Interested in becoming an Agent

[ebensmom]

Hi -

I have always been interested in becoming an Agent but am concerned that I will not be able to afford to start my career. My current 9-5 job is a paycheck to paycheck job that my family depends on to pay our mortgage & help with the household bills. Is there an option to starting out without loosing $$

Thank you in advance for any advice!

[RESteve]

With most small businesses, there will always be start up costs. The great thing about starting a real estate business is that compared to other industries, the costs are extremely low. Unfortunately I cannot give you an ideal estimate of what kind of costs you will incur, as that is heavily dependent on the broker you decide to join.

With Keller Williams Realty in Houston, I was able to get up and going for less than $600 (if my memory serves well) after passing my state and national tests to become a licensed real estate agent.

In my case, the initial fees I incurred were mostly associated with becoming a member of my local real estate association and state/national associations.

[ebensmom]

Thank you, Steve!

I have read up about the fees involved in classes & exams & such. My concern is more along the line of leaving my current job, loosing a paycheck & missing payments because of being a newbie and not knowing when that first sale will happen...

I understand what you mean about starting up a business and assuming risk. I was just hoping there was an answer to this that I hadn't considered.

Thanks again, Steve. It's good to hear from someone in the business & get their professional opinion.

BTW Keller Williams is the agency that I am interested in joining... when I get the opportunity.

[RESteve]

That's great - I've been with them for 5 years, but haven't been with anyone else so I would coach you to interview with all brokers and see which one fits well for you.

Each agent likes to work differently, and Keller Williams is more of a "everyone helps everyone" mentality (at least where I'm at). If that's something you'd like, definitely take an interest in KW.

I would also probably have at least 6 months of reserves before I jumped in full time in real estate. Though, it is hard to make the jump to full time - we've all been there. Just remember: given the circumstances to sink or swim, what would you do?

Swim? Then make the jump to full time and don't look back. Real estate is a very rewarding career for those who work hard and keep their clients best interests at heart.

[SLP-NYCT]

Steve is correct, Real Estate has a very low start up cost compared to just about every other business, thus why so many become Realtors.

In my neck of the woods we have 7,500 agents. That's down from over 8,000 a year ago. Out of 7,500 agents, only 1,500 did any business. Those are hard numbers right from the board. Out of the 1,500 1/2 of them only did one transaction. The rest...750 agents did over 90% of the deals.

So even though the start up costs are low, failure is high. The number one reason for failure? Failure to Plan.

Realtors are Independent Contractors working under a Principal Broker. If you approach it as a job, you have already failed. You need to approach it as a Small Business. You are the boss, you are in charge of your success or failure.

Back in 2002-4 anyone who was breathing could make a living in this business even if they did everything wrong. Today is different. You must do everything right to survive.

Research, Research, Research and then welcome aboard!

[stevetrang]

You can try starting off as a referral agent. We offer that program to people interested in joining the business.

[RJO Salt Lake]

As mentioned before, interview several brokers and choose one that fits you, but that will also challenge you to push beyond your comfort zone, and that provides training and support after you get your license. I initially thought that taking my licensing real estate courses would also provide me training on how to market to clients and run my business. But no, the licensing classes cover real estate law and basic practices--the rest you need to learn on your own or from a good broker (preferred). Choose well and good luck!

[SELLITNOW]

My two cents:
1) If you know people that may be interested in buying . . . cultivate them as possible clients as you are taking the classes and starting out . . . so when you become an agent - perhaps you will have a few possible clients right off the bat.

-----I had 3 clients just "waiting" for me to obtain my license . . . so that's who I worked with the second I passed my exams (so to speak) . .

2) Most of my business has come from my sphere of influence (those that know me or know someone I am relatively close/friendly with) . . . so in that regard - it really wouldn't matter who you start out with - you can obtain clients regardless . . .

****Now who you start out with will determine how efficient and effective you can be with your clients . . . so interview as many as possible - DON'T WAIT UNTIL YOU FINISH UP CLASSES AND/OR GET YOUR LICENSE . . . interview now and all during the process . . . you will see that your questions/expectations may change the more you learn from the classes . . .

[ebensmom]

Great advice from all of you! Lots to learn and think about - SO Exciting!

[escapeso]

Before I quit my job I would have a clear plan of how I was going to get leads. Fundamentally real estate is a lead generation business.

If you quit your job and have no money for advertising you could run into problems.