Any Real Estate Agents Here?

84CAB · 11-27-2006, 11:27 AM

As a follow up to this post -QUITTING "THE MAN" I am investigating RE sales, I have read everything, talked to an agent or two and am meeting with the owner of a local RE Brokerage Co. on Friday. Anyone here have any first hand experience? What are the first few years like?

Big Ed · 11-27-2006, 12:48 PM

I am, quit the corporate gig in late 2001. Went from $250K annual to mid-$30's in 2002. Was tough, but not unexpected. Worked tons of hours, spun my wheels for a long while, lots of nights and weekeneds. Spent a ton on advertising. The first 6 months made literally almost nothing.

Eventually started to build a book of business. By year end was a high ranked listing agent (but didn't have the sales closed yet). Years 2-3 were pretty decent, last year was phenominal. This year of course the market has turned soft, but I've still made almost as much as I did last year.

Once the book of business is built, if you do a good job then it becomes easy with referral and repeat business. But it sucks at first, and I had the benefit of starting in a very strong market. You will not have this advantage, and there are way too many agents right now...everyone jumped in to cash in on the easy money they perceived to be out there.

Not to be a pessimist, but I wouldn't want to start now in this business. It will be very difficult to build your book of business in a down market. Prepare for a tough battle, soldier.

Having said that, I don't regret a thing.

asphaltgambler · 11-27-2006, 12:53 PM

Man are you serious? Can you pick a worse time to dive in?

84CAB · 11-27-2006, 01:09 PM

Quote:

Originally posted by asphaltgambler
Man are you serious? Can you pick a worse time to dive in?

Probably not, but somethings gotta give with my current employment (constant downsizing, restructuring, etc..) Hey I figure if I can make it in a soft market, I'll really kick butt in a strong one.

Actually, from what I have seen the area I live in is not affected by swings in the market nearly as much as other parts of the country. It never really gains or loses at an accelerated pace.

nikita76 · 11-27-2006, 01:36 PM

Hi 84cab, you're right about making it in this market you'll do great when things turn around. You may want to consider what is required to become an appraiser. Whether the market is soft or strong appraisers generally take a lighter hit. Hook up with a couple of banks and & mortgage brokers and you'll be working for yourself in no time after your training under someone! Whatever you do stockpile a bunch of cash. The first year or two could get lean.

Good luck!

Nikita

motion · 11-27-2006, 01:53 PM

I have a buddy who is a realtor in Nashville. He's also an ex-993 Cab owner. Let me know if you'd like his email addy.

84CAB · 11-27-2006, 01:58 PM

Quote:

Originally posted by motion
I have a buddy who is a realtor in Nashville. He's also an ex-993 Cab owner. Let me know if you'd like his email addy.

Thanks! I will - the Nasville market is very similiar to here (Memphis).

rammstein · 11-27-2006, 04:28 PM

I started in residential rentals- made money my first week. Pretty cool, except the checks weren't very big. The ceiling where I was, in rentals, would be about 50 grand.

I abandoned that, having gained a lot of knowledge and went into commercial sales. I am coming up on my 6th month. It is VERY VERY VERY VERY VERY hard. Very.

I am filled with doubt, pessimism, anger, frustration. But the light is always there. There is a lot of money to be made. Yes, the market is tough. But take a look at the number of closings- they are still happening. This 'bad' market is actually bad for those who over-extended and planned to flip ludicrously over-valued properties (bad for owners who blew it). The savvy salesmen in my office are still making dough. I just need to be savvy too.

Choose your office VERY carefully. Each office you interview with will spew all kinds of stats about why their office is tops. They are SALESMEN, after all. Do your own research, see which offices are listing the most and which are closing the most. This can be quite telling- an office that lists 100 properties and closes 5 is most likely a group of "order takers", where the agents list at whatever price will get them the listing, regardless of if it closes. Not a good business model IMO. Chances are, with a successful career behind you, most offices will readily hire you, so YOU have to be the choosy one.

I have assumed you are going residential- if you are considering commercial, there are other factors to consider too. Maybe I can get you an interview with my company, and then maybe I can get some kind of referral bonus from them hiring you. I'll look into that- if it is true, then your best option is to work for my company.

Dottore · 11-27-2006, 04:57 PM

Go rent Glengarry Glenross at your local video store. Then decide whether you want to devote your life to selling mendacity.

I have yet to meet an honest real estate agent. I don't know how most of them sleep at night!

Moneyguy1 · 11-27-2006, 05:48 PM

Investigate mortgage brokering. Nowhere near the hassle of being a RE professional....I have been both, believe me....

ed martin · 06:03 PM

Just started selling residential, I guess it's been about six months now. I've got my first deal (escrow closing in couple of days) and to date I have one listing. I pretty satisfied with my progress. Honestly, the perception that some people have about sales people. I worked pretty hard to achieve what I have achieved so far and I haven't had to lie about one thing. ln fact I looked out pretty hard to protect the interests of my clients. I am interested in the long term and reputation is core. In addition there is quite a lot of liability, and misrepresentation of facts can have pretty bad consequences.

It can be pretty tough work and you have to kiss a lot of frogs, but it sure beats the retail business I was in. Any profit I made pretty much went into the landlords hand. I don't know how THEY sleep at night. The money I make from this sale will mostly stay in my pocket.

As far as working for a good company, I'm not sure. Ultimately your the one talking to prospects face to face, knocking on doors doing whatever you have to do. Ultimately you and your personality are the determinant as to whether someone will do business with you and your broker. I personally chose a small, small company, with a small cut out of my commission as opposed to one of the large companies that will take up to 65% of your first three deals. If you don't have the sales experience though, you may want to go with one of these companies as some are very good in terms motivating and giving support.

MRM · 11-27-2006, 06:43 PM

If you are a sales professional now, I suspect you would be better off changing companies rather than jumping completely into something new like RE sales. With experience you should be pretty marketable to another company, one that will appreciate you. Going into real estate will mean going into a market where your experience will not mean much, other than you have more on the ball than the usual new RE agent.