Starting Real Estate

Almost a year back, my cousin started getting really hardcore with his prospecting. The cycle finally started coming back and now people are contacting him. Technology, particularly craigslist, is helping out a lot. It’s interesting how some things take a lot of time to build, but when they come about it’s beautiful.

Citibank has had some amazing offers lately. I wish they had some kind of affiliate program, because I’d hop over a fence to join it, but here’s the deal. I got a Citibank Dividend Card, which gives me five percent back on gas and groceries and gave me 0 percent for almost my entire first year. Plus it doesn’t pay silly reward points, I ordered a check and got it within a few days without any problems. Raising the credit line is super simple too, just make payments on time, and every few months you can automatically raise the credit line online. No applications and no inquiries, just one click. If for some reason it’s not there, quick service on the phone explains why. I have no complaints at all.

Now Citibank has a new e-savings account which pays 5 percent with no hidden fees. That’s more than most banks’ CD’s. I just got the account so I have yet to fully review it, but at five percent almost everyone I know who hears about it and has money losing value in a no pay savings account is happy to transfer. Of course there are securities that pay a lot more, but for a completely liquid and safe savings account five percent is a wonderful deal.

As far as real estate appraisals go, business varies throughout the year. At a nearby appraisal place, things have been extremely slow. Since most appraisers work straight from commission, unless someone is comfortable with having such income fluctuations and can afford to go a few weeks without a decent paycheck, a person should really think twice before hoping into this part of the business. Especially if you consider the ridiculous amount of time it takes to rise in rank as far as your license is concerned. If it’s one’s dream to do this, or it’s a side job that’s one thing, but to depend on it–unless one reaches the level where he or she can evaluate commercial properties–means a really difficult financial situation.

A similar question occurs with what type of place to work for a real estate salesperson. Is it better to be an agent at a place that sells many medium to lower priced properties, versus an office dealing with the big guys? At the “smaller” place you get less commission but more deals and more steady income, at the big place, if you do get a deal, it’s enough for half a year to a few years. The catch is that deals take forever at the “high roller” place, and the whole time you work there, unless you can afford it, you’re getting in debt to them (they’ll pay a salary, later deducted from your sales). A good friend of mine works for such a place, with a strong conviction that he’s almost there, but the catch there is, a good year might mean three sales, which really isn’t that different from a bad year, with no sales, which does happen. It’s really a tough question, because obviously, there’s potential to get far more at the high roller place, but at the same time, it can be crushing seeing month after month go by being almost there, a hair away from it, but nothing closed. An agent should have iron nerves and reserves to play this game.

Have your own real estate slowdown and or your choice of who to sell with? Have an opinion? Post a comment or email me.