The mistake you can make when you have to make a choice between Residential and Commercial Realtor
So you just got licensed and you’re wondering should I be a residential realtor or a commercial realtor? Well by the time you are done reading this article you’ll know exactly what path to go down based on your own strengths and weaknesses. Now when I first got a license in 2011, I made a big mistake. I got in it for the money, I tried to be a polished realtor and I was focusing on normal everyday people, homeowners, people that wanted to buy a property and stay in there and live there and I sucked and I hated it and it’s because I don’t like real estate because of crown molding or because of pastel paint or because of Lofts or whatever other terms are backslashes, I don’t like that stuff.
I liked real estate because of seeing it as a vehicle to retire and have cash flow and live the life I want and that is what separates a residential realtor from a commercial realtor. Commercial realtor sees real estate as a business, you’re a very left brain, you see numbers being crunched you see a restaurant going in and you can help the business owner do the math.
Well with this rants with this foot traffic with all these bills, this is what your profit margin is going to be, this is what the this is basically how many meals or how much turnover you’ll need to make a profit in a multi-family, this is going to be your cap rate, this is how much you need the rent to be you could put all this in to fix it up and this will be the cost but it’s very analytical and it’s very unemotional.
If you like helping people finding find their dream home. Well, then you’re probably more of the creative type you like walking in and seeing open space and using your creativity to imagine our that’s where your son will be playing for the next 10 years and you’ll be cooking that wonderful Thanksgiving turkey here and blah blah blah blah all that stuff if you’re emotional and your creative being a residential realtor probably more your thing. If your left-brained like me and you crunch numbers easily and that’s what you’re drawn to being a commercial realtor is more of your specialty right there.
You might get confused in the process
Do not get the too confused. Do not become a residential realtor because you think that’s the right path even though you’re a better numbers person and don’t become a commercial realtor because you see oh, well, I could be dealing with three million dollar multi-family homes and all this stuff.
You can make money in both sectors, but it’s very important to go down the right path that sets you apart and that you enjoy because this is way too competitive of the industry for you to say. Yeah, I’ll go down the wrong path and I’ll work hard for two years, but get burnt out because I’m unfulfilled and you should have just gone in the other realm. So remember commercial residential commercial is logic residential is emotional and creative. So take what want from it?