Question for CRE brokers: How did you earn $ when starting out?

Question

I'm thinking of accepting a job offer to become a commercial real estate broker in a major city (Los Angeles).  The thing that worries me is the lack of income and health benefits when starting out.

For those of you who are established commercial real estate brokers, how did you stay afloat financially while beginning your career? Did you take a side job with flexible hours that also offered health benefits? Or did you dip into your savings and pay for health insurance out of pocket?

How long did it take before you earned your first commission, and how long before you started earning reliable income?

Thanks in advance.

Andrew Smith · Answer

Since my previous posts from 2017, I've  been earning a steady paycheck working in property management here in  Los Angeles.

I've remained interested in becoming a commercial real  estate broker, though, and just received an offer from a reputable commercial real estate brokerage firm to become a Junior Broker. I am very intrigued by the long term earnings potential, plus I believe that I would enjoy being a broker more than my current duties in property management.

I've saved a fair amount over the past few years but am still a little bit wary of having no safety net in a commission-only job with no health or dental benefits.

I may have to ask my parents for some financial assistance and/or get a side job with flexible hours and health/dental benefits.

Thanks for your response, and please let me know if there is anything else I should keep in mind before taking the plunge into becoming a commercial real estate broker.

Nabil Suleiman · Answer

@Andrew Smith

Hey Andrew. The world of real estate can be incredibly daunting when starting off. A lot of people that get into it have some kind of contingency (a second job, a wife or husband with a decent enough income to support both of you, pensions, live with parents etc) Those that don't have one of those contingencies becomes one of the statistics of people that don't survive more than a few years in the business.

When I went into commercial, they all told me to do residential first if I wanted to survive, and once I had the income, I could begin to transition. Not everyone does it this way but I followed that path and now do both. CA is obviously expensive but you aren't coming from a cheap place yourself so the sticker shock won't be there.

Anyways, good luck and maybe we will do business soon.

Nabil

Michael T. · Answer

@Andrew Smith it looks like based on previous posts you've been in the process for two years so hopefully you've been able to save enough money that if you do go full time that you'll have enough until you sell your first commercial property.

As @Nabil Suleiman mentions most agents starting out have a solid savings, have someone helping in the short term or try residential real estate until they are able to break into commercial.

I don't do full commercial, however, I do a lot with multi units 2-4 and with residential real estate here in Los Angeles.

Michael Glaspie · Answer

@Oscar Pinto has some really good ideas. A few more options that your potential firm is already doing:

• Broker Opinions of Value (BOV) - similar to CMAs with residential
• Project Management 
• Consulting/Advisory

Bottom line is the real estate/sales life is the life of an entrepreneur. There will be ups and downs. The more streams of income you have the more stable your lifestyle can be. There may also be bonus or profit share structures at the company that you could ask about as well. Or additional assignments within the company.

I hope this helps. Best of luck to you.

Oscar Pinto · Answer

Here are some ideas.

1. Find out if you can do your PM job part-time, maybe on weekends.

2. You have PM skills maybe you can find another company that needs your skill on a part-time basis.

3. Quickly, I mean quickly, Learn How to do commercial leasing. I know agents who make a decent living just doing small $2000 - $3000 / month leases.

4. Get another part-time like Lyft or Uber.

I think getting paid on residential takes as much time as it does on commercial. Residential is not a get-paid-fast business, I wish that was the case. If it was, me and 1 million other agents would be making some good quick money on residential.

Andrew Smith · Answer

Thanks Nabil, I really appreciate the insight.

Question for CRE brokers: How did you earn $ when starting out?

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