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......so do you have a question or just complaining?
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I ran a residential mortgage banking branch for 2 years and know a ton of residential real estate agents. Gotta say that I think you're underestimating how incredibly difficult success in residential real estate sales is. Low barriers to entry = gigantic, HUGE competition. The most successful real estate agents are not particularly smart--what they have is a hyper-extroverted personality. They have a billion friends and they're constantly doing something. And generally the highest producing agents are attractive women. Are you a hyper-extroverted attractive female?
I sat in the office of a real estate brokerage for those 2 years. Being a residential broker and having to recruit good people is incredibly difficult. The competition for personnel is intense. More than likely you'll end up with low-producing real estate agents or rookies. If one of the agents grows into a strong-producing agent there is a 95+% chance they'll get recruited away by a better brokerage with better splits, better reputation, more resources, better office space and location, and better marketing. If you're going to run a mediocre small brokerage office you might as well just be an agent. Running a brokerage and constantly replacing/recruiting personnel will dominate your time, taking away from your ability to organically produce your own business. Literally an office of 20 crap real estate agents might produce 3 deals a months. Not even. I saw several months in a row where the broker was the only guy producing any business at all. And the INSTANT an individual agent sniffs some success is the instant a much better firm will recruit him/her away.
All of the top producing agents I knew/know are just that--agents and not brokers.
I observed an industry of immense stress levels, constant back-stabbing, and incredible amount of competition.
Very well said!
you also need to consider whether leaving your current firm allows you to chase the quality of business you want. Opening your own shop, you will not have access to a) good research materials indicating demographic stats, job growth, etc. that allow you to tell the full story when you are selling product, b) leveraging numerous platforms, ie. selling the convenience factor of bundled services from one provider (leasing, capital markets, structured financing) c) general overhead you take for granted at a big firm that DCDepository mentioned, that includes not only personnel, but access to marketing materials and the work it takes to create them, support teams, etc.
Like DC said, you may spend a lot of your time trying to play catch up to provide these services to your clients, which you may take for granted today.
I thought you were a proctologist?
Made me smile
I've always been a titman, but I get where you're coming from.
@dcdepository hit the nail right on the head. That's an ultra competitive business because it only takes a sales license and a business card. The hyper-extrovert attractive woman comments is funny but absolutely true, especially on higher end stuff. And they all kinda look and dress the same and drive the same cars. If you can succeed, especially on high end product you can make tons of money but I'd have to guess that not only do the overwhelming majority not succeed on high end stuff but that most people who get a license aren't doing RE within a year or two.
And backstabbing: there was a story in the Main Line burbs in Philly where one of the big successful women realtors (attractive hyper extrovert btw) actually threw rodents and snakes on the lawn of a listing next to her own house that she was selling.
Not that I have any experience whatsoever in the single-family realm, but in my (major city) there are a few guys that clean up on larger listings (e.g. one guy who turned a high end residential business into his owning multiple marquee properties in the city).
Like any job, if you're really good at what you do you can make a ton of money in the residential sphere, but like any job, there is a ton of mediocrity out there that doesn't get paid.
I played hockey with a guy that does residential real estate, and I bet that if he didn't play hockey to get rid of all of his anger, someone else would die eventually. He does $1mm and up listings and always says how terrible every single client is and how badly he wishes he could yell at them.
I wouldnt say the egos involved in the acquisition of a $100mm office building are any better though...
You can tell your co-worker to piss off though (Well at some firms). You can't say that to your clients.
I too work at one of the above mentioned companies and I can understand where you are coming from.
IMO i don't think opening your own shop is the best alternative, at least from what I have heard. The day to day operations is a good enough reason for me to shy away from ever opening up my own shop. In addition, working at a large company such as the ones you mentioned has its benefits, mostly from a marketing perspective.
Marketing plays a huge role in the business and being able to take advantage of the research teams at these companies and the reports they put together on a quarterly basis is huge. I use any excuse to reach out to potential clients and the above mentioned makes it that much easier.
Another reason why i would prefer working at a big RE company such as CB/JLL is its national exposure. Granted your day to day routine is prospecting local businesses but when a national client of the company has a requirement in your market, your the one working it!
On the flip side the most successful broker in my market is a guy who runs his own shop. He made a $1million commission on a single deal (10yr. lease) this year and to this day it blows my mind how the big companies opt to use a local broker opposed to a global RE company. Who knows.
I work for a principal in real estate. One of the reasons we like smaller players is because they usually don't have dual agency issues. As an example, we're looking to sell a commercial building. However, if we don't get the price we want we're willing to hold the building. If we work with a big player it's very possible that someone at the brokerage turns around and uses our rent roll to contact our tenants to poach them for one of their client's buildings.
Also, smaller brokers tend to be very regional, so they understand their market very well and good ones have excellent regional--if not neighborhood--contacts looking to buy/lease/swap real estate in the client's area.
That's interesting. My shop strictly focuses on doing invesment sales so I've never come across that.
Lot of poachers out there in this business.
I work at one of the two aforementioned firms in the most competitive market in the country....I'll let you figure out who and where...I'm 30, blue collar guy, state school guy, living in the white shoe world and based on what you wrote...I suggest you go do something else, because basically you aren't built for this industry and it's nothing to be ashamed about.
At CB or JLL you are given the best platform to succeed. Your market may suck and I'm guessing it does, because noone that is 29 should be working on a $50,000 commission at either of those shops, especially not on a team. Those companies are built to chase big business and the fact that you have a few years under your belt and you are chasing business, that you have to split none-the-less, with fees of $50k is mindboggling...so either A) your business plan or B) your motivation sucks and that won't hack it in any cutthroat industry or even sales in general...except maybe retail sales
I transitioned from another market to come here (2-3 years of learning a huge market and sacrificing significant income) and am only now starting to see the fruits of the labor...I would say get to a Houston, Chicago, LA, or NYC, but honestly with that attitude, planning, and business knowledge you've gained....you probably wont succeed there either.
There are plenty of people at my shop who aren't that brilliant, smart, connected, or exceptional and they still make in the mid-six figures, because they work hard...some make seven figures and don't work that hard...that's just the nature of the business....give it 6 months, work your 12 hours a day, make 50 cold calls a day (50 calls is not a lot) bring 1 Sr person in per deal to help and if you still don't have pipeline...then quit. You're in an industry where you are only going to go as high or make as much money as you work for...and the business sucks, deals die, clients screw you, people screw you on splits, but life isn't fair or easy and when you close a 30k sf 10 year deal and get that check you'll feel a lot better
Hey MP3211, could I get your email? I would definitely love to pick your brain on a few things in the industry seeing that you are quite knowledgeable about the industry. Thanks!
If you want to wear sweatpants and play golf every morning, why don't you just retire? Doesn't sound like you would be too successful at running your own shop if you aren't going to make it your first priority. Just my two cents.
WSOing's for closers only.
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