How To Be Profitable In The Real Estate Business

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!

7 Tips on Loving Being a Real Estate Agent

Anyone who has been in real estate for long knows that the reason for which someone gets into real estate, might not necessarily be the reason they stay in it. The perception of quick and good money in this industry is a widely held belief. One that has turned out to be a myth, for the truth is something quite different. Quick and good money will only materialize for those rare, exceptional agents that display both consistency and tenacity right out of the gate. The fact is most every agent struggles, at least at first, due to experiencing the roller coaster effect of closing deals and then having an empty pipeline void of new prospects.

Most agents that I talk to complain that when they enter the business their family is constantly nagging them about the hours that they keep and the phone calls that they choose to take at all hours of the day and night. Then, when they are not working, the agent is either at home, pouting over a lack of business or worrying about when the next client will surface and take up their time again – 24/7.

Loving real estate as a job is a change for many agents. Most are mired in the rut of attempting to make a consistent living while keeping the balance act of sharing time and attention between work and family.

Here are some ideas that I have used to keep on keeping on loving real estate.

Real estate is the backdrop of what you do. You are really in business. Real estate is just the canvas upon which you have chosen to paint and ply your craft. And anyone in business knows that you have to constantly be curious about what you do, challenge yourself to learn as much as you can and keep asking ‘what if…’ Because, ‘what if…’ means you are willing to change things in hopes of finding a better way. This does not mean expensive technology that has huge learning curves, nor does it mean changing the systems that work all the time. It means, saying things differently to get a new result. It means looking at things that are repetitive to see if there is a simpler way of doing them. And it especially means at all times, asking if the routine that you have been doing is necessary.

Ask yourself often, “What is real estate?” Defining it for yourself will open your eyes to what you love and hate about your profession which in turn allows you to connect deeper with and appreciate more what you love.

Set boundaries for yourself and your clients. This allows you to know when something is not working for you because you have already thought it out.
You can set quick boundaries by writing at the top of a paper such leading statements like; I will treat my clients with… And, my clients will not…

Try new things like video while you are showing houses. Make a series that is educational for your buyers to come.

Collect educational materials and make a file that you can give to your future buyers. Knowledge is empowering to both you and your clients. It cuts down on everyone’s confusion, which reduces stress leading to a more rewarding outcome for all involved.

Stay away from negative people in your business and your family for that matter. People who tell you that you can’t should now be considered motivational forces, if you have to hang out with them.

Do your best to find something that is funny everyday in real estate. Something amusing that happened at a house that you are showing, or something funny that your client said or something funny that you laugh at with another agent can make your day more memorable and enjoyable. Remember if something isn’t fun to you, you won’t want to do it.

The bottom line to all of this is that whether you love real estate or not, it is your choice. Your perception is reality. You can make anything that you want exactly what you want it to be.