I know the answer is going to be different for everyone, but I am currently about to get into real estate full time and I was just wondering how long is took for everyone's first deal to come. I am going to be a commercial real estate broker, but would like to know a realistic time period, assuming I am motivated and am trained well.
I'm a wholesaler and it took me 6 months to close my first deal.
The commercial agents I know generally only do a deal or two a year and they work at it nearly full-time. Granted they are nice paydays when they close. The broker I know already had a lot of business connections before she started and that drew her in. I would estimate at least 6 months and probably more like a year. Obviously it depends on your contacts and how hard you work at networking.
I do residential real estate and it was about a year before I closed my first outside deal but I was in no way looking for business. Most of my sales are for my own account.
@Tim Czarkowski Really? 1-2 Deals a year is normal?
For the people I know it is. If you figure their several million dollars each, you can make pretty good living off just that. I know the one closing the agent in my office had, she got a $200,000 commission check. I'd certainly be happy with one of those a year and two would really be great. They also do some leasing, but I'm talking about actual sales. I would like to get into some commercial sales but others from this board should know better than me. My experience in commercial is fairly low, I focus almost entirely on residential and on my own deals.
Ahh. No that makes sense. I'd definitely be happy with that too. Thanks for the information by the way. The office I'll be working for has a side company that deals with leasing that I'll be able to make money from referrals off of, but I'm sales. $200,000 dollars in my hands off one deal I'd probably have to smack myself a couple times anyways.
@ Yea that would be one hell of a check.
If and when you do get a check like that, remember to set aside a large portion for taxes. I know some agents who have not done that and then couldn't pay their taxes and got themselves in trouble. Most agents seem to like to live big when times are good and be flat broke when they aren't. This business is cyclical so set some aside for the slow times.
I wonder how much experience you would need to do a complicated commercial deal such as that? i know the criteria for buying is completely different from the standard ARV, equity formulas for residential stuff. I would imagine a beginner would just botch it up, even working at it for a year.
Still, the idea of making 60-150k on one deal seems more attractive in a way, then doing a bunch of residential 5-8k deals over and over.
The company I am starting to work for in January is training me for three months before I even talk to anyone outside the office. @Morris Lucas
You should plan on at least a year before you close your first deal. To get into deal flow faster, you should offer to be a junior to a more experienced broker in your office in exchange for a percentage of the fee.
That way you can make some money and gain some experience at the same time. It will be critical to begin generating cash flow as soon as possible if you are going to survive the commercial real estate sales cycle.
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