Building a Real Estate Business is Insanely Hard
Real estate is a career that many people feel like they can do. They have watched enough TV (FRICKEN BRAVO!) and convinced themselves they can be a realtor. The reality is, building a sustainable real estate career is insanely difficult. Not everyone can actually do what we do. If you think you want to be a realtor, read what it is really like below. Then see how you feel about wanting to join this business.
There is No Guarenteed Paycheck
You do not get a paycheck every two weeks in real estate. If you are good, you can get a check often but it is not consistent in any way. In order to get paid you first have to convince a person to work with you (keep in mind you are in competition with thousands of other realtors for these people’s business).. Then you have find them the perfect property in their price point (if working with a buyer, a listing is a whole other beast). This can be extremely difficult since most people have unreal expectations. Then if you do actually find them a property you have to negotiate an offer and get it accepted. Next, you have to work through the many milestones along the way to getting the deal to close (which typically takes 30-60 days so at this point you are working with a loss once you count gas, time, effort, and everything else you are doing for your clients). In reality, getting any deal to close is a miracle. There are a million different ways a deal can fall apart. IF the property closes then you will get a check But wait, you don’t actually get to keep all of that money. You now have a split with your office that will take a percentage of it. Oh and you have to do this multiple times a year EVERY YEAR) to earn a decent living to pay your bills.
There is No One Telling You Where to Be
You are your own boss. There is no one telling you, you have to be somewhere at some time. There is no one telling you to get up in the morning. You have to do all of this on your own. You have to set your own schedule. Be motivated enough to get up early and not sleep in. Be disciplined enough to put yourself on on a routine of getting up at a good time and getting shit done. It is very easy to keep hitting that snooze button and very tempting when you are all comfy in your bed (especially during the winter). You have to set your own schedule and have the elf motivation to get things done.
This is one of the toughest parts of being a realtor unless you are a person who is structured and this comes naturally to you. If not, it is something you really have to want to do. If you can get yourself to get up early and have a daily routine you will be able to create a successful mindset every day.
You basically pay for everything yourself. All of the marketing costs are on you. There is no “company car.” You have to pay for your own health insurance. You don’t have a 401K so you will need to set up retirement plans. What about life insurance or disability? iI you have a family this can be very tough unless your spouse has something through their work. On top of this, you are typically paying at tax time not receiving a refund.
Yes we get to write a lot of things off but we still have to pay for them. It is not like that stuff becomes free. For example, last year I have $30K+ worth of total expenses. This doesn’t even include stuff I bought like a suit or watch. Those are things I wear daily but they are not write offs.
Not a 9-5
Realtors work A LOT OF HOURS. I’m not exaggerating either. My day starts at 5:30am when I wake up and right now I’m writing this at 11:30pm. Of course you can set your own schedule but most top realtors are putting in a lot of hours. There is a misconception that we just show properties. FALSE!!! We also have to prospect for new clients, follow up on deals, answer questions, set appointments, research properties, look for properties for clients, follow up on showings on our listings, market ourselves daily…want me to keep going? I’m pretty sure you get the picture. TV shows the glamours part of real estate, not the reality. The reality is, this job is a fricken grind. Day in and day out. There is no same day or set schedule. Each day is different. Plus we are basically on call 24/7/365. Even when we take a “day off” we still have our phones on us answers calls, texts, or emails. And vacations are more of the same.
On top of everything I mentioned above., we have to be so good at what we do that our clients use us again and again and refer us to people they know. If they don’t, our business will fail. We have to go above and beyond for ALL of our clients. Then, we have to market ourselves to them constantly after closing to remind them we are in real estate so they remember to use us again and refer us to people they know. (FYI most people forget about us or don’t always use us or refer us no matter how good of a relationship we have during the process).
To sum it up, if you read through everything I just wrote and you are now even more passionate about wanting to be a realtor you will find success. If any part of you went FUCK NO! Then real estate is not the career for you.
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