Real Estate Entrepreneurs Beginner's Guide
In the past few years, careers in real estate have become popular. Google Trends data shows that “how to start a career in real estate” was the most searched job in year 2021
This spur in interest is as a result of the flexibility, freedom and autonomy that the job offers. If you’re starting out as a real estate entrepreneur, you are, in a sense, self-employed. You set your own hours, find your own clients, grow your own network, and close your own deals. Apart from that, you’re involved in everyday activities, like identifying potential buyers, processing legal documents, and creating marketing and advertising materials.
However, a job as a realtor also includes elements similar to a traditional nine-to-five: Most people work at a firm, collaborate with fellow agents, and find mentors to support them.
While it’s a flexible and often a lucrative profession, to build a truly successful career as a realtor, you need to understand the realities of the industry. For anyone thinking of pursuing this path, here’s what you should know:
1. You need to be financially prepared to take the plunge.
Sometimes, real estate is portrayed as a “get rich quick” scheme, but that couldn’t be far from the truth. You can absolutely make a good living being a real estate professional. The income of a real time Real Estate Entrepreneur is limitless however, you won’t be earning that overnight and will need to take care of your daily and business expenses.
So, evaluate your financial situation before you make any big moves. For example, if you’re living paycheck to paycheck, try your hand on real estate on a part-time basis. You can also begin saving more strategically by setting aside a fixed portion of your income over six months to a year before actually making the move. As a general rule, keep a six-month nest egg saved up before taking the new action.
Pro tip: Remember that, as a realtor, your income won’t come at regular intervals. What you earn will be directly proportional to the sales you make. In general, learning how to budget, save, and invest is critical as you begin your career in this industry.
2. You need to build strong relationships within the industry.
One of the best ways to learn and grow in this industry is to build strong contacts. Here are a couple of things you can do:
First, find the right people to network with. Surround yourself with experienced peers and look for people who inspire you or can become your mentors. Start by joining a trade association or co-operatives, such as the BERSAMA or attending a conference or webinar for new agents. When you’re in a niche business like luxury real estate, having a community of peers to consult with and learn from is more vital.
Use your time with your mentors to understand how they get work done, how they’ve carved their career paths, and what advice they’d give to someone who’s new to the industry. Shadow them during open house and observe how they talk to people. Pay attention to how they negotiate with clients, especially the difficult ones.
Pro tip: Taking the time to build this network will teach you how to get things done, how to communicate effectively with different people in the business, and how to improve yourself as you grow in your career. These mentors can also help you find potential deals, buyers, or sellers depending on your relationship with them and as you begin to establish your credibility.
3. You need to build a “sales mindset.”
Here’s the hard truth: mostly, real estate is about sales. You will sell homes, business spaces, or other properties. For you to earn a commission, a transaction must occur. Of course, there are other career paths in the real estate industry at large, and many of them are not strictly about sales — such as property managers, surveying, etc.
While you don’t have to be an agent long-term, building a “sales mindset” will help you advance. A sales mindset means that you’re fully aware of your client’s needs and are present during conversations. For realtors, it means that you’re passionate about property, motivated to make an impact that benefits your clients, and can ensure that everyone feels satisfied with the final deal.
Building a sales mindset requires you to hone a range of transferable skills, including strong communication and negotiating abilities. You’ll need to put forth your point in a way that’s both assertive and empathetic. To build trust and inspire people, you’ll also need to be approachable and genuinely have your client’s best interest at heart. The trick is to listen to your client intently and be highly aware of what matters to them.
Pro tip: Practice your negotiating skills with peers or mentors. The more comfortable you are negotiating deals with buyers and sellers, the more profit you’ll make. The best realtors can think on their feet, find creative ways to persuade people, and resolve conflicts in stressful situations.
4. You have to keep upskilling.
You don’t need a college degree to be a good realtor, but you will need an in-depth knowledge of the Real Estate Business. To get better at the job and advance in your career, don’t just rely on peers and mentors. Focus on continuous learning. Find new training programs to improve your skills, look into real estate schools with different specialisations like School Of Estate which offers specializations like Real Estate Sales, Real Estate Investment, Real Estate Development, Property Management, Construction Management, among many others.
Finally, make sure that you’re stepping into real estate for all the right reasons. As a young professional or someone new to the industry, it can be tempting to focus on the big picture without creating a detailed plan or setting short-term goals. First, figure out why you wish to make the move, what you want to learn, and how you see your career advancing in this industry.