New real estate broker advice

[Brittany Flanagan]

I am currently in the process of getting my real estate license and I’ve noticed that in real estate, you either become very successful, or fail miserably.

What is it that sets the successful brokers apart from the rest? What are the key moves I need to be making to have a successful first year in real estate?

[Joel Owens]

Hi Brittany,

DEFINE the why you are getting into real estate. If it's usually just for money most agents fail miserably. The other reason they fail is it's not a job you clock in and out from that gives you a check. You are a running a BUSINESS that goes 24/7. You have to clearly define systems and processes of what you want to do and what you don't for your ideal client.

In the beginning most are not established unless they had a big people base going in. Some I have seen in politics and then the go into real estate so already have a big following.

If you are looking at residential real estate that can be  a lot of nights and weekends and wreak havoc on your personal and family life. You might be okay the first year but as the time competes with family things can get strained.

In commercial real estate the hours are more 9 to 5 Monday through Friday. It is more business relationships with investors rather than showing house and all of that more emotional type tear eyed stuff. I have some friends that love residential and thrive on it and others that can't stand it. You have to do what makes you happy. Agents doing it part time tend to not get ahead. Most buyers and sellers do not want a part-time agent finding their home or selling their home. You are asking them to commit 100% to you with an agreement but you are only committing part-time to them with your real job on the side. In other words you are not ALL IN.

Most agents are part-timers and a few are full time. Even those full time a lot of them are not very driven to be the best. They eek by making a living with very little reserves. Then they are the top 10% and even the 1%. They strive to get better everyday in all aspects of their lives and are never satisfied with learning. They are leading the field, pushing the edge of personal and professional development to make a better version of themselves day after day.

In the beginning in most cases you are not a known commodity so have to develop your business. Over the years more people start coming to you because of reputation versus seeking people out and asking for business. The track record of success and knowledge draws them in.

These days almost 17 years in the business in commercial real estate I can define my ideal client and set parameters of who I want to work with. I didn't start out that way all those years ago. I remember when a 500k sale was a big deal. Now my minimum is in the millions. I constantly read and learn everyday. You likely want to take a big chunk of your money you earn and invest it to start creating positive cash flow. This way as your income builds you create a bigger funnel of your ideal client and do not work with the rest because you have passive income coming in and are not living deal to deal.

On the residential side a high earner in most cases is likely a few 100k a year unless in CA or NY etc. where selling prices are really high but cost of living is also so it can be a wash in returns. Some with teams in most suburban type areas might make 300k to 500k a year income.

On the commercial side some make into the millions in commission annually. I personally like to do less transactions for volume but larger deals and more exclusive focus and attention with my clients. I can do 10 to 15 deals a year and make a million in commission with my company I own. When you get older ( I am 45 now ) the allure of tons of money goes away and TIME is what is most valued. The life experiences  like my experience going on a trip to Iceland is what I treasure everyday. Making the money is nice but what it affords me to do what I am happy and passionate about is the key. If you do it for money eventually burn out sets in unless you LOVE money. I know very few people maybe 1% that love money. They like what it can do for them to focus on other things that make them happy but they do not count money and obsess over it daily.

Good luck.