Do you have what it takes? Several times a year I have people reach out to me or other team members inquiring about getting their Real Estates License. Here is the key advice I give to people when they express interest in selling Real Estate.
You are your own boss
Whether you start your own brokerage, join a brokerage, or join a Real Estate team, you are ultimately your own boss. A good team or brokerage will give you the tools and guidance you need to be successful but how and when you use these are up to you. Agents are paid on commission and it’s up to YOU to go out and learn the skills you need to thrive. My best advice here is treating it like a business, not a hobby.
Be flexible with your schedule
If #1 (You are your own boss) is true then you create your own schedule, correct? Maybe. The truth is you do create your own schedule but many times you need to work around your client’s schedules. This often means nights and weekends for clients. Office work, marketing/prospecting, and bookkeeping can be done whenever and wherever you see fit. Also, you don’t have to say “yes” to every request of a client. This is flexibility you may not have in your previous job or career. Your boss may have dictated your hours. I tend to work around my client’s schedule, however, if there is an important event already on my calendar it will take precedence over most Real Estate tasks. Most would agree family comes first. When you need money to feed the family though, you may have a decision to make.
Learn to Budget Annually
Most people who get into Real Estate are coming from a steady paycheck. Usually monthly, bi-monthly, or weekly. People with steady income usually count on that money to come in and then pay their bills as soon as it does. In Real Estate you are paid on commission. While they may appear to be large amounts they often come infrequently. However, the bills are still owed regularly regardless when the money comes in. This can pose a problem. I recommend agents to budget their expenses for the whole year. Then take that amount and divide by your average commission check. This tells you how many homes you need to sell for the year (Example: Total annual expenses $65,000. Average commission check estimate: $3,000, so you will need to sell 21.67 houses that year). By planning this way, you don’t have to stress about selling a certain number of houses a month you can focus on your annual goal which is much more realistic because you’ll have up and down months every year. Here is a detailed article explaining “The Best Way to Budget for Real Estate Agents”.
Starting Part-time or Full-time
This may be one of the biggest questions I get from people. Because it takes a while to generate your first few sales and then consistently sell homes it can be tough to start a solid Real Estate Career.
Full time-This is the best option if you are thinking long-term and truly want Real Estate to be your career. Often times people treat Real Estate like a hobby or side job. While that can work it’s very tough. When you put all your eggs in one basket your focus intensifies and you have a better chance to succeed. That being said, I highly recommend setting aside 3-6 months of expenses before going full time. Also, I’d recommend joining a Real Estate Team, hiring a coach or getting a rock star mentor.
Part Time- I know many agents that start out part-time. I started out part-time. This can work but make a game plan to go full time by a certain date. A goal without a date is a dream. When you are not working on your regular job you need to be working on your Real Estate Career. The good news is with modern day technology you can be working on your business any time of day. On your days off I highly recommend getting into the office. Even if you don’t know what to work on just being around other top Real Estate agents will help you learn and see what a full-timer is doing daily.
Focus on actions not hours
Real Estate is a tough career. Unlike many other jobs, you don’t get paid just to show up and work on a few tasks. I know dozens of agents that are in the office 8am-5pm every day and don’t sell half of what I sell. Why is that? Actions are more important than time. Actions also change as your career develops. Since this article is geared toward newer agents I’ll tell you that 70% of your time should be spent marketing/prospecting (getting clients) and 20% educating yourself (learning the ropes). The remainder of the time can be spent running the business and finances. Without clients, education means nothing! Work hard but work smart. There are many tasks that agents do that are a complete waste of time. Avoid those and focus on highly productive activities.
If you’re thinking about a career in real estate, contact us today at (402) 960-2330 and we’d be happy to chat!
The Blythe Real Estate Team