I'm still not licensed but hopefully soon that will no longer be the case. The big question I have on my mind right now is how much money do I need to save up before I start a career in Real Estate.

I've heard figures anywhere from 3-6 months worth of living expenses, but I've also heard of some agents starting part time and having things work out fine.

Although if i get into this line of work I think I want to start out full time if at all possible, but I'm still young and unfortunately I never realized the importance of saving money until now :crazy:

So I just wanted to ask what the agents and or brokers here would recommend. Any other advice for someone wishing to start a career with the housing market being the way it is would always be more than appreciated as well lol.

Thanks guys,
Paul

I would save as much as possible - AND BE VERY FRUGAL. You do NOT have to have every new gadget that comes down the pike.

I wish I had not spent $48 on a stupid real estate calculator. Dumb move.

If you don't already have a laptop, it would be a smart investment. To get started you can buy a refurbished one from a reputable seller on eBay for about $300 - but why do that, you can get a brand new one from Dell with basic "stuff" on it for about $450 or less.

You do not need fancy software either - I do just fine without TopProducer or Microsoft Office. I use OpenOffice which is FREE and does everything Microsoft Office does except for Publisher files (but it has its own version of a publisher type program.)

The spreadsheets, word processor, powerpoint, and desktop publisher with OpenOffice is great.

Another smart buy would be a digital camera with an ULTRA WIDE ANGLE LENS. Seriously need the wide angle. This one has gotten good reviews: Panasonic Lumix Camera

A few nice items for your wardrobe, a planner, and you're set.

You can start a website for a small investment - a wordpress blog on your server will be a terrific way to get a clean, seo friendly site started in no time.

Don't waste a lot of money sending out mailings. Be aggressive online where it counts.

yes in my short time browsing forums such as this, i have noticed that people recommend online marketing more than most other traffic sources. but that's good because i have some limit experience already with internet marketing, as it has been sometime i've been messing with in my spare time. although that was affiliate marketing i would imagine a lot of the same principles apply, but instead of selling someone else's product i would be selling myself lol

and as far as gadgets go, i already have a new laptop that i purchased a few months back that should have everything i need on it. i also have a digital camera, but im not sure if it has any "ultra wide lens" on it or anything. i bought it within the past 2 years but i wish i had shopped around more because i wasnt very satisfied with it so i may or may not choose to purchase a different one. i have a new and reliable cell phone but i had been wondering if it would have been more worth it to opt for a blackberry or something like the Iphone that can serve as a PDA aswell?

You will set yourself apart if you use an ultra-wide angle lens. So many agents do not put much emphasis on photography, and it's a total no-brainer.

BUYERS PASS ON HOUSES WITH CRAPPY PHOTOS. AGENTS PASS ON HOUSES WITH CRAPPY PHOTOS.

Here's a great blog to get you started:

http://photographyforrealestate.net/

Unless you plan on being a buyer's agent, you need good photography skills.

The iPhone / PDA is up to you - I wouldn't do one here because service is so spotty - I can't use it at home and I can't use it in different parts of my market area so it would be a total waste of time.

If I'm not at my office or at home then I'm out with customers...and it would be rude to surf online and check email with them anyway. If I can anticipate what they may want ahead of time then I can have extra listings in my pocket to pull out should they want to see more homes other than what we've already scheduled.

My office owner/mentor has a PDA and is practically married to it but she uses that to keep track of all of her appointments and commitments (of which there are MANY). For her it's worth it. For me - I'm happy with my planner and my cell phone.

Save money too by not chasing after a lot of books, videos, etc. that promise to help you sell more, find more leads, etc. Instead, take all the training offered by the office you join, and find a strong mentor there who will answer your questions without stealing your clients.

thanks for the advice guys, i think i will be fine with a planner and my cell phone too. and i agree on the importance of good pictures for a property. when i look around at houses online i see so many with just one picture of the house, viewing from the street and the first thing i do is X it out and look at something else.

and i still have to decide which office i would want to go with. keller williams is one i really want to look more into because i've heard lots of good things about their training program. also allen tate seems to have a good percentage of the market around where i live so i'd like to talk to them too, amongst other places

and whatever you do, DO NOT sign up for lead generator jerks, who'll give you "referrals" for a "fee." they are worthless and only preying on your newbie gullibility.

You can pretty much do what you need with a GOOD camera (wide angle!! wide angle! you need to get it online, no stores carry them...), your laptop, your cell phone, and your planner.

The six month savings rule is a good rule of thumb.

Good luck!

yeh the 6 month rule seems to be good, i just wondered if it would be recommended to save for longer with the market being slower. my biggest worry is saving up all that money and then after 6 months i have nothing to show for it and my funds are spent...but i guess that's also good motivation to keep working as hard as you can.

i look into those wide angle cameras you were talking about and pick me up a planner :)

It is never a bad thing to have more money than you need.

You could save 5 years worth of expenses only to find out that you are not sufficiently motivated until 4 years and 9 months have elapsed. Do your own self-analysis! How hungry do you have to be to be motivated?

Some agencies have Sales and Listing Quotas . . . . a term I haven't heard used on this Forum; but Quotas are another motivator. I've seen well heeled Agents who got one listing a month and one sale every quarter until they were told they'd be out on their ear if that production didn't pick up AND FAST ! That seat at the desk can be warmed by someone else ! Suddenly . . . . Mr. Slacker was able to find to power to get his butt in gear, and make entry into a 5 Million Dollar Round Table . . . . He needed that threat !

What motivates you ? It's a balancing act. Don't make yourself too comfortable ! Be Lean and Hungry.

well it seems important to save as much as you can, but i guess in the end my success will be up to me. im sure ill have plenty of questions and i look forward to getting into the business soon.


Thanks to everyone,
Paul

I started with Keller Williams in AZ and so far I am liking it quite a bit. The mentors are sharp and there to help, the training is top of the line and the culture is very team oriented. Coming from the USMC, I know the importance of team work and everybody seems to be ready to help..

PM for more information about KW if you would like.

Semper Fidelis!

Savings is not the only thing to look at. I prefer to look at cash flows, both in and out. On the expense side do you have a mortgage payment or are you paid off? same question about the car(s). These obligations on top of your typical expenses for food, utilities, etc. will give you an idea of what must be covered continuously by your income. On the income side do you have other sources such as income from investments, possibly another job, etc. that will meet those expenses (or at least some portion of them) while you ramp up your real estate career? The income from real estate, particularly early in your career, will vary widely along the time scale, some months very well and others with perhaps nothing at all. You will need to know how to make sure the good months hold you through the slower ones while you build the activity to a steadier, more predictable flow.

Six months could turn on two years with some bad luck, which I don't wish you. Don't spend a lot of money for site, you will receive calls to offer you site for $3,000, just don't take it.

I’m always amazed at people who are just starting out at real estate and they think they’ve come across the deal of the century with the first property they look at. I think you’re totally right, there are always other deals in you future, and they’ll probably be better deals. A buddy of mine (who answers a lot of my real estate questions) says that every deal he does is his “best so far”.