The old adage, “Time is Money” rings true nowadays with so many distressed property sales. After all, if it takes you 6 months and countless hours to make a commission check of $3,000, can you really say your time is being spent in the most cost effective way to make the most money? If your income in real estate is just for extra spending money, you don’t have to read this post, or agree with me–you can do what you love, even if the numbers are down. But most of us are in this full time to support ourselves and our families.
I know the industry has done a belly flop—-those of us doing high end sales may have to be doing lower end sales. Or perhaps we have had to farm a completely new area, or get into BPO’s for extra money. Whatever the changes and new roles we have to adapt to, unless we maximize our time making a living we will not remain in business. Yes folks, this is the way it is–you may love to sell mansions, but if that part of your business has dried up, you may be selling latte’s at Starbucks if you do not reinvent yourself.
Property Management-I don’t think I have heard more agents hating this niche in real estate than any other. And I am certainly not trying to convince anyone to do this—it’s tough and can be daunting when you have bad tenants…..not for the weak at heart. But hour for hour, I make more money managing my niche portfolio of SFR’s and townhomes than I do with short sales. Now of course, if I did volumes of short sales that may not be the case. But how many of us are really doing hundreds of distressed properties? BPO’s—someone mentioned it was not lucrative. Well if it takes you an hour to do a BPO and you make $100, you just made $100 an hour! If it takes you 500 hours to do a short sale and you make a commission check of $3000, you just worked for less than minimum wage—WAY less.
My point is-everything is lucrative if you know how to do it well. Think about that. If you can streamline a system for doing short sales, or BPO’s, property management or working with first time Buyers, hire the assistance you need to do the scut work and then you manage the whole process…. and guess what? You will be successful.
So before you assume that a certain niche is “not lucrative” (and believe me, I always wondered years ago how Starbucks could make money selling coffee for $1.50-$2.00) think again.Never done a rental? Try it, you may enjoy it, (and the paycheck that follows in just a couple of weeks). How about a BPO? It may educate you about market conditions in an area where you have never been. There are opportunities everywhere, and those of us who are still in business and paying our bills know that well.
Remember: You are a business person first and a Realtor second. The way you are going to survive is by reinventing yourself and your business, adapting to market conditions and keeping an open mind.