Are there business loans for new Realtors?

[Allison Meggison]

I’m wondering who would be most likely to lend me money for my real estate business ? Would I be better off applying for business loans, personal loans, a business line of equity, business credit cards, regular credit cards, hard money or something else. My credit is bad & I’ve only done like 6 deals in 2 years. 

[Robert Carmody]

Have you considered working for another agent/"rainmaker" or larger team that is already successful in your area?  Doing so might help provide a steadier pipeline of customers, along with having mentorship and support from the team leader and experienced team members. Your commission split is likely to be less than it is working on your own, but you may sell more houses and find that your income becomes more reliable and consistent. Also, depending on the team, some of your business expenses might be covered, such as the cost of signs, business cards, printed materials, online marketing, etc. 

@Bruce Lynn is correct. Lead with revenue, not debt. As an agent without an extensive and consistent income history, and especially if your credit isn't stellar, you'll have a tough time finding a creditor willing to lend you money to run your business with. Most likely you will be limited to whatever credit you already have available to you through personal credit cards, or credit lines and equity loans that are secured by other assets - like a house or vehicle. Using that type of credit is very expensive and doesn't guarantee that your problems are solved. The only thing that it does guarantee is that until it is repaid, you've got more expenses to worry about. Instead of borrowing money right now: 

1) Look carefully at all of your monthly expenses and identify recurring costs that can be eliminated or reduced. It's easy to sign up for services that we don't end up using but are automatically charged for each month. Minimize frivolous spending, and impulse purchases. 

2) There are many ways to cultivate new business that cost nothing or very little. Use as many of those as you can. Examples include: 

Hosting open houses (for other agents if you don't have active listings) every weekend, preferably the same areas and/or price ranges. 

Make calls to your sphere and find out who might be thinking of selling this spring. 

Use social media - facebook, nextdoor, and instagram are some popular ones that seem to yield good results for many agents.

Get involved in your neighborhood or community - neighborhood associations or interest groups or volunteer with community organizations. 

Network with other service providers connected to the real estate market - sometimes the busy carpet cleaner or painter in an area knows who is going to be selling before an agent is contacted to list the property. 

Find a need or service that is currently underserved and become the expert. One example might be networking with a reverse mortgage specialist if your area is popular for retired people and seniors. Many seniors can use reverse mortgages for home purchases, but most don't know that, and neither do agents all too often. If you are the one that knows all about them, and you build a good rapport with that lender, guess who they'll refer their pipeline of buyers to?