If you take your real estate training classes in one of the many real estate schools around the country, you will be presented with numerous real estate job offers to put your newly acquired license to work.
Chances are you will be excited to start working and may be tempted to take the first job opportunity that comes your way with promises of big commissions and lots of leads. My advice is to take your time and really look at all of your options. This is especially true if you are just considering whether you have what it takes to be a real estate agent.
The worst mistake new Real Estate Agents make is getting involved with Apartment Rental or Time Share Brokers. Newbies often do this because the realty offices that handle these types of properties paint a pretty picture of easy commissions and big paydays, without all the startup money. Many provide new Agents with a nice desk; some discount business cards, the equal opportunity to earn and the promise of big bucks. The only problem is actually being paid.
Apartment Rental Real Estate Brokerage – The Dark Side
Rentals are a haphazard way of making money as an Agent, especially if you are new to real estate. You have to rent a large number of apartments, houses and condominiums to make a decent buck. Even after you do start to see your leases signed, the landlords or management companies that pay your Broker tend to hold back the commission for extended periods of time just in case the tenants bug out of their lease.
Most Brokers then add an additional two to six weeks on to that before they release your money. Whether any of this is legal or not doesn't seem to matter; it just seems to be the way things are done in this part of the real estate industry. Doing the math of these delays, we're talking about two to three months going by before you see a check. When rental agents finally do get paid, it always seems to be less than expected. That's because your beloved Broker probably forgot to explain the extra fees charged for office space, phone use, website and email sharing, lead generation and advertising.
Apartment Rental Real Estate Agencies – The Good Side
The upside of being a Real Estate Agent who deals with rentals is securing a position with a large management company or reputable relocation service. While these positions are few and far between, they do pay well and on time.
There are a number of well-established management companies that handle apartment rentals for large properties. Most offer some sort of salary and benefits, plus a small commission. Legitimate relocation services contract with major corporations and busy tech companies to find rentals for employees involved in short or long term projects. They also tend to offer a salary verses commission compensation package.
Time Share Real Estate Brokers
Now let’s look at the other rough place to start a real estate career: the Time Share Real Estate Broker. We won’t give this career choice much time as I don’t have much good stuff to say about it. Time-shares are for hard-boiled people with great smiles. Most sales positions require the salesperson to be trained in high pressure sales techniques. Chances are, if you don’t like high pressure sales on you then you can stop considering this part of the real estate industry to start your career.
Time Share Rescission Period
If you can handle high pressure sales let’s look at the rescission period. Most States allow several days for people who purchase Time Shares to change their minds, and many do. This is called the rescission period. Can you imagine going home on Friday with 4 sales for the week and coming back in on Monday with all 4 cancelled? What happened? Buyer’s remorse? Or you find out that the high pressure sales technique that you have perfected backfired as the buyer noted in their follow up survey that they didn’t appreciate the high pressured salesperson – which happened to be you.
Beyond that kind of frustration, there are hassles with being paid. Like the rental biz, pay hassles, expense deductions and commission disputes are common. Need I say more?
Let's face it, if you want to make the really big money in Real Estate, you are going to have to sell traditional properties at a traditional real estate company. It is up to you to decide whether it will be at a national firm or at your local mom and pop company.
Article by Bill Knell. Bill is a family guy with eclectic interests, a wealth of knowledge and experience. Bill also excels in the area of personal, business and financial advice and management. He has been featured in the Wall Street Journal, Omni, the L.A. Times, Toronto Star and the NY Times. He's written hundreds of articles on a wide variety of subjects and several books. A popular Speaker, Bill Knell presents seminars on a number of topics that entertain, train and teach. Bill can be reached through BillKnell.com.
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