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Discussion Starter · #1 ·
just curious to those of us here in the business, how did you get your start? What do you do? Is getting into the new real estate development/residential/commercial brokerage game tough in Miami? How much in commissions do the best sales agents make in Miami?
 

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That is a great idea for a thread Logy...
logybogy said:
just curious to those of us here in the business, how did you get your start? What do you do?
BSBA in International Finance I got my real estate liscence...learned the market one niche at a time and vowed to build a skyscaper.
From sales to development with a big firm... and eventually project manager...hopefully with the same firm!
logybogy said:
Is getting into the new real estate development/residential/commercial brokerage game tough in Miami?
If you are posting here...you know enough to get your RE salesperson license. The cost is about $600 for licensing and association membership and you can go to work.
logybogy said:
How much in commissions do the best sales agents make in Miami?
Some companies pay more than others. Anecdotedly, I know a girl that is 18 years old and had nearly zero experience that will make $350,00 in her first year. Incredibly unusual. People that have been in the residential sales biz for a decade or so, full time, are easily in the high 6 figures...and 7. Most residential properties pay 6% on the sale. On big land deals..it can be 1% or less. It has a lot to do with how dedicated you are and how much you invest in your career. Getting into commercial? tough, without the right background. If you don't speak the language...nobody will speak with you, then once you learn it, you really need to be able to have a great grasp of numbers and finance. And you have to be prepared ot go long periods of time without a paycheck! Many people start out making very little as an intern or an assistant until they can close business on their own.
Getting into development? Easy...if you have the money...it's as easy as being a "day trader". You just annoint yourself Develpor. But to make good projects that are profitable requires a lot of savvy. Smart newbies hire good companies to do the sales and marketing, legal, etc...believe me...if the project doesn't have merit...Most companies that will turn down the business from a bad developer and let another company take it. Reputable sales and marketing companies are smart enough to pass on bad business.
 

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Discussion Starter · #4 ·
Thanks Roark, you are a big help. This discussion is especially interesting to me since I'm looking at a career change possibly as early as next year.

A few more questions...

What's the typical commission split between the agent and the brokerage? I guess the agent could get as low as 1 or 1.5% if the 6% is split between the buyer's agent and the seller's agent and after the brokerage gets their cut.

Do most brokerages pay a salary with benefits + commissions or is it commission only?

How does an agent just starting out without many contacts get clients and generate business?

Do agents work a lot of nights/weekends working with clients? What's the typical work week like? Can this job be done working 40 hours a week or is 50/60+ hours a week the norm?
 

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logybogy said:
What's the typical commission split between the agent and the brokerage?
Typical for starters is 60/40. I started at 50/50 many moons ago. At a place like ReMax...you get 90/10 (or something) but you have to pay a "desk fee". Other discount houses can pay 95/5 to you, but they offer very limited services to the clients and Realtors and have a very limited global marketing reach. Not very good for your customers.
I guess the agent could get as low as 1 or 1.5% if the 6% is split between the buyer's agent and the seller's agent and after the brokerage gets their cut.
For a residential listing....9 out of 10 times you will use the Realtors proprietary MLS system. That means the listing agent's broker gets 3% and the buyer's agent's broker gets 3%. The broker will then pay their agents a split.
$500,000 house...you sell it. Gross comm. 15,000 to your broker. on a 60/40 split you get a check for $9,000. You pay for advertising, income taxes, self employed person taxes, healthcare etc. RE firms very rarely offer benefits...typically, you are a 1099 independent contractor.
How does an agent just starting out without many contacts get clients and generate business?
Advertise. network, work with a firm that has great exposure and make sure everyone you know knows that you are working for a great company. Bigger firms also offer floor duty for people that walk into the offices. If you are new, work hard to get into place with great exposure and caters to a luxury market. You would think that it is just a much work to sell a $200,000 condo as a $750,000 condo...but that is not the case. Someone who buys a $ 3/4 Million isn't likely a first time buyer and will likely be a more educated consumer, and understand money better. That is just the way it is.
Do agents work a lot of nights/weekends working with clients? What's the typical work week like? Can this job be done working 40 hours a week or is 50/60+ hours a week the norm
You don't have to. But if your 40 hours are productive and you are efficient with your time...40 is plenty. Much of sales is customer relations and getting out in the market to see what is happening. Lot's of parties, lots of networkers, lots of charity functions. But when you work for say....40 hours a week for 50 weeks a year...you tend to know what you are doing, and you will be able to identify RE investment opportunities in no time. If you are identifying the right pre construction opportunities right now...tack on another 60-90k per year to your income or your retirement portfolio.
 

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Whiteeclipse said:
Roark, did she make $35,000 or $350,000
Three fiddy, and, yes, she has a boyfriend.
 

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Discussion Starter · #9 ·
Does her boyfriend know what she is doing to make $350,000 a year at 18 y/o? ;) Methinks she might be getting some bonuses on the side from some of her clients for "special services rendered." he he
 

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Hillarious!! She's not 18 anymore...but she was selling luxury pre construction.
6% times $700,000 average sale price is 42,000 per condo...she sold about a dozen, after her split, that's a pretty penny. Notice, the advertising is already done for you in pre construction developments...just open an Ocean Drive. She was lucky (or smart) to be selling good developments too.
 

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Yes, I agree, that is about right. Those condo's sell themselves you sit there & wait until someone comes in or calls pretty good gig. I am thinking of getting into the business maybe take the class mid this yr. I have a full time job which I want to stay at until about 4yrs from now due to the benefits & want to do Real Estate part time. I work 12hr shifts w/several days off during the week & every other weekend I have 3 days off so I am hoping I could make it work. Any part timers out there? If so, let me know how it's going.
This is a great thread, just what a lot of us were looking for info & more info...
 

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zpcsc do you work in the health field? I have similar hours and work at a hospital.
 

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No, I work for a city PD. I am looking into into Real Estate to make extra $ & also to prepare myself for the future. I plan to be here for a few more yrs & move on. I do like the 12hr shifts because of all the time off & having every other weekend really works well for me. Are you looking into doing real estate also? Just curious....
 
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