How to survive your first year in real estate

Getting into the business is just that: getting in. Here are the tips you need to stick around.

by Melissa Matthews-Woolard    You made it through the classes, passed the exam, even printed up business cards with your picture on them. Now what?

The challenge of making it in real estate can be daunting. But don’t worry. Even the most successful agents had to survive that grueling first year. And, with these survival tips and a healthy measure of determination, you will, too.

Establish some sort of steady income

Whether your spouse is employed, you’re working a part-time job, or you’ve stashed away a significant amount of savings to draw from, obtaining a dependable monthly income is an important first step. Dorothy Cofield, a 21-year veteran with RE/MAX Northeast in San Antonio, worked as a waitress at night for the first two years of her real estate career. "I was new in town, new in real estate," she recalls. "Money doesn’t just fall into your lap when you start out. It takes time—there are good months and bad months."

Control your overhead

You will receive pitches and advertisements for things you never heard of and items you didn’t know you needed—services like personal coaching, products like contact-management software. While some of these products can help you, many are designed for more seasoned agents. You will be surprised enough by unexpected expenses—don’t add to the list (and subtract from your bank account) unless you have a clear idea of how you will benefit.

Look for ways to save. Your office probably has a fax machine, computer, printer, and other necessities. Your brokerage may provide additional money-saving services to its agents, too. Also, take advantage of products and services from your local, state, and national REALTOR® associations (like forms software available to all members of TAR). Consider this: what you don’t spend in overhead you get to keep as profit.

Find someone successful to shadow

Look for an experienced agent in your office who manages the same kind of business you would like to build. Take that person to lunch and ask how he or she did it. A lot of agents will share information. Do not, however, copy that agent’s unique ideas or farm in that person’s area.

Some established agents need a buyer’s agent to help with prospect management and other tasks. Becoming a real estate assistant might be for you—what you learn from listening to interactions with clients and watching the business operate can far outweigh what you give up in commissions.

Tap into your world of contacts

Make a list of your family, friends, neighbors, your hair stylist, dentist, mechanic, and so on. This list is a mini gold mine of business and opportunity, so start there. And don’t underestimate office duty. Ask to sub for the agents who are too busy.

Continue to attend classes and conferences

One of the best aspects of this business is the never-ending supply of information and the sharing of knowledge. Every year there are several affordable classes and conferences full of ideas and tactics. Look for the Q&A panels of successful agents who have agreed to share their success stories.

Prospect—it works

According to Dayton Schrader, broker of The Schrader Group in San Antonio and a 20-year veteran, "If you do everything right, it can take three to five years to build a referral-based business." Until then, you have to go looking for clients. Cold calling, door knocking, advertisements, just-listed and just-sold cards, visiting FSBOs, and holding open houses are all good tactics. Schrader adds, "Even when you attain a referral-based business, you still have to prospect. It might not be cold calling someone who doesn’t know you, but it’s still prospecting within your sphere of influence and within your referral base."

Set realistic expectations: Create a business plan

Start with a list of business basics: average turnover in your farming areas, amount of advertising you can afford, prospecting tactics, and your own ideas/materials. Using these and other measures, figure out a realistic estimate of how many transactions you should be able to close this year. This is the basis of your business plan and an instant outline of what to do. You can get into much more detail about your goals and tactics. Re-evaluate your plan every six months to add new ideas and scratch the ones that aren’t working.

Melissa Matthews-Woolard is a freelance writer in San Antonio.

Photo © PhotoDisc.

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