Being A Real Estate Agent Is

A More Gradual Approach To

Real Estate Unit Renting


Real Estate Agent

 

Being a real estate agent is a more gradual approach to the real estate unit renting. This gives you an opportunity to see the whole picture in detail.


It also allows you to get familiar with the neighborhood you are interested in getting a rental unit (whenever you are ready). In the US and most other countries, you need to get a license. In the US, you need to take a written examination; I heard it ‘s not too bad.


Your Responsibility;


        - Have thorough knowledge of the real estate market in the communities


        - Know which neighborhoods will best fit clients’ needs and budgets


        - Familiar with local zoning and tax laws


        - Know where to obtain financing


        - Act as intermediary in price negotiations between buyers and sellers


Above responsibility definitions are taken from the US Department of Labor site( http://www.bls.gov/oco/ocos120.htm, 11-07 ). However, I think the last bullet is the most important, acting as intermediary…


This is where you really add value to the profession. This is where you could use your communication skills to your best advantage.


Remember, you are part of the baby boomer generation. You have been working for somebody, or yourself for the last 25+ years. And I am sure that you have communication skills, otherwise you would not have last this long.


First a foremost – Get the License 


Do what you need to do to get the license. We are in this for the long haul. Nothing that I recommend is a ”get rich quick ” scheme. Just take your time prepare for the exam. Then take the exam. You can do it.


Select a broker

 

You need to select a real estate broker so you can work with him. He provides most business supports required; offices, computer systems, guidance, financial institution connections, and available listings.


When I was in the US, I had opportunities to work with Century 21. They seemed to be quite professional in their handling of our transactions. So, this would be one broker you should consider.


Obtain listings-agreements by owners to place properties for rent or sales.


This is something you have to do initially, to get familiar with the neighborhood you will be working with. You can start from the local newspaper and look through the classified sections. You can also check out the appropriate websites, especially the ones that put out by the local paper; they are more up to date on their listings.


This is the case because each of the items in the newspaper listing is sponsored by someone for a period of time.


Then call them up and see if they accept realtor’s inquiry, if not, it usually says principal only. So, don’t bother with those ”principal“ only items, they usually have to wait a while before some non realtors call.


In our experience, over half of the tenants we have gotten came from realtors. Especially, in the US where you have multiple listings services (MLS), the chance of getting tenants from realtors should be much better.


After someone accepted your inquiry, you should make an appointment and visit his place. This gives you an opportunity to get a feel for the neighborhood and the status of the rental unit or a unit for sale.


If you do this twice a week you could obtain four to six listings for the broker, assuming not all the places you visit are the places that you would confidently recommend.


Don’t rush this process, the key is to keep doing it regularly; it can start from one visit a week and then two…


Showing prospective buyers or potential rental tenants

 

The Broker usually gets calls from prospective customers. They usually tell him what he wants; namely, buying a home, renting a home, renting an apartment or a condominium. The broker may then assign this client to you for further investigations of the customer’s needs.


Each client referred to you is a chance for you to get good in qualifying clients. So, just talk to him and find out what he wants. You just pretend to be a client yourself and your caring attitude will shine right through.


Once you know what he wants, you can check out the listings and show some units to him. My understanding is that today, brokers have computer systems than can show the units in all the angles, as if you are walking through there.


Keep in mind that, these units have been qualified by you. So, you can say that you could live there if you have to. This is half of the battle. As you walking around the unit, you could point out all the positive sides, especially the sides that are pertinent to the client. Do some light chit chats in between the conversation always help.


Then, if the client likes the place you ready to go to the next phase. If not, the next phase is getting ready for the next client.


Closing the Deal

 

We ‘re almost finished. Closing the deal involves making sure that the contract is signed by both parties, assuming at this stage that the terms have been agreed by both the unit owner and the tenant, or the seller and the buyer.


Some financings may be needed for the buyer. So the broker can assist in this area. Deposits must be collected for the unit owners at this time, usually 3 months rent (2 months security).


Rent payments should be a direct deposit to the unit owner’s account.


Final process

 

This is a very important step. This makes you different from other real estate agents. Be around when the tenants or buyers are moving in; you can stand by the mobile phone. There is always some minor problems during move-in phase, so help the clients fix the problems. If you have time, a drive-by

during the move will do wonders.


So, what ‘s the payoff

 

According to the US Government Labor Department, an average full time realtor is expected to make about $39,000 per year; 90% of the full time realtors make $111,500. The bottom 10% makes $20,200.


So, we assume that you are working part time, says about one day a week; that’s about a month out of the whole year. That means you should be making about $20,000 minimum. This means, at the end of the first year you would have about $15,000 (less taxes) to make a down payment (may need to add some of your savings) on your first rental unit.


I consider being a realtor as a stepping-stone to a rental unit owner; so that in about 10 years you would have an extra streams of income available. So, if this really gets you excited, then go for it. You must feel comfortable doing this, having one have-to-do career is enough.


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