What a rush! After all the boring classes, the intense studying sessions, the memorization, you’ve passed your real estate license exam. Congrats!
It’s time to get down to business by taking these three first steps for real estate agents.
1. Choose a broker
Now it’s time to make some money and, to do that, you need to hang your license with a broker. Think they’re all alike? Think again.
There are hands-on and hands-off brokers. There are brokers with amazing training programs and others who let new agents loose to sink or swim. There are those who spend money advertising the company and those who feel that for-sale signs with the name of the brokerage emblazoned on them are enough.
Neither management style is right or wrong. Choosing among them, though, can be a challenge.
What isn’t important, at least at this point in your new career, is the commission split. We queried some of our more successful clients for their advice on considerations when choosing your first broker.
- Fees: Many brokers don’t charge any fees, while others charge for everything, including use of the printer. The first question you should ask in an interview is what fees he or she charges and when they are due.
- Size: Boutique brokerage or mega-brokerage? Size matters so determine the type of environment in which you work best.
- Training program: What type of training does the broker offer to new agents? Remember, your real estate classes taught you nothing about how to actually list and sell real estate. Training is critical.
- Administrative support: Does the firm have an on-staff transaction coordinator and other support staff? If so, there may be a fee for utilizing their services, so refer back to the first tip in this list.
- Mentorship opportunities: Do experienced agents in the office offer mentoring? This is probably the best way to learn the ropes.
- Advertising: Where and how often does the broker advertise the business? Is there a strong online presence?
There are other qualities you may desire in a broker, but these are the ones agents have mentioned as being among the most important.
2. Choose a mentor
Mentor was the guy who, in “The Odyssey,” took over household and child-rearing responsibilities for Odysseus who was going off to war.
While a real estate mentor doesn’t bear as weighty a responsibility, what he or she does impart will be invaluable.
In fact, Tony Robbins says that to master anything requires a mentor – someone to model yourself after.
Which is why it’s so important that you choose your mentor wisely.
Find someone who will allow you to shadow them on appointments, showings, listing presentations and even broker opens. There’s nothing like witnessing a master in action to learn the ropes.
Although a mentor’s production is important, look beyond that when choosing a real estate mentor. Ensure that your mentor is someone who has ethics, reliability and integrity.
3. Develop a business plan
This is the step that most rookies hesitate taking, and for good reason. How can you develop a budget when you have no past sales to use for projections?
You fake it ‘til you make it, that’s how.
Even if your plan takes up only one page, it will serve as a road-map to your first year in business.
You’ll find free business plan templates all over the internet, but here are the basics you should put in writing:
- Personal expenses – Start by determining your annual personal expenses, from groceries to rent or mortgage payment to gym membership. This way, you’ll know how much you need to earn in gross commission income (just to keep yourself afloat) your first year.
- Marketing budget – Experts recommend allocating 10% of gross commission income for marketing expenses. In the beginning these expenses will include business cards, a professional head shot, farming expenses (postage, marketing pieces, etc.) and an impressive website.
- Your goals for the first year – This can be stated as the number of transactions you’ll do or the amount of income you’ll make.
- Your objectives – How will you achieve these goals? Door knocking, farming, FSBOs? Work with your mentor to determine the best way to generate leads as a newbie.
We love coach Brian Icenhower’s one-page business plan, especially for beginners. Check it out at YouTube.com.
We wish you a long and prosperous career in real estate!