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Posted by Ketsup on March 11, 2005, 2:21 am
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I want to become a broker in either South Carolina, North Carolina, or
Georgia.
But I know next to nothing about what it takes to be one- ie. Where can I
find cheap or free training?
I know, an education is important, but I am below poverty level (illness)
and need to find a way out of my situation. I have been also looking at
becoming a real estate sales person, but brokering seems like a good idea to
me, as I have a friend of a friend in the buisness now. That FOAF is willing
to help get me in, but thats the extent of it- nothing much in the line of
training- he is VERY busy!!!
Thanks
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Posted by Jeff Strickland on March 11, 2005, 11:24 am
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You can not become a broker without first obtaining a sales person license.
I am not sure you would even want to attempt taking on the responsibilities
of a broker without being a sales person. The regulatory agency (the state)
isn't going to want a broker out there screwing over buyers and borrowers
just because the broker is working without a clue. Get your sales person
license, then gat a job. In a couple of years, you can work towards the
broker's license.
> I want to become a broker in either South Carolina, North Carolina, or
> Georgia.
> But I know next to nothing about what it takes to be one- ie. Where can I
> find cheap or free training?
>
> I know, an education is important, but I am below poverty level (illness)
> and need to find a way out of my situation. I have been also looking at
> becoming a real estate sales person, but brokering seems like a good idea
to
> me, as I have a friend of a friend in the buisness now. That FOAF is
willing
> to help get me in, but thats the extent of it- nothing much in the line of
> training- he is VERY busy!!!
> Thanks
>
>
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Posted by Ketsup on March 14, 2005, 3:49 pm
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Thanks for your advice! This certainly clears a few things up for me. I had
assumed that one would merely find training in this particular field, not in
sales of actual real estate. My next concern is in getting into a school of
real estate in my area- I am sure I can find one or two. Do you think that
an investment of $400 is reasonable for learning enough to get started?
That amount is pretty much the median fee for enrollment. I could skimp, and
pay only $70 for online courses, but I am not so sure I would learn enough
to truly be successful. I have hopes for a career that I am in charge of how
much I make a year, having spent years working for what another person deems
worthy of my time and talents- (and basically getting a bargain!). It is
time for me to move onto something that I can REALLY earn my potential. I
did some research and saw that brokers can have an income of
$40,000 -$120,000 yearly. I would be happy for now, just making $40,000
yearly!
Thanks again!
> I want to become a broker in either South Carolina, North Carolina, or
> Georgia.
> But I know next to nothing about what it takes to be one- ie. Where can I
> find cheap or free training?
>
> I know, an education is important, but I am below poverty level (illness)
> and need to find a way out of my situation. I have been also looking at
> becoming a real estate sales person, but brokering seems like a good idea
to
> me, as I have a friend of a friend in the buisness now. That FOAF is
willing
> to help get me in, but thats the extent of it- nothing much in the line of
> training- he is VERY busy!!!
> Thanks
>
>
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Posted by Joel Britt on March 14, 2005, 7:53 pm
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I thin that is a measly investment considering the return - it is a very
lucrative business. The real question is - how fast do you want a return on
your investment?
Jeff will probably concur with me that it is easier to get up and going in
the mortgage field as a loan officer than in real estate as an agent.
To become a real estate agent, you need to commit to the schooling first,
and then gain your licensing. You are talking about 3-5 months before you
can even get started working. That means keeping you current job and
learning this new job all at the same time. Also, real estate is a business
buit upon relationships. Granted, the sale of a $100,000 home could gain a
gross profit of $6000 for your brokerage, but after he takes his cut, you
may only make 35-50% commission based upon your rate of pay. That is
$2-3,000 per sale. How many of those per month do you need to make a
comfortable living - 2 or 3 minimum? It will be hard for a brand new agent
to make sales like that initially, and could take you months or even years
before you are cruising along at a comfortable pace. Remember, successful
real estate agents have worked for years in their community to gain name
recognition and build the relationships that they have to be as successful
as they are.
Mortgages on the other hand, are much different. There is no initial
financial or time commitment. If there is, it is nominal. I live in Ohio,
and was able to start talking to customers the first week I started. In
Ohio, you pay $100 to apply for your loan officer license, and $32 for your
fingerprints and background check. Your cost to take your test is only $50.
Thats it. Once licensed, the state requires you to take 6 hours of
continuing education each year, but there are 3 or 4 lenders that will offer
accredited classes throughout the year free of charge.
To make a long story short, mortgages are easier to sell than homes. New
real estate agents are either buyers agents or sellers agents. That means
your are either helping someone buy a home or sell a home - not both.
Mortgage loan officers can do purchase loans or refinance loans. They can
do 1st mortgages or second mortgages. You can do residential or commercial
properties. So as you can see, there is much more opportunity. A new LO
can do 3 or 4 loans per month in their first 90 days. After about 6 months,
those numbers should be up to 4-6 loans per month. After a year, there is
no reason why a good LO isnt doing 1-12 loans per month.
Here is how it works at my brokerage:
Our average gross per loan is $4800. We do 95% residential refi - 4%
residential purchase, and 1% commercial. I provide leads for my LO's that
pay them 50% commission after a $750 pack is taken off the top. That money
is used to go toward advertising, bonuses, expenses, etc. That means that
my LO's will get paid on average $2025 per loan. Most of the time it is
more, but rarely is it less than that. My guys rarely have a problem
producing 4 loans per month - so on average, they will make about $8100 per
month. Of course, the harder you work, the more you will make. I paid one
of my guys $13,000 today for 4 loans closed sice the first of this month -
he still has 2 more weeks to produce during this month, and he has only been
in the business since October. My guys are welcome to get their own
bussiness as well, and I pay them 60% for residential and 75% for
commercial. My top earner does about 6 commercial loans per year, and
averages about $85,000 in fee per loan - which is an average commission of
$60k per loan. Do the math - thats about $350k per year. My least talented
residential LO will make $90k this year - most of my guys will make between
$125 and 200k.
I know this is alot to take in but if you want my opinion - get your LO
license and do mortgages.
Joel
4TlZd.46705$%Y4.10961@bignews6.bellsouth.net...
> Thanks for your advice! This certainly clears a few things up for me. I
> had
> assumed that one would merely find training in this particular field, not
> in
> sales of actual real estate. My next concern is in getting into a school
> of
> real estate in my area- I am sure I can find one or two. Do you think that
> an investment of $400 is reasonable for learning enough to get started?
> That amount is pretty much the median fee for enrollment. I could skimp,
> and
> pay only $70 for online courses, but I am not so sure I would learn enough
> to truly be successful. I have hopes for a career that I am in charge of
> how
> much I make a year, having spent years working for what another person
> deems
> worthy of my time and talents- (and basically getting a bargain!). It is
> time for me to move onto something that I can REALLY earn my potential. I
> did some research and saw that brokers can have an income of
> $40,000 -$120,000 yearly. I would be happy for now, just making $40,000
> yearly!
> Thanks again!
>
>> I want to become a broker in either South Carolina, North Carolina, or
>> Georgia.
>> But I know next to nothing about what it takes to be one- ie. Where can I
>> find cheap or free training?
>>
>> I know, an education is important, but I am below poverty level (illness)
>> and need to find a way out of my situation. I have been also looking at
>> becoming a real estate sales person, but brokering seems like a good idea
> to
>> me, as I have a friend of a friend in the buisness now. That FOAF is
> willing
>> to help get me in, but thats the extent of it- nothing much in the line
>> of
>> training- he is VERY busy!!!
>> Thanks
>>
>>
>
>
>
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Posted by Jeff Strickland on March 15, 2005, 10:02 am
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I went to a school operated by Real Estate Trainers, Inc., in my state. The
cost was $200 plus the state charges for the various tests and license fees.
The local community college also offers classes and gives college credits.
I'm in California.
You can not go directly from the street to being a broker in CA. You have to
be a sales person for some period of time before you can seek your broker's
license. I think it takes 18 months. Yoiu can easily make the money you are
thinking of as a sales person.
> Thanks for your advice! This certainly clears a few things up for me. I
> had
> assumed that one would merely find training in this particular field, not
> in
> sales of actual real estate. My next concern is in getting into a school
> of
> real estate in my area- I am sure I can find one or two. Do you think that
> an investment of $400 is reasonable for learning enough to get started?
> That amount is pretty much the median fee for enrollment. I could skimp,
> and
> pay only $70 for online courses, but I am not so sure I would learn enough
> to truly be successful. I have hopes for a career that I am in charge of
> how
> much I make a year, having spent years working for what another person
> deems
> worthy of my time and talents- (and basically getting a bargain!). It is
> time for me to move onto something that I can REALLY earn my potential. I
> did some research and saw that brokers can have an income of
> $40,000 -$120,000 yearly. I would be happy for now, just making $40,000
> yearly!
> Thanks again!
>
>> I want to become a broker in either South Carolina, North Carolina, or
>> Georgia.
>> But I know next to nothing about what it takes to be one- ie. Where can I
>> find cheap or free training?
>>
>> I know, an education is important, but I am below poverty level (illness)
>> and need to find a way out of my situation. I have been also looking at
>> becoming a real estate sales person, but brokering seems like a good idea
> to
>> me, as I have a friend of a friend in the buisness now. That FOAF is
> willing
>> to help get me in, but thats the extent of it- nothing much in the line
>> of
>> training- he is VERY busy!!!
>> Thanks
>>
>>
>
>
>
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