Real estate school vs real estate business reality - the inside scoop from a veteran real estate instructor
Sooooo this is a topic that I could talk about for hours. I'm not even kidding...literally hours! There are so many misunderstood ideas from both real estate students AND licensed real estate agents, so I'm going to try to BEGIN to put some clarity into the muddy depths of this topic.
Unfortunately, I see many of these incorrect assumptions being spread even further in social media agent groups and also within brokerages. I've even seen certain real estate reality tv celebrities repeat some of these, which is absolute ignorance.
As a warning, I am a practitioner, as well as, a certified real estate instructor and I can get very passionate about this topic. Primarily because people will point blame before ever really thinking through some of these ideas, which is simply spreading more incorrect information in our real estate industry. Honestly, do we really need that? Reality tv doesn't do that enough for us all? Okay, enough of my rant, let's look at some of these ideas.
#1 - "I didn't learn anything in real estate school" - Verdict: FALSE
Okay, let's clear up this confusion. I'm going to be very blunt here, so here's your warning for some tough love ahead. You actually were taught A LOT in real estate school. In fact, in 100% of every Pre-Licensing class that I have ever taught, the students have always been concerned about having to learn so much information within such a short time frame. Never once have I had a real estate pre-licensing student tell me "wow, there's just not enough here to learn" or "I already know all this, can I just test out?"
Here's the reality, if you refused to retain that information, then that was not anyone's fault but your own. (OUCH! Ugh, Sorry!) I know, I know, that was harsh, but it was true. No one is going to force you to retain information ever as a self-employed business owner and entrepreneur, but that does not mean that you didn't learn it. The earlier you embrace this fact, the sooner you'll be successful in your business.
Real estate pre-licensing classes are just that....P-R-E-L-I-C-E-N-S-E. It even says it in the title of the classes. These are not real estate business classes. They are not how to set up your real estate business 101. They are not real estate marketing classes. They are not technology classes. These are not how to handle client issues classes. These are not how to handle contractual issues classes.
Pre-licensing classes are your fundamental classes, your foundation. Just like a house has to have a solid foundation before it's built up further, so do you. These classes are the federal and state laws and regulations that you need to abide by in order to HAVE a real estate license legally. That is the only promise of the class. Don't assume these classes are going to teach you how to run a real estate business. They won't and they don't promise they will. That is an incorrect expectation.
Another aspect of this false complaint is that I've had advanced agents tell me they never learned certain laws until it comes up in a legal dispute in a deal. Again, incorrect. Yes, you did learn those laws, you just chose not to either: 1) retain the information 2) thought you were above it and it didn't apply, or 3) wanted to blame someone else instead of taking responsibility for your own actions. (Unfortunately, I've seen #3 exercised more frequently than I enjoy saying from seasoned agents. Let's change this shall we?)
Another reason that this complaint grinds on me so much is that in every Pre-licensing class I've taught, I'll have one or two students that inevitably say "I learn better from hands-on experience than just from a book." Then when they get to go out and do their "hands-on experience" (ie. transactions) they claim they weren't taught it. Wait, huh?, what!?! Please crack open your books occasionally AFTER you're licensed. The more deals you do, the more it'll help you.
#2 - "You won't learn anything in real estate school, but "our brokerage" will teach you everything you need to know" - Verdict: FALSE
For the first section of this please see #1 above. If you have management in your brokerage or your Broker-In-Charge telling you this, there's a BIG problem. (Maybe they need to sit through a pre-licensing class again hmmm???? Just my opinion though.) To begin with, why would a Broker want brand new agents that "haven't learned anything" (ie. the law) working for them?
If you were a Broker would you want a bunch of brand new agents with no legal awareness going out and pulling you into lawsuits? Because that is exactly what would happen. Think about that for a minute. Most of us would say "that's a hard no!" Of course you learned something! If not you would never have passed your state board exams. That's a ridiculous statement in itself for any brokers or owners to be making.
In regards to brokerages "teaching you everything," that is also false. To begin with, some brokerages do have a lot of training available to agents, but others have zero training too. It's completely up to the individual brokerage itself. One thing I'd like to also point out here is that even if a brokerage is under a franchise, each office still runs separately. That is what that whole "Independently Owned and Operated." line on everyone's advertising basically means.
Yes, there will be some aspects that will be the same, ie. signage, logo similarities, maybe tech tools, onboarding, etc. However, most do not have franchise-specific requirements when it comes to training. That is up to the individual brokerage office itself. If you'd like to challenge this theory, interview with multiple offices with different owners under the same franchise. Training will vary in type, frequency, local or online, etc. In fact, many things will differ including commission splits, office fees, benefits offered, etc.
Alongside this is that the individual brokerage will teach you what they deem is important to that brokerage. You, personally, may have other aspects that are important to you as a business owner. You need to keep this in mind when you are interviewing brokerages. This is your business, so you need to be aligned with what suits your business goals.
Also, it's sad to say, but there are a lot of inexperienced Brokers out there in our industry. If an inexperienced Broker is leading you, they may not even know how to properly train you or if they are training you incorrectly. Don't be afraid to ask questions when interviewing. Again, this is your business and future, so you need to honor that responsibility.
#3 - "I just want to do deals, the business part will work itself out" - Verdict: FALSE
This may be where you started your real estate journey mentally, but you'll soon learn that to survive here you'll need to get a grip on things. You need to evaluate decisions and see what is working and what isn't. I know you might hate numbers, but you need to know them. Is investing in this product vs. that one worthwhile, etc. You'll also need to evaluate your time and learn how to master that. (See my Real Estate Coaching and Training (<--Shameless plug).
Truly though, you need to take the business side seriously from Day 1. Set goals for yourself, learn how to achieve those goals, learn how to market properly, learn how to implement systems, learn how to communicate effectively with clients, learn how to hire admin, and learn how to also take care of yourself as a real estate business owner. These are all important aspects of any business.
Alright, now that I've clarified a few extremely common incorrect assumptions between real estate school and actually being in the real estate business let me finish up by giving you some valuable advice that's a little softer tone. ;) Ready?
No matter where you are in your real estate journey, remember to pay attention to what people are actually saying and not what you assume. Don't be afraid to ask questions. In fact, ask a lot of questions! This is your business and it can be anything that you want it to be. Whatever your dreams are, big or small, 10 deals a year or 100, there's no wrong answer and they can be nurtured in the right environment. Finding the right soil to grow them is the key. Once you do that, you'll be unstoppable!
Shine On ~ Your Real Estate Coach,
Amanda
