Top 10 tips to become successful real estate agent

Step 1: Research Your State’s Requirements

Estimated Cost: Free

There’s no such thing as a national real estate license, so you must meet your state’s unique licensing requirements. A good place to start your research is your state’s real estate regulatory office website, which you can find by doing an online search for “(your state) real estate regulatory office” or by visiting ARELLO’s regulatory agency directory.

Each state typically has specific requirements for:

• age
• application process and fees
• background checks and fingerprinting
• continuing education
• education requirements (such as a high school diploma or GED)
• exams and exam eligibility
• pre-licensing courses and post-licensing requirements
• process for achieving the next level of licensing
• reporting of any criminal history

Some states have reciprocal licensing agreements with other states, which means you can get your license in one state and use it in another without having to take an additional license examination. New York, for example, has reciprocity with nine states (some states have reciprocity for brokers only): Arkansas, Colorado, Connecticut, Georgia, Massachusetts, Mississippi, Oklahoma, Pennsylvania and West Virginia. As with regular licensing requirements, each state has its own process for obtaining a license through reciprocity.

Step 2: Take a Pre-Licensing Course

Estimated Cost: $300+

No matter where you live, you’ll have to take a pre-licensing course from an accredited real estate licensing school before you can sit for the real estate license exam. The required number of hours varies by state. In California, for example, applicants must take three real estate classes totaling 135 hours. In New York the course takes 75 hours.

Most states offer several ways to fulfill the pre-licensing course requirements, including online classes, brick-and-mortar real estate schools and classes at community colleges. You may be able to save money using one type of class program over another. However, be sure to choose the method that works best for your learning style and schedule. Also, do your research and be selective when it comes to picking a program. The quality of the instructors and materials will influence how well prepared you are to take the exam.

Step 3: Take the Licensing Exam

Estimated Cost: $325+

Your instructor should explain how to schedule, register and pay for the licensing exam (if not, visit your state’s real estate commission website). Exams are computerized and consist of two parts – a national portion on general real estate principles and practices and a state-specific section that covers your state’s real estate laws. Each section is scored separately, and you must receive a passing grade on both sections to pass. If you fail one or both sections, you’ll have the opportunity to retake the exam. Each state has its own rules regarding the number of times you may retake an exam, how long you must wait in between exams and the deadline for completing any retakes.

The exams are multiple-choice format, and the number of questions and the time allotted for the exam vary by state. If you do pass, you must submit an application and any required documents and fees to your state’s real estate agency. Once your application is approved, the state will mail your real estate license certificate, and your name will be searchable under the “Licensees” section of its website. Keep in mind that you’re not allowed to work as a real estate agent before your license is issued by the state’s real estate agency, so don’t start until you have the license in your hand.

Step 4: Consider Becoming a Realtor

Estimated Cost: $185

Many people use the terms “real estate agent” and “realtor” interchangeably, but they actually differ. While both are licensed to help buyers and sellers throughout the real estate transaction process, realtors are members of the National Association of Realtors (NAR) and subscribe to its strict code of ethics. The NAR is the largest trade association in the U.S., representing 1.3 million members who are salespeople, brokers, property managers, appraisers, counselors and other participants in the residential and commercial real estate industries.

Being able to call yourself a realtor can add to your credibility as a real estate agent. As a realtor, you’ll also have access to a variety of benefits, business tools, real estate market data, research and statistics, educational opportunities, and discount programs geared toward helping you succeed in business. For example, realtors have access to Realtors Property Resource (RPR), an online real estate database of 166 million properties in the U.S. built from public record and assessment information. It includes information on zoning, permits, mortgage and lien data, schools, and a large database of foreclosures.

Step 5: Join a Real Estate Brokerage

Estimated Cost: $25 to $500+ per month

As a real estate agent you typically work under the umbrella of a supervising broker, who is licensed by the state to oversee real estate transactions and make sure that you (and other real estate agents) follow the required legal and ethical standards. In general you won’t earn an hourly salary. Instead, the brokerage will likely pay you a percentage of the commissions it collects from your real estate transactions.

Depending on the arrangement you have with your brokerage, you may have to pay for desk fees, tech fees (e.g. for your website), business cards, marketing materials and other normal costs of doing business. You’ll also have other one-time and ongoing expenses, such as renewing your license each year, continuing education, lockbox fees and multiple-listing-services memberships. These costs can easily add up to several thousands of dollars per year, so it’s important to factor them into your budget when deciding if a career in real estate is right for you.

Keep in mind that a career as a real estate agent can be as flexible as you want it to be. You can limit your hours to mornings three days a week or never work on weekends. The trade-off, of course, is that this will greatly limit your ability to be successful. While you can work part time as a real estate agent, most successful practitioners treat it as a full-time business, making themselves available to clients throughout the week and on weekends. In general, the more time and effort you put into being a real estate agent, the more success you will achieve – both in terms of money and of job satisfaction.

6. Have a Backup Income Source

Real Estate IS NOT get rich quick.  If you are newly licensed, you are probably about 4 to 6 months away from getting a check.  This is a harsh reality, but true.  Now don’t get me wrong, we have plenty of success stories where our agents have been able to open an escrow in their first 30 days of working with our firm, but remember, most escrows take between 45 to 60 days to close, so if you’re paying attention, that’s about 90 days to wait for your first commission check. This isn’t all bad considering the cost of real estate today, but you have to understand the way our profession is paid.

You should have enough money saved up to make it for at least six months without a commission or you’re going to need keep your day job for a while. Becoming a part time real estate agent may not have been your plan, but you need to have the ability to pay your bills while you get started. Unless you have some family members or friends ready to buy a home, you can go for many months without an income. The majority of agents who fail do so in their first or second year in the business.

I know firsthand what it is like to supplement your income while you’re building your real estate business. I’ve only had one job in my life: a patient registration clerk at Pacific Alliance Medical Center, which ironically was the hos

pital I was born in, back when it was known as the French Hospital of Los Angeles. It was a graveyard job. I’d work from 10 PM to 6 AM registering patients and verifying insurance coverage. Then I’d rush to my UCLA dorm room and sleep until noon so that I could go to my classes until about 4 pm. Then from 4 pm until about 8 pm I would work as a Real Estate Agent.  It wasn’t easy, but I did it.  You are going to have to make some sacrifices in the pursuit of your dream.

7. Get a Mentor or Choose a Broker With Good Training

Get a Mentor or Choose a Broker With Good Training

The very first thing you need to do is to identify a mentor. Everyone NEEDS a mentor. I don’t care who you are. Warren Buffet’s mentor was Benjamin “Ben Graham” the father of “Value investing.” Michael Jordan’s mentor was Dean Smith, one of the winningest basketball coaches of all time. You can succeed on your own without a mentor, but why would you want to?

Having a mentor isn’t required, but one huge benefit is the ability to earn as you learn. During the initial “iOF” phase, it’s important to stay focused on what will fuel your success, and success in our profession is defined as sales and the only way to sell is through lead generation which means you are going to have to either talk to a lot of people or spend a lot of money advertising and/or buying leads.

While you focus on lead generation, you will need someone to help you review contracts, negotiate, and yes-add credibility. Excitement is attractive, and even engaging, but to have someone trust you with the largest asset of their life, will require a little more than just you being enthusiastic about serving them. This is another reason that a mentor adds value to the equation.

Your friends and family know you. They know about your successes. They know about your failures. They even know about some of the more embarrassing events in your life that you probably wish they’d stop reminding you about. The truth is, you don’t have much experience selling real estate yet-and that’s nothing to be ashamed of. Every person and every company has their first day. It’s just that your friends and family don’t want to be your guinea pig. So the best way to overcome the reality or perception that you are new to the profession, is to shift their microscopic scrutiny of you and redirect it onto someone with more experience and a more robust resume so that you don’t ever have to hear, “Well (insert your name here), we like you and trust you, but we just aren’t comfortable with your level of experience.”

When you use a mentor who has a track record it eliminates the objection that you don’t know what you are doing. You act as the “opener,” and your job is to enthusiastically build up the credibility of your mentor. If you do this correctly, it is your relationship and their trust and confidence in you that will open the conversation and it is your mentor’s skill and ability that will secure their business. I’ve used this tool many times in life as a mentee and as a mentor. Trust me. It works.

8. Start Building Your “Book of Business”

Some call it working your sphere of influence, or your center of influence. Essentially this means approaching everyone who knows you, likes you, and trusts you, about your newfound profession. If you’ve ever started a business, such as a restaurant, the first few people you invite as guests are people you know. Why? Because you’re excited and want to share your latest endeavor with the people you love (and anyone who will listen). It comes natural.  But for some reason, when people join our ranks, they’re afraid of speaking to people they know in fear of imposing. They turn into Ninja Agents. This is quite possibly one of the worst and most counterintuitive ways of launching your business.

If you’ve ever owned a business, say a restaurant, you know that you have two types of openings. A soft “test run” opening where you work out the kinks. Typically this is where you invite friends & family. Once you’ve got a handle on things, the next step is to have a Grand Opening. Real Estate should be no different. Your message has a better chance of being heard when it’s shared with people who already know you. I recorded a video training on how to tactfully engage your sphere of influence. You may also consider reviewing the real estate agent training slides accompanying it.

Your center of influence will grow and there will be no shortage of contacts with which you will interact with during a transaction. Becoming a real estate agent is just the very first step in a long (you hope) career of working with buyers, sellers, investors, appraisers, loan officers, mortgage brokers, inspectors, title companies and others. Each person you come into contact with is an opportunity to share what you do, AFTER you’ve earned the right to ask for their business.

9. Start Out Right With Technology and the Internet

Start Out Right With Technology and the Internet

No matter what some of the “old-timers” may tell you, you NEED the Internet to market in today’s real estate world. While some with many years in the business can continue to succeed due to referrals and past business over the years, you’ll need to use your website and social networking to get a foothold with today’s buyers and sellers. Budget for a good web presence, though it need not be expensive. Most real estate agent websites suck. In a separate blog entry I share precisely what you need to do to get your site ranked on Google.

Use as many free tools available to promote your brand that you possibly can, particularly social media. You’ve got to build what I call a social fortress. That means that at bare minimum your business must have a profile on Google Maps, Apple Maps, Yelp, LinkedIn, Facebook Business, Twitter, Instagram, Snapchat, YouTube and Pinterest. Many of these platforms, allow you to not only share original content you create, but sites like LinkedIn and Medium allow you to write your own articles that are often picked up quicker by search engines than blog content from your own personal website. The best part is that all these tools don’t cost you anything  it your time.

10. Becoming a Real Estate Agent Isn’t Just Getting a License

For most would-be real estate agents, the courses and the test for licensing turn out to be less fearful than they anticipated. The rude awakening comes later when they don’t find that easy income in the first couple or three months. They thought they had a family member or friend all lined up, but they are taking their time, not buying or listing when the new agent thought they would.

Having a plan, some money saved, or another income will smooth your entry into this competitive business.

Budget for several months without any income, perhaps six or more in some cases. Budget for enough money to begin a website and online strategy to build business down the line. However, lots of contacting of people, and beginning your prospects list by the old methods will help you to get started while the slower online process builds. You can call, mail and email every person you know, and you just may pull a deal out of the hat sooner than expected. This will keep you in the game while you build your marketing efforts and business.

Learn from peers, your mentor or your broker about all of the important documents involved. Try to avoid being asked basic buyer or seller questions you can’t answer, as it could cost you the prospect. Either ask for past transaction folders and study the documents or ask to assist an experienced agent in their next transaction.