Saturday, February 14, 2009

New York Times Piece About Getting A Real Estate License

I was amused this morning to find this piece on The New York Times web site about all the people getting real estate licenses in New York City in this economic downturn. What people don't realize though, is that just because a you pass the test and maybe someone offers you a desk in their firm, that doesn't mean the money will start falling into your lap. There are many nuances to the business that the licensing course doesn't even get into, especially in New York City. Most important: How well do you work with people? Can you handle difficult personalities? Flakes? People who will run around with four different brokers at once, and sometimes waste your time?

One thing that the media overlooks a lot is that not all real estate transactions are sales. The bulk of my income comes from rentals, and in New York City there is a huge and lucrative rental market. Commissions are not as small as people think. A typical rental commission, after the split with your company, is about $1500. I've has them as high as $3000. And you do several deals a month, both large and small.

Real estate takes a very thick skin and a tremendous work ethic. It's not the easy pot of gold that a lot of people seem to think it is. In the suburbs it may be a lazy housewife's hobby, but in New York City it's a full throttle job. Personally, I love the biz, but I'm scrappy, as it is.

The Optimist's Club