| ery time I talk to someone about my business and | | | | you’ll be able to work from home or on the |
| career, it always comes up that | | | | go. New Real Estate Agents are often surprised by |
| “they’ve thought about getting into real | | | | just how much time they spend AWAY from the |
| estate” or know someone who has. With so | | | | office, and a laptop helps you stay on top of your |
| many people thinking about getting into real estate, | | | | work while on the go. |
| and getting into real estate – why | | | | D) Real Estate Friendly Car – You don’t |
| aren’t there more successful Realtors in the | | | | have to have a Lexus, but your Miata won’t |
| world? Well, there’s only so much business to | | | | do the trick. Make sure that you have a 4 door car |
| go around, so there can only be so many Real Estate | | | | or SUV that is comfortable and presentable. Keep it |
| Agents in the world. I feel, however, that the | | | | clean, and for God’s sake, don’t smoke |
| inherent nature of the business, and how different it | | | | in it! You’re going to spend a LOT of time in |
| is from traditional careers, makes it difficult for the | | | | your car, and put a lot of miles on it, so if it’s |
| average person to successfully make the transition | | | | fuel efficient, it’s a BIG plus. If you’re |
| into the Real Estate Business. As a Broker, I see | | | | driving a sporty convertible, or still have your KILLER |
| many new agents make their way into my office | | | | Jeep from college, it’s time to trade it in. |
| – for an interview, and sometimes to begin | | | | 4) Lack of Proper Funding |
| their careers. New Real Estate Agents bring a lot of | | | | If you’ve taken the time to create your |
| great qualities to the table – lots of energy | | | | business plan, than you should definitely have your |
| and ambition – but they also make a lot of | | | | budget, but I can’t stress enough the |
| common mistakes. Here are the 7 top mistakes | | | | importance of having and following your budget. |
| rookie Real Estate Agents Make. | | | | However, the budget alone doesn’t address |
| 1) No Business Plan or Business Strategy | | | | the important aspect of funding. 90% of all small |
| So many new agents put all their emphasis on which | | | | businesses fail due to lack of funding. Typically, new |
| Real Estate Brokerage they will join when their shiny | | | | agents will want to have 3 months of reserves in |
| new license comes in the mail. Why? Because most | | | | savings before taking the leap into full time agency. |
| new Real Estate Agents have never been in business | | | | However, money in the bank isn’t the only |
| for themselves – they’ve only worked | | | | way to answer the question of funding. Maybe your |
| as employees. They, mistakenly, believe that getting | | | | partner can support you for a certain period of time. |
| into the Real Estate business is “getting a new | | | | You can keep a part-time job that won’t |
| job.” What they’re missing is that | | | | interfere with your business as a Real Estate Agent. |
| they’re about to go into business for | | | | Many successful waiters make the transition to |
| themselves. If you’ve ever opened the doors | | | | successful real estate agents with no money in the |
| to ANY business, you know that one of the key | | | | bank. When you start your new business, |
| ingredients is your business plan. Your business plan | | | | don’t expect to earn any income for, at the |
| helps you define where you’re going, how | | | | least, 60 days. |
| you’re getting there, and what it’s | | | | 5) Refusing to Spend Money on Marketing |
| going to take for you to make your real estate | | | | Most new Real Estate Agents don’t realize |
| business a success. Here are the essentials of any | | | | that the hardest part of the business is finding the |
| good business plan: | | | | business. Furthermore, they’ve just shelled out |
| 2) Not Using the Best Possible Closing Team | | | | around $2000 for their license and board dues, so the |
| They say the greatest businesspeople surround | | | | LAST thing they want to do is to spend more |
| themselves with people that are smarter than | | | | money! Again, the problem lies in the lack of |
| themselves. It takes a pretty big team to close a | | | | understanding that you’ve just jumped into |
| transaction – Buyer’s Agent, Listing | | | | the Real Estate Business, you haven’t taken a |
| Agent, Lender, Insurance Agent, Title Officer, | | | | new job. And any good businessperson will tell you |
| Inspector, Appraiser, and sometimes more! As a Real | | | | that how much business you GET is directly |
| Estate Agent, you are in the position to refer your | | | | correlative to how much you SPEND on marketing. If |
| client to whoever you choose, and you should make | | | | you choose the right brokerage, then you will get |
| sure that anyone you refer in will be an asset to the | | | | some good inbound leads. However, don’t |
| transaction, not someone who will bring you more | | | | neglect a good, personal marketing campaign from |
| headache. And the closing team you refer in, or | | | | the beginning to get your own name out as the Real |
| “put your name to,” are there to make | | | | Estate Agent to go to. |
| you shine! When they perform well, you get to take | | | | 6) Not Focusing Their Marketing Efforts in the Most |
| part of the credit because you referred them into | | | | Effective Areas |
| the transaction. | | | | One reason why many new Real Estate Agents who |
| The deadliest duo out there is the New Real Estate | | | | do begin spending money on personal marketing stop |
| Agent & New Mortgage Broker. They get | | | | is because they spend it in the wrong place. The |
| together and decide that, through their combined | | | | easiest place, and where conventional Real Estate |
| marketing efforts, they can take over the world! | | | | tells you to spend your money, is in conventional |
| They’re both focusing on the right part of | | | | print marketing – the newspaper, real estate |
| their business – marketing – but | | | | magazines, etc… This is the most visible place to |
| they’re doing each other no favors by | | | | see real estate advertising, it’s where large |
| choosing to give each other business. If you refer in | | | | offices spend a good part of their money, and so |
| a bad insurance agent, it might cause a minor hiccup | | | | many new agents mistakenly spend their money |
| in the transaction – you make a simple phone | | | | here. This becomes very frustrating to new agents |
| call and a new agent can bind the property in less | | | | because of its low return. Large brokerages can |
| than an hour. However, because it typically takes at | | | | afford to spend their money here because |
| least two weeks to close a loan, if you use an | | | | they’re filling two needs – |
| inexperienced lender, the result can be disastrous! | | | | they’re marketing their own properties for |
| You may find yourself in a position of “begging | | | | sale while creating new buyer traffic for their |
| for a contract extension,” or worse, being | | | | buyer’s agents. New Real Estate Agents |
| denied a contract extension. | | | | should look to their own sphere of influence and |
| A good closing team will typically know more than | | | | referral marketing to see the most effective return |
| their role in the transaction. Due to this, you can turn | | | | on their investment. An agent can spend as little as |
| to them with questions, and they will step in (quietly) | | | | $100/month marketing to their family, friends, and |
| when they see a potential mistake – because | | | | colleagues and see an incredible return. There are |
| they want to help you, and in return receive more of | | | | many great referral systems around that all focus on |
| your business. Using good, experienced players for | | | | the same premise – that if you consistently |
| your closing team will help you infinitely in conducting | | | | market yourself to your sphere of influence as the |
| business worthy of MORE business…and best of | | | | Real Estate Agent to go to – then you will get |
| all, it’s free! | | | | more business. The key is to pick a system and to |
| 3) Not Arming Themselves with the Necessary Tools | | | | follow that system. You will see results. |
| Getting started as a Real Estate Agent is expensive. | | | | 7) Choosing the Wrong Brokerage for the Wrong |
| In Texas, the license alone is an investment that will | | | | Reasons |
| cost between $700 and $900 (not taking into | | | | New Real Estate Agents choose their new broker |
| account the amount of time you’ll invest.) | | | | for a variety of reasons – they have a good |
| However, you’ll run into even more expenses | | | | reputation, they offer the most competitive split, the |
| when you go to arm yourself with the necessary | | | | office is close to their house, etc… While these |
| tools of the trade. And don’t fool yourself | | | | alone aren’t bad reasons to choose a broker, |
| – they are necessary – because your | | | | they aren’t going to do a lot to help you in |
| competitors are definitely using every tool to help | | | | your success. The #1 reason to choose a broker, |
| THEM. | | | | and the question to ask is, “What do you |
| A) MLS Access is probably the most expensive | | | | offer your new agents.” If the answer is, |
| necessity you’re going to run into. Joining your | | | | “The most competitive split in town” |
| local (and state & national, by default) Board of | | | | you should definitely keep looking. Remember, 100% |
| Realtors will allow you to pay for MLS access, and in | | | | of $0 is still $0. If you’re leaning towards the |
| Austin, Texas, will run around $1000. However, | | | | largest broker in town, who has a great reputation, |
| don’t skimp in this area. Getting MLS access is | | | | remember this: You’re starting a BUSINESS |
| one of the most important things you can do. | | | | not a JOB. While it might be fantastic to brag to your |
| It’s what differentiates us from your average | | | | friends about landing a job at a prestigious company, |
| salesman – we don’t sell homes, we | | | | it’s no accomplishment to hang your license on |
| present any of the homes that we have available. | | | | the same wall in the same office as other successful |
| With MLS Access, you will have 99% of the homes | | | | agents. |
| for sale in your area available to present to your | | | | Your #1 concern when interviewing new Brokers is |
| clients. | | | | what they offer you as a new agent. Do they have |
| B) Mobile Phone w/ a Beefy Plan – These | | | | incoming leads? What does their training program |
| days, everyone has a cell phone. But not everyone | | | | consist of? What’s their retention level? |
| has a plan that will facilitate the level of use that Real | | | | What’s their average sales price? Do they |
| Estate Agents need. Plan on getting at least 2000 | | | | encourage their agents to promote themselves? A |
| minutes per month. You want, and need, to be | | | | Broker’s purpose is to help new agents start |
| available to your clients 24/7 – not just nights | | | | successful careers and to help established Agents |
| and weekends. | | | | progress their careers to the next level. As a new |
| C) Computer (Preferably a Laptop) – | | | | agent, concern yourself less with commission split or |
| There’s no way around it, you have to have | | | | agency name and more with specific programs and |
| a computer & be savvy enough to use email. | | | | agency standards. |
| You would be wise to invest in some business | | | | A new career in Real Estate is very exciting. Starting |
| management software, as well. If you’d like | | | | a Real Estate business provides the new Agent with |
| to save some money (and who wouldn’t) | | | | opportunities for limitless potential and freedom. New |
| then you can get the client & email management | | | | Agents have a notoriously high failure rate, however, |
| software Thunderbird from and you can get a free | | | | so a new Real Estate career can also be a very |
| office suite from The only downside to these | | | | scary prospect. However, if you avoid the 7 Top |
| programs is that they do not sync with your PDA or | | | | Mistakes Rookie Real Estate Agents Make, then |
| Smart Phone. A Laptop is a BIG plus because | | | | you’ll be far ahead of the competition! |