Zenelde,

Our recommendation is for you not to leave your day job. In other words, entering the world of real estate typically does not pay the bills, in the early stages. Many people become frustrated an give up.

Individuals that see the business for what it is and accept what they can and cannot accomplish have an easier time meeting success. Regardless of weather or not the market turns around in the next year, finding success will definitely involve hard work and sacrafice.

It can be done but keeping it real will go a long way toward success.

Best wishes,
The Eckler Team

I would interview several real estate companies before you choose which one you would like to work for or decide to get your real estate license. Remember that you are interviewing them - not the other way around. Ask them what kind of training that they provide their new agents after they get their real estate license. Do they have any type of mentor program? You'll have a lot of questions when you first start in the business, so you'll want to make sure that you're working for someone you feel comfortable talking with.

There are a lot of start up expenses in real estate. Ask the manager of each company to break down those expenses for you so you know exactly what to expect. It usually takes 30 to 60 days from the day you write a contract on a property to the day you get paid so you'll need several months of living expenses in addition to the start up costs.

It's a great business to be in and the potential for income is unlimited. Bring enthusiasm and the will to succeed and you'll do well in real estate no matter what kind of "market" we are in.

If you need to make money quickly or are the sole provider in your home, the answer is no. However, if you have someone to help you out while you get get going learning the business, this may be a great time to get in. It's best to learn the business of real estate when the market is hard because you will develop skills you will use forever and you will be at an advantage to those who got in when it was easy. Getting a license will only give you permission to sell homes, the key would be to get with a company that can offer you as much training as possible for the least amount of cost. Exit Realty is all about training, check out all your options before you chose a company. They offer an incredible amount of training and support. They also offer a sponsoring program that can help you earn money even when you are not selling. Feel free to call me if you need a location near you.

Reality Check.
This is not a get rich quick business, it is one which requires hard work, but if you are willing to put in the work, there is money to be made in the business and it is very rewarding to help people. It is definately harder now then it was a few years ago. BUT a lot of realtors are getting out of the business at the moment, which means that there are more opportunities for those who want to work the business. There are a lot of start up costs - school, the cost of taking the test, applying for the license from the state, then continuing education every 2 years to maintain the license are only the starting point. I have to have increased insurance for my car in case there is an accident and clients are involved, I have to carry insurance in case I'm sued (essentially malpractice insurance). You'll need to join your local, state and the national board of Realtors, the local multi-list service (that's how you know what homes are on the market) and the service that lets you into the homes (here it's our supra keys) - some are monthly fees, some quarterly, some annual. You are self employed as an independent contractor, so half of what you make goes to federal and state taxes, there is no health insurance, your gas and car costs fall to you as well. Depending on the company that you work with, you will have different levels of office costs or they will take a different percentage of the commission cut. Some companies provide a great deal of support and help for new agents, others kind of throw them in the deep water and tell them to swim, so pick your company wisely and find one that will provide great support.

As a rule of thumb half of what you make will go to taxes
half of what is left will go to increased insurance, car costs and "operating expenses" at your office from paper and pencils on
Half of what is left will go to continuing education, maintaining your license costs and costs to belong to the required professional organizations, being part of the multi-list, etc (note I said required ones, there are a lot of optional ones that are additional costs that you can join as well)
half of what is left goes to marketing
half of what is left goes into savings to reinvest in your business when a "big item" or marketing opportunity comes up that needs a lump sum
what's left is what you get to live on.
(where items fall on this list can vary depending on the level an agent is at, but taxes is always at the top since we are independent contractors)

The school teaches you to take the test, not to sell real estate, so you will probably want to take other courses or find a good mentor to teach you how to really sell real estate (in my company we have classes provided in each office for the new agents),

then there are the basic marketing costs - some are paid by the company that will hold your license some by you - examples are business cards, car magnet signs, mailings to everyone you know telling them you are in the business, etc.. Upfront costs can mount up and the thing that most new agents don't do well is to manage those costs and not go overboard on their initial marketing until they have some revenue coming in. You want to do effective marketing, not blanket marketing.

When I first started, I made the decision to get in the business in Dec/Jan, went to classes Jan-March, got my license in March, went part time until end of May, and had no closings until the following January - had business - a listing and a buyer who was buying new construction, but no closings, which equates to no income coming in. After that, because I had spent the previous year really marketing and working on things my business took off and now I am successfull, but I spent a year with no income coming in and lots of money going out before I got to this point. I would also point out that the income is not steady. There will be months when you have closings on a regular basis and then 2-4 months when you may not have any closings and you have to get back to basics and start building up again.

Note - some of the most successful realtors only deal in small foreclosures where they are getting $500 or less a deal, but are doing volume work, others deal in high end properties, both can be successful. Many realtors find that when they are starting out, they need a second source of income, be it a spouse or another job until they get the real estate really established.

Talk to the companies in your area and interview them, talk to their new agents and the ones who are a year or two in the business about the support and training that they received - coldwell Banker does a lot for their agents, I don't know about the other companies.

One of the daunting tasks of becoming a Realtor is not getting your license...that part is relativly easy.The real quest for you will be that now that your in business for yourself, what do you do now?

I am with Keller Williams Realty, and I have an opportunity to learn something essential each day, and
I am in my 4th year as an agent! I implore you to look at who you decide to associate with and see what kind of training and support, both from a training standpoint and a community of agents standpoint. Read books on systems for becoming an agent such as the "Millionaire Real Estate Agent" and "Shift".

I love the fact that I can impact people's lives...I have a niche market for finding homes for the disabled or soon to be disabled like newly diagnosed MS patients for example. I love helping folks in times when things look bleak. Think about what motivates you to change careers.

Being a Real Estate Professional is the greatest career opportu-nity left in America! Bar NONE! Not only is the opportunity for financial reward unlimit-ed, but so is the personal satisfaction of helping people through one of the biggest emotional and financial transitions of a lifetime. Find any successful real estate agent and you will have found someone with a heart-warming story of how they personally made a positive impact on someone’s life. But with so many real estate companies downsizing and closing their doors is now a good time to make the transition into a real estate career? YES! The hardest hit in the current real estate down turn, besides sellers who only have a few years of equity in their house, are the agents and brokers that belong to the Old School of real estate. The dinosaurs that claim, “that’s not the way we do it here”, and refuse to develop strategies that fit today’s market and economy are the agents that are dying off. The dynamic, optimistic, creative and highly trained counterparts representing the new genera-tion of agents are ready to take their place. And just like in nature, as the un-evolving species die out, the new and improved species fills the space that was left vacant.

Armed with a “can do” attitude and train-ing, systems and tools that are superior in every way to what was provided their predecessors, these professionals are eagerly opportunistic. They recognize that there are more buyers and sellers between 21 and 49 than ever before in his-tory, and they have access to interest rates that are STILL at historic lows. They also know that the American Dream is here to stay, despite the current challenges in the market place. The new breed of agent is poised to render the quality services that this demographic has come to expect. It takes that special person to see beyond the news headlines and rise to the top – remembering that tough times don’t last, but tough people with a vision for the future do!

I suggest you take a serious look at a full or part time career in real estate. Most real estate brokers have weekly career events. There you will be able to get the information you need to decide if you are ready to evolve into the next generation of real estate professionals.

ANYTIME is a great time to enhance your professional qualifications negative issues in the market brings in more business if you know how to ride that wave. Good luck