to accomplish my goals financially and mentally. I like the flexibility in sales and I like the uncapped potential it can provide.

With that being said, I have a personal goal of being financially independent in the next 8 years (I will be 35), but I am gun shy to make the jump to CRE brokerage knowing that I will be taking a step back to take a step forward. Having to learn a new industry and knowing this will slow down my real estate growth in the short term makes me nervous but with the hopes it will be accelerated once I have built the relationships necessary to succeed and accomplish my goal of being financially free in 8 years.

I know this isn't directly related to real estate per say but I would really appreciate any advice anyone can provide as I am trying to figure out the next steps in my career.

Thank you so much!

2Reply
26 views

Most Popular Reply

Realtor · Atlanta · Member since 2018 · 126 posts · 81 votes
4y

Commission based income can indeed be life changing. I've always said Real Estate sales has the lowest barrier to entry with the highest potential for earning. 

Why not start in residential sales though? Commercial can be lucrative but it is much harder to break into and the checks are fewer and farther in between (at least at first. they are also larger though). 

You can learn a lot in residential sales, make a lot of money and transition to commercial whenever you want. You need to switch out of the employee mindset though. You're not starting at the bottom of the totem pole. You are literally starting a business. One that you can eventually step out of and collect passive income with or sell for 7+ figures. That being said, it is a lot of work. You should know exactly what you're getting into before committing.

Shoot me a message if you want to discuss further. Hope this helps!



See this reply in the discussion

8 Replies

Jump to latestLatest
  • Realtor · Atlanta · Member since 2018 · 126 posts · 81 votes
    4y

    Commission based income can indeed be life changing. I've always said Real Estate sales has the lowest barrier to entry with the highest potential for earning. 

    Why not start in residential sales though? Commercial can be lucrative but it is much harder to break into and the checks are fewer and farther in between (at least at first. they are also larger though). 

    You can learn a lot in residential sales, make a lot of money and transition to commercial whenever you want. You need to switch out of the employee mindset though. You're not starting at the bottom of the totem pole. You are literally starting a business. One that you can eventually step out of and collect passive income with or sell for 7+ figures. That being said, it is a lot of work. You should know exactly what you're getting into before committing.

    Shoot me a message if you want to discuss further. Hope this helps!



  • Real Estate Agent · Cincinnati OH, USA · Member since 2017 · 79 posts · 61 votes
    4y

    Could you start part time working for a CRE broker while still staying at your full time job while you learn the business (and see if you really like the business or just like the idea of commission based income)?

  • Real Estate Broker · Berkley, MI · Member since 2021 · 62 posts · 47 votes
    4y
    Quote from @Sarah Bojorquez:

    Could you start part time working for a CRE broker while still staying at your full time job while you learn the business (and see if you really like the business or just like the idea of commission based income)?


     Sarah, This is a good point and thank you for your feedback. I have been in 100% commission sales since entering into mortgages so I know I can make it work but I also now it is still different at the same time.

  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    4y

    I'm always surprised when people want to jump from mortgages to real estate or real estate to mortgages.   While I've never been in the mortgage business, to me it is the same business.  Same customers, basically same issues, same people, same house, same numbers, etc.  You're either selling them a property or selling them a mortgage on the property.  Both are sales jobs.  I would expect both are 100% commission.  If you can close loans you should be able to close real estate or the other way around.  

    Switch if that is your dream....but honestly I don't really see the difference in most cases.

    I expect these days mortgage sales could be a little more virtual than real estate sales, but could go either way.  One of my key loan officers I've never met.  Most I have met, but maybe only 1x or 2x....not like I see them regularly.  As long as they're delivering what they promise, I'm happy to email, phone, text.

    Some chance you get more referral business in mortgages from realtors than the other way around.

    So in real estate sales you might have to be prospecting more.  More phone calls asking for business.   When I think about the networking groups I've been to, it's one realtor, one mortgage person, one roofer, one insurance person, one home warranty person, one remodeler, etc....all selling to the same customer.

    When you say there is no growth in mortgage business, I'm not sure I believe that.  Do you have a team?   A team of sales people, a team of processors, etc.   As a mortgage broker I think you could probably build it as big as you want to build it.  As you grow it might be your name on the business, but when customers call in they get one of your loan officers assigned to them...and a processor after that.  Am I wrong?

    Now if you are thinking about investing, you can do that as a realtor or a mortgage broker.  Easy for most people to run that as their side hustle.  Might even help to keep the day job so you have that nice 1099 income coming in and maybe some benefits like health insurance.  That helps fund your real estate investments.

  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    Hi @Zachary Cummings you got some great advice above. If you feel this prompting toward CRE brokerage you may want to find about 20 Detroit area CRE brokers to interview. Tell them your dreams and concerns. You may even find the perfect fit to mentor you along the way. Good luck!

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Sounds like you're suffering from a bit of burn out at only 27!

    The grass isn't always greener though...

    If you shift careers (slightly), how are you going to avoid being in this same situation in a few years - in the new career? 

    We all have a ceiling on our career growth unless we want to get into managing others that we can delegate to. 

    This is true even if you build a team - someone has to lead them to success.

    Mortgages, residential real estate, commericial real estate, even real estate investing all have a ceiling unless you want to start managing others.

  • Real Estate Broker · Berkley, MI · Member since 2021 · 62 posts · 47 votes
    4y
    Quote from @Paul Moore:

    Hi @Zachary Cummings you got some great advice above. If you feel this prompting toward CRE brokerage you may want to find about 20 Detroit area CRE brokers to interview. Tell them your dreams and concerns. You may even find the perfect fit to mentor you along the way. Good luck!

    Paul, Thank you for commenting on the post. That is a great idea. As I gravitate closer to the switch, I will definitely do so.
  • Real Estate Broker · Berkley, MI · Member since 2021 · 62 posts · 47 votes
    4y
    Quote from @Drew Sygit:

    Sounds like you're suffering from a bit of burn out at only 27!

    The grass isn't always greener though...

    If you shift careers (slightly), how are you going to avoid being in this same situation in a few years - in the new career? 

    We all have a ceiling on our career growth unless we want to get into managing others that we can delegate to. 

    This is true even if you build a team - someone has to lead them to success.

    Mortgages, residential real estate, commericial real estate, even real estate investing all have a ceiling unless you want to start managing others.

    Hey Drew! So I'm not necessarily burned out but more along the lines of not learning anymore. Growth to me is learning and evolving as a person in every aspect of life. I have a good feeling that the business I am going to jump in will provide me with opportunities that I have never thought of not only in real estate investing but my career and financially as well. Thank you for your comment!

Join the conversationCreate a free account to reply, vote on answers and follow this thread.