Best way to get into Real Estate?

[scarfase99]

Ok, so im sittin here and all i can think about is how much i hate my job So i was speaking to my friend who mentioned that Real Estate might be a good way to go, and i think it could be as well, but i have some questions maybe someone could answer:

1. How do you begin?
2. How does it work?
3. How much time does it take (like could i keep my job full time & do real estate in evenings & weekends?)
4. How difficult is it to get involved?

Basically i'd assume my Communications degree would have absolutely no impact on anything to do with Real Estate Gotta love college.

 

[Jadow]

most real estate agents I know, sort of set their own schedule, HOWEVER, to be successful, they have to have long days, and be ON CALL during evenings and weekends.

 

[Evadman]

get some money, buy some land. Go from there.

 

[scarfase99]

well, the buying land is outta the question for me now.

jadow, do you know how those guys got started? and how they're doin? Any Real Estate people in these forums?

 

[conjur]

As in Real Estate agent??

Don't do it!

Market's flooded with agents.
Hours SUCK!

 

[scarfase99]

well, i figured it would be at least a good way to learn about the market, as i hope to buy/sell property for myself someday. definitely not lookin to do this as a carreer

then again, im a recent Communications Degree grad, so not sure what else i can do.

 

[conjur]

Just pick up Buying A House For Dummies or Idiot's Guide To Buying A Home

 

[Krassus]

1. How do you begin?

Order the books, take the exam, get the license, get a job with a major realtor.

2. How does it work?

You get 2.5% commission if your client's house is sold to a buyer who was brought in by another agent - that agent gets the other 2.5%, costing the seller a total of 5%. If you sell the house yourself, you get 3.5% and that's the total cost to seller. RE/MAX lets agents keep 95% of profits. The 5% plus ~$1k/mo in 'desk fees' is what you pay them. Sell one $400K house, get ~$14K commission. Do the math

3. How much time does it take

All of your time and then some. You have to devote enormous amounts of time to anything to be successful at it. Don't think you can start making $250k/yr by investing 10 hours a week into this thing

4. How difficult is it to get involved?

I woulnd't say its difficult. The usual requirements. Intelligence, ambition, etc. The way i see it, if countless indian immigrants could, almost anyone can.

 

[JulesMaximus]

My wife is in real estate. It takes many hours, lots of work during your off times (I know, I'm watching the baby during those times) marketing an area and such. There are also tests to take to get your license (they aren't real difficult but you do have to renew them every now and then which requires more testing). Also, there is much to know about the associated paperwork...if you don't know the ins and outs of the escrow process (home inspections, deposits, etc) you are doing your clients a dis-service. Then there's the expenses...It costs money to get insurance, access to the MLS etc. It ain't cheap and all this is before you even sell a house.

 

[Krassus]

Originally posted by: scarfase99
well, i figured it would be at least a good way to learn about the market, as i hope to buy/sell property for myself someday. definitely not lookin to do this as a carreer then again, im a recent Communications Degree grad, so not sure what else i can do.

Developers make very good money. I know someone who used to do real estate and eventually started buying up his own land and building townhouses. He makes about $10M/yr now.

 

[Krassus]

Originally posted by: JulesMaximus
My wife is in real estate. It takes many hours, lots of work during your off times (I know, I'm watching the baby during those times) marketing an area and such. There are also tests to take to get your license (they aren't real difficult but you do have to renew them every now and then which requires more testing). Also, there is much to know about the associated paperwork...if you don't know the ins and outs of the escrow process (home inspections, deposits, etc) you are doing your clients a dis-service. Then there's the expenses...It costs money to get insurance, access to the MLS etc. It ain't cheap and all this is before you even sell a house.

Not overly complicated though - i learned most of those things by chatting with my agent

 

[EXman]

If you don't know a ton of people it is Very hard period. You have to have connections. If you don't believe me and you don't have the connections try and fail. For every million dollar (and I mean earning a million not selling a million big difference) agent there are hundereds if not thousands that don't make that much at all or just plain fail alltogother.

 

[JulesMaximus]

Originally posted by: Krassus

Originally posted by: JulesMaximus
My wife is in real estate. It takes many hours, lots of work during your off times (I know, I'm watching the baby during those times) marketing an area and such. There are also tests to take to get your license (they aren't real difficult but you do have to renew them every now and then which requires more testing). Also, there is much to know about the associated paperwork...if you don't know the ins and outs of the escrow process (home inspections, deposits, etc) you are doing your clients a dis-service. Then there's the expenses...It costs money to get insurance, access to the MLS etc. It ain't cheap and all this is before you even sell a house.

Not overly complicated though - i learned most of those things by chatting with my agent

Trust me...you did NOT learn much by chatting with your agent. There is more to it than what I posted above. I've seen some of the issues that come up during an escrow and it requires a great familiarity with the legal documents and a lot of work during the weekends and nights to make a career of this.

 

[munruss]

An awesome guru

 

[scarfase99]

great link, looks useful, but that's a lot of money for a book.

anyone suggest getting a book from like Amazon? Are they useful? What's the best one?

 

[Carbo]

Truth is, Scarface99, there is a heck of a lot more money to be made investing in real estate than there is in selling it. Some here have already pointed out the long hours and general BS that the typical Realtor must accept. The income statistics for the average Realtor are not very encouraging: about $30K a year, nationwide average. Basically, you are a salesman and a chaufeur.
Buying and selling on the other hand, for yourself as an investor, you can make that much on one deal.
As for the book that was referenced in an earlier post, I am quite familiar with it. While it may seem expensive at first blush, readers must consider the experience and learning that goes into such a project. In addition, when you consider the fact that it comes with a complete set of agreements and contracts, the cost is what I would call ridiculously inexpensive. Heck, local attorneys in my area charge $250 for just a standard, boiler plate, straight lease agreement. It isn't the only book of its type on the market. I've seen and read a number of others. Some are as expensive as $700!
The bottom line: like any new venture we get into, it starts with a good foundation. That means you need to educate yourself. I've always felt that an investment in myself will always pay the best return.
Best wishes.

 

[Red]

I am a 21 year old college student with a fiancee, responsbilities, etc... I am extremely motivated and quite the sales person. I paid $800 for real estate school a year ago, then paid $75 to take the test. I passed. After that any agency will take you on because they get 50-60% of your commission. A friend of my family is a broker in my area and she gladly, warmly welcomed me into her office... After my tour, she told me about how I need to pay $1200 to get started... Kentucky Association of Realtor fees, Northern Kentucky Association of Realtors, National Association of Realtor fees, MLS fees, E&O (Errors and Ommissions) Insurance payments, etc, etc, etc.

Needless to say, Being 20 years old with a steady paycheck @ $10/hr and many other priorities (school, needed a solid paycheck for bills, etc)... I was not willing to pay $1200 on top of the ~$1000 I paid just to get my license. I am still licensed but it sits in escrow in case one day I ever have time.

 

[bleeb]

Don't become a real estate agent, become a porn star. Live the fast life, high society, ALL IN.

 

[alkemyst]

I use a five foot crowbar, haven't met a door to stop me yet.