I recently had a friend reach out to me and ask how he could get into real estate. I realized that I get this question asked a lot so I thought I’d record my response to him to share with anyone else that might be in the same place. I find that its best to start with the big picture so I came up with these 7 topics steps to help guide you towards your next move if you are seriously considering jumping into the real estate industry.
What do you want to do?
Determine which role you would like to play in the real estate industry or at least determine a growth path. I am biased and will always encourage you to obtain a real estate license unless you plan on getting in the industry in an unaffiliated role. I’ve listed roles here in order of complexity, in my opinion. As you move down the list of direct roles the more money and education you’ll need to start and be successful. The indirect roles are in no particular order. If you aren’t sure yet I suggest talking with people in these fields.
Wholesaler – assign contracts to investors
Real estate agent/broker – sales property for a commission
Note holder – sells seller financed mortgages
Investors – invest cash in property to receive a return
Developer – builds and develops property for a return
Architect – designs plans for building
Lender – sources loans for consumers
Inspector – inspects houses for faults
Appraiser – determine value for the bank
Contractor – makes capital improvements to property
Escrow agent – finalizes the sale of property
Begin interviewing brokers.
If you are considering a license you’ll need a broker to get started. Evaluate yourself and make note of your strengths and weaknesses. Are you a people person? Are you good with technology? Are you bad with public speaking? Every brokerage will be different so know what you are willing and unwilling to deal with. Some of the things you’ll need to think about in terms of brokers are:
part time v. full time
growth plan and training
access to technology
virtual v physical office
Start forming a team to work with.
All the other direct and indirect roles you’ll need to have relationships with to be successful. Use Linked IN, attend workshops, and other ways to start talking with and evaluating these people. Have lunch with them, review their work, check references etc.
Evaluate your audience
Who is your audience? Sure family and friends are okay to start with, but who do you naturally appeal to? You’ll have to take a deep dive and reflect on yourself. What do you like to do? Where do you like to go? Who are at these people and what types of services do they need? On the contrary you may want to get into new circles. The process will still be the same. Who do you want to serve? Where do they go? What do they like to do? This is an important piece, you can sell anything to the right audience.
Let people know what you are doing.
Once you have made it up in your mind to make the commitment to become licensed, start letting people know what you are doing. Even though you have a ways to go, marketing early may be the difference between hitting the ground running and having to wait an additional 30-60 days for a commission.
Start shadowing agents and others in the industry
If you have identified a brokerage start integrating yourself. Follow their social media, email updates etc. Reach out to the broker and/or other agents in the office to see if you can shadow them.
Identify a farm
Where and what do you want to sell? Start with areas you are familiar with, but don’t be afraid to learn new territory. Make sure the areas are ones you can get to quickly and have the type of property you want to specialize in (price, type, style etc). Drive around the areas, familiarize yourself with the stores & amenities, and research local news on the area (new parks, new developments, crime etc).
This isn’t meant to be an all exhaustive list or set of steps, but should help point you in the right direction and help shape your thinking. If you have any questions about the information here feel free to reach out to me.