Being a successful commercial real estate agent is not easy. This career path selects for dedicated self-starters with good instincts for business and client needs. If you want to be this type of agent, then you will need to apply the below tips.
Prepare for Sporadic Income
As a commercial realtor, most, if not all, of your income will come from commissions. This commission will be 3% in most cases, and you will most likely have to share 35% to 40% of the payment with the agency for which you work. The problem is that commercial real estate transactions can take months or even years to finalize. Only then will you be paid. Lease deals can be resolved more quickly, but you will most likely still need to wait for the tenant to occupy the property before you get paid.
The sporadic income means that you will need to have several months or even one year of expenses saved before you launch your career. It can be that long before you are paid.
It Pays to Be Socially Adept
Commercial realtors are salespeople. You are selling yourself to agencies, other agents, and, above all, potential leads. You will need to be able to make cold calls, strike up conversations in public places, and be socially available at all hours. If you are the shy type, then you should probably look for a way to change your behavior or find a new career.
You Have Got to Get Certified
Most states require you to either receive a Bachelor’s degree in your field or do 30 to 90 classroom hours of certification to become a commercial realtor. Budget this time and expense into your cost calculations for entering this new career path. Once you are certified, your education is not complete. Every two to four years (depending on where you live), you will need to take further classes to keep your certification up-to-date.
Being a commercial realtor is not a piece of cake. However, with persistence, you can succeed. Lower stakes and helpful tech tools like Propy’s Transaction Platform may make residential real estate the slightly easier path to consider, but if you have your heart set on commercial real estate, you can thrive with the right preparations.