A career in real estate...

[Rehan]

Can any of the real estate agents at RFD (I know there's at least one...) provide some insight into what it's like to work as an agent?

What are the most important skills to have? How many hours of work are there in a typical week? What's the typical net income? What does it take (time, money, etc.) to become an agent, and what does it take to stay in the business?

[ronny1980]

im working in the IT industry but at thew same time im taking my real estate license course on the side..

to be honest...real estate theres alot of money to be made..
my aunt pulls in $250000 a year...is all a matter of building up ur clientelle

u need to have good social skills for sure...outgoing...and great at customer service...able to negotiate is really important as well.

to be able to buy and sell real estate...u need to atleast pass 3 exams...phase 1,2,3... 1 is pretty easy...2 is pretty hard...3 im not sure yet..havent done..

in terms of hours....when u start....ur gonna have to work pretty hard....but once ur clientelle starts building up...thingd wil be much more better

my aunt goes on vacation like 5 times a year...she doesnt have to find houses to sell...clients come looking for her..

she makes mad cash...

IMO....theres a huge potential in real estate...but u gotta be able to handle the pressure to begin with...

check this site out...ontario real estate association.

www.orea.com

[rb]

Ronny is correct, you need social skills for sure, and organisational skills are just as important. Ask yourself do you have a large circle of friends ?..if you don't you may find it difficult to make contacts later on. The exams aren't too hard. However when you work for yourself, you need to also ask yourself if you are able to go without the safety net that comes from full time employment (regular income, benefit , paid vacation) etc

[B40]

Is it something you could do on the side? Like 10 hours a week? Or are there any types of 'careers' like that?

[rb]

maybe starting off you can do less hours (if a broker will hire you on those conditions) but to properly service clients you will have to work probably full time.

[Rehan]

rb, how long have you been an agent? Are you planning to remain in the industry? :)

Yeah, it does seem like a lot of them make quite a bit of money. According to RE/MAX, "RE/MAX agents on average exceed a gross commission of $105,000, with our top 10% earning well in excess of $250,000". (That's from here (http://www.remax-oa.com/AgentToolbox/Succeed.asp). )

Thanks for the link to OREA. Lots of good information there... :)

[Rehan]

Two other questions:

1) How much of the 3% commission actually makes it into the agent's pocket?
2) How much of the time is spent at home vs. out with clients vs. at the office?

[grant]

I'm not an agent but I know (a) MOST agents quit the profession within 5 years (B) you're a SLAVE to your pager, you get no off hours.

I'm thinking of getting my license so i can do my own viewings, & write my own offers.

[ranjeet2000]

im working in the IT industry but at thew same time im taking my real estate license course on the side..

to be honest...real estate theres alot of money to be made..
my aunt pulls in $250000 a year...is all a matter of building up ur clientelle

u need to have good social skills for sure...outgoing...and great at customer service...able to negotiate is really important as well.

to be able to buy and sell real estate...u need to atleast pass 3 exams...phase 1,2,3... 1 is pretty easy...2 is pretty hard...3 im not sure yet..havent done..

in terms of hours....when u start....ur gonna have to work pretty hard....but once ur clientelle starts building up...thingd wil be much more better

my aunt goes on vacation like 5 times a year...she doesnt have to find houses to sell...clients come looking for her..

she makes mad cash...

IMO....theres a huge potential in real estate...but u gotta be able to handle the pressure to begin with...

check this site out...ontario real estate association.

www.orea.com
it s good now cuz of the boom, but remember during the 90s? when mortgages were high? real estate agents weren't making much backl then or during times when real estate isn't big.

[ronny1980]

the number of hours u want to work depends on u...and the broker..some brokers allow it..some dont..

my mom and aunt works for remax... and they love it..

If u sell a house u listed...then u will get the full commision...which is around 7% depending on the broker...theres 2 kinds..

usually an agent lists and another sells..so u split the commision...

but think about..if one agent lists a for $300000... and ur able to sell it...u will get about 3-3.5 commision..thats like $9000 rite there..is good money...

if u sold a house u listed...at $300000....u will get $18000 before tax....which is pretty damn good man..

u will also have to choose whether u want to do residential or commercial...suually ppl do residential first...easier..gain some experience..and then later on...start doing some commercial.. and once u have enuf clients....u can become a broker.. and start pulling A $HITLOAD OF MONEY

[frogger]

Doesn't the brokerage take a percentage of the comission?

[ronny1980]

yes he does....basically theres suualyl a 4 way split...

Listing agent/listing broker
Selling agent/selling broker

of course the agents get more cos they do the work...

each agent usually gets around 3-3.5%..and the broker gets around 2-1.5%

but commisions differ for each broker...
theres usually 2 types...

type 1: agents get a higer % commision but every month they have to pay the broker a Desk fee. (this protects the broker so that if the agents dont sell anything the broker still gets money)

type 2: agents get a lower % commision but nothing is paid to the broker if they dont sell anyting

[Rehan]

in terms of hours....when u start....ur gonna have to work pretty hard....but once ur clientelle starts building up...thingd wil be much more better


suually ppl do residential first...easier..gain some experience..and then later on...start doing some commercial.. and once u have enuf clients....u can become a broker..

What do mean be clientelle/"enough clients"? Real estate buying/selling is basically a one-time transacation, so there's no additional business one you finish the deal...at least not until the next time they're in the market to buy or sell again, and that may be many years down the road.

So wouldn't the size of your marketing audience be more important than the past clientelle?

[gman]

in terms of hours....when u start....ur gonna have to work pretty hard....but once ur clientelle starts building up...thingd wil be much more better


suually ppl do residential first...easier..gain some experience..and then later on...start doing some commercial.. and once u have enuf clients....u can become a broker..

What do mean be clientelle/"enough clients"? Real estate buying/selling is basically a one-time transacation, so there's no additional business one you finish the deal...at least not until the next time they're in the market to buy or sell again, and that may be many years down the road.

Of course, there are. If your customer like your service, they will introduce their relative, friends, etc, to you. Also, real estate agent also deals with rental property.

[Rehan]

Of course, there are. If your customer like your service, they will introduce their relative, friends, etc, to you. Also, real estate agent also deals with rental property.
Well, I would consider the relatives, friends, etc. not to be clients, but rather the audience of word-of-mouth marketing... But if that's what ronny was including, then okay. :)

[rb]

Just to correct some info here, commissions now are around 5% when listing a property wth each agent splitting the fee so 2.5 % each

on a 300k house thats $15k split 2 ways $7.5k each then from there the agent pays his broker a %tage ..a realistic amount would be 90/10 split (agent on 90%)...

of course each month the agent pays for his office and part of the cost of the office admin staff + the agent pays for his own advertising etc. You are usually NOT employed with the broker you're an independant contractor and must take care of your own medical / dental etc etc

one other thing to be wary of....when you notice posters saying max 2.5% commission ..look for the asterix..and the tiny note saying "paid to selling broker"...does say how much the Listing broker charges (ie another 2.5%)....

Just as an aside ..if anyone does want to list there house or buy a house in the GTA i'd be pleased to help and definately will charge RFD's better then 5% (since we all want a deal on this site) :D

[TrevorK]

I know of one real estate agent, REALLY successful who is burned out and switching careers because he wants to see his family more than once a month.

So there is downsides...

[valdez12]

The calculations above dont mention that of the % ANY realtor touches for a transaction, you have to pay some form that back to your office as rent/payments/percentage/user fee, etc.. Ie: you dont get to use the name Remax, Royal Lepage, etc.. for free! And the advertising you will have to do???

Think of the MLS listings fees (minimal), the paperwork, computer, secretary service, etc.. that the typical realtor office make the agents pay. I have always been under the impression that the realtor office charges a form of "Rent" to their realtors, and fees to use things like the photocopier, fax, the cell phones/pager, etc...

Plus think of the car milage you'll be doing (gas $)? Sure you can write it off (as all the other fees above) but you have to EARN money to be able to write off the expenses associated with earning that money.

And then there's the old saying " 20% of realtors earn 80% of the commissions (ie: the workaholic very good ones), and the other 80% earn the other 20% of commissions (ie: the average everyday ones)"

In otherwords, if you are doing it as a career, be the best at it and you can do great, but if you are looking to do it part-time I say you're wasting your time and money...

(my dad was a commercial realtor for 2-3 years 25 years ago, he drove over 100,000 in one year once... that's expensive in gas and car wear and tear..) He learned a great deal and left the field because his property management business was taking off and it was easier for him to do this...

[sleepyguy]

Yeah, I'm currently in the IT (Network Admin) and thinking of going into real estate (agent). Seems pretty cool... you get to run around all day (no more cubicle! :-)). Problem is that your pager/phone is a constant nag (if your successful). Also no-benefits is a definate no-no if your a family man (then again my GF has awesome benefits, soon 2b wife :shock: :? :D ). I really am split right now... I want to be a cop, real estate agent, fireman... geeze the list goes on and on... last thing I thought i'd be was a network admin :-) Then again a career in IT isn't so bad... just not that exciting as fireman/cop :-)

Take care everyone... (back to my cubicle)

[grant]

What do mean be clientelle/"enough clients"?  Real estate buying/selling is basically a one-time transacation, so there's no additional business one you finish the deal...at least not until the next time they're in the market to buy or sell again, and that may be many years down the road.

So wouldn't the size of your marketing audience be more important than the past clientelle?

How many properties do you think people buy & sell in their lives? I'm up to 1/2 dozen, and i'm only 26.

If you do great work for a young couple, they're going to come back to you in 5 years when their 2nd kid is on the way and they need a bigger place.

[grant]

Also no-benefits is a definate no-no if your a family man

There are no "benefits" you can't just buy.

I'd trade in all my benefits for $400/mo in a heartbeat!

[Rehan]

How many properties do you think people buy & sell in their lives?  I'm up to 1/2 dozen, and i'm only 26.
:shock:
I'm 29, bought my first home 3+ years ago and have no plans of moving for at least the next 5-10 years. Different strokes for different folks. :)

But if you're buying and selling that frequently, I can see why you would want to be able to be your own agent...

[123]

If you're both buying and selling with one agent, don't settle for anything more than 4% for the sale of your house. Certainly not 5%... A good agent will easily agree on 3.75% :D

[gman]

If you're both buying and selling with one agent, don't settle for anything less than 4% for the sale of your house. Certainly not 5%... A good agent will easily agree on 3.75% :D

Do you mean more than? :lol:

[123]

Of course.. That was silly of me.

[hotwings]

Yeah, I'm currently in the IT (Network Admin) and thinking of going into real estate (agent).  Seems pretty cool... you get to run around all day (no more cubicle! :-)).  Problem is that your pager/phone is a constant nag (if your successful).  Also no-benefits is a definate no-no if your a family man (then again my GF has awesome benefits, soon 2b wife  :shock:  :?  :D ).  I really am split right now... I want to be a cop, real estate agent, fireman... geeze the list goes on and on... last thing I thought i'd be was a network admin :-)  Then again a career in IT isn't so bad... just not that exciting as fireman/cop :-)

Take care everyone... (back to my cubicle)

lol. i read one survey a few years ago that asked people in the IT field if they were satisfied with their career and if they were given another chance to choose, would they pursue another career. over 70% answered yes.

[Rehan]

my mom and aunt works for remax... and they love it..
Boy, it's a small world... I just ran into a mention of your aunt and mom in someone's (wai-lam's) blog. :lol:

[mealbundy]

Thats why I bought my house from a "sell by owner" sale. You still need to get a lawyer, one way or another. I saved at least $5000. Sorry agents, but there are other ways. What a tough job to be in though. You never know if you're gonna sell a house in a week, month or even a year. A Chinese guy is selling his house around my area, and its been half a year. He is asking $400,000 but nobody is gonna pay even half since a teen kids shelter was built across the street right when he started to sell it. The poor guy will never sell his place. As a pharmacist, I can tell you that people will always need my services since its a live or die situation...hehe. :lol:

[pizzaman]

selling houses for living.... hmmm

teacher: Hey Billy what does your daddy do for living...

Billy: SELL HOUSES WOOHOO

teacher: Billy back to the reject corner

its a lot of money to be made commission-wise of course, but its like selling cars, i would rather be known to be a senior engineer then auto salesman :roll:

of course income is important, but i prefer status before salary

Just my opinion though


My dad is a investor..... buys chain stores, hires people to work min wage then collect money every month, also buys apartment buildings and rents it out..... lot of cash circulating but only mkaing 15% of investment, i mean you buy a store for 300K, yearly sales is 1.5million, but all the stuff are only marked up 15% max, except chocolate bars, gums, candies blah blah. His never been to university, dont have a stable working hour, probably visited every casino on earth haha

[frogger]

of course income is important, but i prefer status before salary

Just my opinion though

Thats pretty funny, I've never heard anyone with that opinion before.

[gman]

its a lot of money to be made commission-wise of course, but its like selling cars, i would rather be known to be a senior engineer then auto salesman :roll:

of course income is important, but i prefer status before salary

Just my opinion though


senior engineer does not have any status. :(

Can you tell who the top engineer of NASA is?

If you want status, earn a lot money so that you will have time to do a lot of community service.

[pizzaman]

its a lot of money to be made commission-wise of course, but its like selling cars, i would rather be known to be a senior engineer then auto salesman :roll:

of course income is important, but i prefer status before salary

Just my opinion though


senior engineer does not have any status. :(

Can you tell who the top engineer of NASA is?

If you want status, earn a lot money so that you will have time to do a lot of community service.

when i said status i meant business card wise haha not status in the community.

[gman]

its a lot of money to be made commission-wise of course, but its like selling cars, i would rather be known to be a senior engineer then auto salesman :roll:

of course income is important, but i prefer status before salary

Just my opinion though


senior engineer does not have any status. :(

Can you tell who the top engineer of NASA is?

If you want status, earn a lot money so that you will have time to do a lot of community service.

when i said status i meant business card wise haha not status in the community.

Senior engineer may not have a business card at all. Most real engineer I know of does not have a business card or he never bother to carry one. Those people who put an engineer title in his business card usually are not engineers anymore (such as a salesman) or have just joined the work force.

[jerryhussain]

An Engineer or a Doctor is a status symbol in the east...maybe you didnt know this.

Coming back to the topic, if remax agents earn such kind of money do they declare it to the govt ? or do they get taxed before they get their commission ?

[gman]

An Engineer or a Doctor is a status symbol in the east...maybe you didnt know this.

I came from the east and the status of engineer and doctor does not have the same status as they used to be. At least, not in the developed area.

The reason ... money.

They had that kind of status because their profession used to earn a lot more money than other kind of profession. However, these days, there are a lot more engineers and doctors available. The worst of two is engineering. My brother graduated in electronic engineering and could not find a job and becomes a salesman. Engineer is a dime a dozen in the past 10 years. All the "engineers" graduated the same time as I was are not doing engineering work. Also, the electronic was made in module. The works that used to require a electronic engineer to do can be done by a high school kid now.

Also, another high status profession was pilot. You know what happened to them.



Coming back to the topic, if remax agents earn such kind of money do they declare it to the govt ? or do they get taxed before they get their commission ?

They are taxed after they get their commission - which is their income. They can deduct the expense from the income before they are taxed. If the agent set up a cooperation, they can do more tax trick.

[grant]

its a lot of money to be made commission-wise of course, but its like selling cars, i would rather be known to be a senior engineer then auto salesman  :roll:  


You're the only person I've heard compare real estate sales with auto sales. It doesn't make sense to me.

Real estate agents need to pass a variety of certifications and join organizations. They have a variety of ethical duties including a fudiciary duty to their clients.

Auto salesmen can, and often are, any yahoo who walks off the street. They are never anyone's "agent".

Real esate sales is a pretty small world. Sooner rather than later you're going to meet the same people over and over. If an agent was ever sneaky or dishonest they'd get pinched back pretty quick.

[kdenis]

Hello. I am currently studying for OREA's Phase Two Exam. The first one was all multiple choice but from what I've heard that the Phase Two exam has only essay questions. Has anyone here taken the Phase Two Exam before?I would apprechiate any information or tips.

[pirate]

what about real estate appraisers, dont they make good money?

making money on estimating how much the real estate is worth

[rb]

Hello. I am currently studying for OREA's Phase Two Exam. The first one was all multiple choice but from what I've heard that the Phase Two exam has only essay questions. Has anyone here taken the Phase Two Exam before?I would apprechiate any information or tips.

Yes its essay style questions, tip is to do all the questions on the coursebook , esp. the mandatory ones

[poedua]

rb, how long have you been an agent? Are you planning to remain in the industry? :)

Yeah, it does seem like a lot of them make quite a bit of money. According to RE/MAX, "RE/MAX agents on average exceed a gross commission of $105,000, with our top 10% earning well in excess of $250,000". (That's from here (http://www.remax-oa.com/AgentToolbox/Succeed.asp). )

Thanks for the link to OREA. Lots of good information there... :)

The better question to my mind, how much do agents make in Year 1,2 3 & 5 of a career...starting from scratch . Or more specific..what is the average number of lisitngs most agents get in the first couple of years1,2 3 & 5 ?

Also, of all the agents in Ontario, or in a region, what % earn over $20,000, $ 60,000 & $100,000 a year - I think you'll find a very small percentage make over 6 figures and those that do..... have been at if for a 15 + years.

I suspect a HUGE majority are NOT making very good money AT ALL ...for example ...how many "normal "listings ( mean priced home for the area ) would you need to have to make $50,000 net of expenses or $100,000 net of expenses a year - not gross $.

[rb]

The better question to my mind, how much do agents make in Year 1,2 3 & 5 of a career...starting from scratch . Or more specific..what is the average number of lisitngs most agents get in the first couple of years1,2 3 & 5 ?

Also, of all the agents in Ontario, or in a region, what % earn over $20,000, $ 60,000 & $100,000 a year - I think you'll find a very small percentage make over 6 figures and those that do..... have been at if for a 15 + years.

I suspect a HUGE majority are NOT making very good money AT ALL ...for example ...how many "normal "listings ( mean priced home for the area ) would you need to have to make $50,000 net of expenses or $100,000 net of expenses a year - not gross $.

I don't think theres an average thats easily obtainable , some agents may tons of cash , some good incomes but a LOT (of new agents ) don't make much at all for the first couple of years , even if there was it may not apply to you.Ask yourself what would you do today if you had a RE licence , how many listings do you think you could get over the year and why would someone you didn't know list with you when they cold go to a more experienced agent.

For the record I am in my 3rd year and did 22 tranasctions last year.

[poedua]

I don't think theres an average thats easily obtainable , some agents may tons of cash , some good incomes but a LOT (of new agents ) don't make much at all for the first couple of years , even if there was it may not apply to you.Ask yourself what would you do today if you had a RE licence , how many listings do you think you could get over the year and why would someone you didn't know list with you when they cold go to a more experienced agent.

For the record I am in my 3rd year and did 22 tranasctions last year.

Well done :)

..I suppose you'd need to get some kind of idea where that amount ( 22 ) stacks up to most others with 3 years experience under their belt - for your area - is 22 above or below average.

But it seems to me, if folks like Remax etc. are handing out awards for top performers each year , it must be pretty easy to find out what everybody else in the town or province is doing based on their tenure compared to you - i,e how many ( % ) making $60,00 or less , $40,000 or less , $ 20,000 or less out of say a sample of 300 agents in your area.

Recall what you did in Years 1 & 2 by any chance - transactions ?

[ronny1980]

The better question to my mind, how much do agents make in Year 1,2 3 & 5 of a career...starting from scratch . Or more specific..what is the average number of lisitngs most agents get in the first couple of years1,2 3 & 5 ?

Also, of all the agents in Ontario, or in a region, what % earn over $20,000, $ 60,000 & $100,000 a year - I think you'll find a very small percentage make over 6 figures and those that do..... have been at if for a 15 + years.

I suspect a HUGE majority are NOT making very good money AT ALL ...for example ...how many "normal "listings ( mean priced home for the area ) would you need to have to make $50,000 net of expenses or $100,000 net of expenses a year - not gross $.

Good point however for this reason agents that have recently acquired their licenses usually join an established homeselling team lead by an Agent with experience and large clientelle. The lead agents passes on her clients to her team and she takes a cut. Once you have established your own clientelle you can then go solo.

[rb]

Year 1 - 2 transactions (started mid way thru the year ..so I missed the Spring Market)

Year 2 - 10 transactions

I don't know if 22 is above aveage, since I don't know which agents are in their 3rd year

and I also don't really follow the awards too much, I concentrate on what I am doing not relly what others do (honestly)

[rb]

Good point however for this reason agents that have recently acquired their licenses usually join an established homeselling team lead by an Agent with experience and large clientelle. The lead agents passes on her clients to her team and she takes a cut. Once you have established your own clientelle you can then go solo.


Absolutely and thats what I am doing except Our team is just the 2 of us and we make joint decisions on marketing and such like

[Audiogenic]

When the market is good, many newbies jump on the bandwagon for the ride...when the market is bad, it usually the good ones can only stay the course.

This is one of the few remaining professions where a completely uneducated individual can be very successful if they have the ability to connect with prospects.

Yes, the hours are usually bad (3pm to 8pm sometimes later with counter offers) with alot of driving around and it can often get farily discusting walking into filthy, unhygenic homes from time to time but every job has their good and bad.

Often times, many ethincs choose to list their home with similar people to them due to langauge barriers so there are opportinuties there as well.

Because the industry still remains fairly easy to get into (although that is slowly changing), the career choice is not looked upon highly as other professional occupations are.

[z3r0]

bumping an interesting thread. Post if you know anything about real estate agents please.

[nerdonsite]

yes, a very interesting thread indeed.

I have my phase 2 exam comming up in may, hopefully it won't be too tough.

[moto620]

Very good topic, I think the success of a RE agent also depends on your age. I doubt a 22 yr old kid will make a lot of sales. Would you buy a house from a kid? I think people would rather trust someone with more experience and looks a bit olde (30+).

[Jabb]

My dad's a real estate agent....

Income is really good. My dad usually charges 2.5% and its a 70/30 split with him and the office he works for (Re/max Crossroads).You need to have amazing interpersonal skills. Time is a key factor in being a real estate agent. you can set your own hours but the amount of money you make is proportional to the amount of time you spend. Also, your clientelle base is important. Treating a customer right can earn you a referral. To become a real estate agent, you need your high school diploma and your real estate license, which can be obtained through a series of courses and tests. not sure how many though. to keep your license, you have to take courses every couple of years.

Real estate can be a demanding job, consuming a lot of your time and energy.

btw, my dad just got a lifetime achievment award from re/max :D hes been in the industry for 21 years.

[faizalm]

nice set of infos about Realtors...
having been laid off by my IT contract job today...
reading this thread, makes me thirty for money ;)

[z3r0]

:arrowu:

[z3r0]

:arrowu:

[enigmatik]

great thread. let's revive it.

[waq007]

love real estate myself. sold my own house in 2 weeks for 97% of the asking price (FSBO). ever since i find i do more than real estate agent does themselves. only thing, is that have more resources than i can pull :evil: anywho, thinkn of taking the orea courses myself from next winter. anyone wants to join me? btw, is anyone on rfd a commercial real estate agent?

[enigmatik]

i'm in the sales field currently and i am planning to take phase 1 in December. depite what some posters have noted, real estate for me will begin as a part time gig for me ... too lucrative and exiting a field not be a part of in some form or another.

[ronny1980]

Just a quick note for those looking to become a RE Agent, make sure you have some money saved up because you can be months away before you see your first dollar.

[SALTY3142]

I currently work at a real estate office, I did a co-op through my school a year ago, then got hired on as an agent's assistant, now going for my license. To the person who was making the comments about age....it's actually quite the opposite in today's market....the people who are buying properties are younger now(22-28) they are just starting families and want to move in together etc. so they are looking for someone their age they can relate to, As long as you are confident and know what you are talking about...age won't be an issue. I'm planning on taking some language courses though, as someone else mentioned language barriers do become an issue. I find right now that the polish and asian are buyyyyying!! So going to learn some mandarin and polish!:D

[enigmatik]

Just a quick note for those looking to become a RE Agent, make sure you have some money saved up because you can be months away before you see your first dollar.

your comment is nothing that people who've done research in the field don't already know. risk is everywhere.

[evildan]

Good thread.

I'm currently working as a consultant in the engineering sector, in which my work deals with a lot of residential property work. As a self employed individual, i am always looking forward to earn some $$$ on the side. Can anyone let me know if being a part time real estate agent while having a full time consulting job is realistic? As implied, i don't plan on providing the needs for my family just by selling house, but just earn a little money on the side.

[z3r0]

Just wanted to bump an interesting thread...

[kocoman]

Why is some business cards have "brokerage" and another "salesperson" under their picture?

[olliedog26]

I currently work at a real estate office, I did a co-op through my school a year ago, then got hired on as an agent's assistant, now going for my license. To the person who was making the comments about age....it's actually quite the opposite in today's market....the people who are buying properties are younger now(22-28) they are just starting families and want to move in together etc. so they are looking for someone their age they can relate to, As long as you are confident and know what you are talking about...age won't be an issue. I'm planning on taking some language courses though, as someone else mentioned language barriers do become an issue. I find right now that the polish and asian are buyyyyying!! So going to learn some mandarin and polish!:D

If I may ask, What school did you attend, and what's the program for the co-op? (college I assume) ?

[rb]

Why is some business cards have "brokerage" and another "I forgot" under their picture?

New Rules have come into effect all advertising must have the word brokerage (intead of broker) to indicate the firm you are working for ...in my mind a complete waste of resources, millions of business cards have to be discarded and new ones had to be ordered so the general public "know" what the brokerage really is

[dvdsung]

I have been interested in Real Estate for a while now. It seems like everyone in IT is trying to get out including myself lol.

Anyways, I think it would be some what difficult for someone young (early 20's) to get in to a career like this and become successful. Not a lot of people trust a young kid selling them a home worth hundreds of thousands of dollars.
This is the only drawback that I have encountered and is the only reason that is holding me back at this point.

Does anyone else have a similar point of view? For the individuals involved in RE, do you see a pattern of failure for agents trying to sell at a young age?

[bubble.tea]

don't forget you'll need A SERIOUS Retention Cellphone plan...or at least a CityFido or CountryFido if you want to ASTOUNDINGLY minimize your overages (monthly operational costs).

[sixer]

Forget about a family.

You work all evenings and weekends showing listings, meeting clients, etc.

Not worth it, life is too short.

If your spouse works evenings and weekends and you can't have kids or choose not too, then this is a career you should consider, lol.

[SALTY3142]

I have been interested in Real Estate for a while now. It seems like everyone in IT is trying to get out including myself lol.

Anyways, I think it would be some what difficult for someone young (early 20's) to get in to a career like this and become successful. Not a lot of people trust a young kid selling them a home worth hundreds of thousands of dollars.
This is the only drawback that I have encountered and is the only reason that is holding me back at this point.

Does anyone else have a similar point of view? For the individuals involved in RE, do you see a pattern of failure for agents trying to sell at a young age?

It's actually the opposite...I've talked to my broker numerous times about this and we had a long sit down...the market for young couples and new families is booming right now and they want someone they can relate to (closer to their age) to understand their wants and needs...If you're professional, you'll do fine

[alysomji]

Forget about a family.

You work all evenings and weekends showing listings, meeting clients, etc.

Not worth it, life is too short.

If your spouse works evenings and weekends and you can't have kids or choose not too, then this is a career you should consider, lol.

It all depends on how much time you need to spend to earn a satisfactory living through real estate, but for many people your post would be correct.

[runningguy]

Out here in BC real estate agents have the same status as scummy lawyers. They charge too much commission, a lot are unethical, will lie to sell your house by telling you the seller one thing and the buyer another. They should be regulated so that the most commision that can be had on any house is 5 grand and then you would see all the unethical ones leave the industry. The people that agree to give their real estate agents 15 to 20 grand for a couple days work (when your house sells fast) need their head examined.

[kingfencer]

yeah, building your client is important. my family always contacts this guy for some reasson... and he has houses in the location for sale;. its not like he's anything special.

[crazydaisy]

Out here in BC real estate agents have the same status as scummy lawyers. They charge too much commission, a lot are unethical, will lie to sell your house by telling you the seller one thing and the buyer another. They should be regulated so that the most commision that can be had on any house is 5 grand and then you would see all the unethical ones leave the industry. The people that agree to give their real estate agents 15 to 20 grand for a couple days work (when your house sells fast) need their head examined.

It takes skill and knowledge for a listing agent to be able to sell a house quickly (within a couple of days in your example). They must have researched very well to strategically price and market your home to sell that fast. I think for that reason, they should be given enough credit.

I have seen in MLS.ca lots of houses in our area that have been on the market for a long period of time. RE agents of these houses do not reap any rewards, despite the work they already did, until the houses sell. It's not easy money all the time. It requires a lot of patience, strategic thinking and marketing skills. If the contract expires and the houses do not sell, no commissions are earned.

[crazydaisy]

i'm in the sales field currently and i am planning to take phase 1 in December. depite what some posters have noted, real estate for me will begin as a part time gig for me ... too lucrative and exiting a field not be a part of in some form or another.

Is there anyone in this forum who has started part-time? I am also very much interested to become an agent/broker but still not ready to leave my stable 9 to 5 job. Will there be success for part-timers in this highly competitive field?

Will it be difficult to find a brokerage that will employ part-timers? Based on my understanding, notwithstanding your successful completion of the 3 pre-registrations requirements, you need to be affiliated with a broker-firm before RECO will give you your provisional RE licence.

[michelb]

For anyone interested, my wife has been working in real estate part-time for the past few years in the Ottawa area. It varies a lot but on average, I think she might work 5-10 hours/week (maybe more considering time she spends on the computer looking for properties and emailing clients) and I think she might make about $30k/year net (also varies a lot).

She started when she was in her late 20s and while she was one of the younger agents where she worked, being younger wasn't a huge issue - some buyers/sellers are looking for younger agents, some are looking for older.

For anyone doing this on the side, the hours are a bit all over the place so it's probably hard unless you have a job that's very flexible (she's mostly a stay-at-home mom). A lot of her showings are during the weekends (and sometimes in the evenings) but a lot of it is also during 'regular' work hours. As mentioned by someone else, work can go quite late in the day (it's not uncommon for her to work until midnight or later when she's doing offers). Also when she's doing home inspections, that's usually always during the weekdays.

If you get into it, as someone else mentioned, it's not uncommon to not get paid for the first 6 months to 1 year (even if you are successful/lucky and you manage to get clients that buy right away, you don't get paid until a few weeks after the sale closes which is often 3-4 months after they buy).

Also there are some ongoing costs, I think she probably has about $10k/year in expenses not including the car (monthly fees to broker (firm advertising, etc), union fees, cell phone/pager, etc) and any advertising she does.

As far as the actual pay, when she finds a house for a buyer, her commission is usually 2.5% (0.5% goes to the her brokerage so she keeps 2%) and when she sells/lists, it varies on the seller/house/etc but usually 2-3% (and again 0.5% goes to the broker).

As pointed out, there are quite a few agents that make a lot of money but on the other hand, there are also a lot that make next to nothing and abandon it. In Ottawa, I think I saw that last year, if you calculated the commission paid on all the houses sold in the area and divided it by the number of agents, it come out to $60-70k per agent about however, keep in mind that there are quite a few agents that make a $500k+ and for each of them, there are 9 others making $10k.

As also mentioned, a lot of real estate work is on referral so starting part-time might actually be a bit harder. It's easier to go part-time once you are a bit established since you keep getting slow but steady business - at first you are starting with nothing and have to work hard to get anything.

Hope this helps,
Mike

[FattyFace]

It takes skill and knowledge for a listing agent to be able to sell a house quickly (within a couple of days in your example). They must have researched very well to strategically price and market your home to sell that fast. I think for that reason, they should be given enough credit.

I have seen in MLS.ca lots of houses in our area that have been on the market for a long period of time. RE agents of these houses do not reap any rewards, despite the work they already did, until the houses sell. It's not easy money all the time. It requires a lot of patience, strategic thinking and marketing skills. If the contract expires and the houses do not sell, no commissions are earned.

I'd go as far as suggesting that a home that sells very quickly means that the price was too low, or (less likely) the seller was very desperate to sell.

"Reject the first offer, reject the first offer, reject the first offer..."

[xopt1js]

Amazing thread. I, like many, have been thinking of dipping into the real estate market as a side to my full time IT career.

Please keep the info coming, especially those who are part timers or just starting out.

[michelb]

The other thing that I forgot to mention for people looking at doing it part time is that you need to be quite flexible 'at short notice'. Most often when my wife does showings, it's at 1-2 days notice (i.e. she'll get a call asking to go visit these X places tomorrow) so if you have another full time position, you need to be able to tell your boss "l'll be away from noon to 3pm tomorrow" and obviously you need to be able to take personal calls/emails all day long.

For those in Ontario, the other thing to keep in mind is that while you can take some of the classes online or by correspondence, you kind of want to take the Phase2 and Phase3 in class because the instructors focus on the exam material and it makes passing the exam much easier (according to my wife, Phase1 is a joke and you can probably just use common sense to pass the exam but the other 2 are quite a bit harder and there's a lot more material so it helps a lot if you know what to focus on (I think she did Phase1 and Phase2 online, and Phase3 in class and thought the Phase3 exam was much easier to pass because of it)). I believe the courses run for 1 or 2 weeks each and are offered during the day so you'll need to take time off work for that (actually if you are in Toronto, it looks like they may have evening courses there as well)

[jerrytoyer]

whats the fast way to become an agent

[branat]

I know the RE bubble is going to burst when I saw a RE company car advertised RE agents training classes. If the market is so good, why would it wants to train agents?

[nepean19]

the more agents working for the company the more potential commissions.

[nepean19]

"whats the fast way to become an agent"


You have to do it through Orea College in Ontario. I managed to do it in 3 months, however it can take way longer than that. When you pass each phase you have to wait up to 2 weeks for marks and then if you pass(75%) you can appy to the next phase. There can be a considerable wait for the 3rd phase as classes fill up quickly.

It's not easy, however it can be very rewarding. I'm having a blast.

[jdmkidd]

Cost of orea?

[rb]

Cost of orea?

Doing your first 3 courses is approx $1400

[rb]

FYI I am now a broker manager for a Company - if anyone needs further info about a real estate career post in the thread or PM me

[Menace]

IT field is similar to the Real Estate field. Everyone wanted to get into the IT field in the last 5 years. The end result is a there have been a lot of IT people lost their job.


nice set of infos about Realtors...
having been laid off by my IT contract job today...
reading this thread, makes me thirty for money ;)

[Menace]

Yes, they have do that in the middle of the beautiful summer season. That is the prime time to sell and buy houses.

There is a thing I found with the some real estate agents, if you want to sell your house (instead of buying), they seem to treat you better. As a buyer, you tell the agent that you want to look for more houses, he/she can start losing patience with you. WTH?



Forget about a family.

You work all evenings and weekends showing listings, meeting clients, etc.

[michelb]

...

There is a thing I found with the some real estate agents, if you want to sell your house (instead of buying), they seem to treat you better. As a buyer, you tell the agent that you want to look for more houses, he/she can start losing patience with you. WTH?

Unfortunately, that's not completely uncommon with agents.

The bottom line is that listings is where the money is at (once you have the actual listing you don't really do that much work with them to make your money). With showings, there's a lot more time / money (gas, etc) involved with each showing - if an agent spends 3-4 months showing you homes once a week, that's a lot of time they could have spent with other clients or not working (one of my friends went to see 100s of homes over a 3 year span - at the end of the it, the agent might have gotten $2k in commission but she probably spent 100s of hours plus gas to get it - in the end, she probably only made about the equivalent of minimum wage (actually, thinking back, I'm pretty sure that he didn't even buy with that agent)). I know that some agents will dump clients if they can't find anything within a few months (sometimes it's premature and unfair to the client but other times the client just doesn't really know what they want and / or isn't ready to buy a house so will find problems with any property and / or just isn't realistic about their price expectations).

[anom]

I'm thinking of getting my license so i can do my own viewings, & write my own offers.

is it worth it to get the license for this purpose?

[rb]

is it worth it to get the license for this purpose?

It might be if you are going to sell your own home


but this is waht to budget for - and this if for Toronto

you need approx 1400 for the first 3 courses + 1 week off work to do phase 3 at a minimum

then you need to get registered with RECO/ e&O insurance , membership of board s etc - initial cost depends on time of year as some are pro rated but budget $2000 ....so you got $3500 to start - u may have some brokerage fees and your broker "may" or may not allow you to do you won deal for just an admin fee however you would still need to pay a co-operating broker


if you are buying as well then of course the savings add up

[canabiz]

FYI I am now a broker manager for a Company - if anyone needs further info about a real estate career post in the thread or PM me

rb I work 9-5 but do have time in the evenings and weekends. What's the chance for me to get a part-time gig working in the industry ? If it means showing clients the houses first then slowly getting listings later, then that's fine with me. I certainly have no problem forking out some dough to get the license from OREA but would like some feedback from people who work in the industry right now

[nvuslife]

Any existing or new agents looking to jump start their real estate careers pm me. I'm not the broker, but our company is looking for more agents.

The beauty of the company I work for is that all leads are provided. So if you are having trouble finding clients, you do not have to worry.

[rb]

rb I work 9-5 but do have time in the evenings and weekends. What's the chance for me to get a part-time gig working in the industry ? If it means showing clients the houses first then slowly getting listings later, then that's fine with me. I certainly have no problem forking out some dough to get the license from OREA but would like some feedback from people who work in the industry right now

well you should be able to find a broker that will take you - we have some people here who are part time they generate 6-9 sales a year which for them is nice pocket money. Its of course harder on your personal life but the choice is yours - FYI I started part time

[michelb]

rb I work 9-5 but do have time in the evenings and weekends. What's the chance for me to get a part-time gig working in the industry ? If it means showing clients the houses first then slowly getting listings later, then that's fine with me. I certainly have no problem forking out some dough to get the license from OREA but would like some feedback from people who work in the industry right now


well you should be able to find a broker that will take you - we have some people here who are part time they generate 6-9 sales a year which for them is nice pocket money. Its of course harder on your personal life but the choice is yours - FYI I started part time

You *can* do it part time but I don't think it will work very well if you are already commited 9-5 and can't do any significant RE work during the day. While some of the showings are evening and weekends, many clients do want to see properties during the day (particularly if you are in a market where homes can sell fast and clients may want to see new listings on a few hours notice). If you have listings, you need to be accessible during the day. Many offices aren't open that late in the evening so you often need to make your appointments during the day. Even if you are doing showings outside 9-5, clients will probably often contact you (email or phone) and expect you to respond. The other problem is that when you are negotiating deals, it's not uncommon for you to have to work until midnight or later - is that a problem for you if you have to work the next day?

The other problem is the actual expenses. I'd have to double check but I think my wife probably averages a good $700-800+/month after everything - that's a lot of money to put in something if you are only doing it a few hours / week.

I'm sure you'll be able to find a broker (honestly they don't care - obviously they prefer if you sell tons but it doesn't matter to them if you aren't, they'll still get a commission from what you do and I think it most (all?) cases you'll be paying office / support staff / advertising / etc fees so they still have a benefit to have you around (plus I think it kind of 'looks' better for them to have a large staff (even if you don't actually do anything)).

[canabiz]

You *can* do it part time but I don't think it will work very well if you are already commited 9-5 and can't do any significant RE work during the day. While some of the showings are evening and weekends, many clients do want to see properties during the day (particularly if you are in a market where homes can sell fast and clients may want to see new listings on a few hours notice). If you have listings, you need to be accessible during the day. Many offices aren't open that late in the evening so you often need to make your appointments during the day. Even if you are doing showings outside 9-5, clients will probably often contact you (email or phone) and expect you to respond. The other problem is that when you are negotiating deals, it's not uncommon for you to have to work until midnight or later - is that a problem for you if you have to work the next day?

The other problem is the actual expenses. I'd have to double check but I think my wife probably averages a good $700-800+/month after everything - that's a lot of money to put in something if you are only doing it a few hours / week.

I'm sure you'll be able to find a broker (honestly they don't care - obviously they prefer if you sell tons but it doesn't matter to them if you aren't, they'll still get a commission from what you do and I think it most (all?) cases you'll be paying office / support staff / advertising / etc fees so they still have a benefit to have you around (plus I think it kind of 'looks' better for them to have a large staff (even if you don't actually do anything)).

michelb, can you elaborate on the expenses if you don't mind ? Obviously, the first thing that comes to mind is the gas and the business-related expenses like business cards and websites and whatnot

Can you claim these expenses on your income tax the next year for deductibles ?

I would like to hear some more feedback from the folks who are doing this on a part-time basis, like how do you juggle the appointments with your regular full-time job during the day (I know michelb's wife works from home so that's a big plus). I can take phone calls and emails during working hours but to actually step out of the office and drive around town showing houses to clients during the days is not feasible at the moment for me.

How long did you guys do this part-time before you switch to full-time (does it mean you quit/got laid off from your original job ? Does anyone do this part-time and end up quitting the gig after a while due to time and resources constraints ?

Do clients take you less seriously if they know you only do this on a part-time basis ? I guess we don't need to volunteer that kind of info but if they ask, i would feel bad lying ;-)

[michelb]

michelb, can you elaborate on the expenses if you don't mind ? Obviously, the first thing that comes to mind is the gas and the business-related expenses like business cards and websites and whatnot

Can you claim these expenses on your income tax the next year for deductibles ?

I would like to hear some more feedback from the folks who are doing this on a part-time basis, like how do you juggle the appointments with your regular full-time job during the day (I know michelb's wife works from home so that's a big plus). I can take phone calls and emails during working hours but to actually step out of the office and drive around town showing houses to clients during the days is not feasible at the moment for me.

How long did you guys do this part-time before you switch to full-time (does it mean you quit/got laid off from your original job ? Does anyone do this part-time and end up quitting the gig after a while due to time and resources constraints ?

Do clients take you less seriously if they know you only do this on a part-time basis ? I guess we don't need to volunteer that kind of info but if they ask, i would feel bad lying ;-)

As far as expenses, I didn't get a chance to check our tax returns but I checked with my wife and she thinks it's more like $500 and up/month (i.e. if you aren't very busy, you can get by with $500/month).

Here's an approx. list:

Fixed costs:
$110 - membership dues
$20 - license and insurance
$250 - office (brokerage) fees (pays support staff, brokerage advertising, etc)
$80 - cell phone (varies by agent depending on usage and type (e.g. blackberry) (I think she avgs about 800-1000 min/month, a lot of it weekday)
$5 ??? - pager

Variable costs:
$100 - advertising (this can vary tons depending on how busy your are / want to be)
$40 - office supplies (paper, toner, binding feature sheets, etc) (also varies a lot)
$100 - client gifts / resto / etc (can vary tons)

+ car expenses (this will vary greatly depending on your car, mileage, etc). I think on her taxes she averages about $300-400/month including gas, repairs and CCA on the car.

You also have other costs such as the pc, fax, home office costs, software, etc. but that depends where you work (my wife works strictly from home)


As far as doing it part-time, she says that as long as you can spend 30 min - 1 hour / day on the phone (not necessarily all that often but as required), you should be fine but she doesn't think someone would be able to do it if they were not available at all 9-5. You don't necessarily need to show properties to clients during that time (you can usually discuss that when you meet the clients and simply tell them that you are not available for showings during weekdays).

As far as how long before you can do this part-time before switching full-time it's really hard to say; a fair amount of top agents make 6 even 7 figure. I think quite a few make 40-70k/year. I think tons make less and eventually quit. It's particularly hard on newcomers since a lot of business is word of mouth referals and prior clients. I think it's not uncommon for new agents not to get their first sale until 6-9 months and consider that you only get paid a few weeks after closing (which is often a few months after the actual sale) so it's not uncommon for new agents not to make anything in the first year or maybe $10k-20k after expenses.

Not to discourage you from doing it because I do think that there is a lot of opportunity but it's also not that easy to jump in if you don't have some financial backup. One thing I would strongly recommend unless you are lucky and know a lot of clients right off the start is rather than starting on your own, become someone's licensed assistant. You won't make as much (basically you'll be paying a referal fee for the clients they don't want) but you should be much busier that way and more importantly you have someone to learn from and ask questions.

Hope this helps.

[alanbrenton]

As far as expenses, I didn't get a chance to check our tax returns but I checked with my wife and she thinks it's more like $500 and up/month (i.e. if you aren't very busy, you can get by with $500/month).

Here's an approx. list:

Fixed costs:
$110 - membership dues
$20 - license and insurance
$250 - office (brokerage) fees (pays support staff, brokerage advertising, etc)
$80 - cell phone (varies by agent depending on usage and type (e.g. blackberry) (I think she avgs about 800-1000 min/month, a lot of it weekday)
$5 ??? - pager

Variable costs:
$100 - advertising (this can vary tons depending on how busy your are / want to be)
$40 - office supplies (paper, toner, binding feature sheets, etc) (also varies a lot)
$100 - client gifts / resto / etc (can vary tons)

+ car expenses (this will vary greatly depending on your car, mileage, etc). I think on her taxes she averages about $300-400/month including gas, repairs and CCA on the car.

You also have other costs such as the pc, fax, home office costs, software, etc. but that depends where you work (my wife works strictly from home)



Very informative thread!

For part-time realtors, are they able to deduct most of these expenses on the Statement of Business Activities T2124 Form and use them to offset taxes from employment income?

Which among these expenses can only be used to offset income from real estate commissions?

[michelb]

Very informative thread!

For part-time realtors, are they able to deduct most of these expenses on the Statement of Business Activities T2124 Form and use them to offset taxes from employment income?

Which among these expenses can only be used to offset income from real estate commissions?

Basically any expense occured to generate/operate business is acceptable but you need to have a reasonable expectation of profit. Being part-time shouldn't be a problem and I believe you can even offset income from 'regular' job if real estate is done at a loss (although if you do this year after year, they'll probably eventually refuse it). Things like home office might be harder to write off (I think the home office must be for business use only - if you are only part-time they might not allow it) and allowed car expenses obviously would be a percentage of car expenses but as long as you keep good mileage records, this shouldn't be a problem. Other fees listed above, shouldn't be a problem even if only part-time. That being said, you should probably confirm with an accountant.

[YnD]

http://youtube.com/watch?v=TROhlThs9qY

[flamingo]

Good evening, bumping up an older thread

I would like to become a real estate agent's assistant first i.e. showing houses to clients after work and be at open houses to show visitors and answer any of their questions on the weekends. I already have a full-time job during the days but I am available in the evenings and weekends

Just wondering if i need a real estate license to do this and what would my cut be ? or does it depend on the real estate agent ?

[rb]

Good evening, bumping up an older thread

I would like to become a real estate agent's assistant first i.e. showing houses to clients after work and be at open houses to show visitors and answer any of their questions on the weekends. I already have a full-time job during the days but I am available in the evenings and weekends

Just wondering if i need a real estate license to do this and what would my cut be ? or does it depend on the real estate agent ?

no you need to be licensed if its Ontario to do the type of work you are describing

[rchun044]

It might be if you are going to sell your own home


but this is waht to budget for - and this if for Toronto

you need approx 1400 for the first 3 courses + 1 week off work to do phase 3 at a minimum

then you need to get registered with RECO/ e&O insurance , membership of board s etc - initial cost depends on time of year as some are pro rated but budget $2000 ....so you got $3500 to start - u may have some brokerage fees and your broker "may" or may not allow you to do you won deal for just an admin fee however you would still need to pay a co-operating broker


if you are buying as well then of course the savings add up

Not worth it at all. You have to do 3 more articling courses, that total about $1500, so add that to the $3500.

Also, you have to sign up with a brokerage to trade as a licensed agent

And on top of that, its not like when you take the courses, you know everything about real estate. It comes with experience.

I would highly discourage anybody getting into real estate for this reason or even part time, its just way too hard, if you do real estate, go full time!!!!!

[alanbrenton]

Not worth it at all. You have to do 3 more articling courses, that total about $1500, so add that to the $3500.

Also, you have to sign up with a brokerage to trade as a licensed agent

And on top of that, its not like when you take the courses, you know everything about real estate. It comes with experience.

I would highly discourage anybody getting into real estate for this reason or even part time, its just way too hard, if you do real estate, go full time!!!!!

Is the only way to trade as a licensed agent by going through a broker? Wasn't fixed costs to be incurred by an agent somewhere around $300-400/month?

What are the requirements to set up one's own brokerage (franchise and start-up) and what kind of costs would be associated with it? Can one who just completed everything set up his own brokerage? What are the advantages of name brand brokerages like Remax and Century 21 when most properties will be listed on the MLS anyway?

Also, would e-learning or correspondence be the better way to take the courses at OREA? I don't have time for classroom studies unless I am required to do so.

At what stage does one get to sell real estate and make commissions? Is it after the articling stage or right after passing phase 3?

Thanks. I know, I have too many questions. LOL

[rchun044]

Is the only way to trade as a licensed agent by going through a broker? Wasn't fixed costs to be incurred by an agent somewhere around $300-400/month?

What are the requirements to set up one's own brokerage (franchise and start-up) and what kind of costs would be associated with it? Can one who just completed everything set up his own brokerage? What are the advantages of name brand brokerages like Remax and Century 21 when most properties will be listed on the MLS anyway?

Also, would e-learning or correspondence be the better way to take the courses at OREA? I don't have time for classroom studies unless I am required to do so.

At what stage does one get to sell real estate and make commissions? Is it after the articling stage or right after passing phase 3?

Thanks. I know, I have too many questions. LOL

Yes. You must be bart of a real estate company to trade. You cannot start trading as Joe Smith with no company. I 'm not sure what costs you're talking about, but depending on which brokerage you choose your costs vary.

To set up your own brokerage, you need to get a brokers license, which you can only get after 2 years of completing your articling courses. Of course, you can be an owner and hire someone with a broker license to run your company.

Name brands don't matter, its the individual brokerage. There are good and bad C21 and R/M out there, but you have to met with atleast 304 broker/owners and get a feel before you decide who to join.

Correspondence or classroom depends on yor preference, but you have to do 40 hours of classroom for phase 3.

You can start trading as soon as you pass phase 3 and are signed under a brokerage and approved through RECO. You have 2 years after you pass phase 3 to complete the 3 articling courses. But once you pass phase 3 you can trade in commercial, residential, it doesn't matter.

But you have to treat being a realtor like your own business, most likely you will not make money in the first few years but once you build your clientele you your business will grow (as long as you are good).

[alanbrenton]

Thanks for your response RChun!

Would there be a possibility of completing the articling courses in less than two years? Besides the three additional courses, what else would comprise the articling phase?

Why do some successful agents not even consider opening a brokerage?

What do you think would be the minimum cost to run a very lean brokerage operations? Can it be ran out of one's residence?

[rchun044]

Thanks for your response RChun!

Would there be a possibility of completing the articling courses in less than two years? Besides the three additional courses, what else would comprise the articling phase?

Why do some successful agents not even consider opening a brokerage?

What do you think would be the minimum cost to run a very lean brokerage operations? Can it be ran out of one's residence?

After phase 3, you can choose between mortgage, property management, law, phase 3 commercial, and some other one, but you can definitely finish it before 2 years, but after finishing phase 3 residential, you need to get out there and start selling.

MAny agents just love selling and probably make more selling than they can opening a brokerage, these days, there are so many brokerage its very hard, many are going bankrupt.

Gone are the days when commission splits were 50/50 or 60/40. Now a days, agents are getting 85/15 and if you are proven, you can command splits like 95/5... brokerages like top producers because they attract other agents, hence why they get such a good split... some discount brokerages even offer flat rates like $200 per transaction...

Its a tough business.... but if you have the confidence and dedication and the resilience to handle the lows of real estate, then you can make it

[rchun044]

i dunno if you can run out of your residence.... I think we may see brokerages become virtual in the near future, I can see someone trying that.... also gone are the days where all agents have offices, now most agents work from home....its the new school concept

[pennywize]

Reviving an old, but good thread.

Just finished my phase 1 in OREA. For the people who's taken phase 2, would you recommend taking it through correspondence or inclass?

I'm also working a full time job so it'll be hard for me to take 2 weeks off just to goto class, but i saw on their schedule that they do have night/weekend classes.

Is phase 2 a lot harder than phase 1?

[sprung]

for some reason this realtor's ad always makes me laugh and feel creepy all at once.

http://www.jaxstuff.com/badvertising/LambII.jpg

[rb]

Reviving an old, but good thread.

Just finished my phase 1 in OREA. For the people who's taken phase 2, would you recommend taking it through correspondence or inclass?

I'm also working a full time job so it'll be hard for me to take 2 weeks off just to goto class, but i saw on their schedule that they do have night/weekend classes.

Is phase 2 a lot harder than phase 1?

Yes ..ph 1 is multi choice , phase 2 is text answers ....you can do it correspondence ( I did ) but you need to understand all the concepts not just know them

[alanbrenton]

Are there sites or links to practice math questions for Phase 1? Any tips as to what areas to focus on for the Phase 1 examination?

[arnab]

again reviving an old thread but I have the same question as the previous poster. Are there any sites for practice exams etc?

[rb]

again reviving an old thread but I have the same question as the previous poster. Are there any sites for practice exams etc?

none that I know of

[S16]

can a part time real estate agent write off things like cars, meals.. etc..

[rb]

can a part time real estate agent write off things like cars, meals.. etc..

Yes

[S16]

wats the cost for completing on necessary examinations?

[rb]

wats the cost for completing on necessary examinations?

go to www.orea.com and see becoming an agent tab - tells you courses and current fee's

[eternitybc]

How are real estate agents int he Vancovuer area findig the market? I udmerstand it's cooled quite a bt int he last couple years, but the oens I've talekd to are still getting some sales( just not super crazy ones!).

I'm lookign at working part time for the first few months, to ensure I have enough cash to pay the mortgage. I DO have a job I can take time off quickly (ie, I'm elaving early today- Bye!). So hopefully that's adequate.

Thoughts?

[ac328]

Yes

Uh, if you mean for income tax purposes there are a whole bunch of restrictions that may apply. Not as simple as deducting your car payment and apartment rent from your 9-5 day job income just because you do a couple grand of business a year "on the side".

Might want to re-think giving blanket BS advice, even if it is on a free internet forum.

And yes I do tax for a living.

[rb]

Uh, if you mean for income tax purposes there are a whole bunch of restrictions that may apply. Not as simple as deducting your car payment and apartment rent from your 9-5 day job income just because you do a couple grand of business a year "on the side".

Might want to re-think giving blanket BS advice, even if it is on a free internet forum.

And yes I do tax for a living.

Yes Mr Accountant - what was the question - can he make deductions and the answer is YES...

Theres restrictions on everything you cannot claim 100%, I don't assume he's stupid enough to assume that even if you are - he's not asking that - he's asking can he make deductions

[S16]

Yes Mr Accountant - what was the question - can he make deductions and the answer is YES...

Theres restrictions on everything you cannot claim 100%, I don't assume he's stupid enough to assume that even if you are - he's not asking that - he's asking can he make deductions

haha. I am sure there are restrictions when making deductions as a part time agent....

mr. accountant, are you able to enlighten me on some of these restrictions?

http://www.allbusiness.com/personal-finance/individual-taxes/829552-1.html

[ac328]

Yes Mr Accountant - what was the question - can he make deductions and the answer is YES...

Theres restrictions on everything you cannot claim 100%, I don't assume he's stupid enough to assume that even if you are - he's not asking that - he's asking can he make deductions

No the answer is "potentially". Obviously you don't do professional advice for a living.

Based on your answer you make it sound like everything is a eligible for a write-off. Why woud you "assume" S16 knows about anything related to tax? If he/she knew a lot about tax he wouldn't be asking about it on RFD, would he/she?

The Income Tax Act is 2000+ pages long...you think your "yes" answer is remotely responsible?

If S16 wants specific advice on tax that's fine, but your one word answer is an excellent example of the old saying "you get what you pay for". S16, if/when you start your business and you have actual income and expenses, get professional advice. Don't ask about something so complex on the internet! This isn't pricematching a TV at Future Shop we're dealing with here.

[rb]

No the answer is "potentially". Obviously you don't do professional advice for a living.

Based on your answer you make it sound like everything is a eligible for a write-off. Why woud you "assume" S16 knows about anything related to tax? If he/she knew a lot about tax he wouldn't be asking about it on RFD, would he/she?

The Income Tax Act is 2000+ pages long...you think your "yes" answer is remotely responsible?

If S16 wants specific advice on tax that's fine, but your one word answer is an excellent example of the old saying "you get what you pay for". S16, if/when you start your business and you have actual income and expenses, get professional advice. Don't ask about something so complex on the internet! This isn't pricematching a TV at Future Shop we're dealing with here.


Depends on how you chose to interpret a question and an answer doesn't it.?.....I give the benefit of doubt to most people that they have more then 2 brain cells. as a PART TIME or FULL TIME agent (doen't matter what) you can write of business expenses like cars and meals


so the answer "CAN" an agent write off expenses is YES

[ac328]

Depends on how you chose to interpret a question and an answer doesn't it.?.....I give the benefit of doubt to most people that they have more then 2 brain cells. as a PART TIME or FULL TIME agent (doen't matter what) you can write of business expenses like cars and meals


so the answer "CAN" an agent write off expenses is YES

Alright I think this point has driven this thread off-topic long enough. One more point:

So in other words your advice is it is possible to deduct expenses for tax purposes. Well, thanks for coming out. If anyone with "more than 2 brain cells" could figure it out, the why in the hell did you need to say anything? As you say, that's obvious, no?

While you're at it, RB, can I ask you advice on what colour is the sky, how many sides a triangle is, and other subtle things you just might have the answer to...

S16, feel free to get all your tax advice from the great insightful RB should you embark on your real estate career.

[S16]

thx for ur help guys

[alanbrenton]

My wife just passed her Phase 3 exam and is about to embark on a part-time realtor career.

Would the commission fee split vary amongst brokers carrying the same name (e.g. Remax or Century 21) or will this be uniform across various brokerages?

Because she will be new to the field, what kind of commission fee / broker office expense arrangement should she looking for? We were thinking that the combination of lower office expense and lower % of the commission split (lower variable cost) was more apt for now.

Any specific broker she should be targeting? She hasn't made up her mind as to which location she should be focusing on but it maybe either Mississauga, Oakville, or North York (Yonge/Finch).

Thanks for any advice guys. Sorry if I raised simpleton questions but I figured I'd try to help her out a bit.

[rb]

My wife just passed her Phase 3 exam and is about to embark on a part-time realtor career.

Would the commission fee split vary amongst brokers carrying the same name (e.g. Remax or Century 21) or will this be uniform across various brokerages?

Because she will be new to the field, what kind of commission fee / broker office expense arrangement should she looking for? We were thinking that the combination of lower office expense and lower % of the commission split (lower variable cost) was more apt for now.

Any specific broker she should be targeting? She hasn't made up her mind as to which location she should be focusing on but it maybe either Mississauga, Oakville, or North York (Yonge/Finch).


Thanks for any advice guys. Sorry if I raised simpleton questions but I figured I'd try to help her out a bit.



Each office is indep. owned so they have their own splits

My office has no fee's for the first 6 months (199 per month after that ) and 95/5 splits

they are one of the cheaper brand names around (Sutton)

[alanbrenton]

Each office is indep. owned so they have their own splits

My office has no fee's for the first 6 months (199 per month after that ) and 95/5 splits

they are one of the cheaper brand names around (Sutton)

Thanks RB. The office fees looks very reasonable considering the commission split of 95/5. Which Sutton office in Mississauga do you work for RB?