Real Estate is a Tough Profession to Break Into
Q My family recently relocated to Southwest Florida from Pennsylvania, and I've been thinking about entering the real estate brokerage business here. What are the secrets to easily breaking into the real estate business? And how do I decide whether to specialize in commercial or residential brokerage?
A This is one of the most frequently asked questions I hear from new residents and others thinking of a career change.
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What it takes to become a real estate agent
By: BRADLEY J. FIKES - Staff Writer
By June of this year, 425,000 people in California are expected to have real estate licenses, according to the state's Department of Real Estate. Keith Badiner plans to be one of them.
A loan officer at Lending Executives, a Solana Beach-based based real estate lender, Badiner stepped into the real estate world almost a year ago. The 37-year-old Carlsbad resident had grown tired of his job in corporate sales at AT&T Wireless and had long been considering real estate as a career. Badiner, who has an MBA in international business from San Diego State University, had previously worked as a marketing analyst for international markets at Qualcomm. He was laid off at the end of 2001.
Badiner took the plunge last February when he started at Lending Executives. Badiner doesn't need a real estate license to be a loan officer. But he's been busy studying all aspects of the profession, and a license will lend him more credibility. He's talking to real estate agents and taking a self-study course in real estate principles from Anthony Schools. The course takes about 45 hours and costs $300.
This spring, Badiner plans to take the exam for a real estate license. Offered by the California Department of Corporations, the exam costs $25.
Getting into real estate has been an intense experience for Badiner, who over the last year has juggled his current job, part-time gigs including a long-time stint as bartender at such places as Coyote Bar & Grill in Carlsbad ---- along with being a husband and father of two children. He and his wife, Mary, have two children; Kyra, 6, and Davis, 1.
"Sweat equity was probably the largest part of it," Badiner said of his self-training, including late-night sessions stretching into the wee hours finding answers for loan customers. "I worked so hard at getting all the knowledge I can. When I find an answer for a customer, it not only helps the customer, but it helps me."
Harder than it looks
Newcomers to real estate frequently find the job takes more education and work than they anticipated, said Sara S. Patterson, editor-in-chief of The Residential Specialist, a Chicago-based trade magazine. It is published by the Council of Residential Specialists, a not-for-profit affiliate of the National Association of Realtors that provides extra training for Realtors. Realtors are real estate agents who are members of the National Association of Realtors.
Patterson wrote an article in the magazine's November/December issue about the experiences of three "Rookie Realtors" in learning the laws and mores of the real estate business.
"Some of the agents told me the paperwork is more complicated than they thought," Patterson said about her experience writing the article. "A lot of work has to be done for the closing with the attorney, a mortgage lender, home inspector ... all these people are involved and in the end a good Realtor will make everything come together."
To be truly professional, real estate agents need to know more than what the laws require them to do, Patterson said. Agents must also learn social skills and etiquette in dealing with clients and others involved in home sales.
"They want to know, how do you get clients to come back to you?" Patterson said. "They want to build their referral base and keep in touch with these people without annoying them. It's a fine balance between being a pushy salesperson and a salesperson you want to work with."
Agents get known with the up-front method of advertising, Patterson said, or in "more subtle ways" such as taking part in clubs and volunteer organizations that boost their community standing.
Building Brand Badiner
As a newcomer in the real estate field, Badiner lacked the extensive network and reputation that real estate professionals rely on. And he also knew it would be some time before he got that coveted real estate license. So Badiner did two things: he studied and he networked.
Badiner got help from a mentor, Jason Katz, his boss and a senior loan officer at Lending Executives. He said it was Katz who got him interested in a job at Lending Executives.
"I liked what he did, what he was about, what he could do for people," Badiner said.
To advertise his expertise, Badiner adopted the phrase; "Just Ask" as his calling card. It's on his business card, on his e-mail signature, and on educational materials he hands out.
To network, Badiner takes part in weekly real estate "caravans" in Carlsbad and Oceanside. In real estate lingo, a caravan is a group of agents who visit houses newly listed for sale.
The transition to Lending Executives was exhausting. Badiner didn't leave AT&T Wireless until April of last year. During that transitional time, he also taught at the California School of International Management in San Diego and bartended weekends.
"For two months I was doing all four jobs," Badiner said.
A people job
Badiner said he's putting himself through all the effort because a real estate job gives him contact with people and responsibility and control over how his clients are treated. As a business-to-business sales representative at AT&T Wireless, Badiner said, he had the responsibility, but not the power to fulfill the company's obligations.
While Badiner had control of getting contracts, key services such as billing and coverage were not controlled by him. Dissatisfaction in any area could cause a company to cancel its contract. When that happened within a few months of its signing, Badiner lost his commission. That's not the case with real estate, he said: When you make a sale, it's done.
"With what I'm doing now, I have much larger control and responsibility for making sure my clients are satisfied," Badiner said.
Real estate license how-tos
Those wishing to become real estate salespersons in California must pass a written examination that costs $25 and apply for a license, which has a separate $120 fee, with the state Department of Real Estate. Other qualifications are:
The applicant must be at least 18 years old.
A legal resident of the United States.
Conviction of a crime or failure to disclose a criminal violation or disciplinary action may cause denial of a license.
Educated in real estate by taking three college-level courses.
The first, in real estate principles, must be completed before applying for a license. The second, in real estate practice, must be completed within 18 months of getting a license. The third is one of 12 courses listed by the department, such as real estate appraisal, legal aspects of real estate and escrows. This course must be also completed within 18 months of getting a license. A fuller discussion of the requirements is at (tinyurl.com/59xj8)
The courses can be taken at the University of California and most California State University campuses. However, it's less expensive and often more convenient to take them at a community college.
In North County, MiraCosta College and Palomar College offer the required courses. A statewide list of community colleges offering them can be found at (tinyurl.com/5ta2r).
Real estate brokerages and other groups such as the San Diego Association of Realtors also offer courses. The association can be contacted at (858) 592-7171. To see whether a brokerage offers the courses, it's best to contact the brokerage in question.
Contact staff writer Bradley J. Fikes at **Please See My Profile** or (760) 739-6641.