Hello Thinker,
Good Evening!
The question you broached is a critical one that perhaps is 50% of the conversation time I have with all my potential associates. It is the second leg to the equation that I call the "Financing Plan", that goes together with the "Business Plan".
Real Estate is NOT a career, it is a business, and must be rightly assessed as such.
The Business Plan side of the equation contains all the flowery potential of how far the business can take you, but it is the Financial Plan that determines the odds of success. As you have rightly pointed out, some new comers even set aside 6 months of savings to cover expenses. This is rightly so given the traditional statistics of real estate.
From the time you sign up for your classes till you get your license, this is easily a 14 week time horizon, coupled with the fact that new associates are NOT expected to close their first deals within the first 6 months, you can see why many are prudent in keeping such levels of savings. This savings however is not a rule of thumb figure. It is benchmarked against the proposed "Business Plan".
If you are using highly leveraged systems to generate leads and close deals, you will be expecting a significant expenditure outlay. On the other hand, if you are using more direct marketing approaches, you will find that your expenses are considerable less, the cost being more blood and sweat. Still, for new associates I always recommend a balanced approach of BOTH systems, and DIRECT marketing.
For all new entrants that I meet, it is ALWAYS critical that the proposed business plan and the financial plan both BALANCE. Failing which, you coming under my care and tutelage becomes a doomed exercise. When the above 2 meet, then the only ingredients are sheer will, determination and a positive attitude, and the deals will come on their own.
I hope the above answers your concerns. Also, I would like to leave you with this thought. A new associate always hold tremendous potential, but are always delicate. If well tended and groomed, they are like a quiet amber that slowly grows into a raging flame. If tended poorly, then once the confidence is shattered, they will likely never walk this path again.
Thus, plan your moves wisely, and then take the plunge! Good luck!!
Best Regards,
Mervin Tang
Marketing Manager
Division Lead Trainer, Project Sales
CEA Reg No. : R030951Z
Huttons Asia Pte Ltd
Mobile:
(65) 9184 0208
Website: http://www.SGrealestate.sg
Sales Enquiry: mervintang@SGrealestate.sg
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