Closing a residential deal before Starting CRE career? Need advice
I am still in the middle of the interview process with multiple CRE firms for a brokerage position. Since I had no direct experience in real estate (heavy background in sales), I began conversations early and am set to take my RE license exam in 2 weeks. From meeting with the various firms, it's pretty clear that they want you to be financially prepared to not make money for potentially the first 0-12 months other than relying on the small base draw. Financially, I am not in the best position to go 12 months without closing a deal, and I fully hope that will not be the case.
By chance, I recently met with one of my best friends who just decided to begin looking to purchase a 3M+ home and he said he would want me to be the agent on the transaction if possible. Obviously at this point he knows I have 0 experience in residential real estate, but he is aware of my situation and he wants to help me out on getting a piece of the commission on the transaction.
I fully intend to pursue a career in commercial real estate, but does anyone have any advice on what the best way might be to go about handling this situation? How do people that are working in commercial real estate handle residential transactions that they have family/friends/contacts that are willing to give them the business? I'm aware of the possibility of a 20% referral commission to a residential agent, but would I be better off trying to handle more responsibility in this transaction at a residential shop just for this one deal to give me some runway for my first year in CRE brokerage?
Any advice / insight would be very helpful.
Can't comment on anything except timeline. It's more like 6-12 months without any paycheck.
I just hate residential. But I did it from 1995 - 2000. CRE since 2000 as a broker. Have bought and sold several of my own homes the last 15 years though.
Ok, do this $3mil deal for your friend. It's valuable experience. Phone skills are learned on all transaction types. So is keeping your cool. Also, the most frustrating deal you'll ever do is for a "buddy" while dealing with residential brokers (ugh), lol.
Explain why you're paying a referral fee. If it's your buyer than it's your buyer.
Get your license In California you have to hang your license with a broker. There will be a split. Join your local Association of Realtors They will refer you to your state Association for WinForms (online digital contracts) They will also get you set up on local MLS services Search properties in targeted zip codes Write offers with strong earnest money
There is some weakness in for sale housing in this price range. Really look at Active/Pending/Sold data for declining or softening of prices. If your guy is cash I'd be tempted to low ball the B deals.
Extremely helpful insight, thanks very much. From your experience, what would the typical split be for a new agent bringing a deal and working with a senior agent to close the transaction? What would you suggest to negotiate for? Thanks again
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