How to Break into Real Estate: Three Essential Steps to Start
where we answer your most pressing questions about how to prosper in this ever-changing business. Today, we’re discussing one of the most popular topics: how to get started in real estate. Whether you’re considering a job change, pursuing financial independence, or simply interested by the possibilities of this sector, I’ve got you covered. Here are my three crucial stages for breaking into real estate and establishing long-term success.
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Step 1: Get Licensed.
The first and most important step in your real estate adventure is to earn your real estate license. To work in real estate, you must be licensed, just as you would be if you were driving a car, practicing law, or becoming a doctor. This license allows you to legally represent buyers and sellers in real estate transactions, which have a tremendous influence on their lives—both financially and emotionally.
Each state in the United States has its own licensing standards, however most require completion of a pre-license course at a recognized school. For example, in New York, you must take a 75-hour course, which can be done online or in person. This course covers foundational topics like as property law, ethics, assessment methodologies, and more—the majority of which you may never need again but are necessary to know when you start.
After completing the course, you will take a school exam, and if you pass, you will be qualified to appear for the state exam. The state exam is more difficult, so make sure to study thoroughly. Remember, real estate is more than just making sales; it is about guiding clients on one of their most important financial decisions. This necessitates a thorough awareness of the market, legal responsibilities, and the fiduciary responsibility you have to your clients.
Step two: Find a Sponsoring Broker.
After you have obtained your license, the following stage is to find a sponsoring broker. A sponsored broker is a real estate professional with at least two years of experience and a brokerage license. This broker will be your mentor, providing you with the required advice as you begin your career.
Brokerages that offer sponsorship include Keller Williams, Century 21, Coldwell Banker, and Sirhan (my brokerage in New York). You’ll need to interview with these brokerages and demonstrate your drive, hustle, and enthusiasm for real estate. Once you’ve secured a position, your sponsored broker will officially associate your license with their brokerage, allowing you to begin practicing real estate under their supervision.
Here’s where the real work starts. You’ll be able to market yourself as a licensed real estate agent, start creating a clientele, and work on deals. Remember, with real estate, you eat what you kill, which means there is no guaranteed pay. Success in any industry necessitates unwavering dedication and a strong entrepreneurial spirit.
Step 3: Train and learn.
The third and most important phase is training. What exactly do you know about advising individuals on buying and selling homes? Not much, yet. Training with your sponsoring broker will teach you the ropes of the industry. Most brokerage firms provide training programs, mentorship opportunities, and shadowing experiences. These seminars are helpful for getting practical information and understanding how a professional real estate agent works on a daily basis.
You’ll most likely begin by aiding more experienced agents with activities they no longer want to undertake, such as managing emails, creating contracts, or arranging showings for less expensive properties. While it may appear to be grunt work, this experience is critical for learning the complexities of the industry. You’ll be exposed to real-world scenarios, assisting clients with a variety of demands and learning how to manage difficult transactions.
If your agency does not provide a comprehensive training program, try joining a real estate team. Teams are like tiny families inside a bigger company, with members supporting one another and sharing tasks. Being part of a team allows you to learn from many agents, obtain diverse experiences, and accelerate your skill development.
Remember, don’t just stick to the responsibilities you’ve been set; be proactive. If you want to be an agent, practice acting like one. Volunteer to take on clients, regardless of how minor the transaction may be. The experience you get from these opportunities is invaluable, and it is the only way to develop the confidence and expertise required to flourish independently.
Path Ahead: Hard Work Pays Off
Breaking into real estate does not happen overnight. It involves commitment, hard work, and patience. Your first year may be difficult—82% of new agents leave within the first year—but if you have the entrepreneurial spirit and are prepared to hustle, the benefits are enormous. Consider your first few years of graduate school an investment in your long-term success.
As you gain experience, form relationships, and hone your talents, you will begin to see the results of your efforts. Real estate is a career in which the seeds you plant now can grow into long-term connections and lucrative transactions later on. Some of my existing clients are people I’ve been building connections with for years, and they’re ready to buy or sell.
Conclusion
So, there you have it—three crucial stages for breaking into real estate: Obtain a license, find a sponsored broker, and train hard. If you follow these steps, you will be on your way to being a successful real estate agent, regardless of where you are in the world. Real estate is a thrilling, demanding, and rewarding profession, but it is not for the faint of heart. It demands dedication, a willingness to learn, and a strong work ethic.
If you’re ready to plunge in, take the first step today. The trip may be difficult, but the results can be life-changing.