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Old 03-18-2011, 12:53 AM
 
22 posts, read 120,765 times
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I've always wondered about the real estate process, just starting out. It's something I've been interested in for some time now. I've searched through, but haven't found answers to the specific set of questions I'm asking.

In my state of Iowa, you can take an 8-day course and become licensed as a sales agent.

I've been licensed in the insurance business, but it just wasn't for me. Stuck in an office all day, and never interacted with clients in person, just over the phone. Also, I wasn't selling a product I believed in, and think that may have been a reason I didn't like the business.

I like the interpersonal aspect to real estate. I think it's something I could be successful at with time. I know the potential of making real money is there in ways it isn't with other careers, and I find that motivating.

At this point...I'm just wondering what happens after you get licensed. Are you immediately eligible to start selling homes? Or do you work underneath someone usually? Or in an office setting? More classes? Hidden fees?

I'm not expecting to be featured in any real estate books for awhile. I just want to know what would happen in the event I got hired at a real estate company after obtaining my sales associate license. The typical course to working your way up. I'd be ok with being a part-time realtor at first to still be able to make ends meet working a different job if required. I just want to learn and see if it's something I should pursue. I think it is.

Any replies appreciated.
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Old 03-18-2011, 04:51 AM
 
Location: Louisville KY Metro area
4,826 posts, read 14,279,765 times
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Do not, I repeat do not go into the real estate business part time. If there was a sure way to fail, its doing any such highly competitive and professionally rigorous business on a part-time basis. Yes, there are some success stories, but odds are similar to the life expectancy of a baby sea turtle. A few will get through the first 24 hours and grow to become large and old, but thousands never got their first 24 hours.

Do not enter this business on a lark. It's a true entreprenural opportunity. It's about how well you manage cash, time, debt, and people. Yes, people. You must be able to guide people to make decisions. A true professional will always guide them towards the decisions that are most likely to reward the client best.

It's a grand industry one where the greatest rewards are emotional with a great opportunity for financial success if integrity, service, knowledge, and care are always highest priority.
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Old 03-18-2011, 05:42 AM
 
22 posts, read 120,765 times
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I'm good with people. Not sure about the other things yet. I just need some info about starting out. I'll opt for full-time then after I'm licensed.
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Old 03-18-2011, 08:26 AM
 
Location: Austin
7,244 posts, read 21,741,493 times
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There are tons of "hidden" fees you're not told about and education continues every year you're licensed for renewal purposes. You don't get a license and be done with it.

The bulk of your questions can't be answered without knowing what state you're in as well as what immediate market. I moved from Dallas to Austin. They're in the same state, but fees are completely different and significantly higher in Austin than Dallas. Someone local to your area needs to tell you the hidden fees that can happen.
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Old 03-18-2011, 11:32 AM
 
Location: Mid-Atlantic
12,529 posts, read 17,480,643 times
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Make sure have have at least 6 months saved to support yourself. Part-time in RE is 40 hours a week.
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Old 03-18-2011, 03:22 PM
 
Location: Gorham, Maine
1,973 posts, read 5,207,050 times
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Every state's real estate commission has a different set of rules. I'd imagine that you would learn your state's requirements in licensing class. Be prepared to do at least one open house every weekend indefinitely, that's how I got my first clients, although your mileage may vary. I don't do as many open houses anymore, even on my own listings, as I have found that most attendees either already have an agent, stopped in on the way somewhere else after seeing my signs or are nosy/looking for decorating ideas. With 25 photos on our MLS and HomeMovies/Virtual Tours more common, there are less available prospects attending these open houses. My first closing in 2006 was after 7 months of work prospecting and paying out before getting a pay check. If you have enough savings for a year or more and can see the big picture ahead, you'll be o.k.
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Old 03-18-2011, 08:14 PM
 
Location: Baltimore
1,759 posts, read 5,125,212 times
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I posted this a little while ago but it's certainly applicable.

Quote:
I'm coming up on my one year anniversary so I'll chime in a bit. I'm 27 and have another full time 'real' job that keeps me afloat right now. However, I love doing real estate. I got into it primarily as me and a friend were renovating homes and it would be infinitely easier if I could do the transactions and showings on my own instead of through an agent.

To that effect, it's been very successful. I can look at homes until my hearts content without bothering anyone or being pressured into buying and I'm constantly up to date with comps and new listings.

With that said, it is not an easy business to just hop into. I'm fortunate that I was able to land a position in a very well known brokerage in Baltimore/MD/Mid Atlantic that gets tons of exposure on its own with a very good broker that has shown me a lot.

I attended the classes my brokerage offered and thought they were pretty worthless. They talked about FSBOs and No Call Lists and talking to customers but didn't actually touch on things you NEED to know like addendums and contracts and what not. Or even how to use the damn land line phone for that matter :lol: Fortunately we have everything in a database that is pretty intuitive and the broker helps out tons but you still need to be very proactive.

The office I'm in has many agents who have been very, very successful before the recession and seem to still be doing well now. It is pretty intimidating in the beginning but if you're a genuine person and ask questions and don't take their business, most have been fairly helpful. Some on the other hand... I've found that the training wheel period ends as soon as you commit to an office. You are expected to learn things on the fly and it's a very sink or swim feeling. I've found floor duty is the best time to learn and have picked up several clients from doing so.

I travel for my 'real' job so I'm not home often. Over the course of the year, I've sold one home and rented 7 others (two being my own). Rentals are the best, IMO way to get started in real estate especially if you are younger. You get to meet many more people especially if you're working in an area with good traffic and turnover (like Baltimore) and the idea is you get them a really good deal on a rental and in a year they come back as buyers. On top of that, there are no inspections, financing or appraisals. You can close rentals in two days or less if you're good. I've found the commission to be about 10% of what you would earn if the house sold so I wouldn't quit your day job and would frankly consider a second job as you get started in real estate. But you get your name out there and you learn a lot. Tenants are going to be much more forgiving of your real estate rookie mistakes than someone buying/ selling their home.

There are a lot of start up costs to get going plus ongoing. Here it was roughly $3000 to get the license in MD plus MAR/NAR dues and keycards and all that fun stuff. You really need to spend money to make money here and the first year or two you need to accept the fact that taking a loss is quite probable as you build a client base. I'm not saying you need to get a billboard but you need to be ready to spend some money to promote yourself.

Don't take it personally if a client goes away. It happens. A lot of people are flakes to. Some will call just to see what their neighbor's house is listed at. Craigslist has taken quite a bit of money from me but it's part of the game and just means you need to work harder. On the other hand, losing a rental client to Craigslist gained me a buyer client in a year since I was honest with everything and told them the other house was a better deal. Eating $250 now could be worth 10x that this time next year so you never know.

Lastly, you have to love doing this. There is no other way to say it. You can not be half hearted about getting into it because your clients will see right through you and you'll be miserable the first time you miss closing because underwriters decided to review the packet for two weeks and you've got to sweet talk the seller and the buyers parents into not beating you into a pulp for something completely out of your control.


Edit: There's a couple more things that came to mind. I remember talking to others who are much older than me questioning why I would want to get a license now when home sales are so poor. Well, exactly for that reason. Now is the time you can actually learn real estate in a proper fashion as opposed to the wheel and deal time of a few years ago.

Also being younger does give me several advantages. What I lack in experience I think I make up for in exuberance and energy. Several agents have a cut off limit where they won't deal with a client because it's a low dollar amount. They are perfect for new agents because they more than likely will be more forgiving of a less experienced agent. Also some agents had just discovered this facebook thing as I was joining. That is a great way to promote yourself for free and lets your friends know that you have a license now.
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Old 03-19-2011, 05:55 AM
 
22 posts, read 120,765 times
Reputation: 16
I appreciate all the input. Where I live, getting a Sales Associate license costs $400 for an 8-day course, here in Iowa. I may want to move to a different state within a year as well. So that will be a consideration. I'm not sure if licenses transfer - I've looked but can't find anything concrete about it.

I should share more. I have always wanted to do this. Even as a kid, every city I visited - I always picked up a real estate book. I'd look over them the way other kids would read Sports Illustrated. I always woke up early to watch the Sunday morning real estate show in my hometown. It's something I really feel passionate about, and I haven't found that in other jobs I've worked.

I can afford the licensing. The question is...after that, do you have to pay all the other fees to even get hired? Or do you have a shot at at least "learning the ropes" with that Sales Associate license? Are there jobs for those who just obtained the Sales Associate license? Will an established brokerage firm even consider you? That's what I need to know. I'm hoping after obtaining the Sales Associate license, a reputable brokerage would be willing to help guide me in the right direction if the believed me.

I don't want to jump into anything too quickly at this point. I don't have any unrealistic expectations. I simply want to learn...even if that means a diminutive position at first - although I'm not sure if they exist. It seems like everyone is in the same boat and they either sink or swim. Assisting an established realtor would be fine at first, if possible. I don't know I can afford everything else right now, but Sales Associate license is the first step, and that I can afford. There's seems to be a lot of realtors where I live for the population as well. I'm not sure if that is a good or bad thing.
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Old 03-19-2011, 06:18 AM
 
Location: Louisville KY Metro area
4,826 posts, read 14,279,765 times
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Quote:
Originally Posted by styleguy83 View Post
I appreciate all the input. Where I live, getting a Sales Associate license costs $400 for an 8-day course, here in Iowa. I may want to move to a different state within a year as well. So that will be a consideration. I'm not sure if licenses transfer - I've looked but can't find anything concrete about it.

I should share more. I have always wanted to do this. Even as a kid, every city I visited - I always picked up a real estate book. I'd look over them the way other kids would read Sports Illustrated. I always woke up early to watch the Sunday morning real estate show in my hometown. It's something I really feel passionate about, and I haven't found that in other jobs I've worked.

I can afford the licensing. The question is...after that, do you have to pay all the other fees to even get hired? Or do you have a shot at at least "learning the ropes" with that Sales Associate license? Are there jobs for those who just obtained the Sales Associate license? Will an established brokerage firm even consider you? That's what I need to know. I'm hoping after obtaining the Sales Associate license, a reputable brokerage would be willing to help guide me in the right direction if the believed me.

I don't want to jump into anything too quickly at this point. I don't have any unrealistic expectations. I simply want to learn...even if that means a diminutive position at first - although I'm not sure if they exist. It seems like everyone is in the same boat and they either sink or swim. Assisting an established realtor would be fine at first, if possible. I don't know I can afford everything else right now, but Sales Associate license is the first step, and that I can afford. There's seems to be a lot of realtors where I live for the population as well. I'm not sure if that is a good or bad thing.
Most states now "recognize" other states licensure of agents. While few are actually "reciprocating." What this generally means is that once licensed in a state such as Iowa, a state such as Kentucky will honor the Iowa licensure, but you will have to pass the Kentucky-specific law test. You will just need to contact each target state's real estate commission to get their specific licensure requirements.

As a previous respondent wrote, there are many opportunities in real estate besides helping buyers and sellers with traditional home sales. I would recommend you go ahead and get your license. It doesn't cost a lot to hold your license in escrow if you choose to to be inactive, but prepared to act when the iron is hot.
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Old 03-19-2011, 06:54 AM
 
Location: Austin
7,244 posts, read 21,741,493 times
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Texas doesn't reciprocate with any state. We have the highest requirements for licensing, and some "not so smart people" still get through.

You keep using the word "hire". Once you get your license, unless you work for Redfin or Zip Realty or a couple of others, you are an independent contractor. YOU choose which broker YOU want to for with. You aren't looking for a broker to "hire" you.

It sounds like you need to become someone's assistant before getting your feet wet. You'll still have all those fees, but you'll have a chance at figuring it out as it seems you're the personality that can't just jump right in.
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