Real Estate Agents
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" Like what can a person do that will make SUCH a difference in the annual income that he makes?"
it is a sales job.. VERY dynamic. its not like working at a burger king or something...
The market is not as bad as some have made it out to be. Well its not where I live .
(can vary greatly from county to county, let alone state to state.) in my county.
(not country) we are in what is called a sellers market, where the seller has a lot of control over how the sell is made as there is a very high demand in housing around here, not enough of it. A typical seller is expected to make at least 97% of what they ask for on the house.
(number taken from a newspapper article from where i live).
Of course there are exceptions.. motivated sellers for instance are people that dont want to wait for the best buyer, they may be in a situation like a family death, where they just want to sell the house to pay off left over debt or whatever. These are the ones you can easily turn a profit on as they can be talked into a no money down situation quite easily. kind of crude but its business and a lot less evil than some of the crimes committed in my neighborhood.
People here are saying its a horible job and only a select few
"make it". Its a SALES JOB. it takes skills that, frankly, some just wont want to learn. LOTS of social skills. In prospecting for a new customer, as an example, you have to communicate with people to get your name out there. But these people say that only 10% do in fact make anything worthwhile in realestate sales.
Fine, I wont argue that. Yes thats right, im saying that in the begenning EVERY SALES JOB IS HARD! think about how many fail in the car sales occupation or are doing meager at best. Once you get going however, I think that you will find, there are higher and higher percentage of people "making it" that have forced themselves to pickup the skills needed. Not just drop out cause it was too hard, the ones that want to adapt, learn, and create opportunities, and eventually make it.
Yes i will not say Real Estate is not hard from the get go. There are terms that I still dont understand studying at this for about a year now. Ive often heard that, Starting out is the tough part. However, they have Real Estate companies that you can join to help you with that. You can join up with a company like windermere, for example. They will help newbies by passing down information to you. Even actual sales opportunites.
as to the people talking about the commission splits, i cant say. I am not currently a real estate professional
(am studying to be one). However I do know this bit of information. Say you make about 3% on a home sale, and u sell a condo for 200,000 - thats $6000 commission. If you work for a company like windermere, they will take %50 off of your first sales, up until a certain number like $20,000 or something, after that all your profits come to your pocket. So of that 6000, you get 3000. This is to help pay for the MLS service they subscribe for you, and also to help newbies to the business, as well as a cut for themselves im sure =].
I personally think Real Estate should not be first looked at as a full time job, instead a side job to pickup extra financial aid. Then later once you have a niche .
(a place where you can go to pickup lots of customers, say you are in a rockclimbing club and u pass around business cards there, this would be your niche, these "friends"<another reason for social skills> of yours would tell their friends and this is how you get going) once you have your niche you'll be making money with the big sharks.
(so ive heard =])
As to the topic starter's question( ive boiled it down into this ) How can I make a 6 figure sum of money, by the time im in my 30's? cuz we all know damn well that we will have no social security by the time me or proscribe gets to be 60.
Well, I cant say you wont make a mil. as a real estate agent, you probably will, if you stick with it.
I think there is a better way. why not take a normal job, in say web design, learn how to do that, but in your spare time, learn how to do the real estate thing. Do both jobs, once you get good at the real estate thing buy yourself a nice house for yourself, or houses. Sit on them, or better yet, rent them out to people. That way you pay no property taxes and they will be paying off ur loans.
With the expierience you gained from web design, make yourself a webpage, hire someone to put it on a nice and successful search engine, like "google.com". With the social skills from being a real estate agent (and no doubt the money), stop posting on so suave (maybe down to once a week). With your spare time go clubing, pick up on a hot HB10 that is perfect, the way you always dreamed your future wife to look and be like, marry her. sit around for a little bit, make some kids, and win at life.
In doing all this in 9 years it will be even more possible to make a million dollars. I think Str8up said it best:
"Lets say you inherited $100,000 from your dead uncle. In many areas you could use this to pay cash for a condo. If you did so you would likely generate a positive cash flow every month, and on top of that you would benefit from the appreciation over the years. Probably not a bad investment.
If you were to split this money into multiple down payments on the other hand, you would be able to purchase more units that tenants ultimately pay for with THEIR money, and you will be the one collecting the payoff on MULTIPLE properties in the end.
This is the most important (and most basic) principle behind acquiring large scale wealth. ANYONE with a little discipline can shove $100 per month into a 401k and have a nest egg in 30 years. It takes guts and determination most people don’t have to build wealth in less than half that time. Leverage is the incredible tool that allows you to make it happen.
And to anyone who challenges leverage as being “risky”, OF COURSE IT IS! It can send you to the moon or sink you to the bottom of the sea. But if you have the knowledge, experience, and resources to back you up you will find that it isn’t NEARLY as risky for you as it is for the people crying “watch out!” from the sidelines.".
All or most of the information here has been gathered from reading booked by the author Robert Kiyosaki, and others, By reading
Str8up's post awhile back which is a great resource wish there were more like it around so suave,however it is getting a little old and is on 12 pages now!Also by my high school realtor/business teacher (works for windermere, and drives a very nice car, compared to the other teachers at my school).
All in all Real Estate is a very hard business to get into, as an invertor or as an agent.Lots of money can be made in it however. But however you look at it, It represents a very good DJ feel that most jobs like cubicals and burger kind just dont have to me.
PS. Its been a long day so sorry if i havent corrected any (there are alot) of my spelling/grammer errors, but im just tired gnight and gluck!
