When getting started in North Carolina real estate, it’s important to understand the common mistakes that can prevent you from realizing your full potential and achieving success in the business. Take your real estate career further, faster, by avoiding the following missteps made by rookie real estate brokers.
1. Not having a business plan
When you become a North Carolina real estate broker, you’re essentially starting your own business. However, many real estate professionals have no clear goals or timeline for achieving their goals. Without a real estate business plan, it’s far too easy to spend time and money in ways that don’t pay off. Creating your business plan will allow you to identify your short and long-term goals and outline how you plan to achieve them.
2. Not planning financially
Becoming a licensed real estate broker costs money. Like any entrepreneur, you need a funding source in place to build your business. Whether that means asking family for help, working a part-time job, or taking out a small business loan, consider having at least three months of reserves in savings before making the leap to becoming a full-time broker. Although it may be difficult at first, it’s important to remember that countless individuals have made the transition from part-time broker to successful full-time real estate professional.
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3. Expecting immediate success
Good things take time. Though it’s likely that you’re eager to make a name for yourself in the real estate industry, you need to be reasonable in your expectations of how long it will take to launch your career. It could take months to make your first sale as a real estate broker, and it can take you up to two years to begin building a comfortable living from your business.
4. Choosing a brokerage for the wrong reason
One of the most important decisions you’ll make as a new North Carolina real estate broker is deciding which brokerage to hang your hat at. Real estate professionals choose their managing broker for a number of reasons—they have a good reputation, they offer the most competitive commission split, the office is close to their house, and so on. While those are all important, don’t forget that your broker-in-charge should help rookie real estate brokers establish successful careers.
5. Not focusing marketing efforts on the most effective areas
One reason rookie real estate brokers end up overspending on marketing is because they spend in the wrong place. Print marketing—newspapers, real estate magazines, etc.—may seem like the most visible channels. But in today’s marketplace, they don’t always yield high returns. Instead of shelling out precious capital in the beginning, sit down and list who you know in your personal sphere of influence. Promote your new real estate business on social networks like LinkedIn and Facebook. Publish articles and attend networking events.
Take every chance you have to get your name out there and let your contacts know you’re open for business. Focusing on building out your referral network will serve you well in the long run.