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In real estate they don't use any "Newbie terms" like they do in other industries like " Greenhorn". If your new... your new. Most real estate agents are independent contractors which means any expense is the agents unless you work out some agreements with the agency/broker. for those who don't like the typical 9-5 grind and pick up your payday on friday's it's great industry.
I would tell a prospective Realtor that they need to be prepared to do everything for themselves and not rely on the broker for anything.
I spell it out for them and let them know they have to have some money in the bank to get started in this business. No one is going to give you a hand out...in fact everyone else's hand is out. That's what I thought when I first got in this business...I thought everyone wanted something from me and no one was willing to give anything to me unless I paid for it.
Kevin J. May
Hobe Sound, FL
I would tell them that they need to have six months worth of savings in the bank to live on while they are building a business in real estate.
This topics should be covered in the intial interview. If the person does not understand independent contractor relationships, they have not paid attention in their licensing class and there is little hope for success.
You have the opportunity and responsibility to take on your own success and the expenses that it takes to get there.
Depends on the agreement.
This is the real estate 'business' - and one needs to invest.
Few pretty good answers, Anonymous.
Doyle nailed this one!
I usually mention what it costs per desk to operate a brokerage. This will vary depending on the company being interviewed. That figure, I'll say $25,000 as an example, is what you'll need to earn before the "gravy" starts heading your way. It takes time to develop your strengths and since half of all new associates don't last more than 2 years, monitor your progress closely from 6 months on. You'll know whether it's the right choice by the end of year 1.
Outline the costs from the dues to organizations to schooling for licensing and whatever the montly charges may be...explain the commission split which varies with the brokerage. The best surprise in income and expenses is none at all !