I am thinking of a career change.....

I work for a large entertainment company. I make a modest 35,000 a year and don't see a promotion in the near future. I am in my mid 30's......and I can really say....I am hating my job, more and more.

I am thinking about going into real estate. I live in a very competitive market for it, a very high profile area. Orlando! Houses are being built like crazy...and of course people want to move here and buy here.....

I know I can do it and be successful (99.9% sure)

What do you all think? Do you all have any pro's and con's?

Well, you’re moving from a regular stream of income (salary) to what could be a variable stream of income (commission), which is an important factor in my mind. There are many other factors to consider.

1. Do you have enough savings do endure the transition from your last salaried paycheck to your first commission check?
2. Have you investigated the licensing steps and can you accomplish those prior to leaving your current position?
3. You’ll be a 1099 employee now which means tax withholding, social security, etc. is your burden.
4. Health insurance – when you leave your current position, how will you transition to new insurance? Are you aware of the steps you may have to go through while getting your own insurance (physical exam, pre-existing condition stipulations)? Are you prepared for the potential increase in costs? Consider other forms of insurance as well (dental, eye, etc.).
5. You may be entitled to more write-offs now that you’re self-employed, so it would be wise to work with a tax professional that can assist you.
6. Consider a small business retirement plan (SEP-IRA, Profit Sharing Plan, and Money Purchase Pension Plan) which allows you to really save for retirement and self-direct your investments.
7. Do you have a network of people in related industries (mortgage, home inspectors, etc.) that you can partner with on certain deals to help build your reputation, business and referrals?
8. How will you market your business (advertising, local gay Chamber of Commerce, etc.)?

I resigned my position with an investment firm on August 1 to find a better career. I have turned down several opportunities, including one full commission position. I am still looking for the best fit for me. There are many factors to consider, and they are different from individual to individual. I do know one thing, while income is important; finding a career you enjoy is probably the key for me.

I’m sure that others can offer many additional pro’s and con’s that I have left out of this post as well.

Great advice, Coyoteugly. I'd add:

Talk to a bunch of people who do what you want to do and find out if they like it. Is it going to be more stressful and do you care about that? I've been an Administrative Assistant in the commerical real estate business before and some of the people you deal with are total ass****s. All the money at stake makes people get ugly at times. Are you prepared for that aspect?

And what if the market collapes in your area? Do you have a back-up plan if you can't sell something for 6 months?

Best of luck to you, Pacerpride, and keep us updated, OK?

[ February 17, 2004, 09:58 PM: Message edited by: Jim Allen ]

Coyoteugly has many great points. Also, remember that you will be responsible for all of your own expenses--business cards, file folders, stapler, etc. Things you take for granted that your current employer probably provides. You will also have to pay for your advertising, and a camera (most likely digital) for taking photos of properties. They are tax deductible, but you still have to shell out the money now, and wait for the tax deduction when you file next year. You will associate yourself with an existing agency (ReMax, Century 21, etc.) but you will still be responsible for those expenses. They will give you access to listings, a desk and maybe computer access, but that's about it. Depending on the company, you might get some online advertising. I'm not sure about Florida, but here you can't hang your own shingle as a broker until you have a set number of years of experience as an agent, and go through additional training and licensing.

You should have a minimum of 6 months of living and business expenses saved up. Again, I don't know about Florida, but here it takes 60-90 days minimum to close on a property. You don't get paid until the property closes. And most people take a couple of months looking before they find a place they like. So even if you are fortunate to sell something to your first client, that's probably at least 4 months down the line before you see a check. Odds are you won't sell to your first clients... it's not hard, but it is a learning curve (what to say, what not to say, how to work with clients, learning the market, etc.). And deals do fall through for a variety of reasons. Having done real estate, I found the hardest part (for me) was getting clients.

I would never discourage anyone from making a career change, especially if they are very unhappy in their current one (I have done it myself). But this is not like getting a new job... you are an independent contractor, with no salary, no benefits, no office supplies provided. So be prepared. And good luck!

Some more thoughts... yes, you will be able to set your own schedule (though your agency may have some required, but limited, office hours, or phone duty), but are you disciplined enough to get up ever day and work. When you have a "regular" 9-5 job, you go to work even if you don't feel like it. With this, if you don't have an appointment with a client, it's easy to fall into the trap of, "I feel like taking the day off," or "I'll sleep in an extra few hours." Do that too much, and you won't be doing the necessary legwork to be successful. Most of the job is done without clients... they don't see the time you put in. So you must have the discipline to force yourself to go to work when no one is telling you to, no matter how nice the weather may be.

Also, I don't know your current schedule, but are you prepared to give up most of your weekends, and some evenings? Those are when most people are able to view properties. That's when most open houses are. Are you prepared to be "on call" to some extent, taking and returning calls at home in the evening at times? Also, you'll have to either significantly up your cell phone minutes, or get a separate cell phone for business. More expenses.

Not trying to dissuade you, but I think it's important you have a good perspective of what the job entails, especially if you want to be successful, and not just get by. It sounds good--set your own schedule, be your own boss, flexible hours... those are true, but when the phone rings at 8 or 9 in the evening, are you prepared to take the call? When your friends invite you to join them on the weekend, will you be able to turn them down most of the time? Perhaps it's not as intense in Florida as it is in NYC, but I think these same issues exist just about everywhere.

Jim Allen, commercial real estate is a whole different ballgame, and is much more complex with a lot more money involved. You can make more money doing less deals than you can in residential. But it takes a complete different skill set, and is extremely numbers driven, as opposed to needing sales skills. However, if it makes you feel better, there are lots of ass****s doing residential as well... LOL

Thank you all for your advice and info.

It is just something I have in my mind. I am meeting with our realtor on Friday and she is going to give me some advice and now I have more questions to ask her thanks to you all!

I am thinking of it as more of a goal than anything. Within the next four years I am thinking I want to accomplish it.

My lover and I have just bought another house. The first house we bought I was 28...and I was thinking, wow I'd like to be a realtor. I like busy and sometimes stressful work, and the hours don't really bother me. With this house we are buying, again I am wanting to be a realtor again. But there is a lot to think about!

Great advice! Thanks!

Hey if you have any advice on renting a home...let me know.

With our second house bought, we are planning to rent the first one. We close on the new house early March.

Any advice good or bad is appreciated and I thank you!

In an attempt to jump-start my career last year, i went back to school for some legal training with the intention of becoming a legal assistant. I lucked into a good entry-level position with an excellent firm. However, i still need to learn a lot, and haven't had much opportunity to do so. So far it has mostly been a lot of stuff i have no interest in. Granted, you have to start off somewhere and work your way up, but i am no longer sure if it's what i want.

I really enjoyed the change and going back to school, so it has been hard to crash and burn so quickly. The only thing i can say is to make sure you really know what the work is like, and do not get too excited about a different direction. Just because it is different doesn't mean it will be better.

I should've said....

Any positive or negative advice is appreciated. Not good or bad.

Thank you all!

Hahahaha! I should have added \"..and while I know commercial and residential RE are different...\" to that sentence. Large sums of money can make people insane, can't it?

Here's a possible direction.

I haven't seen it but there's a show in England on the BBC about a gay Scottish couple (I found out about it on gay news site) who have bought, renovated and then sold a bunch of properties and were filmed while doing it. Apparently, it was a big hit for Auntie Beeb. Have you thought of that? I'm not suggesting you move to England and get a show on the BBC , but you wouldn't have the hassles of being a standard real estate agent--you'd have new ones! I've read stories about people doing this and it can be a nice living. Here's a website for the show, The Million Pound Property Experiment.

[ February 18, 2004, 08:16 PM: Message edited by: Jim Allen ]

I recently went thru a career change. I was working for a Fortune 500 real estate firm (res, comm)as an HR Director. I thought long and hard about getting into residential real estate ... but there's a strong sentiment in the big business world that the real estate market bubble will soon burst.

IMHO, real estate is not the best place to start a career.

Lots of good advice - what a brainy, clever bunch of queers we are.

A close friend of mine made the career move into real estate (obtained her licenses, all the legal goodies) in the exploding market of Orange County, California. She is not happy. The biggest problem she has is the schedule thing - turning over her life to her clients schedules - weekday evenings and weekends. It really has impacted the time she has with her kids and hubby.

Think about how this change would affect your relationships - but above all - find something to do that you actually like to do.

Hey Pacerpride, did you see this week's "Will & Grace." At the end, Grace suggested to Will that they get into business where they buy cheap run down real estate and Grace fixes it up and then sells it at a premium.

I've heard of people doing that. You might consider that as an alternative to being a realtor. You'd be in the market but in a way that you can control more in terms of your schedule. It may be just as lucrative. Also, sounds like you and your partner are already in that direction since you're buying one home after another. (Of course, living in a studio in San Francisco, I will have to hate you. wink )

In terms of making a career change, I do agree with everyone about the whole "follow your dreams." I'm in the process of changing careers trying to get into something I love. I have to say that you should feel more comfortable to do the change with someone in your life as a safety net. It's very difficult to make a career change on your own. But with a partner, (depending if he's well established, a sugar daddy, or thinking of changing careers too) you can move a little more comfortably knowing that someone else is taking care of the major bills while you explore new things. You can pay him back later! (Or maybe you already do? )

I need a lesson or book or test or something on how to figure out what career to try and go into. If I had the slightest idea what I might like to do, I'd quit my job in a second.

Unless, of course, I could get paid to post messages here. Heck, I wouldn't even need any training! Hey Jim & Cyd: any job openings? wink

[ February 20, 2004, 02:40 PM: Message edited by: Joe in Philly ]

batboy....just so you know...I don't have a sugar daddy as a lover! We have been together for 16 years....and are salaries have been comparable. Well, up until last year. He is making some money now, and he could triple my pay this year and possibly more.

Please don't hate me!

Anyways...batboy...yes I did see that episode of Will and Grace the other night...and YES, I thought the exact same thing! It would be great! And it is really something to think about. Thanks for your comments!

Joe in Philly, there are several books out there, just head off to your local Barnes & Noble and flip through them. However, "What Color Is Your Parachute" is year in, year out considered the top book on this subject. I haven't used it personally, but I know it is updated regularly and has been considered the best career guide out there for years now.

Hmmmmm... after this thread, maybe I should consider going into career counseling. LOL