If you are interested in the real estate business, you should consider whether you will be going into commercial or residential real estate. While you will find more potential clients in residential, commercial real estate also brings a substantial number of clients. Like any other business, you have to understand your product and current market. Commercial Real Estate (CRE) deals with properties meant for income generation. It includes places like hotels or where companies conduct business.
How to Become a Real Estate Agent
Obtain a Real Estate License
To get the license, you have to meet the eligibility requirements depending on your state. You will also have to take approved prelicensure classes to learn the fundamentals. Once you pass the exam, you get your license.
Find a Commercial Real Estate Brokerage Firm
You will need to join a firm specializing in commercial real estate to gain some experience. You can either join a real estate brokerage that deals with both commercial and residential real estate or one that exclusively deals with commercial real estate.
Join a Professional Association and Become a Realtor
Professional associations like NAR and ULI offer networking opportunities and continuing education to become an even better realtor.
There are many types of commercial properties like industrial, office, and retail. Pick one that you feel you are good at and have specialized in.
The next step is to create a marketing strategy to gain more clients and exploring additional career options. Other than sales, you can get involved in land purchasing and negotiating tenant leases.
Before getting into commercial real estate, you should consider whether this is something that suits your personality. For you to succeed, you need to be ambitious, proactive, persistent, and competitive. You will also need to be social since you will be dealing with people almost all the time.
Expected Challenges and Differences Between Commercial and Residential Agents
More Training: CRE includes complex types of properties and transactions, requiring more training in the field.
Fewer Transaction: Selling a home is easier than a commercial property. However, CRE agents receive a higher commission from the sale of a property.
Different Client Base: It is challenging to find clients for commercial properties due to their large price tag.
You can weigh in the factors to see whether CRE is right for you. If you are struggling with finance to start your own commercial real estate firm, reach out to Navigate Firm for assistance.