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Old 06-27-2012, 01:19 AM
 
1 posts, read 2,449 times
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Hello friends,

Can anyone one answer me that how much the real estate business is profitable than any other business.
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Old 06-27-2012, 01:22 AM
 
Location: San Antonio/Houston
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Depends where you live and what you sell...
Try to post your question in our Real Estate Forum
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Old 06-27-2012, 09:35 AM
 
Location: Columbia, SC
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Depends on how good you are.
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Old 06-27-2012, 09:37 AM
 
Location: Salem, OR
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Most people are not profitable in the real estate business. In fact Forbes named it one of the 10 least profitable businesses in 2008.
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Old 06-27-2012, 10:23 AM
 
Location: Chicagoland
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I am not a realtor, but from those in the business I know, it's wildly variable, more than many other professions. There are realtors who make an absolute killing (I knew one who was selling $5M/yr in the DFW area in the 80's), and there are others who are lucky to make $40K/year if not less (I know two who fell into this category, trying to sell very low end houses to low income clients, hoping to break into the bigtime - but it never happened and after a few years they gave up and went on to other careers). Depends on how good you are, how hard you work and what market you're in it appears, but maybe a realtor will suggest otherwise. And aren't these things common to most jobs?
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Old 06-27-2012, 11:37 AM
 
Location: Salem, OR
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Quote:
Originally Posted by Midpack View Post
Depends on how good you are, how hard you work and what market you're in it appears, but maybe a realtor will suggest otherwise. And aren't these things common to most jobs?
Yes that is true, but in order to be successful in real estate you need to be personable, organized, efficient, have a strong work ethic, be part teacher, part psychologist, problem solver, and part marketer. There are few people that have this grouping of skills. They are successful in real estate. Most don't have it and are not.
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Old 06-27-2012, 12:12 PM
 
Location: Columbia, SC
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Quote:
Originally Posted by Midpack View Post
...I knew one who was selling $5M/yr ...
For clarification for those that don't understand selling 5M means the agent sold 5M worth of homes. The agent didn't make 5M. That 5M is a decent number and breaking it down with some assumptions the agent making 3% commission would gross 150k for their company, then pay a 6% franchise fee leaving 141k, then make say 60% of the remainder leaving 84,600 before deducting expenses and taxes. The agent would probably be left with about 50 cents on the dollar after that so made 42k give or take a little.

RE isn't the lucrative get rich quick job some would like to believe it is. It's hard work, long hours often in the evening or weekend, high risk/high reward, and can be sporadic. It's also very tough to get off the ground. I'll bet in my first 5 years I averaged somewhere from 48-55 hours a week to make it in my market with an average sales price around 160k. It is rewarding if you like helping people and certainly presents some other opportunities like property management and real estate investment.
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Old 06-27-2012, 12:41 PM
 
Location: El Dorado Hills, CA
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It certainly helps to be in a market where the average selling price is over $400K. That doesn't mean all sales are at or above that price, especially in the first years. Of course, the other side of that is our expenses are higher than the lower priced markets.
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Old 06-27-2012, 01:09 PM
 
Location: Columbia, SC
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Quote:
Originally Posted by NinaN View Post
It certainly helps to be in a market where the average selling price is over $400K. That doesn't mean all sales are at or above that price, especially in the first years. Of course, the other side of that is our expenses are higher than the lower priced markets.
How are your expenses higher? I doubt that your website cost more or that visualtour jacks up your 29/mo rate so I'm just wondering how the cost would be higher. Gas or cost of living I can see but not on the actual marketing expense and such.
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Old 06-27-2012, 07:24 PM
 
Location: El Dorado Hills, CA
3,671 posts, read 7,996,023 times
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Quote:
Originally Posted by Brandon Hoffman View Post
How are your expenses higher? I doubt that your website cost more or that visualtour jacks up your 29/mo rate so I'm just wondering how the cost would be higher. Gas or cost of living I can see but not on the actual marketing expense and such.
Cost of living. I (my husband and I) have to pay more to live here where the market prices are higher. Gas...for the extra .50 cents a gallon in CA taxes. Not professional expenses.
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