Career Analysis of a Real Estate Entrepreneur - Essay Example

Career Analysis of a Real E Entrepreneur Introduction The real e industry has a large number of people working in it. This industry encompasses mortgage banking, title insurance, property management, construction and real estate development. Real estate has become a significant sector in the global society. According to Career Overview (2012), a relatively high percentage of financial assets are related to real estate. Those that work and invest in this industry affect people’s lives in one way or another. Their impact lives on for generations. A real estate entrepreneur, also known as a real estate investor, is a person actively or passively involved in real estate. Real estate refers to property that consists of land together with the housing and natural resources found on it. Thus, in business, real estate is a profession that deals with sales and purchase, or renting of land, housing or buildings. An active investor may buy or make improvements on property to be sold at a later date for profit. On the other hand, a passive investor does the work of an active investor indirectly. In their case, they hire firms to buy and manage property on their behalf. Career Path Real estate is an occupation to be considered by people with a balance of industry knowledge and entrepreneurial acumen. Even though getting a job as a real estate entrepreneur may not be difficult, beginning workers face a lot of competition from seasoned and well established entrepreneurs in the field. Organizations have taken the liberty to chart out the path of a real estate investment. This is done in stages of training. In each stage, an employee undergoes training. Upon their success, they rise up the ranks. For instance, Keller Williams Realty has seven levels of training (Keller Williams Realty, 2012). These levels include career launch, success series and boot camps. A summary of these levels is as shown below. Trends Real estate markets have a great impact on the economy. A healthy real estate market has been known to positively drive the economy. A good example is China. According to Barboza (2010), in 2003 to 2010 period, real estate prices in Shanghai increased by over 150%. Construction of property has continued despite the threat of credit crunch. The government has benefited from this rise in prices as GDP has increased from 2% (2000) to 6% (2011) due to residential housing investment. The 2008 global recession had an adverse effect on real estate industry. Sad though, the reverse is also true. Economies have declined as a result of an unproductive real estate industry. In America, there was a decline of people being hired into the sector. However, this changed shortly after. Between January 2011 and January 2012, there was a 20% increase in job advertisements (Lombardi, 2012). Hiring Demands in the Real Estate Industry – 4 Year Hiring Trend Source: WANTED Analytics Technology is a significant aspect to the growing change in career trends. For part time real estate entrepreneurs, the increasing use of technology may work to their detriment in comparison to full time entrepreneurs who invest in technology. The same technology does have a positive impact. It has increased the productivity of real estate investors. It has widened the market base since they are able to access their customers and do research on various property using the internet. The internet is particularly resourceful because of the pool of information it contains. The perception of real estate as a worthwhile investment and low interest rates continue to stimulate real estate sales. This creates demand for real estate entrepreneurs. One may, therefore, choose real estate investment as a career path. The legal front also plays a vital role in determining trends in real estate. Real estate entrepreneurs need to meet certain legal requirements and adhere to certain legal conditions. Changes in legal requirements, like the disclosure laws, may discourage some who are not serious or are not abreast with such changes. Salary information Generally, salary earnings for real estate investors range from $ 30,000 to $110,000 a year. These earnings can go as low as $ 15,000. Several factors play out to determine the amount of salary one may earn. For instance, beginners may face challenges at the staring months of their career. Also, some seasons may be characterized with low sales. Consequently, one’s earnings may be meager. Apart from basic salaries, real estate entrepreneurs also earn money through commissions. Actually, for some, commission is the main channel through which real estate investors make their earnings. Commission earnings depend on the rate of commission. This rate is determined by the type of property and its value. With more experience, one’s income increases. Initially, a beginner may go for months without making any sales. Hence, a beginner is advised to ensure that they have money to live on for at least six months before the business picks up. Skills Real estate is a very competitive sphere. Therefore, real estate entrepreneurs must be on their toes all the time. One needs to have the ability to do extensive and intensive research. In addition to this, a real estate entrepreneur must be an analytical thinker and a negotiator. Communication and negotiation skills are pertinent to this occupation. Without these attributes, it is impossible to get the best deals or convince potential customers about the property on sale. Planning and marketing are also other skills that are vital to a real estate entrepreneur. A real estate manager ought to strive to stay abreast with business trends and issues relating to real estate. Besides being knowledgeable about business, economics and global market trends, real estate entrepreneurs are expected to be computer literate. This encompasses the ability to use spreadsheets, word processors and do database and graphical analysis. Employing organizations There are few employing organizations. Most real estate entrepreneurs work on an individual basis with private owned firms. Women and minorities The U.S business community faces gender disparity. Real estate industry faces the same catastrophe. The disparity has been highlighted by the Commercial Real Estate Women Network (2005). From their studies, women make up just a third of professionals in the real estate industry. A closer look at compensation showed discrepancy between the genders. Furthermore, men could advance their careers more than women mostly because of the family responsibilities that the woman is expected to perform. However, over the years, women representation has improved over the years. The real estate industry is determined to promote diversity in its workforce. This is done with the aim of providing employment opportunities to minority ethnic groups and women. Some of the organizations that have been put in place to ensure this happens include Real Estate Associate Program (REAP), Commercial Real Estate Women (CREW) Network, African American Real Estate Professionals of New York (AAREPNY) and the National Association of Hispanic Real Estate Professionals (NAHREP). Becoming employed Most real estate entrepreneurs start out from different fields. Most of them have a background in the banking industry. For one to become a reputable real estate investor, he or she must have a license and experience in the banking or mortgage sector. Typical job notices Investment opportunities in the real estate industry can take different forms. These include online or newspaper advertisements or investor forums and seminars. Some job notices may be found on career databases. These notices stress emphasis on experience and educational qualifications. A preference is laid on real estate courses and licensure. Also, people skills and communication skills are a top priority. Work conditions Working in real estate gives one a lot of independence. A real estate entrepreneur has a flexible work schedule. Their earnings are determined by the amount of work they do and their ability to close deals successfully. This may not be the right career path for a person looking for a nine-to-five job. A real estate entrepreneur does not have official working time. Clients can call upon them any time. Thus, to be successful, a real estate investor needs to be one a person that is self-driven, persevering and goal-oriented. One has the liberty to choose the kind of environment they would like to work in. One can either work independently or with an affiliation to a firm either as a buyer or seller. If one chooses to work independently, then they own their own firm. Education/ Training Real estate requires a good educational background, training and interest in the profession. A real estate investor needs to be well versed with knowledge on real estate law, local economics, types of financing and government programs. A real estate investor must be a high school graduate. Some of the college courses that are useful to a real estate investor are real estate, business administration, law, finance, economics and statistics. Marketing and accounting are important for investors that intend to start their own firms. Most firms have formal training programs for beginners. Certificate/ Licensure Professionals within the real estate industry must have licenses in order to operate. For them to get licenses, they must undergo a written examination. This exam touches on questions relating to real estate transactions and sales of property laws. One requirement common to most states in America is that candidates must have completed a 30-90 hour classroom tutorial. Candidates also need a broker’s license. To attain this license, one needs to have taken 60-90 hours of formal training. In addition to this, one must have at least one to three years experience in real estate. State licenses ought to be renewed after one or two years. Affiliations There are several affiliations within the real estate industry that different categories of real estate investors associate with. These organizations serve to promote the rights of the groups they represent. The Industrial and Office Real Estate Brokers Association of the Metropolitan New York Inc. (IOREBA) is such organization. This organization promotes education, networking and better relations within the industry. The National Association of Industrial and Office Properties (NAIOP) overlook the flow of information and promote business opportunities for professions related to real estate. The society of Industrial and Office Realtors represents experienced real estate specialists. Outlook Many forecasts show that the real estate industry is bound to be flooded with real estate investor job seekers. Despite the increase in demand in the real estate industry, it will be a tough task to recruit more people. Some regions are likely to be more affected with this situation than others. In the United States, regions like Los Angeles have a lesser pool of people to recruit from in comparison to New York. New York has close to three times the number of candidates that Los Angeles has. Consequently, New York will have more favorable recruiting conditions. Lifestyle impact Working as a real estate investor gives one a lot of flexibility. As a result, many investors diversify their work base. They choose to venture into other businesses. Since the business involves a lot of travelling, if not careful, a real estate investor may focus too much on their work and lose track of their social life. On the other hand, the job gives one the opportunity to interact with the high and mighty in the society. Conclusions From an analysis of the real estate investor, I found that this job is very demanding. One’s success solely lies on their shoulders. Thus, it requires a lot of focus and determination. The advantage is that it gives one the opportunity to venture out into different fields. Real estate investors deal with people from various business sectors; hence, they have the deeper understanding of the markets. Occupational/ Educationally-Focused questions 1. As a real estate investor, what are your strong points that would enable you to convince a client to buy property that you are proposing to them? 2. What are some of the things you would take into consideration when analyzing a property for sale? 3. Statistics indicate that the real estate market is flooded with prospective candidates. What makes you different from the rest that we should offer you the position of an investor in our firm? 4. What are some of the foreseeable challenges in the future bound to face real estate industry? References Barboza, D. (2010). Market Defies Fear of Real Estate Bubble in China. New York Times. “CREW Network: Women in commercial Real Estate: 2005” (2005). CREW Network. Retrieved from http://www.crewnetwork.org Lombardi, A. (2012). If Real Estate Drives the Economy, Is Increased Hiring a Signal of Better Times? WANTED Analytics. Retrieved from http://www.wantedanalytics.com/insight/channel/sp-sectors/real-estate/ Real Estate Careers, Jobs, Training and Employment Information, (2012). Career Overview, Retrieved from http://www.career overview.com The Keller Williams Difference, (2012). Keller Williams Realty. Retrieved from http://kwhomefinder.com/career.htm Read More