Real estate can be a very lucrative business. Or, it can be the death trap that many an agent experiences as is evident as this present cycle of real estate corrects itself. Learning to be profitable is not that hard, but it does take a different mindset than what other agents before us could comprehend.
For some reason, real estate is perceived to be a service business. Yet, much of the “service” is really emotional counseling. If you look at the counseling business itself, they are not paid when the patient has a “result”. They are paid as the service of counseling is performed, and they are paid right then.
But if you really think about how real estate is set up, or at least how it has been set up in decades before us, real estate the way we know it is really just gambling. Now, how many people do you know make a great living from gambling? A consistent, real living? One that their family is not ready to commit them for, either to a mental institution at worst for being crazy enough to try it or at best to Gambler’s Anonymous for rehab for keeping with it. So, here it is in real estate for years where we have listed sellers, who may or may not sell, and/or work with buyers who may or may not buy. Service or gambling, I think the answer is the latter!
Now, here is where profit comes in. Profit to me means that I am making revenue beyond my expenses. Revenue to me is not based on gambling. Revenue is based on me performing good work for my clients and my clients paying me for that good work at the time that good work is performed. Very few transactions in business are based on gambling. You can think of a few, but even if you got a bad haircut, you are still supposed to pay the barber after the service is performed. Attorneys take retainers but don’t guarantee the result. Your accountant does your tax return, but does not guarantee that you will pay no taxes, and yet, they expect payment after they have performed the work and some expect it before they do the work.
Again, profit is when you make money beyond your expenses on a consistent basis. This means that when you do the work that you promised to perform, you are paid, no matter what. There are no ifs, ands or buts. If someone wants to pull his house off the market, after having it listed for only 3 months you are paid. If a buyer decides not to buy after you have shown them 16 houses, you are paid.
If this makes sense to you, say AMEN! We are in agreement!