Real Estate Careers (Part 4 - Other Stuff to Consider)

Are you beginning to get excited about real estate as a career option?
You have a lot of options to consider in this industry, but an exciting and challenging future is very possible for anyone willing to work. Real estate is not a get rich quick business, it can be a work and get well off type business. That will be up to you.

Independent Contractor (Finally)
One of the "Stuff to Consider" when you make your decision to enter a career in real estate is this "Independent Contractor"(IC) status you will take on. What does that mean? In short, you are not an employee of the company or your Broker. Yes, you are your own boss. When something goes wrong with your career - it is probably your fault. When things go right, it is probably because you are so good (or lucky). The State still requires your Broker to supervise you and the Broker holds legal responsibility for your training and they are at risk for any wrongful actions you might take.

So what is the purpose of IC status? Basically, it means you work under a contract with your Brokerage firm and under the supervision of that Broker. By contract, you will only be paid when you produce - no salary, there is seldom an internship or draw available in this industry. Kinda like the New York song, "If you can make it here you can make it (almost) anywhere." The key IC purpose is your tax status with IRS. You will be self-employed and you will be responsible for keeping up with your income and expenses then you will balance them on Schedule C. You will be responsible for all income taxes and Social Security taxes - the company will not participate in these. At the end of each year, you will receive a 1099 Form from the company and it will show a total for the commissions they have paid to you during the year.

As an IC you will work within the Policies & Practices of your Brokerage and they will exercise some limited control. That control is mandated by law from the State in which you practice. However, an IC does have a lot of personal freedom. Most Brokers say nothing about the hours you work, there is no minimum time required in the office. Most offices have Floor Duty time scheduled that you must be in the office (to serve clients who call or walk-in), your participation in Floor Duty or Opportunity Time will be voluntary. If participation is required, remember you still have an option - you can work elsewhere.

NICHE?
One of the new buzz words in the industry is "Niche", as in "niche markets" or "finding a niche" to focus your career. We used to call this "Specializing". The most successful agents are the ones that do work in a special segment of the market and become experts in their chosen area.

There are some specialized training programs and designations available for you to consider. A few people specialize in "green" or eco-friendly housing (expected to be big in coming years), Seniors (lots of aging boomers), First-time homebuyers, Lake/Waterfront Specialists, Foreclosures (Repos), and Short Sales (Pre-foreclosures). If you have an interest in one of these or another niche, then you should select a Broker who will support you as you become the expert. Your Broker does not need to be an expert in the same area, but does need to support you. Some Brokers are not very supportive of a Niche that they don't understand. (Remember those questions in Part 2.)

Community Service:
There are Brokers who feel strongly about giving back to the community. You need to be aware of this and align yourself with someone who shares your charitable passions. I personally want my company to be a good citizen and give back, so we are involved in a number of charitable events that we sponsor as a company. I like to see my agents involved, I don't require it of my agents - but I do enjoy seeing them give back. You can see some of our past activities, just CLICK HERE.

Networking:
There are numerous opportunities in today's business world to network with other professionals. My company is a member of our local Chamber of Commerce, and the agents in my office regularly attend Chamber networking events. It is good for our business, but also good for the community. When business is strong in a community, the community has a strong economy and everyone benefits.

5 Vital Resources:
The Brokerage that you will call home should offer you a number of resources that will support you and help you succeed.

First, they must be REALTORS®, members of the local, state, and National Association of Realtors. Don't even consider a Broker who is not a member. Most Multiple Listing Services (MLS) are operated by and for Realtors® only - you must have MLS to survive in today's market.

Second, they should be Chamber of Commerce members. This is a resource for you that only enhances your status/position within the community.

Third, a solid web presence is also a must for your success. Business is being done daily on the web and a site is a basic necessity today. Add to that web marketing and promotions and you are beginning to become connected. Don't consider a company that does not find the internet to be important to their success.

Fourth, a training program. Every company needs an organized training effort that operates on an ongoing basis - not whenever some vendor is willing to come to a sales meeting. You are brand new and regardless of how smart and creative you are, you need supervision and training. The State thinks it is so important, they passed statutes requiring your Broker to be responsible for you. My office has regular training classes in both daytime and evenings.

Fifth, office facilities. The office does not need to be fancy, or appear expensive - it should be functional and operate professionally. This includes systems, computers, wi-fi, printers and copiers, telecommunications, connections, work spaces, and professional support staff. A neat and clean work environment is also a must (only one exception, the Broker's desk can be a bit messy.)

So, are you ready to take a step forward? If you still have questions about getting started, leave a comment on this blog. I will respond.

It is impossible for me to have covered everything for everyone, but hopefully you are better informed and you are getting excited about the real estate industry. As I said earlier, we appear to be on the verge of another up market - they always follow a down market. And lets face it, we have had a down market for the last two years.

Start with your pre-license training. There are great real estate programs everywhere - just ask someone in the business for guidance. And remember, the answers need to make sense - don't listen to vague responses - ask questions, lots of questions.

You can contact me through my website or with comments on this blog. I hope you become very successful. Even better, I hope you become very successful in my office or another fine EXIT Realty office. If you need an introduction to a broker in your area of the country, send an e-mail to me at info@UpwardRealty.com.



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