06 Dec How Successful Are Commercial Real Estate Brokers?
We’ve all seen it. People who look like they have it all together. All the nicest clothes or watches, picking up the tab for the table. But then they get home and scratch and scrape to pay their light bill.
This same illusion can hold true for commercial real estate brokers. A lot of people see commercial real estate brokers who are high rollin’, marveling at how successful they are and wonder if they should go for it as well.
The important thing to remember anytime you’re looking at someone else’s success is to understand that they may not be as successful as they appear. For instance, in the world of real estate, it’s common to look at the purchase price of a recent sale, figure out the 6% commission earned by the broker, and think “wow, this guy is really raking it in!” But while that figure might look like it could pay your bills for a year, it’s actually pretty deceiving.
That lump sum doesn’t take into account taxes or expenses that the agent accumulates throughout the lead generation and sales process. The hours worked booking the listing and scheduling the showings. The meetings that lead to the actual closing. Taking all of this time and work into account can make that figure seem a little smaller than it did at first glance.
But, the reality is that there are lots of very successful brokers who are actually raking in 6 and 7 figures. These very successful commercial real estate brokers know that to do this it takes a lot of work, smart focused work. And they also know that building a strong team is integral to their success in the world of commercial real estate.