I need advice..

[Dallxx]

Hey everyone,

I need some advice, so I figure ask the pros. I have always had an interest in real estate, but never took action. I am now considering going to school getting licensed and starting a career. As of now, I own my own business, but it's not producing like I had hoped. Does an agent make good money straight out of school? or does it take years to actually see a good paycheck?
Do I need to get my license to make good money in real estate? Can I use my license to make money in any other way besides selling for someone else?
(Sorry for all the questions) Could ya'll recomend a good online training course or books? Is getting my license from a real estate school equivelent to a degree in real estate from a university? I have heard about selling house notes, is that really profitable? I'am 25 and looking to get into a profitable business before I turn 30. I would really appreciate your input.Thanks alot.....

[Jim Erickson]

Does an agent make good money straight out of school?
It will reasonably take 6 months to get a dime from a home sale? If one is successful, the 2nd year will produce the desired results.

Do I need to get my license to make good money in real estate? Can I use my license to make money in any other way besides selling for someone else?You only need a real estate license if you will be doing transactions for other people (your clients) People do make good money w/o license by investing in real estate; ie, remodeling fixeruppers, rental income, bird dogging, etc.

Is getting my license from a real estate school equivelent to a degree in real estate from a university?
Not really. Each state differs, but you can expect to take a 3 week course and than take state exam. You do not even need a high school education.

Research this biz well. There is a very high dropout rate. Something like 80% drop out after the first 2 years in the biz.

[timleffler]

I need some advice, so I figure ask the pros. I have always had an interest in real estate, but never took action. I am now considering going to school getting licensed and starting a career.

I think you have made a good choice. Like Jim said though , it can take up to 6 months before you begin to earn a dime in this business. Make sure you have enough cash to sustain yourself and to be able to operate your business. With normal living expenses added on you can easily burn up to $25,000.00 in cash before you cash flow.

Seeing that you already own your own sales business you understand the importance of making contact with people and helping them with there needs. RE is a little different from your current business where you try to pick a good location in hopes that people can see the inventory you have available.

In this business you need to find the inventory and the customer, if your a full service agent then you need to prospect for your clients and your inventory. To make the most money in the business without jeopardizing your sanity you will need a good business plan to follow.

As you study to take your test, research your area, understand pricing, product type and value drivers. In your market there are 30 to 40 transactions out there with your name on them. It is up to you to find the ones that will be the most profitable for you. Develop your business plan around your goals. Here are some numbers to use:

Avg Commission per side: 2.5% Avg. Listing Expense: $1,100, Avg. # of deals that fall through: 25% ( so if you have 4 deals 1 isn't going to make it)

After you research your market you should be able to get a median price range for homes.

Good Luck!

[glenng]

Tim,

You did a good job explaining.

Dallax,

I would add one other thing to the mix, from Thomas Edison "it is 99% persperation and 1% inspiration."

Unfortunately, real estate is an easy profession to get into and lot more work than agents think. You will hear many agents talk about the stress in real estate - having come out of the corporate world - the stress in real estate only comes from not doing your job.

How quick you get your first "paycheck" depends upon the effort you put into the business.

Keep asking questions about the profession - talk with real estate agents and brokers. Find a broker that seems to have the same business philosophy as yourself - this is key, especially when it comes to broker support.

Look for a broker that is a non-competing broker.

Evaluate the training program - is it geared from a national prospective or a local prospective.

Now the contracts that are used in your area - knowledge about the contracts and the real estate transaction overcomes questions that a prospect could have - "how long have you been in the business", "how many transactions have you had". Your knowledge must come out in your presentation to diffuse these questions.

[Dallxx]

I just wanted to say thanks to everyone. You all have been alot of help. I definetly want to pursue a career in real estate, but will do plenty of research before I jump into it. I'am going to find me a mentor that can teach me the ropes. Thanks again....

[ResaleBroker]

If you do get into real estate you might consider focusing your efforts on listings to start with. There are more than a few good reasons for focusing on listings.

One good reason is to shorten the time frame from your first day to your first commision. In many markets you can list a property one day and have a contract on it the next. I work in the Phoenix market and that is NOT uncommon at all.

Who knows, you might like it so much you decide to work with sellers exclusively

[Dallxx]

Thanks for your advice ResaleBroker..I will definetly look into that...

[Matt0111]

Two avenues for you to consider:

1) Work for a new home builder for a year or two. People simply walk in the door and therefore you won't need to find buyers, just know your product and paperwork.

2) Work under a top producing agent. Though you won't make as much money at first as you would at a model home, you will have the benefit of learning how to have a successful business of your home. That is something you won't learn at a model home. You get to see hwo the PRO prospects for buyers and for sellers. How they handle follow up with new, potential clients, how they handle closings, etc. This is how I started in 1994. Most don't mind you taking a few systems with you when you leave, after all they'll pay you close to nothing (if anything) for your help and they will take a high percentage of any leads they give you. But, most will let you work deals of your own (found through your own efforts) without taking any part of that.

High drop out rate, you bet. But, if you are ready for that and go into this well prepared, there is now reason why you can't make it!

I love residential real estate and consider myself lucky to have found something that I love to get up and do everyday!