Re: Advantages\disanvatages of becoming … - Posted by Frank Chin
Posted by Frank Chin on September 30, 2005 at 07:38:01:
My wife was a “real estate agent” for six months. I teamed up with a “real estate agent” some time back, and he did it for about three years, to get his feet wet, and then ditched the licence to become an investor.
Both my wife and friend advised me that being an agent is NOT the way to make money. One day, this friend said he has to run off to an “awards dinner” that night for “million dollar” producers. I said “sounds excitng”. His answer?? “What so exciting about getting 1/4 (agents split) of 6% of one million (that’s $15,000). I have to pay gas, business cards, other expenses out of it.”
I asked if he’s a “million dollar” producer. He said no, and added that only a third or so of the office reached that target. So I asked him why he didn’t become a real estate investor to begin with.
In summary, he explained that some folks need a CRUTCH, and one of the things his office made them do was visit every home in the area, introduce himself, and offer services for his local “Century 21”. He explained he’s shy about door knocking for no reason at all (hey I’m the local RE investor), but felt more confident putting his yellow Century 21 jacket on knocking on doors.
But he said his trick is to volunteer to go to closings to pick up checks for other agents who hates to waste the hour. He says he was able to make contact with lawyers, investors, , that he otherwise wouldn’t be able to meet. And he was able to work with bankers, mortgage brokers for his clients instead of calling up as an investor and say “hi, I’m Larry, I got no money but do you give 100% loans to someone with bad credit”
After he made all his contacts, he ditched his license and became an investor.