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I started my career in the customer service/marketing profession right out of college and worked my way up to national accounting director for a major lighting company in South Carolina when a life-changing event happened in 2006. I made it to the top. Father died unexpectedly and was left at home. A small-scale real estate agency that brokers ships without captains.
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My father had no will or trust, so there were some pretty complex financial issues. After a month of helping my stepmother with her probate and getting serious about my brokerage business, I decided to quit my job, move back to California, and take over the company.
I never really thought about working in real estate because I wanted to leave the family business and do what I love. But at the time I was working 60-70 hours a week and traveling most of the time.
I had a large house that was semi-furnished, but I hardly spent any time in it. I needed to change something in my life as I was hurtling towards Burnoutville.
just jump
So I decided to take the plunge, thinking that I could apply much of the knowledge I had gained working in the corporate world to running a small business. Hey, was I wrong?
But I sat down and figured things out. Fast forward to today, and the company is thriving. We have grown from a small boutique brokerage firm with 7 agents to a powerhouse brokerage firm with 400 agents, ranked in the top 25 of the CENTURY 21 network.
I have reached a stage in my life where I can reflect on this unexpected journey. If you are considering entering the real estate industry, or have recently considered entering the real estate industry, please know that you are not alone in many of these experiences and feelings. There are a few other things you should know.
1. Understand the steps you are taking
I didn’t fully understand what it meant to transition from the financial security of being a paid employee to being an independent contractor. There is a lot of financial risk, but there is also potential for reward.
I was plagued by self-doubt and a pervasive feeling of “imposter syndrome.” I always thought I wasn’t good enough to run my own business. It takes a lot of effort to change your mindset and gain confidence in a completely new profession.
2. Know the reason
I knew exactly why I was working in real estate now. In addition to carrying on my father’s legacy, I wanted to leave my own legacy of impact by helping as many people as possible succeed in life through real estate and other fields.
It was very important for me to have that touchstone when I was in a difficult situation. It helped me remember why I ended up in this situation and move forward. Be sure to maintain a compelling reason for why you embarked on a second career path in real estate. It keeps you going.
3. Provide a transition period
From a practical standpoint, it helps to have an emergency fund to get you through the first few months of getting your business up and running. Some people continue to work as full-time or part-time employees while starting a real estate business.
4. Know your numbers
Before taking up a new profession in the real estate industry, it is very important to know what a real estate agent’s budget is. There are many costs involved in running a business, including association dues, marketing materials, lead generation costs, and prop technology.
These are all investments in building your business, but they are significant expenses when you have no income at all. It’s helpful to know how much it costs to run your business.
5. Choose the right broker and intermediary
Those new to real estate may not know that brokers have different business models. Some brokerages offer a number of support services in exchange for a portion of the commissions earned, while others let agents keep nearly 100 percent of their commissions but do not provide business development resources or brokerage services. Provides little vendor support. Think about what works best for you.
6. Business hours are fixed.
All businesses post their business hours. Since you are running your own business, you create a schedule for when you will conduct your business. That doesn’t mean you can’t be flexible. That’s one of the benefits of working for yourself. But at first it’s very easy to say: “I don’t have a list, so I don’t have a job.” to do.
It’s important to create a schedule, stick to it, and be accountable to yourself and your new business. Treat it like your old job. Show up and work.
7. Become reality
The advent of all these real estate “reality” shows has had a negative impact on the majority of people working in this industry. Real estate isn’t about endless lunch dates and drinks at the country club. There is no magic pill for success in real estate. It takes a lot of effort. The sooner you realize that real estate reality shows aren’t real, the better.
Starting a side hustle in real estate can be daunting, but with careful research and preparation, and working with the right brand, broker, and work team, you can succeed by taking a leap of faith. You can get wings of. I wish you all the best in your new endeavors.
Mike Allen is the broker-owner of CENTURY 21 Jordan-Link & Company in Visalia, California. Connect with Mike on Facebook and Linkedin.
