All Forum Posts by: Steve Milford

@Michael Yim

You're welcome. Let me know if you need any help along the way or want to brainstorm.

Tips - many apply to FT agents as well.

1. Know your learning style. Do you like active learning and the School of Hard Knocks or do you want to be trained in the classroom? And choose a brokerage to match. I like knowing something inside and out so I chose Hard Knocks. My mentor is still a phone call away. I get training from YouTube.

2. Figure out on paper what will make you different than 1,000s of other agents and then keep it handy as people will ask you. What is your business model? Mine is low-cost full-service, flexibility, and education. And then be willing to do what other agents won't. I show properties at night with a flashlight and on the fly. When someone tells me in conversation that they have to wait for access, I say "Do you have a property in mind? If we can get the ok, let's go look right now/in 30 mins etc."

3. Realize that perception and references are everything. My first client asked for references, and I gave him ones from my career. Likewise, in my area part-time (PT) agents are considered "Lesser", which is a perception embraced by FT agents to discount PT agents. Now here is the rub, an agent in my area is considered FT once they do a minimum of 6 sides a year. I did more than that my first full year...am I still a PT agent? When that question/objection was tossed at me I used to have to explain myself and it never went well. Now my easiest answer to that question/objection that answers this and with my business model is, "My multiple income streams allow me to charge a lower fee, each deal does not make or break me, and I have never had a client disappointed with my flexibility and availability. If you prefer, I can put my other income streams on hold, take you to the cleaners by charging the fee that other agents do or you can experience savings like my other clients do averaging $9,800. Either way your choice."

4. Embrace technology although understand it's limits. I.e. I know that if I can meet a client my closing ratio that client is 75%+. Most of my clients connected with me some way at least 5 times with direct mail, web site, email, phone calls answering questions, a then usually a meeting. The most helpful technology suites to me are Docusign, Dropbox, any computer with a secure connection (doesn't have to be mine-I've written many contracts from the local public library while traveling/out of cell service/no personal internet connection) and a general pdf editor/creator. I tell my clients...unless I am camping, I am available 7 days a week dawn to 11pm at not. But I put my phone down during meal times and activities with my family. No one asks me to sacrifice that time, and if they did, I wouldn't work with them.

5. Interview brokerages to find one that fits your business model regarding fees and costs and understand how market share plays a role in that. I.e. Larger firms spend more in marketing leading to brand recognition and busier agents can supply you with leftover leads yet does that justify the cost? The average agent makes $47k yet does that consider their costs? That is something you need to consider. I chose a smaller agency because I break-even before marketing/advertising costs with 1 deal per year. My ROI last year was 400%/roughly $75 per hour. It was not $47k but I am happy with my number because I don't want to spend more than 55 hours a week in activities that create income. Work life balance is important to me.

6. Test, test, test, and test some more in figuring out how to get the phone to ring and then find a cost you are comfortable with, as its just a cost of doing business. Your phone will ring off the hook with advertisers want your money. Find out what works for you. Find out what your ROI is for your systems..if it is above industry standard keep using it...below...stop doing it.

7. Find ways to personally engage, preferably in-person. This creates the best referral system out there and yes it takes time.

8. Last tip. Have fun! This is my passionate hobby which just happens to make money. 

To me it comes down to costs and learning about real estate. For me, getting a license opened up lots of doors for me because it gave me access I didn't have before. The real estate industry is very clique-ish and having more open doors is crucial in my book. Doing real estate part-time shouldn't be a problem, as that's what I do. If you later decide to let your license lapse that is your choice. As part of this business there are different questions that I ask now to cut to the chase, versus when I didn't have a license. Costs differ in each state. Now when I have questions I call agents directly and get answers, I don't have to wait for anyone else or play the what was really said game. Realtors talking to each other is a different conversation than with the public. On a recent investment purchase, I was my own buyer's agent and got paid for my own services for myself, lol in addition to finding a really good deal. In the seller's mind it also gave me instant credibility. That commission alone paid for my fixed costs for the year. To me, it's about learning real estate smartly. Lots of people, especially "investors/flippers" churn money for a deal, but that's not the point. The point is to do it profitably. Also, by being an agent you learn how to market yourself. I.e. I admit that I don't have a large network, though I talk to anyone that is willing to listen and go through lots of business cards. For me, once I meet people in person most of the time they come back to me for all their questions and this is a great source of leads as well. Regarding access, you could find your own Realtor-that might work for you. For me it didn't, even though I tried, because I don't care about time in visiting a property and am willing to do the initial look with a flashlight. Or how many Realtors do you know that build contracts in the middle of the night? Your Realtor needs to fit your lifestyle and if they don't then you do it for yourself. My day job pays the mortgage. My passionate hobby (real estate) keeps me up at night and pays me for my efforts as well. Just my 2 cents.

To me every city has deals but you have to look at what others don't want too. If a home has good bones and is at the low-end grab it. Walk many, bid on some, and just like in your field, sometimes you just have to walk away cause there is no money in this or that one. In this market, all you need is a place that rents well with numbers that make sense with long-term tenants. Then you can decide to keep it or sell it.

Here is what you do. Go get a purchase and sale agreement and any other real estate form or contract you can find and then read them backwards forwards inside and out. Then expect the buyer's Realtor to represent and seek the best deal for their client. It is no different than bartering at a garage sale. I walk out of most paying less than the price asked and use all sorts of methods to accomplish this. You need to be comfortable with that process...the give and take...the negotiation. If not, hire a Realtor. It's just a lot more zero's in my book, same process.

Take the easy road. Get your license, ask your Dad for tips, and then go find your niche. After a year or two as an agent, you'll know exactly where you'll want to be. And yes, you can do it part-time after your day job.

It also comes down to who you trust. I get referrals to buyers outside my area all the time. Most times I refer out unless that buyer had a previous bad experience somewhere else. Why do I get referrals out of my area? Because I am straight up, tell it like it is, and my goal is to educate, not sell.

Do both at the same time. 1) Get your license and gang your hat somewhere. The best skill to learn is how to market yourself. 2) Cinch the belt as tight as it will go and slam your debt. Real estate is get rich slow with high risk. When you're ready to lose a few student loan payments minimum from a bad choice, then you're ready to invest. It is mot different than the stock market, just a different medium.

Oh, I just saw this. You say you have a network that has money, then why are you direct mailing? Take someone in your network out each week and tell them what you are doing and ask them what projects they need help with. And then find them people that help them, and they will find people to help you. Read following 3 books: 1) The Go-Giver by Bob Burg. 2) Sales Bible by Jeffrey Gitomer 3) Networking on Purpose by Beth Bridges. And then take action.

I hit submit too early lol. And I print them off of my laser jet printer from my home computer, after a mail merge onto card stock, and score them and stamp them myself. I generate my own mailing lists and sometimes use a title firm for specific demographics in the lists as well. 100 addresses takes me about 2 hours to generate; printing, scoring, stamping takes me about another hour. Aside from my time, cost is less than 5 cents per card plus postage. And I break even on them for the most part. Sometimes I get a deal every 100 or so I send and sometimes I don't. Now remember, in the last year, I sent about 5,000 cards total. So based on your results vs. mine knowing nothing else, your list isn't niche enough, and your message is too long. Study up on how to write copy, you only have a few seconds to grab attention. Everyone hates yellow journalism (showing my age here) but those headlines sell. My 2 cents.