I'm currently studying to become a Real Estate agent in Las Vegas, Nevada. At first I'll be doing it part time as I have a full time job. The company that sells the training materials is a subsidiary of a Real Estate company. This RE company says that they provide additional training and they want me to sign a contract to be an agent with them. This company does not provide leads, which may be problematic for me since I don't have any significant network built up in Las Vegas. They say that RE companies that claim to provide leads really only have weak web leads that have a very low, almost zero conversion rate.
Any help or info with respect to these questions would be appreciated:
1). Is it normal for RE companies to ask prospective agents who have not even taken the Nevada exam to sign a contact? They say that the contract is at will and can be terminated at any time for any reason. Should a prospective agent who has not yet taken the exam actually sign such a contract? I assume the main purpose of the contract is to ensure that any additional training and mentoring does not turn into a waste of time and money for the RE company if the new agent is untethered and decides to leave for another RE company.
2). Is it true that RE companies that claim to provide leads really only have weak web leads that have a very low conversion rate and are essentially worthless?
3). Wouldn't it be better for a new agent with no local network to draw upon, to try to work at a new home builder where you might make less money per sale but at least you have sales and can turn customers into potential clients down the road? In Las Vegas there seems to be a huge demand for new homes now. How does one get started selling homes for a new home builder?
4). My current FT job operates with 3 shifts, 24/7/365. Sometimes they have new shift bids for day, twi or night shifts. If you're going to sell real estate part time would it be better to work normal day hours so that you have evenings / nights open? Or would it be better to work twilight / night hours so that you have the day time available? At the moment I have weekends off.
Read the contract and consult an attorney.
Most leads are a waste. I can't speak for what other companies offer but real leads come from hustling, meeting people, networking, etc. Too many people think they can sign up with Zillow and watch the buyers pour in but the truth is you're just throwing money down the drain. Get involved in the local community, pass out cards, tell everyone you meet that you are in real estate and ready to help them or anyone they know. It takes time but you will build your own leads and they will start referring you to others. Expect it to take 2-3 years to have a strong list.
It's extremely difficult to be successful in real estate. Even more so if you are a part-timer.
Hi Jerry, I’m an agent in here in Vegas. Let me know if you have any further questions.
1) I would suggest shopping around for a brokerage before signing an agreement with any of them. See what other offices have to offer, and would suggest not basing your decision solely on commission split. While commission splits are important, guidance and training can help you become a far more successful agent, all while helping you build your business and make more money. I also would not make a decision based on who will/won’t give you leads. The best lead source will always be yourself. Learn to prospect and you will learn to build your own business. Typically the agreements are at-will independent contractor agreements and when interviewing the brokerage, you can ask for a copy of the agreement to take home and review them before signing them.
2) I can’t say for sure, but I would suspect that is the case. They paint a glamorous picture to get you to sign with them. Then, underdeliver. Remember, it is your business. You take control of it by producing your own business and your own leads. With this in mind, you want to try and avoid jumping brokerages too often, so doing your research/interviews initially is important.
3) I could be wrong on this end, but I believe builders do want agents that have at least a couple years of experience. While it can be a cushy gig, you are dependent on leads walking in. Meaning, you aren’t in control of your business. Right now there is huge demand, but that will eventually slow down and if you aren’t used to producing your business, you may struggle at that point.
4) I work 7am-3:30pm and find that it works pretty well. I can either prospect, or show homes after 3:30 since most people get off around 5pm. I am also off weekends and those are also good days to have off.
There are a million ways to structure your real estate business. Joining a successful team is a good way to get training and leads assuming the team does what they claim. Be careful as there are some teams that will take a split and offer little to no training and little to no leads. Contracts vary, lead sources and volume vary. We live in a technology era and internet leads should be a portion of your business. You should also have your own sphere of influence, and find a niche to generate your own leads that match your personality type. Your sphere will have the highest close ratio. Second should be your niche. 3rd will be random interenet leads that can range from 1% to around 8% close ratios (from what we see) and it highly depends on the internet source. Having the proper systems in place to track and follow up with leads is also important. Interview with a few places and see what seems to be the best fit for you. I would agree with the others that said real estate is VERY difficult to do successfuly part time. Most agents won't make it past their first year because they start and then realize how much work has to actually go into being a successful agent. Best of luck!