Question for both Experienced and New Realtors.

**William88** · 04-11-2007, 01:28 PM

I'm curious to see what peoples input is for someone who isn't even a new realtor, but someone who's very interested in starting a career in real estate.

background:
I've always been very interested in real estate and think that although it's hard work, it would be something i enjoy. I've only had experience on a personal level. 6 years back I helped my father with some investment projects in the Hawaii market which turned out quite successful. Once i entered college I decided i should give the business world a shot before i jump into real estate. I'm now working for one of the Big Four CPA firms and realize that although i'm doing well, i'm not doing what I love. Similarly it is hard work and you have to have drive. I often work 60 to even 80 hour work weeks. So my plan is to get licensed over the summer and begin from there once i make the year mark at the firm.

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So i'm hoping to get some input on a few topics. I'd be interested in seeing different views from both experienced realtors, and also people who just started and are in the thick of the struggle.

1. If someone is very interested in starting a career in the near future, are there smart things to begin working on now besides the licensee. I've been doing lots of research on my own but know there's still a lot i have to learn if i want to be prepared going into it. Any ideas on networking? are brokers interested in talking to you before you have a license?

2. I've been reading a lot of articles about the failure rate of agents in their first year. I've read figures as high as 86% failure rate. what are peoples opinions/experiences with this?

Therefore,
3. Although I think i would really enjoy becomming an an agent (although it's difficult and competative), and belive i would do well at it, does anyone have any ideas about an alternative route in easing into the real estate business?
I know there are more ways out there to get your feet wet than becomming an agent, but would like to hear suggestions.
Having a business background as far as education goes and having worked in a corporate firm environment, is there any good opportunities that are salaried where you get experience which would help you as a future realtor?

I know theres a lot of questions, but if you can adress any of them thanks a lot in advance!

I look forward to discussing ideas with you guys. Seems like a fun group in here

**Codythebest** · 04-11-2007, 04:32 PM

I can answer to #2:

86% of new agent fail because a new agent need to work several hours every day for 6-9 months to have their first check. And most of them can't afford to stay on saving for that long.
I'm talking average. You may be lucky that uncle Harry is waiting for you to sell his $2M hotel when you get licensed. But generally, it's too long...

**tarheit** · 04-12-2007, 07:53 AM

1. Good brokers will be willing to talk to you before you get your license, and can give you some insite into the local market, what you can realistically expect, where you can find classes for for your licensing etc. They can also point you out for networking opportunities (trade shows, chamber of commerce (some won't apply until you have your license). See what the broker does to help you get started. Some simply leave everything up to you, and others really work for their agents (fairly distributing incoming leads, giving new agents some extra advertizing, etc.)

Start networking the moment you know you are going to make the plunge. The potential leads you make now will pay off in 6-9 months. Don't wait until after you have a license in hand. While you can't help the person that want's to buy now, you can get names and numbers and let those thinking about buying/selling you're getting your license and can help them soon.

2. I don't doubt the 86% failure rate. Effectively you are starting a new business (most agents are independent contractors paid purely on comission), and most new businesses loose money the first year. You will have expenses, training, membership fees and will have to spend a lot of time before that first sale. Most are not prepared financially to live on savings until things get going. Some are exceptions, but the average 1st sale is around 6 months.

Because of this, many start out doing it part time. That does work, but you do have to realize you tend to get out of it what you put in. So if you can't be flexible (due to another job) it will take longer.

Have realistic expectations (interviewing with a few brokers should help with this). Also talk to a few new realtors in the market about their experience. Too many I think jump in expecting huge amounts of money (looking at the raw comission rate), ignoring the amount of work, expenses and how thinly the comission is really split between all the parties involved.

3. Many firms will accept agents 'part time' (that have another job). It's slower but does work. Some agents also hire assistants (sometimes licened realtors, sometimes not). That may help you get some related experience. Being licensed here can help because there are many tasks you are not allowed to do unlicensed.

I do know some builders that hire a licensed reator as their salesperson. I believe the job is salaried but I don't know any real details.

-Tim

**William88** · 04-12-2007, 09:52 AM

Thanks for the input guys. Lots of good ideas/advice. Appreciate it. I would be interested to see what different brokers have to say about trying it out part time.

**JChristin** · 04-12-2007, 07:07 PM

Part-time?

Which 12 hour sift do you want?

**tarheit** · 04-12-2007, 09:47 PM

It is a job that you get out what you put into it. Part time can simply mean you have a steady day job. It can be difficult to work showings and appointments around a job, at least with some clients. But you can refer those clients you can't handle (due to time constraints) to another realtor in the office and typically you can ask for a referal fee.

-Tim