Negosentro.com | The Best New Real Estate Agents are the Prepared Ones | So you’ve decided to pursue a career in real estate. To succeed in this industry, you must learn how to strike a balance between doing the right things at the right times. Whether you are planning to get your license or starting your first day as an agent, preparation is key to your success.
The best real estate wholesalers or retailers always have a decisive plan. If you want to join their ranks, you’ll need a plan, as well as a realistic budget and a strong work ethic. Real estate guarantees a solid business with high-income potential if you come prepared.
Here are factors to keep in mind as venture down this new career path.
Understand Licensing Requirements
First, get your license (if you don’t have one yet). You’re not going to do any business without one. If you already have yours, look into what’s required in your state just to be sure. It’s better to have checked every requirement and attend to them rather than find out you lack later.
Avoid assuming that the requirements in one state are the same in another. For example, if you are already a licensed agent in Oregon and plan to work in North Carolina, best to check North Carolina’s requirements. Get in touch with your chosen state’s real estate commission just to be sure.
Also, some agencies have their unique requirements other than state requirements. Some real estate agencies require a background check. Other than that, some rules are universal. You must be a legal US resident and must have taken the required classes and pass the exam.
Save Some Money
The beginnings of your real estate career require a financial cushion, aka reserve. There are two reasons for this: you’re establishing a financial pipeline and most paychecks take up to 90 days out from signing the paperwork.
The best-case scenario in terms of finances is if you have a new client sign up on your first day, and you got them qualified and under contract within a few days, expect your paycheck within five weeks.
But if the deal falls apart, then your paycheck may take a while.
Starting a real estate business, like any business, is costly. But if you compare the start-up of real estate business to other businesses, it is more affordable.
Your fees can be divided into the following categories:
- Pre-License: Exam prep class, required license classes and exam application fees
- License: license fees, Multiple Listing Service (MLS) fees and local board membership. You might also pay fees from your broker.
- Post-License (aka Business Expenses): Business cards, lockboxes, office supplies, website, listings and continuing education classes. Your broker may provide some of these but you might pay for most of them.
Also, it helps to have a realistic plan for your income expectations. A funnel approach is helpful for this step. Estimate income by analyzing the bottom of the funnel from the number and type of prospects that sit at the top of the funnel.
Develop a Marketing Plan
Allocate a budget to cover your marketing expenses, especially when you have a better idea of the type of result your marketing strategy can bring. By doing these calculations, you can easily make informed decisions about where to spend your marketing budget. Plus, you can get creative with marketing ideas.
Also, don’t take the value of a website for granted. It will be an expense, but this platform will serve as your online business card and become one of the best ways to sell your property listings. Create a good website where potential clients can learn more about your services.
Choose Your Sponsoring Broker
As a newbie to the field, you need guidance from a broker. When selecting a broker, balance your needs for support with a potential broker’s ability to offer it. Also, consider the splitting of the commission. If it’s not fair, you’re better off working with someone else.
During your selection, consider the brokerage’s size, as well as their goals. What is their average number of listings? Are they quality listings? Do they offer training? Ask these questions during your inquiry. Also, consider if they have a decent marketing budget and if they can help you with it.
Work with a Mentor
The real estate industry is a dog-eat-dog world. It’s best to have someone on your side to provide you with advice, suggest options or simply listen to you when you’re struggling. Find an in-house mentor in your chosen brokerage that can help you.
A good plan can help you navigate the challenging industry of real estate. It doesn’t have to be a perfect plan. It’s better to have a plan than none at all. Good luck with your ventures.