A real estate career can be one of the most rewarding jobs that you will ever have, but it won’t always be a walk in the park. Some of the reasons why a career in real estate is popular are its flexibility, potential to give you unlimited income, as well as the fact that you will be working with people from all types of background.
Many people rush to get their real estate license and become an agent without thinking things through. Their minds are so preoccupied with thoughts of grandeur that they get lost in a fantasy world. Within a year, reality kicks in and brings you back down to Earth. Some will be able to pick themselves back up and keep going, while others will give up.
In this article, we will concentrate on the reasons why real estate agents fail in the first year. We are not trying to sound pessimistic. Rather, we are aiming to help those venturing into this profession so that they will be better prepared to handle the obstacles that lie ahead.
1. Not Working Hard Enough
As the saying goings, “No pain, no gain.” If you are looking to be a successful real estate agent and avoid being just a mere statistic, be aware that we are told that a high percentage of people who start their businesses will not hit the one year mark as they will have given up.
You can avoid being among those who will close their doors if you work hard enough. Just like any other business, as a real estate agent, you will need put in long hours, leave late, and work on weekends and holidays to chase those deals.
It is not easy. If you come in with a mentality that this is easy, you will be disappointed. You will sweat, maybe cry, and will definitely get let down. Your social life may not be as active anymore. Most of your free time may be taken up by trying to drum up business.
However, at the end of the day, your hard work will eventually pay off and you will close deals. You will be able to wipe those tears and sweat off with your fat commission checks. I can tell you from personal experience that one of the greatest feelings you will have is holding your first commission check in your hand.
2. Doing It For The Wrong Reaons
“Everybody is doing it. Why don’t I try it.”
This may be the right attitude, but real estate is not a business that you venture into just because others are doing it. Also, getting involved for the purposes or making a killing will get you very disappointed.
This is a business that is started by those who are passionate about helping people invest or find properties they are looking for. You need to be driven by something more than just the commissions that will be earned.
This is what will motivate you to wake up every day, even when you do not feel like it. And if you ask around, you will have several of such days in your career. If you do it for the passion of helping people, you will not feel disappointed when a deal you are about to close is canceled. You will live to fight another day, and hope to get an even better deal.
3. Running Out Of Money
Like any other business, a real estate career does not promise a regular income. There will be really good months, where your commission check is so big you can live off of it for months. However, there will also be down days, where you will not take home anything. Moreover, if the market is terrible, then you may even go months without closing a deal. Most veterans of the real estate industry will tell you they’ve had to tap into their savings a couple of times to pay expenses when they first started.
I’m not going to sugarcoat it. You will have a lot of anxiety and frustration when you aren’t bringing in any income, and you are watching the expenses start to pile up. You may have to resort to borrowing money with your credit card, asking friends and family members for help, or using coupons to buy groceries.
It will take the average person about 3 months to 6 months to close their first deal. With this in mind, you should have enough saved up to hold you over in the beginning. This will help you sleep at night. Trust me.
4. Not Being Organized
As a real estate professional, there will be mounds and mounds of paperwork you will have to keep track of. There are contracts, expenses, financial statements, agreements, applications, etc… If you aren’t organized, you will be prone to not only losing important documents, which wastes a lot of time later on, but filling them out incorrectly as well.
To avoid this, set up a filing system that is labeled and organized clearly. Make sure that all documents that need to be updated on a regular basis are within arms reach. This will save you time and sets you apart from the other rookie real estate agents who are busy ruffling through their paperwork.
5. Not Being Fully Committed
In life, you get what you put in. Real estate is no different. If you get into this part-time, you will reap part-time results. If you are okay with that, then great.
However, if you want to be a top producer or just make this into a career, you will need to commit to this full-time. You need to be available for your clients, who will be calling you at odd hours of the day. If you are busy at another job and can’t take their call for a few hours, or even days, that will look bad. Your other employer will also not like that you are being distracted as well.
Real estate can be a cutthroat industry. You have to remember that you are going up against other real estate agents who are putting in 100% of their effort 100% of the time. In order to truly be successful in this profession, you will need to be 100% committed to working full-time as a real estate agent.