Add commercial real estate sales to increase your income. In some of the small or medium markets there is a need for a local residential agent to expand into the commercial side of the business. A lot of agents are reluctant to move in this direction because of a lack of knowledge and experience. Knowledge comes from taking the time to study the area you cover and become aware of the commercial transaction in the area. You will need to spend time reading industry magazine articles – learn the terms used in commercial transactions. There are many organization that deal with different elements of the commercial real estate business that are a great source of information. The Urban Land Institute (ULI) http://www.uli.org/ and the Certified Commercial Investment Member (CCIM) http://www.ccim.com/ are just two of many that you might look into for information.
Experience comes from just doing. When you first started in residential real estate you did not have any experience either. You get experience by just jumping in. You will certainly want to gather as much knowledge as you can before you start but sometimes the best knowledge come from just doing and maybe making a few mistakes along the way. Don’t be afraid to take on a mentor when you first start out to help you along.
Adding commercial real estate sales can increase your income but there are some potential pitfalls that you want to be aware. As a rule a commercial transaction will take much longer from start to finish. Even if you are an experienced agent they take longer than a residential transaction. The flip side is that generally they pay a higher commission because of the higher price. The type of buyer is also different. The residential buy will buy from emotion. They like the home, the school district or the neighborhood. The commercial/investor will look at the neighborhood and demographics but for the most part he/she will analyze deals strictly by the numbers. Just like putting money into the stock market he wants to get a return on that investment money.