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oo many would-be real estate agents obsess over the licensing test, then fail in their first two years because they didn’t develop a plan and follow it for success in becoming a real estate agent.  They passed the test, but failed to understand the business, to develop a budget and a business plan, or to learn the ropes that aren’t taught or covered in the test.

These are not just tips, but tools to help you to go into the business with a plan in place to be successful.  Learning about the pace of the business, the costs of doing business, and getting to the right prospects is critical.

Average Income of a Real Estate Agent

According to the Department of Labor, the median real estate agent’s income in 2004 was $35,670 (median means half above and half below). That’s gross income, out of which all their business expenses had to be paid. The bottom 10% had a gross median income of only $17,600. Even if you’re with a broker that provides an office, phone, business cards and some prospect leads, you’ll still have expenses for your car, personal marketing, client gifts/entertainment and more.

The Competition is Fierce with More Agents Than Ever

With over 1.18 million members of the National Association of Realtors®, and record numbers entering the field each year, it’s imperative that new agents understand their market and the competition. Know your abilities, both business-wise and financially. Learn everything you can about your market and where buyers and sellers come from. Then plan your marketing to capture them at the best value. Read more…

How many of us work with clients over long periods of time, sometimes years, before they sell or buy a home with our services? How long do we “farm” an area with expensive mailers and with email, newsletters and more before we get a warm prospect? We could be creating future business in an easier way, and getting paid for it as well.

Say the words “lease purchase” to many real estate professionals, and you’ll see an immediate drop in their enthusiasm level. What they hear is “no commission now.” That is mostly true, but there are some very good reasons for a real estate agent to help their buyers and sellers with a lease purchase if it meets their needs.

• The up-front non-refundable option payment to the owner/seller can be shared with the real estate agent. You get paid to set it up.
• You lock in a commission on the sale if the tenant exercises the option to purchase.
• You build credibility and loyalty with the seller, as you are helping them to potentially move a problem property. Read more…

Understanding the reasons why listings expire can help you reduce the risk that it will happen to you, and increase the likelihood that your home will sell quickly and for the best price.

The four main reasons a property doesn’t sell are:

1. condition

2. staging

3. pricing

4. marketing

Part one of ‘Why Listings Expire’ discusses condition, since it is the number one component a home seller can consider to ensure the salability of their home and the ultimate price they receive.

Condition is critical because it colors the prospective buyer’s perception. Buyers are looking for well-cared-for, move-in-ready properties, so a home in excellent condition can leverage price and lower market time. When priced appropriately, condition can ensure a sale even in a less-than-favorable market.

Several items to address before listing your home are common-sense: Read more…

The focus is usually on specific strategies and the step-by-step process by which to execute that strategy. The idea is that this gives you a repeatable, easy to understand process that you can learn and implement quickly.

But after years of learning about real estate and then years of teaching and consulting I have realized that this approach can inhibit your ability to understand how real estate investing works at the most basic, fundamental level.

It is sort of like teaching a kid how to play baseball by saying:

1. Get a hit.
2. Get on Base.
3. Score a Run.

While this is an easy “strategy” for scoring, it leaves the player with no understanding of the fundamental skills necessary to get a hit.

It’s exciting to think about scoring the winning run, or making $50,000 on one real estate deal. However, most people who can do that on a regular basis have been working at their craft, diligently practicing and mastering fundamental skills. Read more…

It’s not exactly easy learning how to build a real estate business, but the rewards can be tremendous. Life changing. Wealth altering. One of the common problems faced by entrepreneurs looking to build a real estate business is figuring out the ‘how’…perhaps it’s more better described in terms of ‘how’ do you do it, followed up by ‘what’ do you do to build a real estate business.

In that regard, there’s a few relatively simple steps to follow that first starts out with a question. Precisely ‘WHY’ do you want to learn how to build a real estate business?

If you come up empty-handed – or worse still, say you just want to get rich quick – then go elsewhere…because the reality is that if you don’t know why, you don’t have enough ‘chutzpah’ to cut it whenever a challenge arises. These types of people when faced with a potential obstacle get easily frustrated, then cut bait and run. Read more…

Partnerships for Investment

If you are thinking about investing in real estate, you should know that you don’t have to do it alone. There are several that are thinking of the same thing as you, but don’t have the proper resources to begin the process. Building partnerships to invest in real estate is one of the great ways to start building an income off of owning land.

One of the benefits of having someone else investing in real estate with you is that it will allow for any missed parts of the process to be covered. This is especially important in the beginning of the process. If you are unsure of different parts to look at with the real estate investing or if you don’t feel like you can cover all of the areas alone, a partner can help in determining what you are missing. Everything from contract work to needing a third person can be handled and put together from Read more…

Options for Improvement with Refinancing

You have the house, you have the loan, and you have everything set in place. You know that it feels great to have a place to call home. However, there is something that is not fitting quite right. Maybe your home feels like it needs more investment or maybe you want to find a different way to approach your loan. If you are looking at options for improvement, refinancing is the way to turn.

Refinancing is a step that you can take if you want to put in a little extra investment to your home. Whether it is to feel more comfortable or to get more out of your investment when you sell, refinancing is a great option for building up your home investment. Not only will it be good for you to invest more and get more in return, but it can also help you to build credit from the investment.

Read more…

Loan Pre-Qualification

If you are like most, you know that it would be beneficial to just have money handed over your way. You work hard at what you do and are financially stable. You know that it is time for you to move into a new place and want to make sure that you have the best opportunities available for you. The first investigation to make in order to step forward is through a loan pre-qualification.

Loan pre-qualifications will determine if you have the financial ability to invest in real estate in the beginning. By having the right pre-qualification, you can be guaranteed a specific amount of money and will have the ability to move into the home of your dreams.

Read more…