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what is the hardest part about being in real estate?
#real-estate #investment-management
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Mark’s Answer
Michael, "real estate" has a number of different facets. Real estate sales is just one way to be involved in real estate, and then there's both residential sales, and commercial sales. There are also many who lease commercial space. All these can be quite lucrative. One thing they all require is diligence and perseverance. A new salesperson in real estate will go several months without a paycheck. You will need to build a network of people who can refer business to you (and that you will refer business to); in the residential market that means meeting many people who live in the community you want to serve. This can be done by participating in local events, e.g. school organizations; youth clubs; sports leagues, etc. To be active in commercial leasing, you will need to network with architects, contractors, bankers, accountants, office furniture companies, or anyone else you can think of that potential corporate tenants interact with prior to making a major office move. There are many groups set up to exchange leads or to interact with other business people, e.g. BNA, rotary, kiwanis, lions, etc (just google networking groups, and many will appear). I was part of a team that managed 150 retail stores and dealth with commercial brokers. The hard part of real estate is that you will have to get used to things not going your way all the time. In the residential context, this means that you might show a couple looking for a home twenty or more properties without them buying any of them. If they don't buy, you don't earn. In the commercial context, this might mean showing several properties to a prospective tenant only to have that tenant sign a lease for a different space with a different broker. This will happen, and you've got to get used to those moments. The flip side is when you get the handshake on selling a $3,000,000 property or lease and your share of the commission is $50,000 or more. Like most professions, there are good days and there are bad days. I think a good way to get involved in real estate is to study either real estate management, or construction. Work around the industry for a bit, and then once you get to see how it works, move to the sales side.
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
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James Constantine’s Answer
Dear Michael,
Tackling the Tough Aspects of a Real Estate Career
Bracing for Market Volatility
One of the most formidable hurdles in a real estate career is the unpredictability of market shifts. Factors such as economic conditions, interest rates, and government policies can sway real estate markets. These changes can significantly affect property values, sales, and rental income, making future planning and budgeting a complex task.
Attracting and Keeping Clients
Another tough part of a real estate career is attracting and keeping clients. The industry is fiercely competitive, requiring agents and brokers to continually network and market themselves to draw in new clients. Building a solid reputation and maintaining positive client relationships are key to success, but the high competition and the emotional aspect of property buying or selling can make this difficult.
Understanding Legal and Regulatory Obligations
Real estate professionals also need to understand and comply with intricate legal and regulatory obligations to run their businesses. These obligations can include licensing, insurance, disclosure duties, and compliance with various laws and regulations concerning property transactions. These can be time-consuming and challenging, especially for new agents or brokers unfamiliar with the legal side of real estate.
Handling Financial Risks
Managing financial risks is another significant hurdle in real estate. Real estate investments can be expensive, and there's always a risk of property values dropping or rental income not covering expenses. Real estate professionals need to manage their finances carefully to lessen these risks. This includes budgeting for unexpected costs, diversifying investments, and maintaining sufficient cash reserves.
Balancing Work and Personal Life
Lastly, achieving a work-life balance can be tough in the real estate industry. Real estate professionals often work long hours, including weekends and evenings, to cater to their clients' needs. This can make balancing work duties with personal commitments difficult and can lead to burnout if not managed well.
Relevant Reading Material
“The Challenges of Being a Real Estate Agent” by Emily Rodriguez, Investopedia.
“Real Estate: The 5 Biggest Challenges Facing the Industry” by Kathleen Elkins, CNBC.com.
“The Top 5 Challenges of Real Estate Investing” by Brandon Turner, BiggerPockets.com.
Stay Blessed!
James Constantine.
Tackling the Tough Aspects of a Real Estate Career
Bracing for Market Volatility
One of the most formidable hurdles in a real estate career is the unpredictability of market shifts. Factors such as economic conditions, interest rates, and government policies can sway real estate markets. These changes can significantly affect property values, sales, and rental income, making future planning and budgeting a complex task.
Attracting and Keeping Clients
Another tough part of a real estate career is attracting and keeping clients. The industry is fiercely competitive, requiring agents and brokers to continually network and market themselves to draw in new clients. Building a solid reputation and maintaining positive client relationships are key to success, but the high competition and the emotional aspect of property buying or selling can make this difficult.
Understanding Legal and Regulatory Obligations
Real estate professionals also need to understand and comply with intricate legal and regulatory obligations to run their businesses. These obligations can include licensing, insurance, disclosure duties, and compliance with various laws and regulations concerning property transactions. These can be time-consuming and challenging, especially for new agents or brokers unfamiliar with the legal side of real estate.
Handling Financial Risks
Managing financial risks is another significant hurdle in real estate. Real estate investments can be expensive, and there's always a risk of property values dropping or rental income not covering expenses. Real estate professionals need to manage their finances carefully to lessen these risks. This includes budgeting for unexpected costs, diversifying investments, and maintaining sufficient cash reserves.
Balancing Work and Personal Life
Lastly, achieving a work-life balance can be tough in the real estate industry. Real estate professionals often work long hours, including weekends and evenings, to cater to their clients' needs. This can make balancing work duties with personal commitments difficult and can lead to burnout if not managed well.
Relevant Reading Material
“The Challenges of Being a Real Estate Agent” by Emily Rodriguez, Investopedia.
“Real Estate: The 5 Biggest Challenges Facing the Industry” by Kathleen Elkins, CNBC.com.
“The Top 5 Challenges of Real Estate Investing” by Brandon Turner, BiggerPockets.com.
Stay Blessed!
James Constantine.
Updated
Michael’s Answer
Hi Michael, I’ve been a real estate investor for 16 years, I’m not a real estate agent. But I have worked with a lot of them over the years. Right now the market and the competition is fierce! if you’re going to get into real estate, you have to have patience and be willing to put in the work. I’m starting on new construction homes right now. I won’t get a paycheck for months. So you might have to start small and work your way into full-time as an agent or and investor. Basically it’s not a guaranteed income. So that’s something you need to keep in mind.
So really one of the hardest things I would have to say is the amount of competition in the industry! So you have to find ways to put yourself above the rest. And these days that can be very difficult. But it’s a service industry. You have to put people before you or a paycheck. Good luck, you can do it!
Michael
So really one of the hardest things I would have to say is the amount of competition in the industry! So you have to find ways to put yourself above the rest. And these days that can be very difficult. But it’s a service industry. You have to put people before you or a paycheck. Good luck, you can do it!
Michael
Updated
Lisa’s Answer
Michael,
So happy you are considering Real Estate as a career. I've been a Realtor for over 40 years and love this industry. Nothing is better than helping people find the right home or investment property. Wealth in America can be closely tied to real estate ownership. So, what is the hardest part? Having enough financial resources so you are not stressed about your next closing. We used to inform new agents that they should have six months of reserves but depending on how you enter the business could require more of less. An example, which I recommend for new agents, is to find a team to join so you can be mentored as well as have a more secure income. If you plan to go on your own you'd need make sure you join a firm that provides ongoing education since the course work to gain a license is about the law not the practice. Good luck!
So happy you are considering Real Estate as a career. I've been a Realtor for over 40 years and love this industry. Nothing is better than helping people find the right home or investment property. Wealth in America can be closely tied to real estate ownership. So, what is the hardest part? Having enough financial resources so you are not stressed about your next closing. We used to inform new agents that they should have six months of reserves but depending on how you enter the business could require more of less. An example, which I recommend for new agents, is to find a team to join so you can be mentored as well as have a more secure income. If you plan to go on your own you'd need make sure you join a firm that provides ongoing education since the course work to gain a license is about the law not the practice. Good luck!
Updated
Raul’s Answer
Hello Michael my name is Raul Mata and I'm a student at St. Edwards University in Austin Texas. Recently I've been thinking about getting my real estate license, at first I thought it would be an easy job but after talking to multiple Realtors I realized it's not so easy.
First, you need to take courses and at the end take the final exam to get your license. I have heard that the final exam is extremely hard to pass. I talked to many people who have taken it multiple times to pass it. I don't know if it's just hard in Texas but studying and preparing for the exam is crucial.
Second, the hardest part about being a new agent is getting paid differently. Most people are used to getting paid weekly/biweekly but as an agent, you only make what you sell.
Third, you are basically running your own business. You have to be able to market yourself and also find leads. When you first start you might learn how to do specific work and learn about the laws but you don't learn how to run your business. That's a hard skill most agents struggle with at first.
Fourth, working off-hours. Most people who are looking for new homes tend to have 9-5 jobs and are pretty busy people. So you get to meet with them on off hours, which tends to be late. This may be drowning for many agents new or experienced.
These are just a few examples I could come up with but if you are interested in getting your real estate license I totally support you. Nothing in life is easy but throughout time you will learn and become better. Hope this helped answer your question.
Best Regards,
Raul Mata
First, you need to take courses and at the end take the final exam to get your license. I have heard that the final exam is extremely hard to pass. I talked to many people who have taken it multiple times to pass it. I don't know if it's just hard in Texas but studying and preparing for the exam is crucial.
Second, the hardest part about being a new agent is getting paid differently. Most people are used to getting paid weekly/biweekly but as an agent, you only make what you sell.
Third, you are basically running your own business. You have to be able to market yourself and also find leads. When you first start you might learn how to do specific work and learn about the laws but you don't learn how to run your business. That's a hard skill most agents struggle with at first.
Fourth, working off-hours. Most people who are looking for new homes tend to have 9-5 jobs and are pretty busy people. So you get to meet with them on off hours, which tends to be late. This may be drowning for many agents new or experienced.
These are just a few examples I could come up with but if you are interested in getting your real estate license I totally support you. Nothing in life is easy but throughout time you will learn and become better. Hope this helped answer your question.
Best Regards,
Raul Mata
Updated
Ivan’s Answer
Hi Michael, I’ve been a real estate investor for 8 years. I’m not a real estate agent and I think the hardest part being in real estate is that you will never know it all. You should be learning something new every day and you cant be afraid to try something new within real estate. Find what you are comfortable with a stick to it.