Busting The Myths About Getting Started In Real Estate
By Paul Esajian on January 15, 2016
There are several misconceptions about getting started in real estate. So what’s the real deal?
Myths about real estate keep those that could add a lot of value to the industry out of the game. Worse, unsubstantiated myths could prevent people form making the money they deserve. Some believe it is a tough industry to break into. Others expect it to be far easier than it is, and at the first sign of real work, or not seeing a paycheck in a week, give up. The truth, however, can be a big shock. For those that are not prepared and that end up getting off to a slow start, it can be frustrating.
Real estate can deliver more freedom, time, money, and it can come a lot easier than in any other field. The key to unlocking the rewards is accurately anticipating what it takes to win and getting a strong head start. So however you plan to get in; what are some of the important myths to bust in order to realize success?
A Real Estate Broker is going to Teach You the Ropes
Many choose to get started in real estate by becoming a Realtor. Many see this as a good entry point to learning more about the business before investing. Becoming a licensed Realtor can certainly have its advantages. However, many think that when they hang their license with a broker they will get all the training they need, and personal support to master the business. That’s unlikely. Some real estate brokerages may offer a whirlwind tutorial, but in reality, most will just turn you out on your own to figure it out for yourself. Most are not prepared for this, and it can be a big learning curve. To survive, it is critical for individuals to learn as much as possible about the practical side of doing business, and finding a mentor or system that will provide a path to getting deals done.
It’s Harder to do Higher End Deals
Many individuals get into the industry dreaming of doing grand, multi-million dollar deals, and the paychecks they can provide. At the same time, they are afraid of them, and perceive them as being difficult to do. In a recent interview via Realty411 Magazine, Syd Leibovitch, of Rodeo Realty in Beverly Hills, says he scaled his way up just like anyone else. Bigger deals have the same mechanics as the cheaper ones. However, new entrants also need to be realistic about volume. Can you go 9 months between paychecks to sell $10M houses? Or should you be focusing on mid-range deals that can provide income every month?
You Have to Dress & Drive the Part
One of the most controversial and precarious parts of getting into real estate is what you should wear and drive. Data from the National Association of Realtors certainly backs up the opinion that agents invest much of their earnings into their vehicles. If you buy from people just because of what they wearing and driving, then you may assume others will too. You may want to update your wardrobe and car to better connect with your clientele. However, justifying maxing out your credit and credit cards on clothes and car payments as an investment in your marketing may be pushing it a little. It may be better to invest in actual marketing, and then let the profits from your deals pay for your shopping sprees. Besides, you might be surprised at how frugal the truly wealthy are, and how much they enjoy dressing down. Knowing your stuff and improving your skills is going to bring in a lot more money than whether you spent $2,000 on your sunglasses instead of $200.
You Need All the Tools You’re Going to Be Sold
Once you set yourself up as a real estate business or get your real estate license, you’ll be hammered with a massive barrage of sales pitches. There will be dozens, if not hundreds of email services, videos, marketing tools, apps, and software you are sold on ‘needing’ in order to do more deals. This can soak up quite a bit of time that is better spent out there actually doing deals. It could also bankrupt you before you get a real income stream flowing. You do need tools, systems, and software to run at your best, but you don’t need three of each type. Instead, seek out the best systems and solutions for each area upfront, plug those in, and get on with real business.
Branding Doesn’t Matter
If you truly work for the very best real estate firm in your market, which is respected and consistently sought out by the best clients, there may be value. However, for most, what’s important is building a personal brand and branding materials. Clients will make up their minds about you in a matter of seconds. Does your verbal branding, real estate website, business card, and image convey the values you want to?
You Don’t Have to Wait to Get Started
One of the biggest traps that individuals fall into is thinking they need to wait for ‘X’ in order to get started. They need a little more money, to get a license, or learn something else. Beefing up real estate education in advance is smart. Yet, the earlier you get things moving, the better. There is no reason not to get started networking, blogging, creating marketing materials, and drumming up business immediately.