An open letter to anyone wanting to get their real estate license...

Reblogger Karen Hurst
Real Estate Broker/Owner with RICOASTALLIVING.COM

I am reblogging this very well written post by Greg Nino so I may enter it into the Real Estate Rookie group and also would like to add one more thought.

A Realtor loses their job every time they get paid at a closing. Every client is not only their new boss but their old boss. You always need to be searching for a new position.

Original content by Greg Nino 0524642

Several times a year I am approached by people who want to become a Realtor. Many of them think it's a great way to supplement their income while they keep their day job. A lot of others are interested in a career change. I decided to type this blog to save myself time. Each time I'm asked I'll simply send the inquiring person a link back to this post. So, with that said, grab your favorite beverage and read below, because you're about to get heavy dosage of what it's like to start a real estate career.

 

1. PASSING THE EXAM is easy. Creating a business with real income is a different story.

2. Now that you have your license be prepared to lose friends and get your feelings hurt. Most, if not all of your friends and family will avoid using you the first year or two that you're licensed. Simply put, you don't know what the hell you're doing. Earn your battle scares. Even after you've gained experience, you'll have friends and family who will not work with you because you're a friend or because you are family. It happens every day to Realtors across the country.

3. If you don't spend money you won't make money. You needs to spend THOUSANDS of dollars to create a business. Most of what you are thinking is a cute and new idea has already been tried a thousand times. You will do what every new agent does... spend money (A LOT OF IT) on the wrong things. Over and over again. There's a famous saying in this business..."If you want to get rich in real estate sell stuff to Realtors." 

4. You and your smart phone will become inseparable. You will have to get up from eating, watching a movie and sleeping to take calls, return emails and respond to text messages. Of course you don't have to do this, but you also don't have to make any real money in this business. You'll get out of it what you put into it. Ignoring a call could be a $20,000 mistake. Or more. 

5. Be prepared to be second guessed, doubted, questioned, accused and lied to repeatedly. Buyers and sellers have the propensity to lie just like you and the guy next to you at the grocery store. People have perceptions about lawyers, mechanics and police officers. They have them about us too. Even after years of experience there will be clients who will second guess your every move. This will never go away.

6. You will show thousands of houses. Showing a house isn't just about unlocking a door. Sometimes you get rained on while showing. Sometimes the house says active on the market when it's already under contract with another buyer. Sometimes you are late to the appointment because of traffic. Maybe your buyer will be late. The number of things that can go wrong are practically endless. 

7. Almost nobody will respect your time. Almost everyone thinks you are over paid. 

8. Expect people to ask for kickbacks both legally and illegally. Buyers and sellers will often want to haggle with your commission. 

9. You will pay taxes. A lot of taxes. Expect to pay for the gizmo you use to unlock doors. You will pay for this yearly along with dues to three different associations. You'll pay for signs, lock boxes, tools, equipment, cameras, advertising for both you and your listings, leads, websites and on and on and on. 

10. You will pay for your own health and life insurance. There is no 401k matching in real estate. You are an independent contractor. In fact, YOU will PAY to be at your local real estate office! The broker will take money from you. You will also pay for an office if you want one. Your phone is your costs. Your interent is also your costs. So is your paper, pens and everything else imaginable. You're running a small business. It's ALL your costs. You'll also pay for errors and omissions insurance. The list is really long. Yay!

11. You will get screwed in this business. It's not for the naive, fainted heart, ignorant or thin skinned. You will work your rear end off and sometimes not make a dime.

12. You will deal with a certain number of psychopaths each year. 

13. You will meet criminals, convicts and felons, especially if you work in the leasing industry.

14. Strange men and women will ask you to meet them at houses RIGHT NOW. 

15. You might get a gun pointed at you while showing a house or two. Sometimes rabid Pitt bulls will chase you down. 

16. Expect to get towed at least once.

17. Eventually you'll get in a wreck while showing. You better hope your clients aren't with you. Is your auto insurance updated correctly?

18. There is no disability insurance. So, if you break a leg while playing softball you're screwed. It's going to hurt your business.

19. You might get sued even when you aren't at fault. 

20. When you become successful your competitors might file complaints on you because they are jealous. You won't like this. 

21. As you show houses you'll be in questionable neighborhoods from time-to-time. You need to learn self-defense, carry a gun or a can of mace. Everyone should be concerned about their safety.

22. Be prepared to leave a social event early to run and show a house or to get yelled at by one of your clients for something you did not do. It doesn't matter, you are the chew toy sometimes. 

23. It's likely you'll get audited by the IRS. You have too many right offs and once again... you make too much money.

24. Lawyers are annoyed by Realtors. 

25. Expect to list homes and never sell them. No agent sells every home they list. You will waste time, money, energy and resources.

26. Your signs will be stolen, spray painted and eventually played with by the local kids.

27. Your flyer box will always be empty because kids, passerby's and neighbors will take too many. Sometimes they'll take all of them in one day. Then you'll be chastised for not having flyers in the flyer box.

28. Did I mention you'll deal with at least to crazy people each year? 

29. EACH real estate transaction you work means you are likely dealing with at least 8 different people. You're responsible for 15-20 things. Right now I am trying to close 11 contracts. I am a little stressed. Sometimes I wake up in the middle of the night thinking about my paperwork, my clients and my business.

30. You will become an unlicensed therapist, divorced lawyer and counselor. You aren't allowed to give legal advice, and you shouldn't. You aren't a doctor, but everyone will unload their personal lives with you. You will sometimes live their life. 

31. Your spouse will at times hate what you do for a living. 

32. Your wife/husband will despise the fact that you are always on your phone.

33. When you're sick... you still work. There's no floating holidays. 

34. While on vacation.... you still work. You can get an agent to cover your business, but NOBODY will care for your business the way you do. 

35. Sometimes when you make mistakes it costs people money. You can't just apologize. 

36. You have to have a nice car. You must wear nice clothes.

37. When you first get started everyone will know you don't know what you're talking about. It's a fact. This sucks. But if you stick it out, you'll be okay. 75% of the new agents don't make it.

38. You get to work with agents! Not all of them are put together correctly. A lot of your problems in this business will be because of the other agent. You will get upset, angry, pissed and offended. Ego's are here too.

39. Wait for it..... friends, neighbors and family will ask you for real estate advice while they are involved in a real estate transaction..... YOU aren't.

40. Other Realtors will give your client advice when they aren't supposed to. Every buyer and every seller knows an agent somewhere. 

41. Each market is different. Very different sometimes, but that won't stop friends and family from influencing your client. Your client will become confused at times. Some Realtors just can't be quite at the right times.

42. You have a better chance of meeting E.T. than you do working real estate part-time and being successful. It takes time, effort and money to be a part-time Realtor. In fact, being a part-time agent can be even more difficult.

 


So why do agents do this?

You'll have the amazing opportunity to reap what you sow. You can work when you want. No matter how bad your boss is (client) you are only working for them for a certain period of time. You get new bosses all the time. You can make a real difference in a lot of people's lives. You literally help shape dreams. YOU can be the difference in someones life as they look to sell and buy a home. And not all clients, buyers and sellers are bad. Most of them get it. It's awesome when everything works out.

And sometimes the money is really good. 

 

 
Greg Nino
, Houston area Realtor®.
Helping residential buyers, sellers and tenants 7 days a week.
Available @ 832-298-8555 

RE/MAX Compass (Formerly RE/MAX WHP)

www.GiveMeMyHomesValue.com

www.EverydayHoustonHomes.Com

 

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

 

 

 

 

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getting your real estate license

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Rainmaker
4,427,754
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Good morning, Karen....what a great reblog.... this post really does say it all....

Apr 02, 2014 10:07 PM #1
Ambassador
376,552
Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Hi Barbara! Yes, I agree. I just hope it doesn't scare away anyone! It really takes a certain "type" to succeed in Real Estate:)

Apr 02, 2014 10:34 PM #2
Rainmaker
4,427,754
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Karen....they'll know soon enough if they are that type....I agree fully....it's not for everyone....but with the right direction and guidance, many are capable of success....

Apr 02, 2014 11:42 PM #3
Rainmaker
226,727
Tommy Miles
Miles Realty Group - Weatherford, TX
Builder/Realtor®

Excellent, excellent post.  It is going to be required reading in our office.

Apr 29, 2014 01:38 AM #4
Rainmaker
604,214
Mike Young
203kOnLine.com, covering the USA - Las Vegas, NV
FHA 203k Consultant 916-758-1809

You clearly need the right personallity to give up so much of your freedom. It comes natural to many.

May 31, 2014 01:25 AM #5
Rainer
54,906
Tamara Liggins
Keller Williams Realty, Saint Louis Call Me today at 314.677.6104 - Florissant, MO
Bringing Buyers & Sellers to Homes!

This is something I wish I read at the very beginning. I officially celebrated my first year in the business and hoping 2015 crosses so many of these things on this list off. The one that I don't think would ever be a problem is the spouse, he pushed for this more than me 

The funniest part about this list is that I've experienced so many things especially the danger. Had a guy insist I show him the basement of a home for 5 minutes.  I turned on the lights and invited him down but refused to go down with him. His comment was "someone else will today" I think about that comment daily when doing showings and wonder if I hadn't followed my first mind and refused where will I be today.

Jan 04, 2015 05:51 AM #6
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Karen Hurst
RICOASTALLIVING.COM - Warwick, RI
Rhode Island Waterfront!

Tamara, always follow your gut and then the worst that can happen is you were wrong!!

Jan 04, 2015 09:13 PM #7
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