All Forum Posts by: Craig Moore

@Craig Moore  give you a scenario that happened last week for my wife.

one of our clients  ( I say ours because everything I have is also her's  LOL)  that we sold 4  duplex's and a few 4 plex's to in 2005.. calls they have one of the duplex's they want to sell.

Wife lists get photos taken .. ( out sourced professional photo's) loads it up to MLS.. full price offer within 3 hours first day.. ratified contract 1 hour later.. inspections are today.. close mid may.

425k.. past client she will cut commish to 2% and pay the other side 2.5% which is common in our market.. so keeps client loyal as they are getting a deal.. so basically 8,500 in income for what 5 to 7 hours of work max... this is were it gets good... can you do that starting out.. yeah it can happen but it really does not get good until your in the referral stage of your business.

Just like owning and operating any other type of business you make it through the lean years and the business just gets better over time or usually does.  And of course I will never see any of it.

@Patti Rosepiler  your scenario is played out thousands of times and why women have come to dominate the RESI real estate sales world... IE they have a spouse that can pay the bills why they get started...

To me all things real estate related are way over glamorized .. making the general public think realtors are vastly over paid etc etc.. which nothing can be further from the truth..

As  a successful realtor you need to be a problem solver you need to be part mediator to down right being a therapist as you help people through the transactions.   LOL

Its the same as we see on the wholesaling threads all these folks think they can buy there way into it or get rich with no money..

Everything real estate related takes MONEY time skill  etc etc.

But once you get over the hump and your work your butt off for your clientele base a good realtor will be only working referrals..  After about 10 years it gets pretty dog gone good you choose who you want to work with.. you wake up to an e mail from a client you sold a house to 7 years ago that now wants to list with you.. and right now listings are money in the bank.

My wife did a little over 15 million last year in sales.. which gets her into probably the top 250 brokers here in our area.. and its ALL referral based.. she does not spend one dime on marketing. But she has earned it in the early years.

So that's why in our day starting out.. it was common knowledge you needed at least one year of your living expense's in the bank plus some.. if you even wanted to think about going into real estate its simply like buying a business.. you don't buy a subway sandwhich shop with no up front money.

@Craig Moore, I do enjoy the freedom.  At times I feel like I'm running 24/7,  but that is usually only in spurts.  My plan (and it worked) was to start with "free" things that brought business. I offered to sit at open houses (only works if it is a hopping, high traffic, popular area) and signed up for desk duty (answering calls and walk ins). This literally got me rolling SO fast I didn't hardly have time to sit and do mailers, etc.  One person leads to MANY others. Just being out and about got me going quickly! Being friends with super busy realtors helped too. When they were overloaded, they would just ask (almost beg) for help and I'd jump. Feel free to call me if you want more tips. I could go either way on the team idea. I joined one at first, but I found out I do better on my own.  Long story!!  

For the sake of discussion, I am going to say not to go full time first. 

I'd spend time immersing myself into areas which will help my career before taking on 4-6 months of expenses.  I don't think it will be too difficult to learn through others via mentors, networking, meetups, training, reading, conferences calls, social networks, etc. I can take advantage of all of that and not worry about needing months worth of living expenses on the chance that I can make a living at some point in the future. Find a part time job or volunteer in areas which put you in front of people you can leverage in the future.

Analogies. If you want to be a day trader, you either demo trade till you prove yourself or you open an account with a small amount you expect to lose as "tuition" cost. You don't quit your job and learn while losing all your money. The same can be said about playing poker as a pro. 

Now my frame of mind might be because I have a family to worry about and I am limiting my risks. I could be thinking of jumping in when I have no other responsibilities. However, I think making calculated decisions and running things like a business is the best way and stage of life having little to do with it.

Just my two cents.

Eric

@Craig Moore yes that is true, those leads do belong to the team and brokerage. At that point though, you'd be ready to take on being solo. You're not going to leave the team until you find something better or knowing what it takes to go out on your own. 

In all honesty, real estate is easier than other commission based jobs in the sense that everyone can be your client because everyone needs a roof over their head, whether it's a rental or a purchase, people know they need your services.

@Craig Moore, I'm on my 5th year as an agent. I moved here to NC, no friends, family, etc, so I was a bit scared!  However I made sure I was "debt free" first (meaning everything but mortgage) and so we live within the means of just my husbands pay, that way anything I made the first year was considered extra.  Once I got rolling, we have gotten a really comfy lifestyle.  I will not lie...it is MUCH harder than I thought. There are days I literally want to throw my phone in the river and never deal with a person again. LOL!!  But if it's what you love (and it is for me) the next day I'm ready to do it all again!  Honestly the deals aren't the hardest part for me. It is dealing with odd personalities. Calling my phone constantly, not compromising in a deal, not following up on something they agreed and signed for...I could tell you a million crazy stories, but every now and then I will have an easy, quick deal and make $5000, so it evens out. Good luck!  And do not let anyone tell you that you can't do it!!  

@Craig Moore Hi Craig, 

I'm a Realtor, and have been for the last 2 years, so I beat the statistic. Coming from Insurance sales, Real Estate is a hell of a lot easier.

The National Association of Realtors puts out similar numbers, but I see its 95% of newbies within the first 18 months. 

My opinion is that the state exam and the class leading up to it has absolutely nothing to do with the duties of a Realtor. You learn from being a Realtor from the brokerage you're in. So out of those 3000 people per month that start, they go to the big name brokerages that say that they're going to train you to be a Realtor, in a classroom, not the real world. Meanwhile, you have desk, phone, printer fees to pay, sucking your account dry. They don't care whether you succeed or not, they're making money on you regardless. 

6 months is the average time it takes for a new agent to make a sale. Can 3000 people survive 6 months without making a paycheck, while shelling out money for fees and dues? It turns into people going part time while they get another job, then they don't do anything with the license and let it expire.

If you're thinking of becoming a Realtor it takes a special person, and join a team. Work under a good agent, be their slave. You'll learn more, make some money, and will be way ahead of the curve. It's human nature to go for the safe gig, so part time agents tend to not make it. Go full time and work for someone. 

@Craig Moore I can definitely see first hand why new agents quit.  It's very hard in the beginning and you have to give it your all and not half a** it.  Most people don't want to put forth the effort so they fail and quit.  I would say perseverance is the key.