this might have been asked before but is it a good time for a new agent to enter the RE Business? What do you guys think?
Thanks. :)

hope you're knowledgeable in distressed assets, i.e. foreclosures and REOs. from what i've seen, there's a lot of bottom-fishing going on, people hoping to snatch up properties on the cheap, so if you can specialize in foreclosures and REOs you'll have a great market right now

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www.ForeclosureLook.com

It depends.

Do you have several month's worth of income to live off while you wait for your first checks to come? Do you have the start up money you will need to pay for your expenses? (you will be surprised at your expenses.)

If you can survive for a few months (to almost a year even) without any income, and then still survive in case there isn't another deal for two or three months, then that's a big plus in your favor.

It typically takes up to six months - more depending on your market area - to get any kind of income. You could be blessed and start making money from the get go but if you do be sure to save most of it for a rainy day.

If you can survive this is a great time to get into RE and learn the business. You will actually have to work and be creative rather than just wait for bodies to fall through the door waving checkbooks and 10% deposits in your face...lol.

There is never an 'easy' time to break into real estate. A booming market creates its own challenges... not the least of which is that you'll be competing as a new agent with thousands of other new agents who've decided to take advantage of an 'easy' market. Get the picture?

I talked to a gentlemen the other day who, when he discovered I was a Realtor, laughed and said, "Oh my gosh the easiest job in the world! Just plant a sign and collect a huge check!"

Great time in PHX for me to be starting RE school

http://www.azcentral.com/news/articles/2008/07/24/20080724phx-foreclosures0725-CP.html

Guess I am going to need to learn the forclosure market?
http://www.eastvalleytribune.com/story/121508

I don't know whether to laugh or cry. LOL.

He stopped laughing as soon as I quoted him a few statistics about Realtor incomes from the NAR. Especially the statistics for new agents (less than two years experience.)

I also asked him how much he'd have to pay if he was writing his own health insurance check each month and creating his own retirement fund.

At that point he really started scratching his head.

It's all about finding what works.

I know multiple ways to make money in real estate.

In most markets you are dealing with foreclosures. In this case everyone is trying to list them but most banks,servicers are giving the work to the brokers who did them when knowone wanted them years ago.

That's ok you can still work with buyers on the foreclosures. Stay away from short sales as they are not worth the hassle.

This is the best time to buy in about 20 years so buyers should be flocking to purchase. I can't remember but I beleive they floating the idea around of passing a bill that would give first-time home buyers an additional 8k tax credit in 2009.

Look, there is always a market. It's either a buyer's market or a seller's market, but it is a market. Our challenge as agents IMHO is in positioning our businesses to take advantage of the market at hand. I am grateful (and certainly not boastful) for the blessings of a steady stream of buyers despite the fact that I carry no listings at this time.

Thank you guys for the info. :)
I am so glad I found this message board. :D

One thing I would add is that you need to have a certain amount of funds set aside for the first year for marketing yourself. Figure out home much you can afford to spend in marketing yourself and getting leads before you start. Many people think they are just going to get their license and BANG they will have a sale. You have to work hard and have the budget to market yourself unless you have an incredible SOI that is ready to buy now!

Paul

I wouldn't suggest that any new agent set aside a large part of their initial budget for marketing. Some brokers encourage new agents to do lots of mailings and those costs add up very quickly. And mailings aren't particularly effective without repeated exposures... perhaps six months of mailings to a targeted farm area. Even with bulk postage rates, sending postcards or brochures through the mail gets very expensive very quickly. An effective marketing tool I've seen many new agents use is to invest in some kind of inexpensive personalized gift... like the refrigerator magnet or calendar or sports schedule. The type of thing people can stick on their fridge or desk and make use of. Most of the postcards we mail out get tossed right in the trash. But a refrigerator magnet handed out at your open house or to your neighbors stands a much better chance of being saved...

The BEST marketing for new agents is to invest in very professional business cards. Invest in a professional photo... not a digital snapshot taken by a co-worker. Perhaps even have some nice brochures made up that you can hand out. Then MEET as many people you can and hand out your business card and/or your brochure.

I love this blog about how Realtors get paid too much http: //www.realestatewebmasters.com/blogs/malok/2119/show/

I agree 100%. While new agents should have money set aside to live on, I don't in a million years recommend that they spend it on self-promotion. There are SO many things a new agent can do to drum up business that cost nothing or next to nothing and are far more effective than simply spending money.

Entering Real Estate in a down market is good. Things can only get better.

Colleages are more willing to give you the time of day.

Entering in a brisk market leads you to believe it will never get sour. 90% (or more) of the bright young upstarts who entered in 2005 to 2007 around here are now gone. I hardly got to know you. As the Market dried up, so did they . . . . just dried up and blew away !

They had a few good easy Transactions but never learned how to deal with adversity, or fight to keep a deal alive. Tending to a Transaction that is in the I.C.U. requires an ability to identify and address the tiniest of issues.

In a brisk Market, we can afford to let more Transactions just die and fall by the wayside. A down market gives us time to "Keep Hope Alive" and devote more effort to searching for ways to get to the Goal Line (to mix a few metaphors).

I think if there is a difference in the Genders, as far as they apply to Real Estate, it is that Women (some) are more nurturing and they are often willing and able to identify which of the miriad of details that could affect the life of an embryonic little Transaction, and address them. And they also are usually a bit more patient then Men (some). That's also a valuable asset; especially in a down market. I admire both attributes.

Our past "good times" may have spoiled many prospective long term Agents by encouraging them to neglect to develop their own inate attributes. And when a Good Market returns, and if you're still here, you'll be here to recognize and participate in it.

Just some thoughts on Monday Morning. I've got some Guys in the I.C.U. right now !