So, you’ve finally made up your mind about launching a career in real estate. Well, I have some good news and some bad news for you. The good news is that you have excellent taste when it comes down to choosing the right industry. Real estate has not only the potential of becoming a lucrative business for you if you work hard enough, it also provides the opportunity to meet a lot of new interesting people along the way. The bad news is that it has a steep learning curve, and it takes some time before it really starts paying off. This is why I wrote the following, to give you a head start before venturing any further into your new endeavour.

Being Your Own Boss

Honestly, which employee doesn’t enjoy being the boss for a change? There’s nobody to yell at you when you make a mistake, nobody to order you around or tell you how to organize your own work. Sounds great, right? Well, with great power comes great responsibility. See, being free to conduct your own business how you like it, when you like it, is the main perk of this job, but it’s also its biggest downside. Namely, there’s nobody out there to motivate you to work harder or to stay organized but yourself. Meaning you need a certain type of a personality for this kind of job, it’s definitely not made for everyone. You need to be a salesperson, ambitious, organized, a people person, and most of all, patient. Success won’t come to you overnight, it all depends on how much work and effort you invest in your real estate business. This is why you need to take a moment to ask yourself whether your character suits this kind of business, and if the answer is yes, then consider which particular set of skills you can bring to the table. Be honest with yourself, or you might regret it later on.

Planning Ahead

Another thing worth mentioning is that planning in advance goes a long way in the real estate business. Before starting out, you need to do some proper research on the type of property you want to be focusing on. On one hand, residential property is more common and easier to get into. You can sell a house and get around 6% in commissions which you then have to split down the middle with your broker, or 80/20 which is usually the case. On the other hand, you could be earning a small fortune by leasing an enticing commercial property as office space. In the end, it all comes down to the deal you’ve made with your brokerage firm. This is why it’s important to search for an exceptional brokerage firm which will provide the best possible services and benefits beforehand. Next, don’t forget to get your real estate license while you’re at it, every state is different, so be sure to do some research on that, as well as see what exactly is required of you.

Managing Finances

Managing your finances is like a juggling act when you work in real estate. There’s no fixed income, as you only get paid when the deal is done via the commissions you receive by either selling or renting a property. Therefore, it’s generally a good idea to have a second, more stable, source of income you can turn to if a dry season hits. Especially in the very beginning, while you still haven’t built up your client base or learned the ropes of the trade yet. The majority of new real estate agents quit after only working for around a year or two because of this reason alone. Moreover, keeping track of all your expenses will help you keep a tighter budget. Write down the things worth investing in, such as some fancy clothes and accessories (looks are important in this business), a working car as you’ll be driving your clients around a lot, a laptop and a phone, obviously to get in contact with the people you need. Cut out all other unnecessary expenses and you’ll have more time to deal with your business, instead of being an accountant most of the time.

Overcoming the Steep Learning Curve

Finally, in order to overcome the initial difficulties of this particular business, you first need to have an organized database of contacts. Learn to use tools such as Microsoft Office, especially Excel, and other useful websites you might come across to help you sort out your data. Start by making a list of all your clients, and apart from their names add their addresses, phone numbers, occupations as well, and keep on adding new clients to the list as you go along and expand your network. Do some initial scouting of the houses around you, acquaint yourself with the surrounding area and talk with the people in your neighborhood. You’ll be doing a lot of detective work prior to making sales, so get used to that. Once you do all of this, you’ve successfully covered all the basics, and the next step for you is to find a mentor to coach you in the ins and outs of the trade itself. If you can’t find someone in real life, try searching on the internet.

All in all, real estate can be a lucrative business if you apply yourself enough. Hard-workers who do all the research, and get the hang of all of the basic steps first will get a clear advantage. So, good luck out there and happy hunting.

You may also be interested in: 5 Things You Need to Know About Becoming an Accountant

Writer: David Webb

Disclaimer: All investing can potentially be risky. Investing or borrowing can lead into financial losses. All content on Bay Street Blog are solely for educational purposes. All other information are obtained from credible and authoritative references. Bay Street Blog is not responsible for any financial losses from the information provided. When investing or borrowing, always consult with an industry professional.