Updated over 2 years ago on . Most recent reply
Getting Started as a CRE Broker
Hey Guys,
I've been digging around on the forums for months now, but this is my first ever BiggerPockets post! My name is Luke Benjamin and I'm thinking about becoming a CRE broker in CA. I have a family friend who is VERY successful in the business, and I will likely be joining his team. Not looking to ride his coat tails by any means, but I am grateful for his mentorship and to use him as a resource throughout my future career. I am looking for advice as I'm about to take this biggest leap I've ever taken, and I'd be lying if I said I wasn't nervous as hell. Excited, but nervous. Here's why...
I'm 27, I'm about to get engaged next month, I just closed on my first investment property in CO last month, and I'm moving to Southern California the first week of June. I currently work in Construction Management building largescale ($100M+) Multifamly buildings in Denver, CO. I make a decent salary - significantly more than I'll make my first year in CRE. Not to say I don't have confidence in myself, but I'm just being realistic. My soon-to-be fiance and I just spent the majority of our savings on the down-payment for the investment property, so we are cash-poor at the moment.
Southern California is obviously a very expensive place to live, and I'm trying to figure out how to make ends meet while I'm getting started in the busniess. My partner is a social worker, so not a ton of money coming in there - at least not enough to support two adults in the LA/OC area. My folks are retired and live off my mom's pension from being a school teacher, so I am likely not able to use them as a resource during the time when I'm making little-to-no money.
To all you CRE brokers out there: what did you do? All the threads I've read mention people saving up a year's worth of expenses or living with parents; that just isn't in the cards. At least not anytime soon. I'm pretty certain that the brokerage I'll be working at is 100% "eat what you kill," so draws are probably out of the question. If it were only me involved in this decision, I'd feel entierly different. However, this risk does NOT affect just me, it obviously affects my partner as well. If it were just me, I'd eat ramen for breakfast lunch and dinner, live in my car, and just make it work.
Am I in over my head? Is there anyway to finance my expenses for the 12-36 months that it takes me to get established? Just trying not to set myself up for failure and to be honest I'm feeling a little discouraged. I can't stand the W2 lifestyle - like I said I make decent money now, but I can't see myself staying in my current industry for "x" amount of years to save up enough to take the leap into CRE. Any and all insights/thoughts are appreciated.