When getting started in real estate, it’s important to understand the common mistakes that can prevent you from realizing your full potential. Take your real estate career further, faster, by avoiding the following missteps.
Not having a business plan
When you become a real estate agent you’re essentially starting your own business. However, many real estate professionals have no clear goals or timeline for achieving their goals. Without a plan, it’s far too easy to spend time and money in ways that don’t pay off. Creating your real estate business plan will allow you to identify your short and long-term goals and outline how you plan to achieve them.
Not planning financially
Becoming a real estate agent costs money. Like any entrepreneur, you need a funding source in place to build your business. Whether that means asking family for help, working a part-time job, or taking out a small business loan, consider having at least three months of reserves in savings before making the leap to a full-time agent. Although it may be difficult at first, it’s important to remember that countless individuals have made the transition from part-time employee to successful, full-time real estate agent.
Expecting immediate success
Good things take time. Though it’s likely that you’re eager to make a name for yourself in the real estate industry, you need to be reasonable in your expectations of how long it will take to launch your career. It could take months to make your first sale as a real estate agent, and it can take you up to two years to begin building a comfortable living from your business.
Choosing a brokerage for the wrong reason
One of the most important decisions you’ll make as a new real estate is deciding which brokerage to hang your hat at. Real estate agents choose their managing broker for a number of reasons—they have a good reputation, they offer the most competitive split, the office is close to their house, and so on. While those are all important, don’t forget that your broker should help new real estate professionals establish successful careers.
Not focusing marketing efforts on the most effective areas
One reason new real estate agents end up overspending on marketing is because they spend in the wrong place. Print marketing—newspapers, real estate magazines, etc.— may seem like the most visible channels. But in today’s marketplace, they don’t always yield high returns. Instead of shelling out precious capital in the beginning, sit down and list who you know in your personal sphere of influence.
Promote your new real estate business on social networks like LinkedIn and Facebook. Publish articles and attend networking events. Take every chance you get to get your name out there and let your contacts know you’re open for business. Focusing on building out your referral network will serve you well in the long run.