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mcallisterba…, Other/Just Looking in Austin, TX

As a new agent, would it be better to get started in sales or leasing?

Asked by mcallisterbagco, Austin, TX Sat Nov 10, 2012

I know apartment occupancy is almost full with a lot of new renters moving here, but I'm not sure if that is good or bad for locators. Also I can go a few months without income but I would prefer to work part-time if possible.

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32
Laura Rosales-Realtor’s answer
Hi Joe,
I highly recommend leasing homes. This is a great way to become familiar with areas and what people are looking for in a home. It will help build your confidence when showing homes and allows you to become familiar with the data in MLS. This is also a great way to start building a database and get referrals. Ever person you help has family and friends who will some day purchase or sell and today's renters are tomorrows buyers!
Best of luck to you!! Laura Rosales, Realtor with Premiere Team Real Estate
1 vote Thank Flag Link Fri Mar 1, 2013
I would recommend to join a successful team. They will provide you with the training, coaching and all the leads so you can quickly get positive cash flow. Most agents quit the business within 2 years as they're running out of money.
2 votes Thank Flag Link Fri Nov 23, 2012
"Thank you everyone! My continuing education course recommends finding a niche right away, but just getting started it's hard to know which one would be best. Sounds like I need to focus on getting contacts first!"

McCallister, the agents who have responded have provided excellent suggestions. Where the wheels come off the wagon is contained situations like the quote above. "Find a niche!" You've got to be kidding!!

As a real estate agent you do understand YOU ARE A SMALL BUSINESS OWNER! One of the 53% who will pay the taxes spent by the 47% (irresistible) Anyone considering opening a small business will do market research. The will know if they are opening a bagel shop, sneaker store or doggie day care, who lives in the area, what they are willing to pay, how to reach these customers and how many sales they need to pay their bills as well as their cost for delivering goods and services.

Imagine yourself as the owner of the new 'McCallister Doggine Day Care' located 1/4 mile from 2500 citizens living in the nearby condos. A gold mine for sure.

Opps, that are all 55+ condos and many of them are not working and have no need of a doggie day care? Opps,,,,they are 'no pet' communities. But they DO like morning coffee and bagels. Opps.

This IS how most folks start their real estate career. 95% never see their 2nd anniversary! Practicing 'accidental' real estate is a BAD idea.

This is what you MUST do.
#1. Market Analysis, List top three products and the top three segments within each
#2. What is the lowest cost way to reach a sufficient population to get your first 10 transactions.
#3. What resources do you currently have to leverage.

In may area of Florida this data may look like 5% mobility, SFH, 150-350, DRM, 400 in contact list.
Now, create a strategy with exceptional copy. The Niche market will find you.

The fastest track to success if connecting with an organization who historic record shows an exceptional number of transactions. These folks know what they are doing and the numbers, not the glossies, support the claim. Then just do what they tell you to do. It;s truly not rocket science. Don't allow your IDWDT to sabotage your progress.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us

Movie Tour
http://youtu.be/5iaASMx6T_c
2 votes Thank Flag Link Sun Nov 18, 2012
Thank you! Very helpful information :)
Flag Tue Nov 20, 2012
Do both is my recommendation.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
1 vote Thank Flag Link Thu Aug 29, 2013
I began with an apartment locating company while I was finishing school, and 4 years later I had a great database! Now that I am doing sales and leasing, I have referrals, returning clients, and a better knowledge of the areas/neighborhoods. I definitely think starting with leasing is a good idea, but if you have the time and resources to sales it'll pay better. Plus, apartments can take 30-90 days to send your commission check so make sure you have money saved up!
1 vote Thank Flag Link Wed Aug 28, 2013
Mcallister,
Being a Realtor is not an either or proposition, especially in the beginning. The question you need to answer is how will you get in front of prospective renters, buyers or sellers. Even then you won't get paid for 30, 60 days and who knows when with a listing. A part time job is a good idea as long as it does not interfere with when most people need to look for homes. Choosing the right brokerage is the key. Consider expenses possible leads and mentoring. I'd be happy to discuss our brokerage with you.
Best wishes,
Bill
1 vote Thank Flag Link Sat Nov 10, 2012
The nice thing about rentals is that you get paid quickly, so it's a good place for new agents to start.
0 votes Thank Flag Link Wed Aug 28, 2013
Hi! My daughter just got her license and she has started with residential leases and has been going with me when I show to buyers. Residential leases are a great way to start! Apartments can be profitable but this doesn't give you any hands on experience as you don't show them a home or assess needs in the same way. Also - all of the people you help to rent will someday become buyers and you can keep in touch. I get calls all the time from relocation people I helped get into a rental home and now they are ready to buy. Make sure you have a good mentor that you can call just to run something past - this is so important in our business. Best of luck to you!! Laura Rosales
0 votes Thank Flag Link Wed Aug 28, 2013
Do whatever brings you money and success first. If leasing brings you money then do it, otherwise you might get discouraged. But don't forget to work at sales. No such thing as part time in real estate. Laziness won't make you a producer
0 votes Thank Flag Link Mon Mar 4, 2013
I would start out in today's market by leasing 75% of the time and transacting sales the remainder of my time, which is exactly the opposite of what I did when I was in your shoes.

Leasing is a GREAT way to keep your cash flow, rentals normally take a week or so to finish from beginning to end, and you get paid immediately. Do not run after low priced rentals, because they are really and truly not worth your time if you have no other income. Stick with rentals of $2000+, learn your market and get your name out there most of all. Drive traffic to yourself so that prospective renters keep seeing your name over and over.

GOOD LUCK.

Scott Miller
Realty Associates
Boca Raton, Miami Beach, FL
0 votes Thank Flag Link Mon Mar 4, 2013
Great Question:
With leasing your income will be steady and you will build a client base of Renters..who will someday become buyers! You will also gain experience working with people in this busienss which I think is very valueable.
I say lease first and build your client base then move to selling.
0 votes Thank Flag Link Sat Dec 15, 2012
Suggest you check out a team as well. I would recommend Perry Henderson's team as an excellent place to get started. As an alternative, find higher volume agents and see if they refer their excess business to other agents. I know of several agents who refer the buyers that can't work with (due to time constraints) to other agents.
0 votes Thank Flag Link Mon Nov 26, 2012
Talking to anyone with a real estate need will help you find your own voice.
0 votes Thank Flag Link Thu Nov 22, 2012
Get involved with all residential aspects of real estate and what you will find is that you will naturally default and enjoy one area of the business more than another. Once that happens follow that lead and become proficient in that area through education and training.
0 votes Thank Flag Link Wed Nov 21, 2012
I would try to learn and practive every side of the business. It usually takes a couple of months to get paid, which is dependent on how soon your clients are looking to move, when your clients move in, and then you don't always get paid immediately on leases.

Good Luck
0 votes Thank Flag Link Tue Nov 20, 2012
One of the things you may want to try is getting on a team with a sales plan that helps you develop a lead development plan for sellers, buyers and renters.
0 votes Thank Flag Link Mon Nov 19, 2012
I'm a Broker associate with a Boutique company in a small town. Starting out is costly. If you can manage a few homes/condos to gain some money while working on selling and identifying your niche..I think this is smart. Not only is leasing constant income, a way to grow contacts but understanding the whole picture of investing will only help when selling investment properties to clients. Due to the type of market I work in, it's not easy to refer your wonderful clients to property managers that you respect and trust. That is how I got into it. Now it's a great constant monthly income and my clients never lose touch with me. Good luck. Do what you feel is right for you. You'll know when the time comes whether it feels right.
Alissa Spears
Lynn Johnson Realty,Inc
HomesInRockpot.com
361*790*6585
0 votes Thank Flag Link Sun Nov 18, 2012
You will definitely make more money in sales than just leasing.If you are concerned about the wait for income it might be best to focus on both markets & try to build your listing inventory .
0 votes Thank Flag Link Sun Nov 18, 2012
Mixed bag and depends on what you want for your future. In my market, there are many jobs for property managers. It takes a special endorsement to the real estate license here to do it. Dont know your makt. As Oregon continues to decline in value and our foreclosure rate is huge, thousands of people need rentals. Rents and rental house values are increasing and thus the need for managers. One can be pulled into a certain path(or rut) and can find it hard to change paths. If you have to survive on that manager income, you may settle into depernding on that sure thing even if its not the lifestyle amount you wish to make. It may not give you time to make changes.

Id generally say if you want to really get into regular real estate, go whole hog and do it. Thats easy to say though. I was once at an office where a new agents occupastion was full manmager of a Safeway supermarket. He never got the time to do more than showing homes once every few weeks. The office owner talked him into quitting Safeway to go 'whole hog' in to real estate and he failed. He gave up his great Safeway job and quit before he was due retirement benefits. Last time I saw him, he was a broken man driving a candy vending machine truck and had lost his home.

So---you must do some soul searching and do a Ben Franklin list
0 votes Thank Flag Link Mon Nov 12, 2012
Hi Akil!

Leasing may help you build your communication and contact management skills.

When we bring new members on our team we give them a few rentals among other leads.

In many cases the leads that come off the "leases" can actually buy.

Great things start with small beginings and I believe in cultivating budding talent like yourself.

Best of luck in your professional sales career!!!
0 votes Thank Flag Link Sun Nov 11, 2012
Hi Mcallister,

Typically someone looking to rent is looking to move quickly. Also, you can find buyers quickly if you market yourself right you might have some closings by the end of the year. Real estate is about marketing and networking. Learn the contracts and you will be fine.

Best of luck
0 votes Thank Flag Link Sun Nov 11, 2012
I think it's all in what you want to do. If you want to get into leasing and property management, go for it. I would much rather succeed with selling. I think there is much more money in it. Good luck to you either way!
0 votes Thank Flag Link Sun Nov 11, 2012
Join a team with a proactive manager.
0 votes Thank Flag Link Sun Nov 11, 2012
Hi, Mcallister.
The benefit of doing more (sales and leasing) is the knowledge base grows quickly. I'm certain if you polled agents in business 5 plus years, you'll find all still encounter new twists to deals. Apartment locating is a different beast and many successful agents have transitioned into more traditional sales from this role. The biggest difference a focus on the combination provides is the ability to grow your contacts. The more people you know, the more often you are "in their way," the more likely they will use you or recommend you to friends.

Good luck!
Web Reference: http://www.crowehomes.com
0 votes Thank Flag Link Sun Nov 11, 2012
Again, I would suggest you call me (and a few others willing to discuss the whole realm of becoming a real estate agent. I am (and I'm sure others) would be willing to discuss it with you.
There are a lot of issues with respect to beginning in this business (your education should NOT end with just completing the course.)

Ron Cullinan
Avalar Austin
GRI, CRS, ABR, CLHMS, e-Pro
512-799-3239
austin_realtor@earthlink.net
http://www.austinonlinehomes.com
0 votes Thank Flag Link Sun Nov 11, 2012
Thank you everyone! My continuing education course recommends finding a niche right away, but just getting started it's hard to know which one would be best. Sounds like I need to focus on getting contacts first!
0 votes Thank Flag Link Sun Nov 11, 2012
I would do a mix of both and start getting your name out there. The more branding you do the more contacts you will make. Unless you want to specialize in one or the other I think it is best to start as a full service agent.
Good Luck!
Barbara
0 votes Thank Flag Link Sun Nov 11, 2012
I have to agree with everyone. I started in the business 5 years ago at the worst of the market. Rentals helped me survive and at times have brought me great sales. I wish you all the best!
0 votes Thank Flag Link Sat Nov 10, 2012
Mcallister,
Being a Realtor is not an either or proposition, especially in the beginning. The question you need to answer is how will you get in front of prospective renters, buyers or sellers. Even then you won't get paid for 30, 60 days and who knows when with a listing. A part time job is a good idea as long as it does not interfere with when most people need to look for homes. Choosing the right brokerage is the key. Consider expenses possible leads and mentoring. I'd be happy to discuss our brokerage with you.
Best wishes,
Bill
0 votes Thank Flag Link Sat Nov 10, 2012
I do quite a few leases on the side, in addition to sales. Working with renters can be a great way to build your prospect/contact list. Remember, many of those renters, or their friends/family, will most likely turn into buyers down the road - and they'll remember you when that time comes if you've done a good job for them, and have been dilligent in keeping them in your marketing "sphere".

The name of the game is really building up your referral network to as many people as you possibly can, thereby increasing the odds that the client themselves, or one of their friends, will contact you in the future. Working with renters today, can be a great way to procure additional renters & buyers "tomorrow".

Hope that helps!
0 votes Thank Flag Link Sat Nov 10, 2012
I work with renters as well as tenants who are looking for houses and duplexes, buyers and sellers . I have drawn the line at apartments. I've made about $4000 this year on leases, so it's been nothing to sneeze at. In this economy, there are tenants who are willing to pay to live in a nice home, but perhaps have had credit issues or a short sale/foreclosure in another area prior to moving here. I don't see that changing for awhile.
0 votes Thank Flag Link Sat Nov 10, 2012
When I started in the business 15 years ago, I did both (still do). While leasing doesn't pay all that much, it is a source of income for a new agent and helps pay the bills. The most important factor though, is it gets you in front of customers who may become purchase, or even selling clients for future business. Given the predictions of the economists about Austin's projected growth over the next five years, there will be a substantial influx of new residents seeking leasing when they move here. A great percentage of new residents prefer to rent for a while until they get to know the community and where they might wish to live long term when they make a purchase.

Feel free to contact me if you want to discuss beginning agent strategies etc.

Ron Cullinan
Avalar Austin
GRI, CRS, ABR, CLHMS, e-Pro
512-799-3239
austin_realtor@earthlink.net
http://www.austinonlinehomes.com
0 votes Thank Flag Link Sat Nov 10, 2012
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