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VIC Starting a Real Estate Profession

Discussion in 'Networking & Meetups' started by baabo87, 8th Jan, 2017.

  1. baabo87

    baabo87 Member

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    8th Jan, 2017
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    VIC
    Hi all,

    I have been working a FIFO life for the past 8 years as an Engineer in the mines, and looking to change career. I've always had interest in becoming an Agent, developer or a career in real estate in general.

    Wondering if anyone can give some good advice on how to go about starting a career?

    I guess my current roster is 8 days in Western Australia, and 1 day of flying back to Melbourne, and 5 days of RnR at home in Melbourne. I am wanting to start a career in real estate, but try and tie it in with my current roster so that I can still maintain my salary as we have financial commitments if that makes sense... and when I can make a sufficient salary off real estate, give my my FIFO role and go all in with my real estate career.

    I know I can study to become an agent online, but do you think there are roles I can perform on a part time basis to accommodate my FIFO roster to gain some experience to help kick start my career?

    I have heard or some people studying and becoming a property manager whilst doing FIFO, so maybe that is an option, but I'm not sure if it's practical to become a property manager whilst you're not in Melbourne...?

    Any advice would be much appreciated

    Thank you all so much
     
  2. Biz

    Biz Well-Known Member

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    Are you a good liar?
     
  3. baabo87

    baabo87 Member

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    I don't like to call it lying, but rather a manipulation of words to get a win win situation :)
     
  4. Biz

    Biz Well-Known Member

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    [​IMG]
     
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  5. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    @MyPropertyPro is a pilot who owns the PM biz and has staff do the day to day work iirc, he would be a good person to have a chat to, knows his stuff.
     
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  6. MyPropertyPro

    MyPropertyPro SE Qld Property Management & Investor Services Business Member

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    Australia
    Cheers Dave.

    It requires, above all else, a passion to overcome the many, many obstacles that you will encounter. It also requires capital, a lot of time and a very understanding wife/girlfriend ;)

    I am also very fortunate to have an amazing business partner who shares the both the above and a similar personal situation so we are always on the same wavelength.

    I'll send you a private message.

    - Andrew
     
  7. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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  8. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    10 days a month is about par for a commercial leasing agent though. The rest of the time they are "BUSY"
     
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  9. tomlemke

    tomlemke Well-Known Member

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    Impossible, your either in or your out!

    I made the change just on 12 months ago from a commercial plumber to a sales agent, i had always wanted to become one just always feared of going backwards.

    Do your certificate of registration, then just contact as many real estate agents or agencies as you can. I had 3 job offers within a week, thats not saying much tho as the turn over rate is extremely high. They will pretty much give any one a go if you present well and are willing to work hard.

    It takes years to establish yourself and for the phone to start ringing, the average agent earns 55k a year working 50 plus hours a week. I would suggest taking a few weeks off work and going to do work experience to see if you will like it, its defiantly not as glamorous as people think 90% of my time is spent on the phone in the office trying to find the next lead.
    I haven't looked back since i started its not for everyone but i'm glad i made the change.

    Just shoot any questions you might have happy to answer any.
     
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  10. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Agree with the above, all or nothing. Working here and there is not going to build your profile to earn any kind of money.

    @MyPropertyPro is a bit of the exception to this, but he also runs the company. If you want to be an actual sales agent, you need to put the hours into it (and it's a lot) and generally speaking spend a good 6-12 months earning next to no commissions.

    I'm in Melbourne, so more than happy to answer some of your questions even over a coffee and point you in the right direction in terms of companies and training - however know it's a commitment upfront or spend the $$ and start/buy your own.
     
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  11. Micko

    Micko Active Member

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    Just out of interest...How many properties would you have to list and sell per month to make 100K a year @tomlemke ? Are there agents in the Newcastle earning that much or more? Do most agents lease their own car and then get some sort of car allowance? Do you get more for listing and selling higher valued properties than lower value ones?
     
  12. tomlemke

    tomlemke Well-Known Member

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    Yep higher value properties mean bigger commission, 500k @2% = 10k plus around 2k for marketing. 1m @2% = 20k plus 2-3k marketing.
    100k is a fairly average across the board wage, My target is 15k in commission per month. The average fee is around 12k. I only need to bring in 1.2 listings per month to meet my target, If I get that I'll gross $5700 for the month = 67k for the year. Im aiming for 20 list and sells this year which after splits I'll end up with around 100k . There would be around 10 agents who crack the 1m in commissions , generally these people have 2-3 people under them plus a car plus everything else it entails. You end up with not a lot pretty quick, 1-2 agents in Newcastle would be over the 2m mark for commission seems like a lot but when you break it down it's an expensive business to run.
     
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  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    507 South Rd ASHFORD SA.
    I also believe in being in there and doing the work.
    I have 300 properties and 9 staff members, fairly large office including sales people. I obviously don't and can't do everything but I make almost every descision, it's all run past me and I take care of all the big things.

    It works better when you are in your business looking after both clients and staff so they can look after clients
     
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  14. pinkboy

    pinkboy Well-Known Member Premium Member

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    300 props and 9 staff doesn't add up? Even with Sales Agents.

    300 properties x Adelaide Median $350/wk (houses only to be generous) x 52 weeks = $5,460,000.

    $5,460,000 x .06 (6% PM fee, excluding GST) = $327,600 turnover.
    Include let fees: 2 week let fee = $700 x 300 properties = $210,000 (if every property churned every year to be generous)

    Then sales. If you were selling 12 properties per year (that's 1 per month being generous as only 7 sold 2016):

    12 properties x $447,500 (Adelaide Median June 2016) x 2% = $107,400.

    Basic Turnover: $645,000.

    Even if you had extortion size advertising this would not sustain anywhere near 9 staff. To sustain 9 staff even on basic wages you need to be turning over $2mil+ accounting for business running costs. Just cant see the turnover to justify 9 staff. And would be pretty cramped in 75m2 office.

    pinkboy
     
  15. MTR

    MTR Well-Known Member Premium Member

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    Xenia well done

    Are you still working on your book?
     
  16. Xenia

    Xenia Adelaide Property Manager Business Member

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    Yesssss!!
    But not easy to get another book out while I'm running a business. Getting smashed at work at the moment, 3 new staff this year plus interviewing for 4th one - all need training..... exhausted and excited at same time - phew!!

    Book being written after hours when kids leave me alone - if they leave me alone. Kids are more demanding than clients lol
     
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