I am in debt up to my eyeballs. I have a ton of contacts. The company I work for is on this big roll of "team players" yet the only team I see is the bill at the end of the month. I also have to business plan and all that happy crap and I just feel I made a huge mistake in even attempting it. Did any of you ever have this sinking feeling? I started in November and NOTHING = Like I tell people - I volunteer at a real estate company.

Mortgage business is much more lucrative. Sorry to hear about your misfortune. I wish you luck on your future endeavors.

It typically takes 3-4 years to build RE into something decent. You're on 3-4 months. You're 10% there!

The RE schools say you should have 6 months of income saved. I've always said one year minimum, and I KNOW I'm right.

You really won't make steady money in this game for years, not months.

I know, I know, we've all heard about a few luckboxes who walk into all kinds of action their first few months. But that's random lucky variance, not reality.

The reality is you opened a business with no capital. Pretty much guaranteeing failure.

Your best bet is to get a real job for now, get the bills paid, keep your license, save a year of living expenses, and re-open your business in a few years when you're really ready.

Not pleasant, but RE is a hard way to make an easy living...

http://money.cnn.com/2006/03/23/news/economy/homesales/index.htm

"Home sales post biggest jump in 2 years
Pace of existing sales picked up last month versus forecasts for a modest decline.
March 23, 2006: 11:55 AM EST

NEW YORK (CNNMoney.com) - Home sales posted their biggest jump in two years in February, a trade group said Thursday in a report that showed surprising strength in the housing market.

The National Association of Realtors reported existing homes sold at an annual rate of 6.91 million in February, up from a revised 6.57 million pace in January."

Looks like things are happening in Michigan as well.

http://realtytimes.com/rtmcrstate/Michigan

You should write Hallmark cards.


Dawn-

Without going into a huge analysis, you probably just need to hone your skills. Have you ever taken any formalized sales (non-RE) training? Check out some books from a local library.

Focus on your selling skills. Have someone who is successful score your presentation. Keep a diary of your failures and successes. Critique yourself. Try to learn something from every failure and success.

This business is more about relationship building than anything else. Talk to your friends/family and have them give you pointers to enhance your communication skills.

Navarac- many folks don't adhere to your timeline. I am about to open up an office competing against NRT and the two biggest Remax offices in the world. Should I just give up before I start?

This business is a great opportunity. It ain't exactly rocket science. So, many people can learn it. Some learning curves are just steeper than others.

No. These are the FACTS of life in real estate. The 70%+ of new agents who failed last year all agree with me...

I did have money saved up. AND my husband has a decent job. AND I have every friggin book that B & N sells. AND I work my rear off. Things just seem to fall apart at the last minute or I just miss them. I was a flight attendant (a good one) for 15 years. I know how to talk to people, take crap from people, have patience with people but I can't seem to figure out why I am now the only person in my office out of the new hires that hasn't closed a deal. Please don't respond if all your going to do is kick my while I am down . .

Gotta figure out your niche. It took me about 2 years to find mine. I went through FSBOs, expireds, sat some new construction, door knocking, and cold calling, not to mention handing my card out everyplace, this I still do, though. Most of those things, it's not that I wasn't good at it, I just wasn't comfortable doing them, as I am a completely and totally shy person. After over a year of doing BPOs & REOs, not exactly rolling in it, but I'm starting to actually pay the bills again, lol.

Dawn,
I know where you are coming from! I have been an agent for 2 1/2 years. First year I only sold 2 houses. Second year things really paid off.. I worked hard and did well.

This year has started off slow for me. Lots of setbacks. I know it is hard to keep a positive attitude. If you stay with it you will get clients! Go the extra step... provide service and followup that some of the more "jaded" and seasoned agents don't seem to find necessary. In my area, I find that holding open houses at good locations helps me find clients. I follow up with contacts I make there (they were looking at a house for sale... perhaps they will actually want me to find one for them if they did not like the open house listing.) If you happen to find a FSBO holding an open house go to it.. talk to them about listing their house or see if you can provide comps for them and maybe they will give you some leads from people who have contacted them and did not want their house but might let you help them find one.

Good luck! Chin up! Let us know how you are doing!

Good luck! Chin up!

LISTEN UP! I told you that it's going to take YEARS not MONTHS to be a success in this business. YEARS. That is the norm.

You've been at this for 4 putrid months and you're wondering where the success is? I don't care what you've read, after 4 months you're a newbie who doesn't know jack about real estate. Why should anyone hire you? Because you're nice? or patient? That's total bull.

People are making the largest financial commitment of their life and they should come running to you for help and advice because you're a sweetie pie? C'mon get real. When you can do the job BETTER than other Realtors and have proven it over and over, THEN you will close deals. Right now you should smile sweetly at all the good agents open houses and learn the ropes and be grateful that this industry lets anyone with SAT scores above 150 in the door.

And stop looking at the other rookies. They probably sold something to friends or family like all the other newbie losers. They're just as worthless as you after 4 months and have just as good a chance to end up in the 70% out-the-door category.

Learn the game slowly and patiently and plan for 3-4 years without a steady income. That's real estate reality.

Is there another profession in the world where people think they should be a success after 4 months? It took me longer than that to become a good paperboy for crissakes...

If your business is failing, it's time to really assess yourself and why people don't want to work with you. It may be good for other people, you, and your broker to be very critical. If your broker isn't there for you, then that could be the issue.

I read good books like the "Millionaire Real Estate Agent" and "21 Things My Broker Should Have Told Me", but it takes more than that to succeed. You should have received great training on generating leads, marketing and working by referral. KW and other brokerages have a quickstart program that teaches you how to quickly get listings and sales within 3-4 months.

The first step is to have a serious talk with your broker so they can help you discover how you can succeed. At my company, we get free DISC personality training, which helps us understand how we communicate and tailor our communication to various clients. Even though you may know "how to talk to people", the DISC profile will give you more tools. You may even find that perhaps you'd be better suited at this point to working as an assistant or joining a team.

Brian Buffini's coaching program is recommended. I used iSucceed's teachings when I first started and recently signed up for Howard Brinton's club, which is even better. http://gostarpower.com/

Jeez.. how rude!

Don't listen to navaracs raving! You are NOT worthless!!! Keep at it and try to find a unique approach to your business. Offering something different that is beneficial will help you. Also, make sure that you are contacting friends, relatives & business associates for business and or referrals! I strongly disagree with navaracs statement: "They probably sold something to friends or family like all the other newbie losers." Last time I checked, a paycheck is good, no matter the source! If friends and family referrals are for losers, then I am losing all the way to the bank!

Surround yourself with successful agents and learn from them. You may want to work with a top agent as a licensed assistant for a while. This will give you experience and a steady income.

Don't give up! Learning to sort through BS is going to be a benefit. What better place to exercise that skill than right here in this thread!

Best of luck to you!

Scott

I couldn't have said it better...

There is no "one size fits all" in terms of ways to achieve success in this business. SOI and Open Houses have worked best for me, but I got my license close to two years ago and things didn't start to take off until the end of last year. I refuse to door knock or cold call, and tried marketing to Expired and FSBOs without much luck. I had some luck with internet leads but wouldn't recommend that because it takes so many leads to close one deal. Now I try to focus on doing a few things well and being consistant. Yes, I've heard about rookies who do extremely well their first year, but frankly haven't ever met any even though I do believe they exist. I still believe it takes time to get established, and more time if you don't have a large SOI or are new to the area. Whenever I see a successful agent I look at how long they've been in the business, and it's almost always a very long time.

Get in good with a bunch of Mortgage Brokers. We always get clients looking to purchase who are not yet set up with a realtor. Especially on deals received by Major Internet lead providers. I'd say I average 1-2 a month without realtors.

Ok, calm down...
1) I know where you are coming from, my bank account currently reads -$680.87, with no deals on the way which means no money for at least 30 days from tommorow.
2) I, personally wouldn't listen to anything Navarac said in his post. His uncarring attitude will show through by his lack of repeat and referral business, people who don't truly care about other people are the "losers" of this industry.
3) Know that when things turn around, and they will if you continue learning and growing, you will have the satisfaction of being tempered by fire and become stronger than those agents that walked into success.
4) Learn from the top producers, shadow them! Don't become a licenced assistant, get out there everyday and keep plugging away! I know you said that you have a business plan, but do you have a schedule of what you will do weekly? Do you alot time for previewing, door knocking, and farming? Its not something you do once a month, farm once a week! Knock on every door in you farm every week and say " Hi, my name is_______ and I just wanted to introduce myself!".
4) Realize that this is a HARD business. No one will stay here long with a poor work ethic. You have to treat this like a full time job with 20 hours overtime a week.

I wish you the best, hang in there and learn, grow, and love the hurdles because each one teaches you something.

Flight attendant for 15 years,start there.Go through all the contacts you know and ones from the past and let them know what you are doing now and catch up on old times.

Even if they live in another state they might know someone wanting to relocate to your area,never disqualify potential sources of leads,agents make this mistake all the time and it shrinks the available business they could have.

If you are good at meeting people and it falls through at the end it sounds like some part of your process or system you are using is flawed and needs to be adjusted.Please post what you have ran into in your last situations that made the deals fall through.

good luck

Hey Dawn -

Before I begin, please know that I am not trying to pile on you or anything as I can certainly understand your frustrations. I too received my liscense in November so am still a newbie myself. I think you need to step back and think realistically about what you have embarked on. While you are working for a broker, you are essentially starting your own business. That in mind, you have to realize that very few start-up business's are rockin with business after 5 months. Great things often take time, and if you are serious about wanting to work in real estate, I think you just need to work hard, be persistent and have patience and confidence that your hard work with pay off. I think you should take a look at what you have done, and ask yourself, have you done all that you can do? For instance, are you doing open houses every weekend? Are you doing as much phone time as you can? Are you following other realtors around? Are you out there knocking on doors in your neighborhood? Are you knocking on doors of expired listings? Are you knocking on doors of FSBO's? and the list goes on.

Like I mentioned above, I started in November as well. But to be honest with you, and I told my broker this. I did not even want a customer until atleast January because honestly I could not have done them a good service. We are new to this business, and have alot to learn. So essentially I started chasing clients in January. I personally have a small SOI, so realized that I had to gain prospect other ways. I also work FULL time, so wanted to focus my efforts at first on prospecting through the Internet. January came and went, February came and went, no closed deals. However, I chose to look at it positively because in that time I have managed to get about 5 families that I feel pretty confident that they are going to buy within the next month or two.

There are times when I am driving home from my full time job and think to myself, what have I gotten myself into, this is not working. But in those times, I have to ask myself those questions I posed to you above. Have I done ALL those things? The answer is NO, I HAVE NOT....so the reality is not that it can not work, but that I have not done all that I can to make it work. I personally am not confident about knocking on people's doors. But that is something I am about to get started with. Anyway, I am rambling...but the bottom line is that unless you can honestly say that you have done all that you can do, It is not fair to think that you can not make things work. UNLESS, this business is just not for you. Did you do your homework prior to entering into Real Estate? If not, then you might want to re-evaulate whether or not you want to do this. But if you truly do, then I would challenge you to look for the things that you have not done, and do them.

Also, if you feel that your broker is not working WITH you, or teaching you, then go find another brokerage to go with. You should interview them....find a fit...dig in, and give it another shot.

As for other new agents in your office having luck....you cant judge yourself by that. I have a really good friend who became an agent two years ago. The first six months she started she represented 7 buyers. However, they were all family members, and a few co-workers (shes a teacher).....but here we are a year and a half later and she has only worked with 2 buyers since then. Her first spurt of success had nothing to do with hard work, but rather being at the right place at the right time. Now she is having to rely on referrals and prospecting, and she is not doing so well.

Anyway, Ill wrap up for now.....but seriously, dont give up on yourself if you really want to do it. A pastor of mine once said "that great success is not often without a great number of setbacks" If you want to be great, then you can expect setbacks....it is the great ones that push through those setbacks!!!

In retrospect I have 3 questions:

How many listing have you taken since November???

How do you look for new listings???

What city are you in???

After you answer I have some advice that has worked for many others in many different states and will most likely work for you.

I'm so uncaring that most of my clients are ready to draw up adoption papers. Seriously. It's a problem. I generally hate parties but thanks to RE, I'm ALWAYS getting invited to things.

Nobody learns and gets better from the pom-poms. People getting into this business need to know about unsanitized real estate reality.

The 70% plus drop-out rate for newbies is definitely NOT the result of a shortage of cheerleaders.

Parents who dispense uncaring tough love care the most because they are ready to do the JOB. Spineless "everything is peachy and you have special qualities" parents raise the monsters.

Our OP needs facts, not fantasy. Caring about people doesn't pay the bills. Caring about professional excellence does. A client who receives cold sterile perfection will love you the most because you delivered VALUE, not smiles.

My two cents on this topic:
Who ever stated this business would be easy? It`s damn hard! The drop off rate is there for a reason! Many go into this business actually believing there`s a POT OF GOLD on the other side of the rainbow!They believe their time is they`re own and not the clients, many don`t work on weekends because of the desire to be with the family, others stop work at 5pm, not fully realizing that Buyers normally look at homes after working hours, others think that showing two homes on an intial meeting is more than enough and if the buyer doesn`t purchase there is NO FOLLOW UP!
It`s true, this business isn`t for everyone and the numbers reflect that. Be patient, understand there is always an ebb and flow in our profession, advertise when possible, marketing is crucial in order to survive..

Navarac may not say things the way us "Southerners" are used to hearing them (sweet and sugar-coated) but he speaks the truth. This is not an EASY business. It IS A BUSINESS, not a hobby to be done whenever it feels good. It requires CAPITAL and TIME to build. The market has been so strong in the past few years that almost anyone could stumble across enough business to make a living but the market is beginning to even out now and those without a serious business plan in place will fall by the wayside.

Dawn, if you're ready to hang it up after just a few months then the sad truth is that you entered the business with unreal expectations. I don't know why/how this happened but you definitely need to regroup, reconsider, and either get a loooong-term plan together and a means to finance it or you need to go ahead and cut your losses and move on. I don't think Nav is trying to be mean or kick you while you're down... he's just pointing out the cold hard facts.

If you love this business, then find a good mentor to help you over this hump in the road. If it's something you want, you can do it. But it won't happen over night. Best of luck to you!

Thank YOu all for responding - at least thanks to 99 % of you.

I live in a small town (pop 4500). Grew up here. My sphere of influence is around 125. My lists for sprospecting are long. PTL book - 300. Football program - 75. Then I have a farm area here and one in Saginaw where my office is. I have mailed something to everyone of these people. I have two listings - one given to me by my broker as it is "up in the thumb" (look at a map of michigan) and the other is an aquaintance. I also have buyers from the other side of the state who are living here but can't buy until there home sells.

Tonight I was supposed to go on a listing presentation with another agent but he called and said the expired broker was showing it today so now it is a wait and see if they make the offer on it. I think this is what put me over the edge.

I am not expecting top producer results in just a few short months. I was basically seeing if this nagging low feeling is something else has ever felt when starting out. I appreciate all the advice. Last night when I went to bed after crying for 3 hours I had convinced myself that I just plain suck at this and was going to quit today and go and find a min wage job. I had to stop flying due to a neck injury on a landing. Not the way I wanted to exit my flying career.

Once again thank you to all who responded with kind words of encouragement.

Its starts with the company you keep, hands down run and find a Keller Williams, If that market center is run properly and you do all the things your suppose to do you will be on your way. "A true team atmosphere". Good luck with everything.

I have been in RE for a little over a year now. With another full time job. I made more at RE in the first 6 months than I did at my Full time Job. The thing that I found did the most good for me was answering phones in the office. When the big dogs were out of the office showing property. I was there to answer phones and take walk ins. When the big dogs were in the office thats when I would go out and do things outside of the office. Also if someone calls on a co-workers listing and it is available then I just take a message for that agent. However if the property is not available I find out what the caller is looking for and then they are all mine.

In short : You have to be in the game to win... Be there when they call

Hmmm.... Hanging in the office when the big dogs are out hunting. Sneaky and opportunistic. I like that in a business plan...

I know how you feel as well. November must've been a booming month for RE schools all over the country because that's when I became licensed as well.

I had a rough start because I couldn't get my broker or trainer to show me ANYTHING. I got into RE part time as a back up because of downsizing at my main job. So my main objective was to learn as much as I possibly could. That way if I did in fact get laid off, I'd know more than the many mediocre agents out there. Unfortunately from what I've seen, most agents and brokers seem to put so much emphasis on commissions and closings that they follow the teaching method of act first-learn later. Obviously this isn't a business where you want to use your clients as lab rats so there was a mutual disatisfaction in the very beginning.

Recently, the company I work for has stepped up the training so things aren't so bad. I honestly think remaining PT is the best approach for me as I get to learn the business and don't have to depend on the income. I can still provide a valuable service because my at my main job I have access to email, fax, phones etc so I'm always in touch.

You also mentioned about the other newb's in your office that seem to be getting deals right off the bat. Not to burst anyone's bubble but IMHO I think that has a great deal to do with just being in the right place at the right time. I'm not saying some agents aren't good, but you know what I'm getting at. I see agents that don't have any real business plan but get deals left and right, and believe me it goes straight to their head. I see this as a good thing because you can see what about them is lacking and provide those services that much better.

Here's a similar concept. Go in for floor time an hour and a half early. The person before you will often find a reason to leave early now that you are there to cover.

And also you should be making your setup in the office REAL comfortable. When I started, all the other agents had (and still have) these small rinky dink desks and shared the 4 available computers. I took a corner garbage desk and promptly threw it out and replaced it with a bigger new one of my own. Then I brought in my own computer and a 21 inch LCD and some nice lamps. My spot in the office is real comfy now so I'd almost rather go in and work there than my decked out home office.

I think Navarac hit the nail on the head. Four months is nothing in this business -- it takes years to realize success -- the exact words that my Broker said to me. I've also been in this business for about 3 months now and I have ZIP to show for it. But I'm determined to make it work. I don't want to go back to the Corporate world and end up in a cubicle again, with a boss who is half my age. I'm taking this risk and making it work! Hell or highwater.

And I agree with what Navarac said too about bringing VALUE to the client. Yup, I used to think folks would want to do business with me because I'm attractive, personable, humorous and outgoing -- HA! What a joke. I started doing Open Houses for the Top Producers in my office and I'd chit-chat with customers about their kids, the beautiful paint colors on the walls, the decor, etc. So silly. Then I saw the Top Producers in action, immediately bringing 'verbal value' to the conversation with community statistics, national trends, financing options, etc. What a lesson in reality.

Anyway, there is SO much to learn still. Dawn, at least you have those 2 listings (I don't have squat yet). Market the hell out of them (I'm a marketing geek), postcards to the neighbors, Open Houses every weekend, knock on doors and invite the neighborhood, flyers on community boards, ads with the listing info, etc. Some of this is really cheapo to implement!

Jim Lee! What is that advice you were referring to?? Care to share with us newbies??

I started in November as well and at times feel like it is all a waste of time. But you have to realize you are building a business and that will take money and time. I am so called “part time” but I have everyday planned out as to what I am going to do. I call my soi, I knock on expireds doors, etc. So far for all my work I have one buyer and a listing coming in april. I am hoping to get close to breaking even this year, but I have been told that it will be tough to do.

Anyway I know the bills suck but if you can swing the money hang in there. Continue to prospect and if you do your homework things should work out for you.

Good luck!

We'll it's Been some time since I have been to this site. I read your post and felt compelled
to respond. So you have been in the business for a few months, all you see the money going one direction believe me I know I have been in the business for about 3 years I started the same way in fact I think we all do. I believe it was 11 months before I made a dime in this business either being to stubborn or to stupid to quit Has really paid of in month 12 my business absolutly exploded I am now a top producer in my office and my business has not slowed down even in this market. You will come to a point where you'll ask yourself is this really what I want to do. If your looking for easy money and business to drop in your lap I'd cut my losses now if I was you. But if your ready to work hard extremly hard and you don't give up you will make it. I have worked in many industries this is the most lucrative, but it's an expensive business and NOT EASY MONEY like some may think.
I wish you luck Don't Give up !!! Hard work pays Big $$ in this business

Hang in there! When I started everybody I took the training with got a deal or a listing in the
first 2 months. It took me 3 months to get a listing! And it didn't sell for 2 months! My first cheque was pretty much eaten up by my office bill. I realize now there was so much more I could be doing to generate business but didn't know how..
Do Open houses on Saturday from 12-2 at one home then 2:30-4:30 at another . Repeat at 2 different homes on Sunday. Ask around your office for homes to hold open. Make sure they are close to or on main roads so you'll get good traffic.

Door knock every fresh expired listing within a 20 minute drive of your office. Keep going back till they are home. Follow up in person again and again if there is potential. Lots of good info on this has already been posted on this site.

On your way to the expireds stop and talk to every fsbo you see. After initial contact drop by and see them every 3 days to ask if they are raedy to list.

Floor Duty- Also known as real estate retail. If your office does get a lot of walk ins or floor calls you may want to try this if you aren't already. Phone your sphere while sitting around so you're at least being proactive.

Start Farming. Be a specialist! The Condo King! The Green Valley Townhouse Expert! The Lincoln Elementary Catchment area Specialist! You will be perceived as the one to talk to as you are the expert. Why just go with any Realtor when there is an area expert available. Market to the area you specialize in as they will eventually call you when they want to sell. See DanielKennedys' book how to list and sell real estate for great farming ideas. Also see www.hobbsherder.com It takes time and some $$$ but start early.

A good book/daily activity plan is If I Could Start Over Again by Walter Sanford www.waltersanford.com

From the archives of www.waltersanford.com

Q. Walter, I am a new agent and I've been calling FSBO's and expired's. Although they have been very cordial, no one has yet granted me an interview. I know I need to knock on doors but I am petite in size and a bit apprehensive. Should I team up with a colleague? Should I deliver my pre-listing packets to new expired's instead of calling them? I've been working hard teaming up with a lender, formatting my newsletter, getting my website up to speed and putting together my pre-listing packet. Am I on the right track? Should I try to get a builder to represent? I need a little direction and advice. I know you'll have some words of wisdom. Thanks so much for your time. Yours in health and business, Janice

A. Dear Janice: Thank you for contacting me. I do not want to sound sarcastic. Sometimes when I hear new agents tell me what they have done its great but not focused on the number one most important item - cash flow! Sometimes the details derail you and you find yourself always getting ready to go with no go. Pick a nice neighborhood and knock on the doors of the expireds. Go visit the FSBO's. While other agents are trying to send, email and advertise to these groups plus trying to get them to their web sites.... you will be learning their challenges and solving them! It takes 5-7 calls to an expired before you get any beneficial information like an appointment date or a tickler file date. More than 10 to a FSBO. I promise this business will get easier, but its signs up we need now. If the market is too good for capturing FSBO and expireds are few, lets go after other hot demographic groups - absentee owners, mature owners in large homes, garage sales, tenant occupied listings, calling around just solds and so on. Sending the new lot, land and acreage listings to the builders, architects, and contractors is also a great way to meet that group of highly prolific listing sources. Listing presentations are important, as are websites and newsletters, just not as important as listing appointments. First things first. Get on the phone and on foot, go where no other agent ever goes!! Sincerely, Walter S. Sanford

Navarac:

Everyone has to start somewhere. I saw my best opportunity in a very competitive area and went with it. And it worked out quite well. I am not saying that I still sit in the office when the big dogs are out, that is what I had to do for the first 6 months or so until my leads started paying off.

Dawn, I can't say I ever had that sinking feeling, but I did wonder how difficult it was going to be to be a success in this business and whether I had what it takes to do so. I sold my home to get the capital to be able to ride it out for a year. I didn't want to do rentals, expireds, FSBOs, desk duty, etc. I decided from the start that if I was going to do this, then I'd focus on becoming a listing agent and I would learn as much about my field as I could so I could service my clients well.

I spent the first year setting up systems and learning the trade. I went through large group training, small weekly sessions with other newbies, had a mentor that I paid, etc. Now in my second year I'm almost finished with obtaining my GRI. I'm not earning a fortune, but I am paying my bills now in my second year and have become the #2 listing agent in my farm, which is an important indicator to me that I can sustain a viable real estate business.

There is a point at which you have to assess whether you have all the factors needed to succeed in this business and if not, then go get them or get out of the business. I think it's very important to have a business strategy (which includes a point of differentiation that separates you from other agents so that you can answer the question "why choose you over other agents?" and is high leverage in terms of your time -- for me that was becoming a listing agent and dominating my farm area), enough capital to see you through the first year, develop systems and put them in place, and to put the time in to implement the strategy (50-60 hours a week).

I think that most agents who fail don't do the above. The high failure rate didn't deter me as I figured most people don't approach this like the entrepreneurial enterprise that it is. This isn't a sales job, it is starting your own business, and not everyone is cut out to be an entrepreneur -- in fact, very few are, if you look at the studies on entrepreneurs vs. employed people. I do not do well working for other people -- never did and never worked longer than four years at any company -- my basic character requires me to be on my own regardless of the risks or costs. You have been able to work successfully for an employer, so the question becomes how much of the entrepreneur is in you? Can you be comfortable with the ups and downs of this kind of life?

I, personally, like the rhythm of this industry and it fits my personality, but I know it drives some folks crazy, and there's nothing wrong with that. We're all built different.

Dawn,

You are not alone. I know just how you feel. I earned my license in November and have been working hard since Jan. 1. I have made a total of....$300 (rental commissions). I also use the line that real estate is my "volunteer job."

I love the learning process and have learned so much, but have nothing the show for it. I do lots of floor duty, have held open houses for other agents, work my sphere and neighborhood. I do have a couple of clients (floor duty) but one deal fell apart at the last minute and the other one is very indecisive (I think I have shown her about 50 homes/condos at this point).

I don't have any real advice - I just wanted to say there are so many agents who are probably in the same boat.

What does make me feel better is many agents in the office have said to me "New agent, huh? Hang in there - my first year I made about $14,000." And some of these people are top producers now!!!

Also, don't listen to the negative people on this board. Either you will find your stride or you won't. It's not the only "job" in town. Myself, I am going to give it until the summer and see where it goes. At this point, though, I am having trouble actually envisioning anyone hiring me to list their house!

Virginiahomes & Dawn, I have difficulty with the fact that you would even think along the lines of "real estate is my volunteer job". This is a business and you are businesswomen. It is critically important to see yourselves that way and to envision yourself as the absolute best person to list someone's home. You have to know where your added value is and be able to present that in a compelling way to potential clients. The internal dialogue we have and how we talk about our businesses with others, including family and friends, is every bit a part of attaining success as our business strategy and its implementation.

I did not earn a dime my first year in the business, but did not expect to. I saw a number of new agents around me getting commissions from their buyer clients. You have to take a long-term perspective on this business. Lack of results at this stage means nothing in terms of future success. However, I think it is important to assess whether you are on the track to the success you want by looking at the success factors and assessing whether there is anything you are falling short on and shoring that up.

Navarac's jealous of successful people. He assumes they're lucky, because that makes him feel better about his own shortcomings in comparison.

For the most part, I agree with Navaracs points on most forum topics, but I do have to wade through his obnoxious delivery and weak attempts at trolling the board. I agreed with him on this topic, but his delivery of his message was unnecessarily abrasive.
Most online forums have characters like this. They are knowledgeable on the topics, but they get a kick out of sitting behind the keyboard and stirring things up....

Do you believe what he said that agents who are successful in their first year got lucky? I was successful in my first year and I can assure you there was no luck involved.

Jflynn, Yes, I do believe that luck plays a big role in whether you make money the first year. For example, an agent I went through training with got three listings through floor duty calls and I got none. Now as I near the end of my second year, his lucky streak has winded down. I would have liked to have gotten those phone calls the first year, but it didn't happen, and in the long run it doesn't matter. I've got my listing strategy implemented and it's producing the results I want on a consistent basis.

I will say that there were opportunities that I lost due to a lack of skill my first year. There were buyer clients that got cold feet and some that played games with me. If I had the knowledge and skills then that I have now, I might have kept some deals together that fell apart.

However, overall, I agree with Navarac, that luck plays a major role the first year, because for most of us it sure isn't skill or a track record at that point. I don't think you should judge your future success in real estate by how much money you make your first year. If you are in it for the long run, you make choices that may bring in less money in the short run, but pay off in the future.

Luck plays no role in making money your first year. Planning, networking and marketing does. If you happen to be in the right place at the right time, great, but that's not how you run your business. Getting your name out there and differentiating yourself will pay off in your first year.

If you have a good broker with a solid plan, you should have at least a few closing within the first 4 months. It means you'll be out pounding the pavement to add people to your database and follow up with them religiously. At KW, they teach you to add 50 people to your database each month for the 1st 30-90 days. Is it tough? Yes. Will you get at least one closing by doing so? Yes, but it takes a lot of ingenuity and making your time work for you. They also teach us to learn the inventory by getting out there 5 days a week to meet builders and preview homes.

No one has a track record when we're brand new, which is why we work hard to network, door knock, farm, do floor time, work our sphere of influence and meet new people. If you sit around waiting on luck, you'll end up being a failure in this business, guaranteed.

Wrong, wrong, wrong. This post is self-contradictory. A newbie cannot differentiate herself during the first year. Why? She is NOT different. She is not ANYTHING for that matter.

Exactly WHAT is she going to do better than other Realtors when she doesn't know what the hell she is doing? Training is 20% of the business. 80% is experience. A newbie has none and is not qualified to represent a buyer or seller in any way, shape, or form. Yet we allow then to try (and thus victimize the early clients).

Some people fall into this business with a huge group of prior contacts, friends, relatives etc., and it just so happens that a bunch of them are in the market. Total, absolute, luck.

The true skill in this business comes NOT from your SOI, but from your ability to walk in cold to a total stranger and convince him to list with you IN SPITE of the fact that he has a friend and a neighbor who are Realtors!

I just landed a client whose aunt is a Realtor. The whole family is up in arms that this couple decided to go outside the family and use me. Aunt Lisa never had a chance once I got the couple into a closed room. She is fairly new, and I am fairly NOT. Game over.

Since you are, by definition, inherently useless in your first year, a fast start is mostly luck.

Now in the long run, luck plays ZERO, ZILCH, NADA role in success. Skill and skill alone determine long-term success. But the first year? Close your eyes and pray for that 2-outer to hit on the river, baby!

Oh yeah, just because I own a Donald Trump dartboard? Means nothing...

Nav,
Everyone, I mean EVERYONE, from the 18 year old kid to the 70 year old man brings something new to the table!!! Everyone is different, and you know what, the personality is what you are selling! I dont care how long someone has been in the business, I would pick someone who was motivated with no experience that I could relate to over someone with lots of time in the industry and nothing in common. I am 20 years old, got married and had a child when I was 18. My wife stays home with my son, do you think anyone is more motivated to sell a house than me? Try looking in a 2 year olds eyes, someone who has nothing in the world but love and admiration, and the occasional stinky diaper, and you couldn't believe how motivated you get to sell a house!

Plus, my wife is mean!!! If I don't bring home the bacon she starts yellin'...

Navarac,

You might be a lunatic.... But on THIS TOPIC....You NAILED IT !!

I was just about to say this. I've closed deals through leads from Mortgage Brokers who didn't really even know me. I am new so yes they gave me challenging leads that probably seemed wishy washy to them and they don't always pan out. The corollary is that when you close one or two they are impressed. At least that's how I choose to see it.

In fact I need to call more mortgage brokers myself.

Wow. These 2 statements are... disturbing. If this is REALLY how you really operate... I am going to have to consider a custody action for that 2 year old...

I volunteer at a real estate company.


Dawn:
When I read your post I thought when I was asleep I had written it. It is WORD FOR WORD my story. I have been a licensed agent for 1 year on March 31, 2006. I began taking classes immediately after receiving my license and was not allowed floor time until June. I feel as if I know far less than many of the other agents. Eventually by September I had enough and switched companies. Well I went from 1 problem (high commission) to a much bigger problem. Anyway I too have a supportive hubby and we have hocked just about everything for me to do this. I have had 1 sale 1 possible one coming up and 2 listings my entire career. So don't feel bad. Keep plugging away. It could be worse........you could be me......lol

navarac, You really have nailed it on this thread! Agree with you 100%! Luck is very important the first year and should not play a role after that. Your skill, knowledge and systems should bring in clients after that, but the first year, as you say what do you have to offer.

Luck is "important"? If anything, it's secondary, like winning the lottery. More important is planning, training, marketing, networking, etc.

If you believe in luck, ok, but maybe you can just speak for your own experiences. Every successful agent that I know worked very hard their first year and worked their database. I didn't have much of a SOI, so had to work VERY hard to add to my database. Every customer that came to me was because of a direct action that I took (marketing, met them in person, followed up, etc.)

You all can believe what you want, so I'll leave it at that. I value your opinons, but just can't buy the luck thing. To each his/her own.

Dee, I worked very hard my first year, but I didn't make a dime. Other agents around me were getting listings from floor duty or had buyer clients who bought homes, but it just come together for me that first year and I do think that was a matter of luck (although skill does play a major role in keeping deals together, but the other newbie agents weren't any more skilled than I was, so I do think luck played a role).

I agree with Dee.

Navarac, how did you do your first year? If newbies aern't qualified to represent a buyer or seller in any way, shape, or form how did you get started? Were you some top producers pet? Sell yourself for secondhand knowledge instead of jumping in the deep end? Well, say what you want, but I will make it and any other new person can too if they stick to there guns, continue to learn, and realize that it is a tuff industry to brake into and will take time to accumulate wealth. I, personally believe that the knowledge you gain from being on your own and being in a posistion where you have to make it will be exponentially more valuble than worink as an assistant for a little while.

No amount of planning, training, marketing, networking, can replace experience. The average person don't know what they don't know when they first start out.
If you have a business and/or sales background then you might be ahead of the curve, but there is a learning curve, and one year is barely enough to get up to speed.
If you did well the first year in business, then congratulations, you are exceptional, but most newbies should face reality and stop beating up on themselves if they are not up and running in three months.
If you are a newbie, Keep prospecting, planning, marketing, networking and learning. AND KEEP BUILDING YOUR BATABASE AND STAY IN TOUCH WITH THEM. The foundation you are laying today will pay off in about 6 months to a year. I GUARANTEE IT!

Experience is always an issue but inexperience in real estate is not the Great Wall of China. A new agent should draw from prior business experience.

I went from negotiating 11 to 150 million dollar contracts to 240K dollar contracts. I can explain that I am actually an agent of my broker. I can essentially substitute my broker's experience for my inexperience. I can explain the intense communication that I have with my broker regarding all susbstantive issues. Not only that but since my volume is low I can tell prospects that I have far more time to focus on their objectives.

My first listing presentation had a slide on it with a tongue in cheek pie chart. It showed a tiny 5% piece and a 95% piece. I told the client that the big piece was the amount of time that I could currently spend on selling his property. I got his 760k listing and I was up against experienced agents and he was open about pitting us against each other.

What I'm saying is that experience is a problem for new agents but it's only a fatal flaw if you don't have a strategy to confront it.

1) past career experience
2) agent of the experienced broker
3) mitigating factors, ie value of time, etc...

There is no substitute for experience.... It is clear that you don't know what you don't know.
Please save this rambling and read it back to yourself in five years. Only then will you understand.
I rest my case.

lol are you kidding me? I feel sorry for you.

Hey, I'm just a newbie who has gotten business outside of my SOI. I'm talking to other newbies and definitely not to MDHomes2Go.

Mortgage brokers have been good for me as well. Do you think they want to give their leads to inexperienced agents? No they don't so you have to sell them too.

Speaking of Mortgage brokers and agents, how many agents or mb's consider getting both licenses? I was thinking about this the other day and wonder why more agents don't get into lending, appraisals, home inspection etc etc.

I was reading the course overview for the mortgage broker's course/exam and it talked about RESPA, TILA, FHA, VA and so on. We touched on all of this in the RE course.

Why not be the one-stop-shop of the RE business? I read a post a while back and someone mentioned that you don't want to do each 50%, just do one angle 100%. But considering that all of these seperate areas all tie in together, how could you possible be lacking in any one area? Seems like you'd be providing your clients a much greater service rather than having to constantly refer them to other sources whose schedules and deadlines never seem to match up to anyone elses.

Go with preparation,the right attitude and the right tools. Give the customer what they want and you will get what you want.

I went through the same thing and actually I think that most agents do. It is hard out there and getting harder, with so many agents out there for the clients to chose from. I ended up changing companies. I did okay my first year there, but I was seeing the true side of who I was working with and decided that I needed to go. Since I left I have only closed 2 maybe 3 deals. Have I thought about giving up? Sure, but I won't. That would make all the other agents too happy!!!! But really, I know that my time is coming and I just hang in there. All of my great ideas will soon be fully awarding ideas!!! And if you are working for a company that is charging a desk fee, I would look into finding one that won't, at least to start off with. That will save you alot of money. Good luck and I hope to hear that not only are you hangin in there, but that you also have had a closing real soon.


Amanda

WOW - I don't know if it's a good thing or a bad thing but some serious dialog was started with my little pity party. It has been very interesting to read.

I didn't hang it up (although I came close). Went on another listing with another agent on Friday. Got it. Also two more listings possibly this week. I had some serious butt kicking by my office manager and owner/broker. They were very kind but in a tough love sort of way. Stern but laughing at me at the same time. Told me that it was going to happen but to keep working hard and don't give up!!

Anyway - I thank all of you (even obnoxious Navrac) for your support and advice.

D

GOOD FOR YOU, DAWN! Go get 'em girl!

Dawn, glad to hear things worked in your favor. Things will kick and I have been where you've been. Remember - it just takes one. Just one gives you the courage that you might be able to do this. Two gives you the insight that you can do this. Three gives you the strength to know that you will do this. Four or more serves as he reminder that it all started with one.

I know we're not all as gifted and talented as "Nerverack" who seemed to hone this business right down to his razor sharp tounge. True, I don't believe in cheerleading but I also don't believe in kicking someone when they're down.

Always keep in mind, "Whether you think you can or whether you think you can't - You're right."

Dawn, I'm glad to see you aren't giving up. I felt the same as a newbie. I worked my butt off and did 5+ mil in sales my first year. Most of my sales were under 40k. Keep the fire under your butt and prove 'em all wrong.

The truth in real estate:

Most brokers and guru trainers know the dirty little secret that most won't make it in this business past the first year.The gurus need this influx of new people to sell there systems to to make money.The brokers need these new agents to pay for there retirements and to generate revenue.Without all of the newbies at low splits the brokers would be left with tpr's at all high splits and wouldn't be making much money at all.The failure rate is just as high for brokers starting up there own business.Where alot of people make money is selling systems and information.

This is why you hear all the success stories and nothing about the failures.The brokers know the typical agent will last about 6 months and close maybe 1 to 2 deals before there soi runs out,then they will either quit or generate more business,most fail.Why do you think new agent are at the fat 50/50 to the broker?The constant new agent deals of 50/50 gives gravy trains to the brokerages.

Just make sure and define your dreams and goals and NOT your brokers.

good luck

Navarac is only telling the reality of being a realtor. It's not pretty.

Morgage broker excellent idea,I have 2, Contact sphere of influence monthly if they list w/ someone else how's fault is it? Do not be a secret agent. Dress the part ( wear a name tag) & act the part be enthusiastic . Many have told me they listed w/ me because of my upbeat,positive attitude. After they sign the lisiting some have told me Go Karen Go & I have to live up to that. I LOVE what I do and when you love what you do you naturally do a good job. by saying you volunteer at a real estate co. you are saying a lot. Brokeragentnews.com did a lot for me but beside reading you must act on the advice. Good Luck

Navarac, I am assuming that you were just as worthless when you started out, or were you born a real estate agent?

I was a real estate appraiser for 20+ years before I got in. My mother was an agent for 30+ years and I worked in the office for years as a kid.

So I knew the biz before I even started.

Hello dawnaree...

My name is Andy Higgins, and I want to share my story with you...hopefully it will inspire you to continue with your efforts.

In January of 2005, my wife and I moved to Indiana from Florida, and we enrolled in a two week real estate school. Three weeks later, we were both licensed and joined RE/MAX. Neither of us had any real estate experience whatsoever, and if you know anything about Indiana, we have a TERRIBLE real estate market here.

After working our tails off for 4 months, we finally had some closings on the board.

It is now a year and a half later, and I am now the President of The Red Oak Real Estate Group, with RE/MAX Preferred in Greenwood, IN. I have a group of 8 excellent people working on my team, 3000 sq. ft. office space on the busiest road in town, and 2 Hummer H2's for our agents to drive. We will have 15 agents on our team by December 2006.

We have between 15-20 homes pending at any given time, which we are happy with in this slow market.

I don't want you to be discouraged. Anyone can do what I've done here. Ask my wife, if I can do it, ANYONE can do it.

I'd be happy to share my business plan with you if you desire. Visit our website at http://www.redoakrealestategroup.com

Just let me know.

This is truly amazing. Can you share details (not your business plan, per se, just a narative of what you did, your philosophy, any challenges, etc.).

I always wonder about the day-to-day activities of top producers, so "a day in the life" would be awesome.

I imagine that top producers don't have difficult clients - clients who waste your time - who say they are buyers, for instance - and are pre-approved, but get cold feet. I would love to hear someone who is successful actually talk about overcoming challenges, but if you were up and running in 4 months, I don't think you will be the person to discuss overcoming obstacles

Also, you say your market is "terrible," but it can't be that terrible if you have 15-20 escrows open at any one time. That is just phenomenal. Can you say what you meant by "terrible?"

Also, is every third person in your market a new agent?

Dawnaree,
I hit the ground running in my first year by a very simple philosophy. Become an expert on the other homes in the area around your listings. Know the competition, the prices and the features. Especially the homes that cost less than your listings. I actually made a presentation book with pictures and prices but no addresses. Left it out on the table next to the flyers and my business cards.
Sit in Open Houses every Sunday and ask the buyers first if they live in the area, chit chat a little and then ask them what they are looking for. People love talking about themselves. Someone will say "I want a house with a big basement workshop and my wife wants a greenhouse." If you know where it is "bang" you are an expert, you very well may have a sale. I sold 15 houses my first year in the business and I have had a career in this for 20 years. I did not come from a sales background, my job history before real estate was owning a small plant shop for 5 years, home construction for 3 years and driving a taxi for 4 years. Real estate is not rocket science. Always keep 8-10 listings minimum and work with 3-4 buyers at all times.

"Always keep 8-10 listings minimum . . . "

What am I missing? One trait top producers seem to share is the ability to be glib and cryptic.

HOW does one keep 8-10 listings, minimum, por favor?

It's weird how simple they make it sound - just do it.

You modulate prospecting to keep the listing inventory optimal. If listings fall below your target, you attack the farm with a "pitch" fork!

Working as an agent assistant doesn't seem like a bad idea at this point. I'm licensed.

What I am saying is you need 8-10 listings minimum to survive. So you haul a $ $ until you get them. Work FSBOs Expireds and Sphere of Influence. Day and night. The temtation is to stop after you have three or four. Thats not enough.

Give people Positively Outrageous Service and the word will get out. It gets easier as time goes on because people move every 5-7 years so they will call you back if you keep in touch and give them great service when you work with them initially.

But the trick is to understand the numbers. You need to keep a lot of balls in the air in order to survive. That is a lot of the reason why people don't make it is they rest on their laurels when they have a little business going.

There are listings in places you might not think to look. Everyone is working the fsbos in the pricey neighborhoods, so go to the areas that aren't so expensive, lower end condos, rental neighborhoods. Not so much competition there.

Also look for the guys who fix up and flip, a lot of them will give you the listing if you find them a good deal on a fixer upper. Or if you can find a lot at a good price for an infill builder you can frequently get the listing on the spec house he builds.

I also did a lot of cold calling up and down streets when I started out, (pre- do not call list) You can still do it, just check the do not call list before you call. My best line ever is this: "You are going to hate this call! I am a Realtor and I was wondering if you are planning on Selling your home this year?" Yes? you've got a bona fide lead, no? "Do you know anyone else who is?" No? "Goodbye sorry to bother you" Call 100 people like that a day and you will probably have one or two appointments a day. If no one is home leave messages that say the same thing. People will actually call back and say "You know we were just talking about selling our house!" Its hard work but you will find with that approach a lot of people will say "naw I don't hate this call" or they just laugh.

Keep going until you have 10 listings. Rest. When two sell go back at it.