Newly Licensed. Now What?: Money Management Tips for New Realtors

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You are about to start your journey as a Realtor in Florida, selling contemporary homes with open layouts and modern home with the latest technologies. Perhaps you are a little broke and newly licensed, now what? First, congratulate yourself on finishing school. It’s a major accomplishment. To get started in your career, you still need to spend money to make money. Most brokerage firms need their real estate professionals to apply and join the local real estate board and associations for Florida Realtors as well as the National Association of Realtors. Becoming a member is about credibility, networking and tools, and support. Some newly licensed real estate professionals dream of making $50,000 commission checks on the first day. Although it’s good to feel ambitious, balance your ambition with reality. According to a piece by investfourmore, the average real estate professional in 2006 made less than $15,000 the first year. Of course, after the first year, most Realtors bring in more than $50,000 a year.

Getting the start-up money

A lot of sales jobs require people to spend money before they earn money. Even a traditional office job requires employees to invest in their wardrobes. Money management is a critical skill for Realtors as they move along in their professions. Not only do you need start-up money as a newly licensed professional, but you also need to budget and plan for unpredictable monthly commissions and unsteady income. Some real estate professions use credit cards, ask family members for financial assistance or get a side job making money until they receive their first commissions. Many experts recommend saving up enough money to live on for 6 months. In addition to a decent wardrobe, real estate professionals buy decent cars to drive around house hunters. Get your credit score up as soon as possible to afford a nice car. Taking out a car loan and making the monthly payments also helps to boost your credit score.

Interviewing different brokerage companies

Just as brokers interview you, it’s important for you to interview several companies. Find out what kind of mentoring and training they offer. Compare the different compensation packages and fees. Some brokers cover marketing costs or some marketing expenses. By working a side gig for at least 6 months, you have the funds to pay for marketing, technology, and fees until your commissions kick in.

Figuring out your niche

Another important step to take when starting out as a real estate professional is to define yourself, your brand and your niche. It’s time to take your real estate licensing knowledge and turn it into a business application. For example, decide whether you want to work with first-time homebuyers or concentrate on move-up buyers interested in luxury homes. Some real estate agents specialize in new construction, while others like working with the retired population.

When choosing a brokerage firm, look for ones that emphasize teamwork, cooperation, and support. Also, it helps to affiliate yourself with a trusted brand. In terms of financial planning and budgeting, consider sitting down with a tax advisor or personal finance coach to devise strategies. In the beginning, you will need to pound the pavement, attend a lot of networking lunches and get your name and face out there to the public. Consider yourself fortunate to begin a journey on an exciting career path.

IFREC Real Estate Schools helps people begin their lucrative and satisfying career in real estate with affordable costs. The Institute of Florida Real Estate Careers (IFREC) is Central Florida’s oldest full-service real estate school. For more information about state exam prep, live instructor led classes or online classes and other designations or continuing education, please contact us today.

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