Educational Investment: Licensing Course and Exam

Your first step into real estate will likely be an educational one. Licensing courses can range anywhere from $150 to $800, while the licensing exam may cost between $75 and $150, with variations depending on the number of attempts.

Initial Background Checks:

• Background Check: $35
• Fingerprinting: $35

Licensing and Association Fees:

• State License Fee (e.g., Oregon: $230)
• Realtor Association Fee (National, State, and Local): $700 (Prorated annually, this estimate is as of January 1st)
• Local MLS Fee: $200 ish each quarter (This varies widely)

Business Essentials:

• Brokerage Monthly Fee: $0-$99/month (Depending on your chosen brokerage)
• Business Cards: $50 – $150
• Professional Headshot: $150+
• CRM (Client Relationship Manager) Software: $25-250/month (May be included in some brokerage packages)
• Personalized Real Estate Website: $25 – $1500/month

If you’re Listing Properties:

• Lockboxes: $50-$100 each
• Property Signs: $65 – $100 each
• Open House Signs: $35 – $85
• Property Photographer: $200 – $500 per home
• Home Staging Services: $100 – thousands

Understanding the financial commitment to become a real estate agent can better prepare you for a smooth start in your new career. Ensure you budget effectively and strategically for these necessary expenses. Your investment today can set the stage for a rewarding and successful career in real estate.

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Welcome to an exciting, challenging, and rewarding first year in the world of real estate. The journey ahead will be a blend of exhilarating moments, daunting challenges, and rich learning experiences.

Picture your real estate career’s onset like an airplane preparing for takeoff. It demands a substantial amount of energy, endures turbulence, and requires constant throttle to avoid a crash.

Understanding Your Role: The Multifaceted Job of a Real Estate Agent

While it’s tricky to offer one-size-fits-all advice, every real estate agent must navigate a variety of roles. From meeting clients, drafting contracts, learning market trends, and advertising, to bookkeeping, design work, scheduling, and more, the responsibilities are diverse.

Focus on these five crucial areas in your role as an agent: identifying potential clients, following up with contacts, showing homes, writing contracts, and rehearsing these tasks with friends or other agents.

Mastering the Essentials: Administrative Duties and Balance

As a new agent, you’ll need to familiarize yourself with various systems like your local association, your local MLS, and your brokerage. And yes, you’ll have to manage a lot of passwords. Though it might feel overwhelming initially, rest assured, it becomes easier with time.

Avoid concentrating on a single task. A balanced approach towards the five main areas of your job will facilitate a smoother first year. Maintain equilibrium between finding new clients, understanding contracts, and enhancing your knowledge without waiting to know it all before making your first move.

Managing Deals: Systems and Steady Progress

Your first deal might feel like a precious newborn that occupies your thoughts constantly. Don’t let the exhilaration disrupt your productivity or limit your client reach. Adopt the tortoise’s pace instead of the hare’s rush.

As you gradually manage multiple deals simultaneously, you’ll realize the power of systems. Properly structured systems can solve most challenges.

Cultivating Cooperation: The Real Estate Community

Contrary to what many new agents believe, your real estate journey isn’t about competing against fellow agents. Strive to build a reputation of trust and collaboration. Remember, your goal is to close deals, not to feed your ego.

Embrace Continuous Learning: Stay Humble and Seek Guidance

At some point, you may feel you’ve mastered it all. However, remember the wise words of Michelangelo, “I’m still learning.” Each deal is unique, so don’t hesitate to ask for help or have an experienced agent review your offers or responses.

No advice can fully prepare you for your first year. It’s a unique journey filled with personal learning and growth experiences. Soak it all in, earn along the way, and most importantly, enjoy the ride.

Good luck!

You might want to check out Having a Consistent Real Estate Career

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Why Join a Team?

Most people starting in real estate could benefit from joining a team. As a beginner, you’ll need to learn many things. Real estate involves a lot of subtleties that can be tough to grasp on your own. By joining a team, you can learn from experienced colleagues, which can be incredibly beneficial for your development.

Learning Like a Baby

Just like a baby learning to walk, starting in real estate can involve a lot of stumbling and falling. The real estate world can be harsh, and many ambitious new agents find this out the hard way.

Starting as an Assistant

One great way to enter the field is by working as an assistant. You can gain valuable experience by doing comparative market analysis and handling paperwork. This foundation can help when you decide to strike out on your own.

The Importance of Savings

Having savings is crucial when starting a career in real estate, whether you join a team or go solo. The beginning can be tough and some agents can go months without closing a deal. Having a financial safety net is crucial for success.

Drop the Ego

When choosing between a team or going solo, remember to leave your ego at the door. An inflated ego can do more harm than good in this business.

Picking the Right Team

Choosing the right team is just as important as choosing the right brokerage. It’s crucial to understand the team’s culture and see if it aligns with your goals. Be careful though, not all teams live up to their promises.

Don’t Just Look at the Splits

While commission splits are important, they shouldn’t be your only focus. You should also consider the team’s growth and development opportunities.

The Benefits of a Team

Joining a team can offer many advantages. You’ll be able to focus on your strengths, gain experience quickly, and enjoy the support of your colleagues. Plus, you’ll have backup in case you’re unable to work or need to take a vacation.

The Solo Route

On the flip side, you might be someone who thrives on independence. If you’re a natural leader, a quick learner, and good at balancing various tasks, you might prefer to go solo. However, keep in mind that starting solo can be tough. It requires a lot of determination and a good understanding of the business.

Listen to Your Experience, Not Your Ego

Don’t let your ego decide whether you should go solo or join a team. Remember, if you’re new, there’s a lot you don’t know. As you gain experience and build up your financial resources, you might find that going solo is the right choice for you. The best part about real estate is that you can change your path at any time.

A bonus article on picking a real estate team.

Have you picked your brokerage yet? Here’s our thoughts on that.

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Remember: You’re in Control

It’s important to remember that you’re not the one being interviewed – it’s the other way around. The brokerage you choose can either propel you towards success or hold you back. So, choose wisely!

The Big Company vs. Small Company Debate

Joining a larger company can provide ample opportunities. You could meet potential mentors and even receive referrals. However, there’s also the risk of getting lost in the crowd. For newcomers, I recommend joining a big company for the exposure it provides. But if you’re experienced, the world’s your oyster.

Smaller companies might not have the same number of agents, but they can offer more personalized attention and easier access to the Principal Broker.

In the end, your choice between a large or small company should be based on the Principal Broker, the training provided, and the systems in place. The right environment can spell success for any agent.

Questions to Ask When Choosing a Brokerage

When interviewing potential brokerages, here are some key questions to ask:

1. What training do you offer? Can I observe a training session before joining?
2. What kind of support will you provide?
3. How accessible is the Principal Broker?
4. If I have a critical question at 9:30 pm, who do I contact?
5. What’s the Principal Broker’s background?
6. Do you provide leads? (Remember, all leads aren’t created equal and this shouldn’t be your main criteria. Quality leads are worth their weight in gold. )
7. How will you help me achieve my goals?
8. What unique opportunities do you offer?
9. Do you provide mentors or coaches?
10. What systems are in place to support agents?
11. What marketing support do you provide?

Understanding the Financial Aspects

Ensure you understand all the financial aspects such as desk fee, cap limits, commission splits, franchise fees, royalty fees, monthly fees, tech fees, profit share, revenue share, stocks, other income opportunities, and Errors and Omissions Insurance.

Know Your Expectations

Understanding what the brokerage expects from you is crucial. Do they want all agents to follow the same lead generation methods, or do they cater to individual preferences? Do they have a Company Manual that you can review?

Remember, it’s completely normal to hold a second interview with your top choices. Be sure to ask all necessary questions to make an informed decision.

n and what the brokerages or recruiters tell you. A second interview with the finalists is completely normal. 

You’ve picked your brokerage, now it’s time to think about being a solo agent or joining a team.

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Don’t Let the Scoreboard Dictate Your Work

Many agents make the mistake of only working hard when the scoreboard demands it – closing deals, begging for leads, and taking time off as a reward. But this approach is short-sighted and can lead to burnout and frustration.

Instead, start with consistent business building and lead generation. By making a habit of seeking new business every week, you’ll create a steady pipeline of potential clients and avoid the roller coaster of feast or famine.

Fortune is in the follow-up, and many agents miss out on long-term clients by failing to stay in proper contact. Remember that everyone has a real estate plan, and it’s your job to help them achieve their dreams – whether that’s buying a home next year, in seven years, or investing in a property. Treat your clients like seeds in a garden, nurturing them consistently and patiently.

It’s also important to find a real estate buddy or accountability partner, especially if you’re a solo agent. Taking time off is crucial for your mental and physical health, but many agents feel guilty or stuck. By having someone to cover for you, you can relax and recharge without worrying about missed opportunities.

Treating Real Estate as a Business, Not a Hobby

Ultimately, treating your real estate business like a business – not a hobby – is key to long-term success. You can’t expect to brush your teeth really hard right before a dentist appointment and have the same results as consistent brushing and flossing. The same goes for your business – don’t just work hard when you need money, but create a solid foundation for your career with consistent effort and a long-term approach.

So don’t let the scoreboard dictate your efforts. Stay focused on your goals, build a solid foundation, and nurture your clients with care and consistency. By doing so, you’ll achieve not only success but also fulfillment and joy in your real estate career.

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Many people dive into real estate under the illusion that it’s an easy ticket to wealth. However, the reality is starkly different. It’s not just about selling houses; it’s about running a business that requires careful planning and consistent effort.

Building Your Financial Foundation: Savings and Budgeting

Most experts agree that you need at least six months’ worth of savings before launching a real estate career. As with any business, you need proper funding. Relying on credit cards to float your start-up period can be akin to playing Russian Roulette with your finances.

Choosing Your Lead Generation Methods: Consistency is Key

There are countless ways to generate leads, but the key is to select a few strategies that resonate with you and stick to them consistently.

The Hidden Costs of Real Estate: Planning Ahead

It’s important to understand and account for the ongoing costs associated with real estate. These can include expenses for CRM software, advertising, flyers, open houses, signage, business cards, MLS dues, fuel, and more. Betting on large commission checks to pull you out of debt is a risky strategy.

Tax Surprises and the Value of a Good CPA

Many agents are shocked by their tax bill at the end of the year. A competent CPA can provide invaluable advice to help manage your taxes effectively.

Branding and Professionalism: Invest in Your Image

Creating a professional brand image is essential for success. Whether it’s your logo, flyer design, or signage, every client-facing element needs to exude professionalism. Investing in a professional design can differentiate you from the competition.

Treat It Like a Business, Because It Is One

The most successful real estate agents approach their careers as a business, not a hobby. This mindset shift can dramatically accelerate your progress and set you on the path to long-term success.

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If it’s not on your calendar, it’s likely not going to get done. Parkinson’s Law suggests that work expands to fill the time allotted, and this often leads us to procrastinate or get distracted by less important tasks.

The Trap of Too Much Freedom

While the flexibility of a real estate career can be appealing, it can also be a downfall if not properly managed. Too much freedom can make us complacent and unproductive. Remember the entrepreneurial adage: many would willingly work 60 hours for themselves to avoid working 40 hours for someone else.

The Power of a Schedule

Schedules aren’t just for the strictly organized among us; they can enhance productivity for anyone. Comedian John Stewart, for example, once shared that the structured timeline for creating The Daily Show was instrumental to its success. His team’s creative process was not a free-for-all, but a precisely orchestrated effort.

Time-Blocking: The Key to Real Estate Success

Time-blocking is a crucial tool for managing your workload as a real estate agent. It involves scheduling your most essential tasks in blocks of time and ensuring they are consistently addressed.

The Five Core Responsibilities of a Real Estate Agent

Focus your time-blocking efforts on the five main jobs of a real estate agent: practicing and role-playing, lead generation, follow-ups, showing homes, and writing contracts. Additional responsibilities, like paperwork and continuing education, can be incorporated as well.

Treat Your Career Like a Business

To achieve lasting success in real estate, it’s essential to treat your career as a business rather than a hobby. This means establishing regular working hours and sticking to them.

Success in real estate comes from effective time management and prioritization of tasks. By using time-blocking techniques and focusing on core responsibilities, you can transform your approach and achieve greater success.

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One of the initial steps to take before obtaining your real estate license involves a simple action: communicate. Many prospective agents hesitate to share their aspirations until they receive their license or even until they close a few deals. However, this approach may not be the most beneficial. Instead, tell people about your dreams, your ongoing efforts, and your passion for real estate right from the start.

Don’t Keep Your Real Estate Journey a Secret

Sharing your journey towards becoming a licensed real estate agent allows others to grow accustomed to the idea. Show them your growing knowledge and share your experience of obtaining your license. While you may assume that your established connections will automatically become your clients, this isn’t always the case. Many people prefer working with experienced agents, including friends and family. Therefore, showcasing your dedication and learning journey can help secure their trust.

Tools to Build Your Career Before Licensing

You can prepare for a successful real estate career even before you have your license. Here’s how:

1. Newsletter Sign-Up: Subscribe to newsletters from real estate agents within and outside your area. Learn from their practices and stay updated with industry trends.
2. Market Research: Get accustomed to browsing real estate websites. Understand their search functions and learn how to evaluate houses online. This practice will help you learn about the market from the public’s perspective.
3. Networking with Mortgage Lenders and Banks: Understanding the financial aspect of the real estate market is crucial. Initiate conversations with mortgage lenders and banks to learn more about this side of the industry.
4. Meet Title Company Representatives: Title company representatives can provide valuable guidance. Start building relationships with them.
5. Build a Contact List: Start compiling a list of contractors, plumbers, electricians, landscapers, stagers, real estate photographers, and sign installers. These contacts will be invaluable once you start your career.
6. Visit Open Houses: Attend open houses and engage with real estate agents. You can learn a lot from these interactions, and you might even find a mentor.

Defining Your Real Estate Career Goals

Before you acquire your real estate license, it’s crucial to define your goals. Understand why you’re entering this field and what you hope to achieve. Having a well-thought-out plan will enable you to hit the ground running and set you apart from others.

Here’s a podcast where I talk about some of these things:

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Who do you believe you are? Are you successful? Smart? Capable? Or do you think of yourself in negative ways, especially when you make a mistake? These negative thoughts can show us what we truly think of ourselves. They come out when we’re upset, tired, or scared. These thoughts are called limiting beliefs.

Question Your Beliefs

So, how do you move past these limiting beliefs? Start by questioning them. Did you know that a lot of what we believe about ourselves is based on what we learned when we were kids? For example, when we’re kids, we’re told not to talk to strangers. As adults, that’s not really helpful advice. We need to talk to strangers to find jobs, make friends, or even go on dates.

Focus on Positives

Our brains are designed to help us survive. If we focus on the negatives, our brains will keep showing us more negatives. It’s like when you buy a new car and suddenly you see it everywhere. That’s your brain focusing on what you think about. Some people seem to have all the luck, while others seem to be always unlucky. It’s not really about luck though. It’s about what we focus on.

Overcome the Fear of Rejection

One of the things that holds us back is the fear of being rejected. It’s an old survival instinct. Long ago, being rejected by your tribe could mean death. But today, that fear is usually not helpful.

Reduce Your Worries

And then there’s worrying. Worrying too much is a waste of time and energy. We can’t plan for everything. Often, the thing we worry about the most never even happens. As Mark Twain once said, “I have been through some terrible things in my life, some of which actually happened.”

Stop Beating Yourself Up

The last thing to remember is to stop being hard on yourself when you make mistakes. It doesn’t help. Learn from the mistake and then move on. While I disagree with Coach Bobby Knight’s chair-throwing antics and other anger, fear-fueled tactics, I did appreciate what I saw during a practice. A kid made a mistake and made a turnover. The kid put his head down in shame (probably expecting to get yelled at) and tapped his chest saying, “My bad.”

Knight said, “Stop that! We know whose fault it is! Now get on defense.” Just get back to work.

How do Realtors retire? Here are some ideas.

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The Retirement Dilemma for Real Estate Agents

Many real estate agents often find themselves working well into their later years, not for the love of the job but due to financial necessity. But it doesn’t have to be this way – you can plan for your retirement effectively.

Passive Retirement Plans: A Starting Point

The first step towards securing a comfortable retirement is setting up passive retirement plans:

• Savings: This can be a major challenge for many, but it’s a fundamental step towards financial security.
• IRA and SEP plans: These offer tax advantages and can be a crucial part of your retirement strategy.

Active Retirement Plans: An Empowered Approach

For a more proactive approach, consider the following:

• Rental Properties: This is an excellent and reliable plan if you’re prepared to handle or pay for property management. If you can acquire 10 rentals, you’re likely set for retirement.
• Brokerage Profit Share Plan: This can be beneficial, provided the brokerage is profitable. You need to attract others to the brokerage to qualify, which isn’t difficult for most successful agents.
• Brokerage Revenue Share Plan: This offers automatic payments based on the agents you bring to the brokerage, irrespective of the company’s performance.
• Investing in Other Businesses: Many agents, bitten by the business bug, diversify into other businesses that complement their real estate work.

The Unpredictability of Retirement

Keep in mind that you may not always have control over when you retire. Life’s unexpected events can drastically alter your plans. Without a retirement plan or secondary income, your wealth can evaporate with your last commission check.

Planning Ahead for the Unplanned

In case of a health crisis or other unexpected event that interrupts your income, it’s advisable to pursue active retirement methods.

Control Your Financial Future

Take control of your financial future by implementing retirement strategies that align with your unique situation as a real estate agent. Actively invest in rental properties, participate in brokerage revenue and profit share plans, and diversify your investment portfolio.

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