New Real Estate Agent Question?

Question

Hey everyone!

So I just got my Texas Real Estate license and am in the process of looking for a broker to work with. I wanted to get some advice on a few things. Should I go with commercial or residential? Pros and Cons of each? What pays better?

The reason I ask is because I have an opportunity to work with a commercial firm. They are building a team together with specializing in the hospitality industry. I have worked in hotels most my life with my family owning hotels. So I have this opportunity with the commercial firm.

The reason I am hesitant about taking the commercial firm is because the time frame to close properties seems long. So I just wanted to get insight on people who have done both and their thoughts on it?

Thanks!

Sharon Tzib · Answer

You are going to need to have reserves to get your career going regardless of which way you decide to go. It can take two solid years of prospecting, marketing and hard work to get really established in residential real estate, unless you have a large sphere of influence ready, willing, and able to give you business and referrals. I'm sure commercial has its start-up phase as well.

At first blush, your background makes this offer seem like a great fit for you. And the hospitality industry in Houston is booming right now. The convention center saw record bookings last year and project even better in 2016.

Fred is right though. Only you can make the decision about what is right for you.

Fred Heller · Answer

You have to decide what's right for you.

Commercial properties take longer to sell and close. But one commercial deal can make your whole year.

I was approached by a group wanting to buy a hotel in the Houston area. If I had been able to find them something, I would have made $100,000+ on that one transaction.

There are plenty of hotel properties available in Houston, but they were so particular about what they wanted, I was unable to find anything for them. So I spent my time spinning my wheels for nothing.