Brokers: If at first you don’t succeed, try again?
Commercial real estate is a tough industry, and not everyone who starts out as a real estate broker will actually make it. In fact, it’s been said that at least half of new brokers will actually leave the industry within three years. Some of these people simply lack the skills they need to succeed, but there are some more common reason why even knowledgeable and talented real estate brokers wash out in a couple of years.
They Have No Mentor
Mentors are a must in just about any industry, and commercial real estate is no exception. The right mentor can help a new real estate broker find the right clients, put together a great portfolio, and give them the tools and tips that they will need in order to succeed. Granted, many of the things that novice brokers will learn will come from their schooling, but there will always be some things that they can only learn from someone with experience in the field.
Before anybody sets out on their own as a broker, they should at least speak to someone who has worked in the industry for a while first. Even if all they have to offer are a few good sales leads, it will be better than nothing.
They Have No Drive or Personality
Some people just aren’t cut out for a career in sales, and that’s perfectly okay. A sales career requires someone to not only have the drive to succeed but the kind of personality that lends itself well to speaking to powerful business tycoons and real estate moguls. That can be stressful for the most extroverted real estate broker. Those who aren’t comfortable speaking to strangers about making sales or who aren’t willing to put forth the several hours of overtime it often takes to succeed should probably reconsider their career path.
They Are Disorganized
Part of putting forth enough work to succeed as a broker is to approach it systematically. That means they must be organized and methodical in their approach. Most people who don’t approach every call they make and every meeting they attend with some kind of plan in place will fail within a couple of years. It takes discipline to stick to these plans, yet they really are one of the keys to success.
They Received Poor Training
Of course, there is always the possibility that a novice real estate broker simply received subpar training during their schooling. As much as a broker is responsible for their own success, firms must be willing and able to provide them with the tools and training they need to succeed.
They Can’t Deal with Entry-Level Pay
Commercial real estate brokers can potentially make a lot of money, but that usually doesn’t happen until they have several years of experience. Many brokers who are just starting out find that cannot deal with the relatively low-paying clients that they will find or the occasional lack of work. It takes just as much discipline to live and stay organized in an entry-level financial structure as it does to seek out clients and close deals. Only those with the drive to work their way to the top will survive in the commercial real estate industry, and that is a harsh lesson that many fail to learn.
If you would like to learn more about commercial real estate or how to finance your next commercial real estate endeavor, contact the experts at ABC Commercial Capital.