Launching a Career in Real Estate? Here Is What You Should Know
Many people nowadays decide to try their luck in the real estate industry. The promise of a lucrative career is enough to get everyone interested. However, real estate isn’t quite as simple as people would like to believe.
As a matter of fact, it takes time, patience and dedication before your career becomes profitable. In addition, there are a lot of factors that will indicate your progress in the industry, such as the global economy, market demand, property prices and so on. Still, having a career in real estate is nothing short of exciting.
The good side is that you’re independent enough to control how your business will go and you’re to make schedules as you see fit – most of the times.
On the other hand, there is a lot of risk, as well as liability involved, and your income will either skyrocket or you won’t have enough to break even. Don’t get carried away by believing that real estate business is just buying a bunch of properties, waiting until the price goes up and flipping them for profits.
It’s more than that and, in most cases, you’ll be helping people make the most important financial decision they ever had to make. That takes effort and guts to accomplish. Here are a few things you should know when launching a career in real estate.
Real Estate Agents and Brokers
This is the first step towards your real estate career. The only thing you need in order to become a real estate agent is to pass the exam and obtain a license. With a bit of studying you can get there in about two months. It’s important to understand that, as a real estate agent, you can’t work independently.
Instead, you have to work under a licensed broker. Agents offer their services to clients for a commission that’s usually 6% of the deal, but that commission is divided among the people involved in closing the deal.
Real estate brokers can work independently and may hire agents to help them out. To become one, you must further educate yourself and pass yet another exam to obtain a broker’s license. It’s important to understand this difference so that you don’t encounter any inconveniences.
Getting your agent/broker license is simple enough, but becoming successful in real estate industry is more complicated and it will require your full attention and commitment.
Real Estate Entrepreneurs
This is another branch of real estate industry you need to know about, as it might interest you as a career option. Real estate entrepreneurs or investors differ from agents and brokers because they don’t have to get licensed to buy or sell properties. You only need a license when you buy, sell or rent properties on someone’s behalf.
Real estate investors buy commercial or residential properties and wait until the market price goes up or add value to properties before they sell them for profit. However, becoming a real estate entrepreneur demands a large initial capital and excellent knowledge of real estate market and its trends.
Also, there is a lot of risk involved, because a bad investment may cause you to lose your entire investment and ultimately fail.
As an agent/broker, you’ll have an abundance of responsibilities to take care of and not to mention administrative tasks that need to be completed. For instance, your responsibilities are to find clients willing to procure your services. That includes investing in marketing campaigns to promote your business using both traditional and digital methods.
You must create a clear and detailed client database to help you seal the deal. Also, you must be ready to answer phone calls, emails and actively engage with clients on social media.
Moreover, you will have to schedule appointments, tours, property showings and meetings with clients. Most importantly, you need to learn how to properly budget, as you’ll need to create monthly, quarterly and even annual budgets. In addition, some brokers offer clients property management services for a certain fee.
In that case, your responsibilities are to maintain a property in good condition, find tenants and collect rent on behalf of your clients. As for the administrative tasks, you’ll have to have both paper and electronic filing systems for records and correspondence. Furthermore, you’ll have to file and submit agreements, leasing records and other real estate documentation.
Finding and handling clients
Unlike other businesses, you don’t really have a target audience in real estate per se. Instead, you’re trying to find people that will buy, sell or rent properties and hire you for a commission. This is a difficult task, especially for beginners.
You can, however, try to find clients by asking your family, friends and other acquaintances to recommend you or point you in the direction of someone who may be interested. You’ll also have to talk to as many people as you can and hand out business cards because you never know if they might become clients at some point or not.
Throughout the most of your career you’ll be working closely with your clients. You’ll be showcasing multiple properties, preparing presentations and scheduling meetings outside business hours.
As fun as it is, you only get paid when a transaction is completed or, simply put, when the deal is sealed. This can mean months without a paycheck, but you must keep your head in the game and endure hardships before you can expect profitable income.
Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement. We ask that every contributor and expert answer the Identity 5 questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.
1. What have you accepted within your life, physically and/or mentally? Additionally, what are you still working on accepting? Now, we’re talking about resignation, rather stepping into, embraced, and owned.
The challenges of being a single working mom.
2. What have you learned to appreciate about yourself and/or within your life, physically and mentally? On the other hand OR in contrast, are there elements of who you are that you’re still working on appreciating?
I appreciate the freedom my work allows me. Being able to stay at home when necessary, travel and communicate with people from different backgrounds.
3. What is one of your most rewarding achievements in life? Tell us not only what makes YOU most proud but also share the goals and dreams that you still have.
Building my career and raising my kids.
4. Of course, we all have imperfections, or so we think. In truth, we are all perfectly imperfect. What are your not-so-perfect ways? Likewise, what imperfections and quirks create who you are—your Identity?
Perfectionism and stubbornness.
5. “I Love My…” is an outlet for you to appreciate and express all the positive traits that make you…well…YOU! In fact, sharing what you love about yourself will make you smile, feel empowered, and uplift your spirit and soul. (We assure you!) Therefore, Identity challenges you to complete the phrase “I Love My…?”
I Love My life.