I am about to take my test for the real estate agent license. I am wondering how long it will take before I see any income. From what I have read so far, I would think listing is easier than selling. If I list several properties in a month will I be able to get and advance or something? How do new agents make money if they have to wait a month or months for closings?

I also see posted here that people say they pay so much a month for the error insurance or mls. All I have heard from my teachers and from a broker I interviewed said they wanted hundreds of dollars up front. In fact, a century21 broker said besides the $200 license fee, $400 insurance fee, $250 mls fee, and $400 national realtors fee, I would have to take a mandatory online course for $300. Who has this kind of money not knowing if they are going to do any good in the business? Real estate is booming here and most houses are well over $500,00 that is why I want in!

I think it's important for you to understand that you're essentially creating a business. The expenses you mentioned are actually relatively very small when compared to starting other kinds of business ventures. Your list of expenses was actually very incomplete. You'll have additional expenses for things such as business cards, advertising/personal promotion, farming, fuel (I easily do an extra 12,000 miles per year business), added auto insurance,... . As far as waiting a month or months for a closing, I know of new agents who waited up to 7 or 8 mos. before getting their first commission check. Some brokers offer what is called a "draw" on future commissions.

To be honest, it seems from your post that you didn't do too much research about a career as a real estate agent. I respectfully advise you that you should do some and re-evaluate whether or not it's the type of career for you.

When I started real estate back in 1983 I kept my full-time job for a couple of years as I was a newly divorced mother of 3 & couldn't wait for my business to start building up. I used this beginning time to learn, learn, learn & not so much as an expectation for money, as it's difficult enough in certain markets to earn an income immediately in real estate even without having another job. When I took my first listing interest rates shot to 18%. What a welcome!

During my learning period I attended extra training classes that I had to pay for. At the time my Broker was also new & wasn't, & still isn't, a teacher/trainer. He now pays an agent in our office a little extra to do one-on-one training for him with new agents.

When I had enough money saved up I quit my full-time position & jumped into real estate full-time. The market still wasn't the greatest & over the many years I've been in the business I've had my financial ups & downs. I've done great & I've been burned out. But I still love the business and haven't been able to find any other career that I'm qualified for that pays me per hour what I earn in real estate (& don't ask cause I haven't figured that out in a long time).

HMiller is right on about treating this like a business. You earn what you put into it. Over the years I've seen many agents start up and drop out because they thought the business would come to them & were horrified to learn that they have to do more than sit at their desks & wait for phone calls & walk-ins. In Illinois we pay around $1,000 yearly just to be part of our association/s & to be able to access the MLS. I also pay much more in advertising, automobile use/insurance, E&O insurance, advertising/marketing (classified & Internet), client follow-up & gifts, postage, printing, extra training, ongoing mandatory continuing education, etc.

I don't know of any brokers in my area that offer advances on commissions. You'd have to interview different brokers in your area to find these types of things out. If your area is booming then I'm sure the competition is also booming and you'll be up against seasoned agents when trying to get those "several listings in a month."

__________________
Southwest Chicago Suburbs Real Estate is an affordable area with close access to downtown Chicago. Money Magazine says that Orland Park real estate is one of the best places to live in the U.S. Next door you can find Tinley Park homes for sale and get Orland Park amenities at a more affordable price.

The only people who make it in this business are the ones that realize this is a business. Whenever someone asks me what it takes to get started I tell them $5,000 and the ability to have no income for at least 3 months.

This seems to shock people, but it is realistic. If you add the fees, classes to be legal, signs, lockboxes, printing, postage, training to learn the business, office fees, board fees, state fees, national fess all up you will spend at the very least $2000. That is being cheap IMO. If you can't afford this don't waste your money getting into the business.

To make matters worse a booming market is even harder for a new agent IMO. When listing take a little time to sell you can use them to generate more business, when they sell in under a week there isn't time to get extra deals from the listing.

Can it be done? Yes I am 3 years in the business and did 24 transactions and income was into the 6 figures. This all took me an everage of 30 hours per week and I took 3 weeks of vacation last year.

Can you do it? If you treat it like a business and work when your "working" and invest in your business. I have spent at least $10,000 on training in the last 3 years.

__________________
The Suburban House Hunters Team would like to thank REW members for past referrals! We are never to busy to handle your Chicago area referrals.

Always looking for quality unique content for our real estate agent blog, PM me if interested in writing a post.

My thoughts on the Sarasota Association of REALTORS actions.

I think it varies greatly. I have known someone who took 6 months to do their first deal and turned out to be a great agent. I have also known someone else who put a $1 million property under contract in less than two weeks and still washed out.

The time you spend here will be time well spent. At least it has been for me.

__________________
Sincerely,

Ted Amenta
Breckneridge Real Estate Agent
For Breckenridge Real Estate in Breckenridge Colorado visit www.amenta.com.

You're being told "like it is." Real estate is not a Get Rich Quick affair, it's a long term project.
Think of it as going into business for yourself (which it is) and realize that almost every new business startup rests on the idea that it's going to take up to five years to show the sort of profit the people who launch it want to see.
There's also something else you're going to have to come to terms with. It not only takes money to get going, it also takes about $10,000 a year to stay in the business. Indeed, some of the Top Producers spend that much a month in generating the several hundred sales they put together -- and, believe you me, they took a helluva lot longer than a few months to reach that level.

Duncan

__________________
Real Estate in Canada's Niagara Peninsula

The statistics say that most professional REALTOR's do about five deals per year. Most of my family are agents, brokers or mortgage professionals. The truth of the matter is that you can expect to work hard for at least four months before you do your first deal. You can also expect to lose three before that first one comes through.

This is a business and it is a tough one to make a living in. In addition to your test and C21 fees. Spend some time to develop a good marketing plan. The only successful REALTOR's are the ones that have the ability to get their names out there. Create a marketing budget and use your resources as effectively as possible.

With regard to promoting yourself, their is a marketing heirarchy on the effectiveness of approaches. The most effective technique is meeting face to face or having a conversation over the phone. The most successful REALTOR in my area claims to make 100 phone calls per day... and I truly believe that he does.

The second most effective source of sales is referrals. Make sure that after you get a client, keep them happy and ask for at least three referrals. They may give you one if you ask for three. Use closing gifts and drip marketing to keep your face in front of them.

The third technique is branding yourself. This includes direct mail, email, door hangers, signs, etc. There are a myriad of resources to help you succeed in this area, inlcuding those that I offer.

Finally, there is a piece of advice that I received from a retail salesman that has served me well. Once you receive a lead, contact them periodically and don't throw the lead away. Just because they are not in the market to buy or sell today does not mean that they won't be the next time you call. Create a prospect list and keep working it.

regards,

barrettn
4MySales Agent Leads & Marketing