All Topics / Help Needed! / Should I take the commission only real estate job as a start?

Viewing 20 posts - 1 through 20 (of 27 total)
  • Profile photo of jelovea2003jelovea2003
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    @jelovea2003
    Join Date: 2010
    Post Count: 18

    Hi guys:

    Im looking for a full time job within real estate & property industry. I got no experience in real estate before, and recently I got a offer to work under a stratigies investment company called "leadex". They provides trainings & supports. However its commission only. I can tell that they really need people to start their new office in burwood. Thats why i think i can be a good oppotunities for me to get start with. Should i take it? Im bit worry about the ability to getting a loan with that job, although, they told me thats no problem. However i still concern about that…

    >.< em…..What do u think? Hope to hear from you~~

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
    Post Count: 2,539

    You will not get a loan with zero income.  It's that simple.  It's a great deal for them – free staff and no commitment.  It's a crap deal for you. 

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Have you been in sales before?

    There are lenders that take commission into account when looking at borrowing capacity. However, a straight forward PAYG full time salary will cause less dramas when sourcing finance.

    It’s a tough industry to be successful in so think carefully before making the plunge.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    What is the deal? Are they running a ‘tab’ for your training & going to take this from your comms?

    Are you getting at least 50% comms?

    Do they provide qualified leads? Doing cold calls?

    What else will they be deducting from your comms? Eg all promo material, phone, business cards, notebook, etc?

    Are you selling off the plan? If so, you will be waiting a very long time to receive your comms.

    Profile photo of jelovea2003jelovea2003
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    @jelovea2003
    Join Date: 2010
    Post Count: 18
    Scott No Mates wrote:
    What is the deal? Are they running a 'tab' for your training & going to take this from your comms? Are you getting at least 50% comms? Do they provide qualified leads? Doing cold calls? What else will they be deducting from your comms? Eg all promo material, phone, business cards, notebook, etc? Are you selling off the plan? If so, you will be waiting a very long time to receive your comms.

    Hi scott~

    He said my job is to making connections with investors?selling off the plan, things like that. He said he got a very big network with developer, investors, and market overseas. And at least 50% commission as he mentioned. Other things im not quite sure about at the moment….

    Profile photo of jelovea2003jelovea2003
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    @jelovea2003
    Join Date: 2010
    Post Count: 18
    Jamie M wrote:
    Have you been in sales before? There are lenders that take commission into account when looking at borrowing capacity. However, a straight forward PAYG full time salary will cause less dramas when sourcing finance. It's a tough industry to be successful in so think carefully before making the plunge. Cheers Jamie

    Hi Jamie:

    No, i dont have any experience in real estate sales. ~ thx for you reply ^^~~~~~
     I will think about it~

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Selling off the plan, like selling any property means you don’t get paid until settlement, which may be several years away (you can’t touch the deposit monies until they are released by the solicitors).

    You would be much better off working for a legit agency selling established property as you will only be waiting 2 months for payment.

    Profile photo of lordopglordopg
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    @lordopg
    Join Date: 2010
    Post Count: 50

    I suppose it depends how comfortable you are knowing that you, potentially, may make $0 in a week.

    I don't work in real estate, but I am more comfortable knowing that every two weeks my pay will be delivered in to my account and that I know exactly how much it will be.

    In my personal opinion, totally un-related to whether you could be getting finance or not, I would tell him where to shove that job and look for one which offered a salary (even if a bit low) + Comms. They are out there from what I have seen!

    Good luck mate, hope you find what you're looking for!

    Profile photo of Woody86Woody86
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    @woody86
    Join Date: 2011
    Post Count: 30

    From my experience in real estate I definately wouldn't reccomend it. As stated in the replies you could go ages without any income and it takes quite a while to build up a database of potential listings. Its best to get paid a wage and learn the ropes for a  year and then once comfortable try to get a job paying commission only. Make sure you get paid what your worth to as there are lots of different types of set ups out there.  A friend of mine has just gone from wages to commission only and gets a 50/50 split which isnt to bad

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
    Post Count: 2,539

    You would get paid more to work in McDonalds.  That says it all, I think.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of scottsscotts
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    @scotts
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    for a young person with no living expenses (eg living with parents, paying no rent/food bills) I think its fine to take a commission only job and see where it takes you, however if you have living expenses and debt it will be highly stressful for you..

    also is that the area of real estate you want to get into or are you only interested because its on offer?

    Profile photo of jelovea2003jelovea2003
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    @jelovea2003
    Join Date: 2010
    Post Count: 18
    scotts wrote:
    for a young person with no living expenses (eg living with parents, paying no rent/food bills) I think its fine to take a commission only job and see where it takes you, however if you have living expenses and debt it will be highly stressful for you..

    also is that the area of real estate you want to get into or are you only interested because its on offer?

    Hi~ scott^^

    Yeah. I do not have to worry too much about living expenses, because i still have a little bit part time job to do and i live with my mum. Since i send out my resume last week, so far this is the only offer i received, others didnt contact me after interview or phone calls. They are all want more experienced one from their point of view. I dont really mind doing listing or sales, as long as it within realestate & property industry its all benifit for me since i dont have any previous real estate sales experienced. I still havent made my final dicesion yet, i tell the boss iwill let him know for sure by next friday.

    Thanks for your respond Scott!!~~  

    Profile photo of emptyvesselemptyvessel
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    @emptyvessel
    Join Date: 2008
    Post Count: 170

    I would take a very close look at the fine print of that contract to see exactly when and under what circumstances your commission would be paid. Perhaps also what liability you have if a deal goes bad. Just in case the company is dodgy. (Note: I am not saying it is, but forewarned is forearmed.)

    If it seems remotely reasonable, take the job and keep pushing out your resume. Someone will snap you up as long as you are persistent, smart and have the right attitude.

    This job will be a great way for you to learn some basics whilst having very little risk for you personally. You will also meet all different types of people and begin to develop that sales "sixth sense".

    Worst case scenario, you quit and keep searching.

    Let us know how you go.

    Profile photo of jelovea2003jelovea2003
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    @jelovea2003
    Join Date: 2010
    Post Count: 18
    emptyvessel wrote:
    I would take a very close look at the fine print of that contract to see exactly when and under what circumstances your commission would be paid. Perhaps also what liability you have if a deal goes bad. Just in case the company is dodgy. (Note: I am not saying it is, but forewarned is forearmed.)

    If it seems remotely reasonable, take the job and keep pushing out your resume. Someone will snap you up as long as you are persistent, smart and have the right attitude.

    This job will be a great way for you to learn some basics whilst having very little risk for you personally. You will also meet all different types of people and begin to develop that sales "sixth sense".

    Worst case scenario, you quit and keep searching.

    Let us know how you go.

    Hi emptyvessel:
    Thank you for your kindness reply & comments~ U guys are soooo nice & helpful~!!!!!!!

    Yeah… I will for sure have a really carful read of the contract if i decide to join. 

    Thank you emptyvessel^^ 

    Profile photo of hannahbella3hannahbella3
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    @hannahbella3
    Join Date: 2010
    Post Count: 5

    hi,
    I have been reading this forum for many months now but this is my first post.

    my name is Hannah and i am a waitress living in Kalgoorlie, i have always wanted to become a real estate agent and i got this opportunity when i came to kalgoorlie a year and a half ago and im so glad that i did as i learnt so much that it is now helping me with my investment portfolio.

    i was paid a retainer of $470 a week which is the law in wa now, but you had to pay it back when you made a sale or if one of your listings was sold. if you sold a property you would get 20% of the commission and if one of your properties you listed was sold then you would get 20% of the commission, you dont always sell your own listing as any agent in the office can sell your listing so if one of your listings was sold for $250,000 and the commission was 3.3% then the total commission paid by the seller is $8,250 and 20% of that is only $1,650. now say you are working there for 3 months, your retainer is up to $5,640, if it takes 1 month to have one of your listings sold and 8 weeks until settlement you are only paying off $1650 of your retainer.

    I worked there for 4 months and i got 4 listings and i didnt sell one single thing because i didnt like to push people or lie to them or constantly call people i knew who were not interested ( i was told to call every client 6 times before giving up on them). another part of my job was door knocking and trying to get people to sell their house with me, i didnt do this once as i hate people coming to my door but it is part of the job and it gets results.

    i say give it ago as i hated it so much but i think it was the very best thing i have done.

    Profile photo of lordopglordopg
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    @lordopg
    Join Date: 2010
    Post Count: 50
    hannahbella3 wrote:
    hi,
    I have been reading this forum for many months now but this is my first post.

    my name is Hannah and i am a waitress living in Kalgoorlie, i have always wanted to become a real estate agent and i got this opportunity when i came to kalgoorlie a year and a half ago and im so glad that i did as i learnt so much that it is now helping me with my investment portfolio.

    i was paid a retainer of $470 a week which is the law in wa now, but you had to pay it back when you made a sale or if one of your listings was sold. if you sold a property you would get 20% of the commission and if one of your properties you listed was sold then you would get 20% of the commission, you dont always sell your own listing as any agent in the office can sell your listing so if one of your listings was sold for $250,000 and the commission was 3.3% then the total commission paid by the seller is $8,250 and 20% of that is only $1,650. now say you are working there for 3 months, your retainer is up to $5,640, if it takes 1 month to have one of your listings sold and 8 weeks until settlement you are only paying off $1650 of your retainer.

    I worked there for 4 months and i got 4 listings and i didnt sell one single thing because i didnt like to push people or lie to them or constantly call people i knew who were not interested ( i was told to call every client 6 times before giving up on them). another part of my job was door knocking and trying to get people to sell their house with me, i didnt do this once as i hate people coming to my door but it is part of the job and it gets results.

    i say give it ago as i hated it so much but i think it was the very best thing i have done.

    WOW! That sounds BRUTAL! Congratulations for lasting that long, I would have been out of there lickity split! That said, I have bills to pay (rent etc) so that would just not cut it! I don't really understand how any one could survive with that? Unless you're amazing at sales!

    I dunno, that's just me!

    Thanks for the story :)

    Profile photo of jelovea2003jelovea2003
    Member
    @jelovea2003
    Join Date: 2010
    Post Count: 18
    hannahbella3 wrote:
    hi,
    I have been reading this forum for many months now but this is my first post.

    my name is Hannah and i am a waitress living in Kalgoorlie, i have always wanted to become a real estate agent and i got this opportunity when i came to kalgoorlie a year and a half ago and im so glad that i did as i learnt so much that it is now helping me with my investment portfolio.

    i was paid a retainer of $470 a week which is the law in wa now, but you had to pay it back when you made a sale or if one of your listings was sold. if you sold a property you would get 20% of the commission and if one of your properties you listed was sold then you would get 20% of the commission, you dont always sell your own listing as any agent in the office can sell your listing so if one of your listings was sold for $250,000 and the commission was 3.3% then the total commission paid by the seller is $8,250 and 20% of that is only $1,650. now say you are working there for 3 months, your retainer is up to $5,640, if it takes 1 month to have one of your listings sold and 8 weeks until settlement you are only paying off $1650 of your retainer.

    I worked there for 4 months and i got 4 listings and i didnt sell one single thing because i didnt like to push people or lie to them or constantly call people i knew who were not interested ( i was told to call every client 6 times before giving up on them). another part of my job was door knocking and trying to get people to sell their house with me, i didnt do this once as i hate people coming to my door but it is part of the job and it gets results.

    i say give it ago as i hated it so much but i think it was the very best thing i have done.

    Hi hanna~

    I would like to ask do they provide training? Did you learn anything valuable during this 4 months?
    What they telling me during the interview is how wonderful the oppotunities, unlimited potentialearning… things like that.. to make you feels like if you take the risk you can earn much more than day to day 9-5 works.

    Profile photo of red123nzred123nz
    Member
    @red123nz
    Join Date: 2007
    Post Count: 73

    Hi Jev,

    I have gone from a full time job to doing sales work with only commission base. I would suggest doing this if you have no base costs such as rent and food etc. I would budget say 3 – 6 months and say if I do well in 3 months I will keep on going if not I will re assess it. I moved from an agents role into property finance so where there is a will there is a way.

    Secondly ask questions and write it down to that you can clarify exactly how you are going to get paid. Remember in a court of law verbal contracts dont stack up. This way you can also find out if the person/company is tricky and only want you as bums on seats.

    Thirdly, all agencies paint rosy pictures to get you excited and motivated. This is great and does help you get excited about the opportunity. However, you do need to be realistic and give your self time to succeed.

    I agree with others who said make sure you find out the time frame of when you will get paid. It takes a while for a normal contract to settle so imagine off the plan sales!

    Furthermore, it would be fair to ask for a retainer as you have never worked in this field. I think by law the company may be required, not sure depends on what state. You should probably ask as well if you will be sitting your agents license as you are involved in the selling of real estate property.

    Good luck

    Sean

    Profile photo of hannahbella3hannahbella3
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    @hannahbella3
    Join Date: 2010
    Post Count: 5

    jelovea2003,

    Yes you do learn alot and they dont just throw you in the deep end, they should first let you sit in on any deals and appraisals and then they will sit in on any deals that you do. also we had a two hour training session every week so the training is ongoing. in the training sessions we often did role playing pretending we were buyers or sellers which was good when doing it with one of the agents who had alot of experience. but they also taught us how we should lie, for example, if a buyer offers $200,000 on a house and you talk them up to making the offer $205,000, you then ring your seller and tell them you got an offer for $200,000 and tell them to leave it with you as you are sure that you can get them to increase their price, ring them back in half an hour with the real price and the seller thinks you are great because you tried so hard to get more money for them, i had a huge problem with this as i hate lying and i refused to do it. and i was quiet disgusted with the other agents that did it.

    yes you can make alot of money but you have to be a very good sales person to do this, that is why i wasn't very good. some of the agents in my office had been there for over a year and they were still on the retainer.

    oh and kiss good bye to your weekends as thats when you have to hold all your open homes.

    -thanks lordopg.

    Profile photo of BennyteeBennytee
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    @ten_burner
    Join Date: 2006
    Post Count: 243

    Hi J

    I think you could get an admin job working in a Real estate agency no worrys at least you will get a guranteed income, and you can learn about sales and property management while your their and possible move into sales full time at a later date

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