Neal Bloom wrote an inspiring story recently,I saw the tears in her eyes running down her face...but were tears of joy not sadness.
If you have not read it, I say read and find out the realities of this real estate business.
Not only was the story inspiring, the story was real. It took the agent 7 months to close on her first deal. It took her quite a bit to get there.
This story and others like it are REAL.
Most real estate agents do not live the glamourous lifestyle they portray. In this business, many have to fake it until you make it. Ever heard of that before?
Here in Collin county, Texas, if you sold more than 5 properties in a year, you are the top 15% highest producing realtors in the county. Give yourself on your back! But the realities are, 5 properties would only earn you just over $35,000 in an average price of $250,000 in Frisco TX. However, you still havent paid your taxes and expenses. You might only gross a little over $20,000. That makes it less than $2,000 per month to take home. Remember, these are the top 15% producing agents and also the harsh realities of this business.
This morning, I heard at a real estate school that this career is one that could land you a 6-figure income. Quite possibly. But not every Realtor(R) has the possibility of doing that. Most dont and only a handful will ever.
Many in real estate school just stop there. Then, a few end up joining a real estate brokerage to never have sold any properties. The luckier ones probably do 1 or 2 transactions. Only a handful move on to becoming shinning agents.
Well, I'm not writing this to discourage you but to share with you that your odds for failure is higher than success. It is important for you to know that. It is important to know that you are now in business for yourself, which says that there is no one who will tell you what to do, like you would when you show up at your first day of work! You are pretty much on your own - for richer or for poorer!
Real estate business is not for the faint of heart. It really tests your perseverance, your endurance, your instincts, your entrprenuerialship, your leadership and your emotions. It gives you an opportunity to learn about yourself and your abilities. It tells you if you are a positive or negative person. It stretches you by the farthest imagination.
I know this because I went through trying to sell cosmetics prior to real estate. I was given the impression that I could work 3 hours a week to earn $100,000 per year selling cosmetics part-time and I'd be given a free company car too. That was back then when I was young, naive and 20.
I quickly learnt that it took real work to earn $100,000. It also took of guts and more so, alot of right instincts - knowing the right thing to do at the very right moment. Come on, if it was that easy, most of us would not inactive our licenses.
I like to think that this post can still be taken in a positive light. Knowing what odds are against you make you more aware of the situation that lies ahead of you.
By far, my best advice to Rookie Agents are 3 things:
- Keep your business expenses very low (that includes not going out to buy a nice Realtor(R) car)
Dont think you are now a big time realtor(R) and you need to spend $1,000/month on your Internet marketing. Dont think you need a Realtor(R) car too. - Build a very, very large cash reserves (for your business and your personal life - especially when you depend on this job to pay the bills: at least 1 year of monthly expenses)
Most people will say you might need 6 months of living expenses saved up. I'd say you need more in this economy. On top of that, you need to spend money on marketing your business. No, we're not talking about $1,000/month, but you still need some minimal funds. So, that's how I came up with at least 1 year worth of living expenses in the savings account. - If I only had $30 per month to spend on marketing, I would spend it here on Active Rain to become a Rainmaker.
- By far, BLOGGING can give you the same competitive edge as a veteran agent if you know how to use this strategy to your advantage.
If you are not a Rainmaker, you need to be one so that your local posts are made "public" so that your potential clients can find you. Otherwise, you can only write Member's only posts and that's not searchable by Google.
Becoming a Rainmaker is only the first step. You have to pay your marketing with TIME. You need to blog and have a blogging strategy - correct and effective for it to work to your advantage.
Just becoming a Rainmaker does not bring you business.
Experienced agents: Please share your thoughts to Rookie Agents about the realities of your world.
Rookie Agents: Good luck. I hope you find this post motivating and not depressing.
