Laid Off (Again)

Todd,

Thanks for explaining more.

More toughies to follow...

a friend offered to give me leads if I would get licensed. It's been rough now for some time, so he's struggling to get enough leads for himself (with a very one dimensional marketing scheme - direct mail only).

It's been rough for some time.
He's struggling.

The stuff about his marketing method comes across as an Excuse. As in...

"yes I know it looks silly to get into this, specially when the guy that got me interested is doing it so very tough.... but that's because he Insert Excuse Here. And I just know I can do better - even though I have not done better yet."

Nothing chews up people and spits them out as fast as real estate - and being an Agent. You've heard it. Know someone going through it. But still believe, even against your own experience, that this won't happen to you.

That determination is commendable.

Though like Gordon says... you're doomed to fail - Unless - you do things differently. And not just what you Think will work. But if you do what Actually Works.

So your mission, Todd, should you decide to accept it, is to use the Bill Myers Method. To find other people who are making a real success out if - not just claims, but genuine - and do likewise. Do As They Do.

Now to your answers...

Much higher income opportunity. Yes, and much lower income opportunity too.

Quick story. Girl on the gold coast gets into RE. Decides the money is in selling High Prices stuff. Why? Because commission is Percentage Based. Why sell a $200k place and make $5k when you can sell a $1,000,000 place and make $50k commission? After all, one sale a year and you'd doing fine.

So that's what she does and makes a Killing at 23 years of age.

I personally know a couple who've been in the game for decades. They do likewise. Concentrate on the high priced stuff. Might take four months to sell one. But can you imagine the commission on a $3 million dollar place? I think they paid $400k Tax last year.

Others I know do like most others... get into the normal housing market. And the numbers of survivors are few and far between. And there are More of those types - earning pathetic money - than earning high money. That's the reality of the income opportunity. And those lower priced houses are the only thing new home buyers can afford.

Yes. It's true. The number of Hours Put In Per House doesn't equate to the Commission Generated.

Example... agent gets listing papers signed, makes one call to person who contacted them about such a place, shows house, buyer makes offer which agent phones through. One counter offer is accepted. Contract signed and settlement takes place 30 days later.

Agent's commission around $6k. Time agent spent... a couple of phone calls, showing the place once and then final walkthrough before settlement. Also being present during building and pest inspection. Maybe five hours all up. Works out to $1,200 an hour.

Sure, that's Appealing. But it discounts the hours and hours spent trying to find people to list.

To me... the largest sales areas are... higher priced (sometimes slower sales but larger commissions) and investment properties (sold to a list of investment buyers you generate yourself - repeat sales to the same people, less hassle with first timers and their financing and repayment issues, less fastidious as they aren't moving in and will buy even if the carpet is 70s orange shag pile HA!).

Enjoying driving people around: Become a bus driver, taxi driver, tour bus driver, limo driver.

Enjoy showing homes. Approach a builder who has display homes and ask if you can work in a display home.

Self employed. Loads of other ways besides real estate.

Now. Before you get yourself into a situation where you become just more fodder to the real estate shredder, have you read Jim Straw's Real Estate work? Has sample ads to generate Leads. And one rule of thumb to always follow if you use the technique he writes about.

Anyway. More for you to consider.

But of course, if RE satisfies something Inner inside of you. Then you'll go with it even if the income is not higher. And that'd be a good thing. To be internally satisfied.

Michael Ross