How do you do real estate? I've been watching a bunch of TV the last few days (Million Dollar Listing San Francisco, LA, New York, etc) and it looks so damn interesting, it appears all they do is throw parties and drink a lot of wine and selling million dollar properties, it also involves the occasional dick sucking of rich and extravagant developers to get listings, but the fucking commission, makes it seem so damn worth it.
What kind of qualification do you need to be a Real Estate agent? Is it just university, or do you have to do a Masters or something? I assume Marketing is a useful degree for it? Does the degree you do even matter, is it just a test you write to get qualified?
How do commissions work, let's say my friend is selling his house for $500,000 listing price, and I find him an offer of $500,000 how do I know how much commission I get from it? Is commission controlled by the government, or the state, or is it written in a contract before you get the listing? Like do me and my friend sit down and discuss the commission? What type of commission can I be looking at for a $500k house? 5%? 10%? More? Less? Does the area you're in matter?
How much do Real Estate Agents make in a city where there's a housing bubble? Is it a good career to get into if you someday want to get into managing property, and/or having a large property portfolio? Is it useful for networking purposes?
Is it useful to do 'on the side' like Insurance sales and what not, or is it a waste of time and I shouldn't even be thinking about it and just going and doing STEM or something?
Thanks /biz/!
>>956890
You don't need a degree to sell things you fucking tool, every question you have can be Googled
You don't need a degree but you'd probably want a license.
NEETS can't into real estate cause they don't have any connections.
>>956901
I have many connections, is it something I should look into? Is it worth while even joining a firm, or should I just start my own firm?
We have tonnes and tonnes of friends who are always buying new houses and selling old ones, I could definitely call up like 5 people right now and guaranteed 3 of them would be looking for a house to buy or sell for an investment or a vacation house...
>>956899
I like /biz/ better, you guys offer some 'on the realz' shit that Google does not.
Sorry, I would respond to the whole thing but I am on my phone.
Qualifications are set by the state. You normally take real estate classes for the education req. Done online. Then take a state and national exam. Very straightforward. Will set you back about 700-1,000 usd.
Commission in residential goes for 4-7% which is outlined in the representative contract. Commercial (where the real money is made) is typically 4% for the tenant rep. 3% for the landlord rep. This is normally of the a percentage of gross Rent if it is a lease and if it is a disposition then you are looking at about 2-3% depending on the size of deal.
There are different commission structures, for instance, a net listing allows you to keep any money that is above the price that the owner is asking.
In a good city where rent is typically high and many people are moving to it. I'm not sure what you mean by a bubble city. But you can make as much as the effort you put into it. Some commercial brokers I worked with were making upwards to 400-700k on good years. I have never been involved on the agency side of residential but I know for both the same is true: it is NOT a side gig.
I worked in commercial real estate. Now I work at a real estate private equity firm.
Ill answer any questions if anyone has any
>>956906
Well it ain't as easy as just having parties and selling multi million dollar properties, but if you're looking to learn, check out biggerpockets.com
Real estate is a fucking hustle. You have to grind shit out every day and hope that you can secure a few deals a month to survive.
>>956907
Interesting stuff, can you walk me through the day of a Real Estate Agent? Like, do they work pretty much from day till night?
If I started my own firm, do I have to pay like taxes on the commission I earn? Is it just like income tax or is there other taxes that only Realtors have to pay? Let's say the commission on the $500k house was 5%, that's like $25,000, if let's say over the year I earned $100,000 as an agent, do I have to pay just my income tax which would be like $30k, or do I have to pay more stuff like 'Realtor Tax' or something on top of that $30k?
Why is commercial real estate much better than residential? I assume it's because most properties go in the millions or tens of million dollar range, so commissions are much higher right?
Also one more thing, let's say I was listing a $1,000,000 house, 5% of that is $50,000, but let's say I wanted to get 6% or 8%, am I able to ask the owner if they'll give me more, especially once I've built up a good reputation? Or is it just set in stone to be around 4% - 7%?
>>956914
Thanks for biggerpockets, looks interesting, checking it out right now!
But once you get your firm going, it becomes easier right? Can I just start a firm and hire new agents, and then tell them to give me like 10% of their commission earnings from every sale or something like that? I understand I can only do this after I'm established myself, so the name of the firm is recognizable, but is this something I should aim for in the end?
>>956907
does real estate have ageism?
I may start doing this if I get laid off.
BUMP PLS
I watched a show/movie/video about X now I want to do X. How do I do X biz?
>>956927
I can't speak as much to residential because as I mentioned. I worked in commercial real estate. A lot of time is spent gathering info on vacancies that fit the client's requirement. Time is also spent showing said space. Free time is spent net working.
Yes commission is taxed.
You can raise the commission but it might cause the seller or landlord to refute your clients offer because of your greed. It is best to stick with standards.
Commercial is better because there is simply more money behind it. A typical deal looks like this. 10-100k sf lease for normally 3-15 years at 35.00 a sqft. 4% of gross rent. You do the math.
>>956932
Yeah there is to an extent. If you are ambitious and have a good mentor that eases you in to deals and networks than it isn't so bad.
With that being said. If the commission is the same for a 23 year old as it is for some one who has been working in real estate for 30 years. Who are you going to hire?
>>956932
All real estate is contact driven.
Age and sex is irrelevant.
>>956890
Do you want to invest in real estate or become an actual agent and live off commissions? Investing in real estate can be a very solid career if you build the necessary skills and commitment, and having your realtor license can help immensely. Someone referenced bigger pockets, I'd suggest you start there and read about wholesaling (little to no capital required if done correctly), fix & flips, buy & holds etc. Thinking about venturing into that field myself, I can't stand my office job despite the good money.
>>958665
Im considering getting a real estate license and I'm only 18, will people even take me seriously?
>>956890
>What kind of qualification do you need to be a Real Estate agent? Is it just university, or do you have to do a Masters or something?
why would you need to go to university to do a sales job?
I think agents are licensed in the US.... in the UK they don't even need a license - either way it hardly requires a university education
Real Estate is a shit career. All the good listings are taken by big real estate firms and everyone is fighting over the scraps called residential. Do yourself a favor and just become an accountant.
>>959320
Isnt it just a way to get into real estate investing?
>>959341
No, its a pure sales job. Brokers I could see the argument, but agents no.
Check Out REIclub.com s videos section for information for beginning investors.
>>959357
Well I don't have any capital to get into investing. I would do wholesale but it seems you can get fined 5,000 for brokering without a license. I was wanting to get a license to act as a wholesaler or a buyers agent so I could learn about the market and get some capital to get some skin in the game. Im incredibly inexperienced in many things though as Im this poster
>>959290
>>959399
Dude you know dick all about the industry
You can't get rich quick anywhere find something you like
You start in real estate now you will be crushed for about half a decade when u begin to make 30k a year if you're lucky.
>>959290
Don't worry about what others think.
Just do a straight good job, don't bullshit people and deliver
>>959301
The reason licences exist is because of trust accounts.
If you handle trust monies you need a licence.
I'm surprised if you doesn't need this?
>>959320
Actually the biggest purchaser of land in the first world collectively is housewives.
The actually have more buying power than corporations, who'd never make such emotional decisions about dirt.
Commercial is niche property.
>>959750
They also create a price level to enter the market. Restricting the labor force.
>>959762
The government really doesn't care about that too much, but dodgy agents fucking off with the contents of their trusts accounts happens all the time and rightfully gets a lot of scrutinisation.
