If you want to become a real estate agent in California you’ll need to get a real estate license -shocker! The requirements are pretty simple and straightforward. The most basic is that you have to be Read more...
If you want to become a real estate agent in California you’ll need to get a real estate license -shocker! The requirements are pretty simple and straightforward. The most basic is that you have to be at least 18 years old and must complete three college level courses in real estate.
Getting licensed is the first step - If you want to work in the real estate industry you will eventually have to place your license with a real estate broker who will act as your “responsible broker”.
Before you can start working, however, there are some additional requirements which include taking and passing the real estate license exam and obtaining your real estate license, and clearing criminal background. Once you complete these steps, you’re eligible to be licensed to work as a real estate agent in California. Depending on state processing timeframes this process can take approximately five to six months from start to finish.
As a student in our real estate license school, you should understand there are some fees associated with obtaining your license. The good news is you don’t have to pay them allat once as the costs can be spread out over the course of several months. Here’s a quick rundown:
1. 135-hour pre-license course [3 college level classes in real estate]
In order to take the real estate exam, you’ll have to complete three college level courses in real estate. The classes are Real Estate Principles, Real Estate Practice, and an elective that you would choose from a list of possible courses. ADHI Schools offers a variety of choices from Real Estate Appraisal, Property Management and Escrows among others.
While these courses could be completed at a community college my recommendation is that you complete these at a private real estate school like ADHI Schools. The classes can generally be finished faster and our textbooks are included with one low price. How you choose a real estate school is an important decision that should be taken seriously.
We also offer optional-to-attend study sessions over Zoom and in-person real estate crash courses to prep you for the actual state board exam. Our programs also offer hundredsof practice questions so you are ready on test day! Our premiere package including the crash course is just $499.
2. State exam fee
The fee for the sales license exam is $100 and is payable directly to the state. There are small fees paid to the state if you need to reschedule your test.
3. Livescan fee
Everyone seeking to operate as a California real estate agent must submit their fingerprints through DOJ's Live Scan Program. If you are a California resident, you’ll pay a $49 fingerprint processing fee, along with a $30 fee if you have ADHI Schools perform the Livescan.
Once the fingerprint scan is submitted and fee is paid, your fingerprints are sent to the U.S. Department of Justice and the Federal Bureau of Investigation. The DRE will review the background and issue your license or reach out to you for more information.
4. License application fee
Once the above steps are completed, all that’s left is the license application fee, which is $350 in California to obtain a real estate salesperson license. The DRE requires a license to be renewed every four years, which costs $350.
5. Future expenses
Accompanying the $350 fee due every four years for renewal, the DRE requires licensees to complete 45 hours of approved continuing education courses This includes courses that cover Ethics, Agency, Fair Housing, Trust Fund Handling, Risk Management, and Management and Supervision. Licensees must also take approved courses related to consumer protection. Continuing education must be done prior to renewal. These costs are trivial and the class are also super affordable.
This breakdown should help you factor these and future costs associated with your decision to enter our great real estate industry. Essentially, your startup costs to become a licensed real estate agent in California will only be a few hundred dollars making this a very affordable career choice - especially considering you can immediately get to work without having to go through years of college.
If you are interested in learning more about getting your real estate license, reach out to us by phone at 888 768 5285 or visit our website here.
One word of caution - please make sure that you are reviewing the DRE and our own website for the latest exam and license fees.
Love,
Kartik
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FOLLOW UP IN SALES
If you have ever sold anything, you know that it’s extremely rare that a sale is made on the first contact. Even for something as benign as a shirt or bag, the customer Read more...
FOLLOW UP IN SALES
If you have ever sold anything, you know that it’s extremely rare that a sale is made on the first contact. Even for something as benign as a shirt or bag, the customer may need to come back to the store or review the item online a few more times before committing to the purchase. Before you enroll in a real estate school, it's important to be aware that real estate sales is just that - sales. Follow up is probably the most important aspect of the sales business.
Much of the time, it will take at least 3-4 contacts before your customer signs. In the case of real estate sales, it might take even more contacts as the sales cycle can be longer given the transaction size.
Even though this is a fact of business, most sales people don’t follow up nearly enough or as hard as they should.Reaching out to customers after an initial contact makes several positive impressions at once.
Here are just a few of them.
Follow-up and follow-through show your client:
• You're trustworthy.
• You're available.
• You care about their experience.
• You think they're special.
Mastering the art of the follow-up helps you become a more successful salesperson.
• You learn what the customer expects or wants.
• You give a customer the chance to be heard.
• You can convert a contact into a lead.
• You make the contact more inclined to work with you over other agents.
• You stay fresh in the customer's mind. Even if they're not ready to buy/sell right now, they may be later.
With so many benefits, you should definitely pursue following up as a key prospecting strategy to help you nurture leads and build more business.
How Many Times?
Statistics about agents who followed up more frequently versus those who didn’t are staggering. A recent report shows that agents who follow up on their leads five or more times made at least $200,000 per year. Those who followed up less frequently, even three times, reported significantly less earnings.To many of you, three times seems like a lot already, but it looks like five times is the magic number. Real estate depends on many tenacious sales tactics like this one. If you need to overcome the fear of prospecting, remember that the sale is made in the follow through, not in the initial contact.
The Nature of an Effective Follow-Up
If you're not following up with customers, you're setting yourself up to fail. The real estate game is all about gaining new prospects and leads. As such, you must constantly build your sphere of influence, your pipeline and ultimately gain the trust of new people.But before you pick up the phone or hop on the computer, you should take some time to review the best practices of a follow-up. It's more than just randomly calling people you meet. You need to contact people intentionally.
• First, have the right attitude. Sit up straight and exude confidence in your body language and voice. Your customers can sense if you're not sure about what you're selling.
• Follow up with hot leads first. These are the people who are most likely to become clients. You will get a higher success rate when you prioritize hot leads. Plus it’s easier to build your confidence with warm and hot leads rather than “leads” that are unlikely to buy.
◦ Segmenting your contacts is a valuable habit that will help you determine which contacts are more likely to lead to a sale — and therefore more worth your prospecting hours. Try cutting your prospects into groups of “hot” “warm” and “cold”. You must define what “hot” “warm” and “cold” mean. To me, a hot lead is one that will sign a contract in the next five to seven days.
◦ Follow up with a new lead within the first day.
◦ A hot lead should be reached every day
◦ Contact cold leads on a less frequent basis, between monthly and annually, depending on the nature of their real estate needs.
Hit multiple channels
Some people prefer one kind of contact method over the other, so being present on multiple channels can do wonders in reaching them. Here are a few to try:
◦ Phone calls
◦ Emails
◦ Text messages
◦ Social media DMs
◦ Event invites
◦ Direct mail postcards (check farming.cards as a valuable tool).
Vary your approach
You can make direct calls some days or use softer marketing techniques at other times. Sometimes offering informational content reaches leads without seeming too "salesy," such as sharing home-buying tips on a blog or advice on HVAC repair in a video.
Learn Real Estate Marketing and More at ADHI Schools
This is just the tip of the iceberg when it comes to a great real estate marketing strategy. When you take our online real estate classes, you'll learn the ins and outs about becoming a great agent who can nurture great client relationships. Follow up is a critical part of that.
-Kartik
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Over the past 15+ years, I have taught literally thousands of people real estate at ADHI Schools. This has amounted to over 11,000 hours of real estate classes in a classroom setting.
In short, I’ve Read more...
Over the past 15+ years, I have taught literally thousands of people real estate at ADHI Schools. This has amounted to over 11,000 hours of real estate classes in a classroom setting.
In short, I’ve seen it all. I’ve seen people join the business during deep recessions and also in the best of markets. I’ve witnessed many people start out in different circumstances and have noticed three common reasons may fail to launch their careers once they leave our classes. This is true whether students take real estate classes in Los Angeles or otherwise.
Understanding these pitfalls can help you avoid them and ultimately succeed. My deepest wish is for you to be successful in your endeavors, and a large part of success is avoiding common mistakes.
I recently recorded a YouTube video onthree reasons I think some people fail in the real estate business if they’re not careful:
1. They Fail to Treat It Like a Business
When people get into our industry, they often don’t manage their time well. The flexible hours that real estate provides can shock a former 9-to-5 salary worker in terms of the level of freedom they suddenly have in their schedule.
The change in routine feels nice. It’s tempting to get lazy. Instead of jolting awake to the alarm clock at 5:30 am, they realize they can sleep in if they want to. This also means they can stay out a little later. This often starts a cycle of time mismanagement.
They’ll start to go to bed a little later and then sleep in. When they had a 9-to-5, they would hit the gym at 6 am, be out by 7 am and be in the office by 8:30. But in real estate, agents can wake up when they want because they don’t need to be in the office at any set time. Their new flex hours, which could potentially be an asset, are now a stumbling block.
On the other hand, those who treat real estate like a real job maintain structure. They show up at their office in the morning and are ready to work. They don’t leave whenever they feel like it or treat it like a part-time gig. If you want full-time success, you need to be prospecting like a full-time job. You also need to constantly improve on your know-how and build upon your expertise.
Think about this analogy: You have a restaurant that opens at 11. Do you show up right at 11? No! You arrive a couple of hours early to do kitchen prep so when the doors open at 11, you offer great food and service to your customers.
The same goes for real estate. You need to apply the same discipline to your time as you did when external forces were dictating when you showed up and worked.
2. They Fail to Remember It’s a Sales Job
Your real estate job comprises two basic components: lead cultivation and closing. A lot of people float along hoping to stumble into deals handed to them by friends and family. Sure, you can probably survive the first six to ten months with deals from friends and family, but what happens when you sell the houses of everyone you know? What if you don’t have a big sphere of influence? Are you actively prospecting? Do you use social media to reach out to new prospects? Are you actively promoting yourself online and with everyone you meet?
This is a sales job! A lot of people aren’t naturally comfortable with the idea of being a salesperson. As a salesperson, you need tenacity and passion. Reaching out to new prospects and leads may initially feel uncomfortable but eventually you’ll get more comfortable with selling. You need to constantly be looking for new leads even when you are busy, so that you never have a time when you’re not.
3. They Run Out of Money
When you start the business, you’ll need to pass your real estate exam and pay license fees and association of Realtor dues. These can all add up quickly, especially if you’re using your own money to market and promote your listings.
Because escrows are often lengthly, it’s important to understand that it takes time to close on properties. During this time you’re not getting paid, so the first six to ten months can be rocky financially. I see some people return to the 9-to-5 job because they run out of money — however, this whole situation can be avoided with some preparation.
Before you start making enough to go full time, it will take time to build up a pipeline in the first year. Have some savings set aside or a spouse to support you until you make enough to sustain yourself again. Overall, a financial safety net increases your chance of success during an agent’s first year.
Learn What It Takes to Succeed
Are you interested in learning more about the exciting real estate business? Do you want to take real estate classes online or do you want to attend real estate school in Orange County? Take our classes to get a leg up in the California real estate market.
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I was reading the Los Angeles Times this morning and came across an interesting article entitled “How to keep your job during layoffs”The article advises that the following be done:1. Anticipate what Read more...
I was reading the Los Angeles Times this morning and came across an interesting article entitled “How to keep your job during layoffs”The article advises that the following be done:1. Anticipate what your company needs.2. Keep up your skills.3. Stay positiveI started to think that the above also applies to life as a real estate salesperson.Anticipating what your company needs is important to stay relevant as an employee. How does this apply to life as a real estate agent? What about anticipating what your clients need? This is very important. What if a new listing comes on near one of your listings that is less than yours? Price reduction anyone? What about a new listing that comes on the market for one of your buyers? Staying relevant and timely is important no matter what you do.Keeping up your skills is also important. When was the last time you took a class or went to a seminar? Many local associations give free classes for short sales and REO properties these days. Take advantage of these and keep learning. My mom always used to say ‘In order to earn more you have to LEARN more.’Finally, staying positive always helps no matter what you are doing. Click here for one of my favorite videos about this.
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I received an email from a student today asking if I thought he should work on a team as he starts his real estate career. This is an individual decision and is one that should not be taken lightly.One Read more...
I received an email from a student today asking if I thought he should work on a team as he starts his real estate career. This is an individual decision and is one that should not be taken lightly.One of our instructors, Chris Montague, started in the business and worked on a team with a top producer. He says that he learned sales skills and discipline that he would not have learned if he started on his own. I have uploaded his mentor Robert Adams' interview with us to YouTube. You can check it out hereI am blogging about this because I suspect that some of you may be considering working on a team as well. Before you make this decision, I would recommend reading this article that does a good job of pointing out the pros and cons of the team model.
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As part of our new website I had the good fortune of interviewing three groups of people recently. The first group was comprised of current Adhi students.The second group was a group of students who had Read more...
As part of our new website I had the good fortune of interviewing three groups of people recently. The first group was comprised of current Adhi students.The second group was a group of students who had taken classes with Adhi Schools and passed thie state exam within the last one to six weeks.The last group was comprised of industry veterans. A common theme in nearly all the interviews was that people taking the classes and in the real estate industry want to take control of their own destiny and put their future in their own hands.Stay tuned for the videos.
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The following is an interview with Sophia Lopez, the administrative manager of ADHI Schools. She is a licensed real estate salesperson and has been with the company since 2005. Q: How did you end up working Read more...
The following is an interview with Sophia Lopez, the administrative manager of ADHI Schools. She is a licensed real estate salesperson and has been with the company since 2005. Q: How did you end up working with the school?A: I was working with another real estate company that was downsizing. Kartik taught a class there and ended up hiring me right away!Q: What do you think sets our school apart from others?A: Accessibility to our staff and the live element of our courses. Come check out one of our classes!Q: You have seen hundreds and hundreds of students come through our doors. What do you think separates successful students from unsuccessful ones?A: Determination and students that are persistent and eager to learn. Asking questions is a must.Q: Do you have any advice for those applying for the exam?A: Go to one of our crash courses and do questions and answers over and over again.Q: As an assistant to Kartik Subramaniam, you have seen real estate agents that succeed and those that are less successful. Any advice for new agents?A: Don't get discouraged and stay focused. Come to the office everyday. Something will pop up! Treat this business like a regular job.Sophia can be contacted at sophia@adhischools.com
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The Prudential Legend award is given to Prudential real estate agents that have achieved Chairman's Circle at least 5 times. Currently, Chairman's Circle is at least $300,000 in income or 70 residential Read more...
The Prudential Legend award is given to Prudential real estate agents that have achieved Chairman's Circle at least 5 times. Currently, Chairman's Circle is at least $300,000 in income or 70 residential units sold in one year. I had the opportunity of having breakfast with a Legend inductee Daniel Bryant, broker/owner of Prudential California Realty in Sierra Madre. Bryant has had offices in Monrovia, Pasadena and Sierra Madre. Formerly he has held senior positions at Bank of America and Cushman and Wakefield.On a recent Sunday morning I met Mr. Bryant for breakfast at the San Gabriel Country Club where he is a member. We talked about the state of the real estate market and what it takes to be successful.To paraphrase our conversation:Dan echoed something that I head often from brokers and managers about the business: "Treat this like a job. Show up at a certain time every day and go to work. You will get business."Send handwritten notes every day. These really make an impression.Market to people that you have existing relationships with. They know, trust and like you already. This is a great place for new agents to start looking to get business.Real estate is all local. Certain markets will get hit harder than others. Know yours - your clients are counting on you.Dan Bryant is always looking for new salespeople. He can be reached at danielbryant@earthlink.net.
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Ughh. The age old question. Real estate is all about image and flash, isn't it? I say hell no! As long as your car has the following you should be fine:Air conditioningHeatingKEPT CLEAN AT ALL TIMESThere Read more...
Ughh. The age old question. Real estate is all about image and flash, isn't it? I say hell no! As long as your car has the following you should be fine:Air conditioningHeatingKEPT CLEAN AT ALL TIMESThere is no need to put yourself in debt as you start this career. Some managers say "Go out and buy yourself that new car. The payment will make you work harder!" Is your manager/broker going to make your car payment for you until your deals close? Why put that undue pressure on yourself, especially in this soft market. Wear clean, well-pressed clothes. Pick up your phone. Return calls. Have a clean car. Most of all - DO YOUR JOB.
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Upon finishing the real estate course at ADHI Schools, LLC many of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question.
The main thing to remember as Read more...
Upon finishing the real estate course at ADHI Schools, LLC many of our students ask, "How do I pick a real estate office to work for?" Definitely a complicated question.
The main thing to remember as a new agent is to pick an office that has a structured and scheduled training program. Don't be enticed by high commission splits (easier said than done - I know!) or empty promises. Learn the basics like how to fill out a contract, how to get clients and service them right.
Give it time - The money will show up if you stick with it and do a good job! When interviewing brokers be sure to ask for a copy of the WRITTEN training schedule. If the office doesn't have a WRITTEN program and structure chances are they are just "winging it" and you should beware.Give it time - The money will show up if you stick with it and do a good job! When interviewing brokers be sure to ask for a copy of the WRITTEN training schedule. If the office doesn't have a WRITTEN program and structure chances are they are just "winging it" and you should beware.
Also be advised that some offices do have desk fees. Technically desk fees are calculated by taking the total expenses of an office and dividing by the number of salespeople. As an example, if an office has total expenses of $20,000/mo and 100 agents, each agent may be required to pay $200 to offset the hard costs of running the office. This is a watered down example of how desk fees are calculated, but each broker has their own policy in terms of what is charged to the agent and when these fees are paid. Typically, you may expect to receive a slightly higher commission in this type of office because you are paying in each month, but again every office is different.
Brokers that are affiliated with a national franchise may also have something called an "off-the-top" fee. This ranges from 4-8 percent and is calculated before your commission split. As an example, if you were on a 60-40 commission split and there was a 5 percent off-the-top fee, 5 percent would be deducted from the gross commission prior to calculating your 60%.
Example: $10,000 gross commission.
- 500 (off-the-top/franchise fee)
-4,000 (40% to broker)
________
$5,500 (agent take home)
Check out this YouTube video explaining how real estate commissions are paid.
Got questions about a certain office or what they are offering? Call our office today at 888 768 5285. We'll walk you through it. Or better yet, call us for recommendations. We'll lead you in the right direction!
Love,
Kartik
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