It’s Easy To Get Lost
I’ve often felt that helping many real estate agents is like being on a rescue mission where they got lost in the woods. They’ve become so lost because they started off on the wrong foot.
Either by not knowing, fear of going one direction or because of all of the misinformation that exists out there today.
Not only do I need to get them on the right path, first I have to figure out where exactly they are lost at. This always takes more time and typically leaves them feeling more frustrated and tired (me too). But it’s quite easy to get lost, especially when accepting that there is so much misinformation getting out to a real estate agent today. But it’s like what Erik Jonsson writes in his book, Inner Navigation: Why We Get Lost and How We Find Our Way.
On a trip to Cologne in 1948, Jonsson left a train station before dawn and headed toward the Rhine. He was sure he was heading west, even though he could see the sun rising over the river ahead of him. He remained “turned around,” thinking that east was west and vice versa, until he finally left the city. Another example he gives is of a friend that had lived in Western Colorado from the ages of 4 to 10, where he could daily see a mountain range to the east. At the age of 10 his friend moved to Pasadena, where mountains are visible to the north. But his friend ‘felt’ that the mountains were still east of him. Even though they were north. This incorrect sensation lasted into his sixties.
Your first steps are critical: people who start off lost tend to stay lost.
If you think you know where you’re going but you really don’t, it’s easy to end up drifting around aimlessly and randomly.
:: The Reality ::
According to the National Association of Realtors Member Profile, Realtors with 2 years or less experience have a median net income of only $8,100 a year. It doesn’t get much better with experience. Realtors with 3 to 5 years experience are still only netting $18,900 a year.
Let’s be frank…
… $18,900 is pathetic.
I don’t care what your market is or where you are located.
How is $18,900 a professional level of profit?
If you assume the cost of doing business is…
… $500 a year for Realtor dues
… $360 a year for MLS dues
… $600 a year for Office Dues/E & O insurance
… $1200 a year for a website/IDX (if you’re being cheap and getting a good one)
… $3000 a year for gas (driving around all those clients)
… $1500 a year for smart phone (need access everywhere for that social media engagement)
And if that’s the only expenses you have… that is a total of $7,160.
Your Gross Income is now $11,740
Don’t forget taxes… Self employment taxes are different than income taxes.
If you’re still reading this and your serious about a career in real estate…
If you want to start off on the right foot, in the right direction…
If you’d like to take home more than $11,740 and not worry about going broke from expenses…