Thinking About a Career in Real Estate? 3 Reasons Why It May Not Be For You

Girl sitting in a chair

Fear of the unknown.  Perhaps one of the more common fears that almost anyone can relate to.  It’s one of those fears that hinder us from making the leap, making that move, and more importantly taking risks.  It makes sense though right? We are hard-wired to protect ourselves from the unknown.  During the time of our Paleolithic ancestors, risk taking was the difference between life and death.  But of course, that depends on what type of risks you take, and which ones are calculated.

A good friend of mine, who is also a successful investor, once told me that everyone goes into business assuming “risk”.  The difference between those who succeed and those who fail are the one’s who know to take calculated risks versus making the leap blindly.

So let’s assume that you’re looking for a change.  That’s why you’re reading this blog post right?

You’re tired of your job, you’re tired of clocking in, and most of all you’re tired of having to answer to someone.  You have a lot of ambition and you have dreams of becoming this successful rock star!  You want to be in control!  You want to control your paychecks, your time, and your destiny.  So you shop around looking for careers that you can jump on to.  Information Technology? Not for me.  Car sales? Definitely not for me.  Real Estate?  Hold the phone!

You think to yourself, “Yeah I have a couple of friends who are in the business and they seem to be doing great.  I don’t see other TV shows like Million Dollar IT Guy or Million Dollar Car Transaction.  There might be something here for me!”

So now you start consulting Google as to how much you can expect to make as an agent.  You start looking up what kind of vacations you’ve been dreaming of taking or the price tag on that new Ferrari 458 Italia.  But let’s step on the brakes for just a few moments!

The first thing you should probably ask yourself is, “Is Real Estate the Right Business for Me?”  Asking yourself this question can be a determining factor as to whether you proceed from this point on or not.

Only 1 out of 10 new agents make it their first year in Real Estate.  Although there are a plethora of reasons why an agent wouldn’t make it, typically it’s because they truly didn’t understand what they were getting into.  They did not realize they were starting their own business and already started operating under capitalized.  They also chose the wrong company to work for.

With that said, let’s break down these 3 reasons why Real Estate May or May Not be for YOU.

Reason 1: Do you truly understand what you’re getting into?

Have you done your homework?  Have you spoken to other agents/brokers?  Have you spoken to people who started their businesses from the ground up?  Have you spoken to salespeople from different industries?

Being an agent is not going to be a walk in the park.  In fact, it will take you being able to go beyond your comfort zone whether it be the hours you decide to operate or talking to random strangers.  You also have to accept the fact that you will NOT be receiving a steady paycheck.  You create your own money, as you did want to be in control of your own destiny!

Reason 2: Do you have enough capital?

Even the smallest of businesses require capital to operate.  Are you aware of the costs required to be an agent?  Again, do your homework before you’re in too deep.  There’s a lot of costs associated with being an agent and the last thing you want is to be side-swiped with expenses you didn’t realize you had.  Before you jump ship, consider saving enough money to keep you afloat for your first year.  Good accounting is going to come in handy here as you’re going to want to know where your money is going.  Maybe buying that fancy frappuccino isn’t the best idea right now.

Reason 3: Do you know what company you want to work for?

This may seem like a daunting question to ask yourself, but if you step back and really look at it, it’s not about brand name (although branding is important) or benefits.

Do you know what kind of company culture you want to surround yourself with?  Do you want to join a company who offers you the most competitive commission or do you prefer a company that will ramp you up and provide you with thorough training?  It’s your business and the decision is ultimately yours, which is a big one!  This is why it’s reason number 3, paralysis by analysis.  Again, you should be coming into this knowing what to expect and knowing exactly what you want out of it.  This is otherwise known as “calculated risk.”

I’m writing this, not to discourage anyone from doing what they want to do, but to create awareness that people should be prepared when entering a new career like real estate.  If none of the reasons above give you the cringe and you’re still interested in becoming an agent, you know where to start (as you should’ve already done your homework).  The limits you face will be the ones you create for yourself.  So if you do decide to become a real estate agent, go into it fully committed!  I’m talking about taking this career on whole heartedly and doing it full-time.  But that’s a topic for another blog post.

Authored by Patrick Matutina | Realtor at Town Square | CalBRE# 01948568
Reach me at (818) 414-9601 | [email protected]

Disclaimer: The opinions expressed in this blog post are simply opinions by the author and is therefore not to be taken as advice in any way.  The opinions in this blog post do not reflect the opinions of the brokerage house of the author and is not liable for any actions taken by any reader.  The author is not liable for any decision you, the reader, decide to make.

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