I'm looking to become a real estate agent. I live in the Twin Cities area of Minnesota. Right now the commercial real estate market is hot, and commercial real estate is exactly what I have interest in. I know as a salesperson I'll spend almost all my time dealing with SF deals at first; however exposure to brokers and agents, who are doing the things I want to do eventually, is what I'm seeing as the benefit.
I personally want to become an investor and use commercial real estate to create passive income. I figured that getting my license and working in an agency with successful sales people will give me a wealth of knowledge as well as earn the opportunity to get income through my sales skills (spent time as a financial advisor for Prudential Financial, I also had stints in sales with AFLAC).
If you can, I would love some awesome feedback on everything from:
*What I need to know about working with a brokerage firm (membership dues, office politics, commission splits, location, size, etc)
*How I should start investigating my market,
*What kind of time and money I should be prepared to invest to get results in real estate sales,
*Tips on getting into the commercial sector,
And anything in between!
I know there's a wealth of knowledge here, and I thank all of you in advance. Thanks!
Hello @Duane Smith I was previously licensed Series 7 & 66, Life & Health so you have a great background in terms of knowing what is required. Though I thought selling a tangible product (real estate) was much easier that something intangible (stocks, mutual funds, etc.). Commercial, you should expect to spend a good amount of time prospecting and networking.
Contact commercial brokerages around, larger and smaller boutique firms, interview with them and get a sense of where you want to go.
Each firm is different in what their fees, splits are.
Call and set up appointments with different firms.
Count on spending some money and potentially not making any money in year 1 (again potentially), commercial properties while typically much higher, also tend to be for sale much longer and the time from LOI (letter of intent) and closing can be substantial.
My biggest advice is to understand the difference between having a job and owning and running a small business. Being a real estate agent is owning a small business. And like any small business, you have overhead regardless of whether there is revenue coming in. So have an operating budget, and a marketing budget and capital to get you going. If you do not spend capital, you will not be successful. 90% of licensees drop out of the profession in under a year, and almost 90% of the remaining drop out in year 2. I think that is because most people treat it like a job as opposed to a business.
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