How did you do your first year as a broker
Hi all,

&amp;#x200B;

Happy Tuesday and cheers to the grind. I have been a commercial real estate broker for 10 months now. In my 10 months, I have closed one apartment deal (10-units -$1.5M) and also did a lease transaction. I have had 3 deals fall out of contract which is a part of the business. I have 3 deals under contract at the moment one is an apartment for $4M and the other two are car washes $9M and $6.5M. I have a lot of money coming in this year assuming my deals close but none of it feels real because I am so broke. I have been barely getting by the past 10 months but I couldn't care less because I love this business and I know things will change ASAP. I am interested to know how others are doing/did during their first year in the business. I typically work 60 hours a week minimum, make 500-750 calls a week avg and usually have 2-4 meetings a week sometimes more sometimes less. I am 23 years old and don't have many obligations besides work so it works out well because I can be broke and work a lot if that makes sense. I can't imagine quitting and going to any other industry after becoming a CRE broker. Excited to hear what others have to say. Cheers to the best business to be in.
[{"id": "fjd5yb2", "text": "You\u2019re on track to make what, $250k your first year depending on splits your first year if you get your pipeline closed.  Take it to the finish line baby!", "replies": [{"id": "fjd685a", "text": "I will get the pipeline closed and I will keep building it like a MOFO. Thank you for that. My split is 50/50 on the subject deals mentioned in the above so $250K is about right if they all close.", "replies": [{"id": "fjdezvq", "text": "Hey that's fantastic. When your deals close, pay yourself a salary, ie don't blow it all immediately. You will also  need to put money away for taxes right away.\n\nYou are on track, but make sure you pace  yourself with spending when the deals close cheques start coming in.", "replies": [], "depth": 3}, {"id": "fjel97y", "text": "What do you guys mean by pipeline ? And terms like funnel?", "replies": [{"id": "fjeyfme", "text": "Pipeline would mean deals he's currently working. Whether they're just starting to be marketed still or ready to close", "replies": [], "depth": 4}], "depth": 3}, {"id": "fjfe0hg", "text": "When you say 50/50, I assume you are referring to the split on your side's share of the commission? I assume then you still have to pay something to the brokerage firm and cover all your expenses. What does overhead run as a commercial broker?\n\nThanks, and congratulations on all that you're building.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjd751h", "text": "who are you calling? do you have a list of leads or what guides you?", "replies": [{"id": "fjd7kxn", "text": "I have costar access. I call on Apartments (10-50+ Units), Mobile home parks and Car Washes. Essentially I will go on Costar and type a city, for example, I'm in Denver so I will search apartments 10-50 units Denver and you can export a database of properties up to 500 at a time. I will export property address, owner name, owner phone, sold price/last sold, etc and will call through that list repeatedly. \n\n&amp;#x200B;\n\nHow do you get your leads?", "replies": [{"id": "fjd9mue", "text": "Costar", "replies": [{"id": "fjddd14", "text": "Haha good shit dude. Think you replied to yourself though.", "replies": [], "depth": 4}, {"id": "fje3lba", "text": "Just curious, are you subscribed to CoStar or does your brokerage grant you access?", "replies": [], "depth": 4}, {"id": "fjh5dyk", "text": "How big of a radius do you generally search within Denver? 50 miles? I\u2019m guessing between your network and senior broker, they may give you a few leads every now and again. Meaning, you\u2019re probably pulling 95% of the \u201c500-750 calls\u201d yourself each week from costar? I realize some of your calls are follow ups, but holy shit that is a lot of calling. Does that sound about accurate? I\u2019m sure once you get established, you\u2019ll have more repeat business and while you\u2019ll never stop cold calling/having a jr broker call for you, you\u2019ll probably scale back.", "replies": [], "depth": 4}], "depth": 3}, {"id": "fje2mh4", "text": "What's your favorite/time tested opening line", "replies": [], "depth": 3}, {"id": "fjfnj7o", "text": "What do you pay for costar?", "replies": [], "depth": 3}, {"id": "fjig18v", "text": "Man how did you decide to do trailer parks?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjd8x9t", "text": "I made, $40k first year, I\u2019m with a top 5 firm. 2nd year $55k. 3rd year $70. After than $100-$130k. 10 years. In a market where A class office is $30psf.", "replies": [{"id": "fjd9epj", "text": "&gt;I made, $40k first year, I\u2019m with a top 5 firm. 2nd year $55k. 3rd year $70. After than $100-$130k. 10 years. In a market where A class office is $30psf.\n\nThank you for sharing. Do you primarily focus on leasing? If so I have a question for you.\n\n&amp;#x200B;\n\nI have a client that bought a shopping center with a Safeway anchor tenant 5 years ago. Safeway moved out and now the space is vacant which is half the center. The owners have had it up for lease representing themselves for 3 years now and am getting on a call with them later today to explain how I can help them with the lease. Any pointers/tips you think could help?", "replies": [{"id": "fjdab0h", "text": "We had a large grocery anchor move out and the ownership group decided to split the space into 3 spaces. The space is now 100% leased by a regional gym, a trampoline park, and a home furnishings store.", "replies": [{"id": "fjdawun", "text": "I like this idea. Is there a specific way you recommend to pitch it if they ask if I have specific tenants in mind?", "replies": [{"id": "fjdbxax", "text": "In terms of which specific tenants, check the demographics of the area and find out what would be best suited for that area. Look to see if there are similar tenants nearby and help your client see that it's better to have at least 1 or 2 spaces leased than to have the entire space as a large vacancy.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fjdabyr", "text": "Yeah tell them to offer an above market commission also listing as premium of loonet also using a real broker (you). The cost could result in leasing at least 1 month early which will cover it easily.", "replies": [{"id": "fjdatdg", "text": "I like this idea. I will do this. Thank you for sharing.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "fjh3z3o", "text": "Please don\u2019t take this the wrong way- just someone interested in potentially becoming a broker and trying to get perspective.\n\nAre you saying years 4-10 you averaged $100-$130k? I\u2019m not sure if you\u2019re saying $30psf is high or low. Are you in a LCOL area or happy at that salary level? I feel like a lot of what I\u2019ve read (especially if you are at a big JLL, CBRE, etc): if you\u2019re able to make it past 3-5 years, you should be making $300k+.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjdad51", "text": "Amazing man! You are an inspiration, I am starting off in this business (commercial) I am currently residential past 2 years and getting my ccim right now, but when it comes to commercial I can\u2019t seem to tell my ass from a hole in the ground. How did you learn the business and process?", "replies": [{"id": "fjdarek", "text": "Thank you, bro, I appreciate it. To be honest with you its all trial and error and getting your feet wet. The best way to learn for me is to try and see what happens. What's the worst the can happen right?\n\n&amp;#x200B;\n\nI've cold-called people that get so mad, cuss me out, say take me off your list, etc, and I call back in two weeks and they don't remember who I am. \n\nI was lucky enough to get paired up with my now CRE partner who has been in the business a while and is a principal as well. The best thing about my partner is that he always pushes me to chase all and any leads and is always around to answer questions. Having a mentor is important.\n\nAlso, don't sweat the small shit/get stuck on stuff.", "replies": [{"id": "fjdgkoz", "text": "Thanks man good advise! Good luck out there!", "replies": [], "depth": 3}], "depth": 2}, {"id": "fjdwxbg", "text": "A few years in the business. CCIM does help to understand from a high level what is going on in the market and how groups are evaluating their properties. I think it is class 103 that goes through the marketing. However the deal process just takes time to learn. There are tons of things out there for training but a lot of it is fluff. \n\nBest thing you can do is find 10 groups and call them. Biggest thing that kills people in this business is not being active on trying to get deals.", "replies": [{"id": "fjf7f3r", "text": "Thank you, what would be a good program to help with the business aspect it seems quite different from residential, I just passed 102 tonight and will be doing the negotiation training at the end of the month.", "replies": [{"id": "fjid6yr", "text": "There is a lot out there. My recommendation is that you do not go general. Be specific - eg call training.\n\nAnother general one that gets recommend is Dale Carnegie intro to sales. Gets you thinking about client mindset. Would look for books on that before taking the class.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjdb1hr", "text": "I'm right there with you! I made much less than I figured I would my first year and now in the start of my 2nd year my team and I have closed 4 leases and are close to being under contract on a $7M listing. Last week we picked up a $3.5M listing, have a meeting this afternoon with a $5M listing, and meeting with another owner on getting an agreement signed next week for a $8M listing. It was a drought for the longest time with a lot of insecurities in what I was doing but now it's pouring down with opportunities. By the end of this year, I'm planning on starting my CCIM courses too. I'm excited to see where this year is going to take me. \n\nBest of luck to you as well! I love your attitude. I wish I was in this business at age 23. Sounds like you're on a long, successful, and wealthy career path!", "replies": [{"id": "fjdcrfd", "text": "Hell yeah man, good to know I'm not the only one. Like you said once you get passed the drought and you get the momentum going nothing can stop you. When I catch myself in a drought I step up my work grind-heavy. Good luck with your listing pitch today, you got it in the bag. I appreciate your last comment. I feel blessed to have found the industry at a young age and to be disciplined enough to do the job.", "replies": [], "depth": 2}, {"id": "fjh5j16", "text": "So year 1 was probably less than $50k. Based on the numbers you mentioned above, what is year 2 looking like?", "replies": [{"id": "fjheu56", "text": "Projected at over $200K if we can close everything but we all know things happen or come up that prevents that. Realistically I should clear $125K.", "replies": [{"id": "fjhkgeg", "text": "Nice. Well sky is really the limit from here. Do you get any type of benefits? i.e. medical, 401k, etc?", "replies": [{"id": "fjhvgrs", "text": "None of that, it's all on my own but there are a lot of insurance agencies that offer discounts to certain brokerages", "replies": [{"id": "fjhvwqs", "text": "That\u2019s what I figured. I\u2019m currently at a big corporation that offers all that, but I suppose the trade off is the opportunity to be your own boss/income potential is probably higher", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjdbyvg", "text": "Congrats from a fellow Denver broker. It\u2019s always great to hear things going well for new guys in the business! \n\nFeel free to reach out if you are ever looking to connect. I\u2019m rooting for you!", "replies": [{"id": "fjdcs7r", "text": "Thank you very much. Cheers to the Denver market.", "replies": [], "depth": 2}, {"id": "fjdcswq", "text": "Just PM'd you", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjdogod", "text": "Congrats. It looks like you are on the same track as every successful agent that I know.  Keep the call volume up and you'll keep crushing it. \n\nYou're in that lull in your growth cycle where a lot of people lose momentum because deals haven't closed. The ones that power through this are the ones that make millions. Keep going.", "replies": [], "depth": 1}, {"id": "fjdpi30", "text": "I started in the middle of a recession (2002).  Worked CRE during the day and bartended at night to make ends meet.  Took 9 months to do my first lease deal, a 1500 SF retail deal in a B shopping center.  Commission was less than $1000.  Then sold a large development parcel to a regional grocery chain  and made $40k on that deal, and used that cash to buy a residential rental property and have been growing my business/portfolio ever since.\n\nConcur what others say here.  Every single commission check, take 30%, and not only tuck it away for taxes, actually send the money to the IRS.  I have a separate account I move my 30% into every check and then quarterly, I go to the IRS website and make a payment.  Even if things are tight.  Take 30% of EVERY check and send it to the IRS EVERY QUARTER.", "replies": [{"id": "fjffy6d", "text": "Thank you for this advice. I appreciate the emphasis on how important it is to make sure to put away for taxes. It\u2019s a relief for me to know ima able to pay them every quarter and won\u2019t just have to have the money sitting in an acc.", "replies": [], "depth": 2}, {"id": "fpklmaw", "text": "What is the benefit of paying taxes every quarter? I have been an agent for three years now and I always just pay my taxes once at the end of the year. It's never as much as I think it is going to be when my accountant factors in the deductions.", "replies": [{"id": "fpkofq3", "text": "You'll understand in your second cycle. \ud83d\ude01", "replies": [{"id": "fpkqgo8", "text": "So just cash flow reasons?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjdpn3j", "text": "That\u2019s pretty standard for the first year, although I did $15 million in transactions in my first year (+-$400k gross.) Keep it up and you\u2019ll continue to create momentum. Deals beget more deals! \n\nAlso, know your numbers! The best thing you can do to prove your expertise in the CRE market is to demonstrate that you are competent in financial analysis. \n\nI train all of my new brokers in the fundamentals, including how to use a financial calculator, and they are often able to run circles around other first-year brokers in our market. I won\u2019t self-promote here on Reddit, but much of our training is available for free on YouTube and you are welcome to use it. \n- Trevor Calton", "replies": [{"id": "fjffzr6", "text": "I will check you out thank you, Trevor.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjdqjga", "text": "I am also 23 and have only been in the commercial business for about 5 months and have had a few land closings and a NNN retail. I\u2019m in the SLC market and have been doing the same things as you (calling through costar owner info) and have been getting 2-3 meetings a week and have a few development deals and industrial properties set to be listed around 6M-8M in the next few months hopefully.", "replies": [{"id": "fjdvihx", "text": "If you have anything in the 2-4 million range on a stabilized multi-family/industrial/office asset in the Utah market, I am looking to place some capital.   Id be happy to PM if you have any deals on your radar.", "replies": [{"id": "fje0ghm", "text": "Yes, PM me. There are a few deals that come to mind in the area that would be great.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fjdx0l5", "text": "Dude keep doing what your doing your fuckin killin it! I didn\u2019t close for my first 1.5 years. Had many deals fall out of contract including having a seller die while we were in contract. Wtvr you are doing double your goals and stay busy to the point that you can\u2019t breath!", "replies": [{"id": "fjfftt7", "text": "Haha thank you, this helps me a lot. Glad to hear you\u2019re still around and crushing it now.\n\nPs I\u2019ve always told myself I\u2019d be heated if a seller died during a contract lol.", "replies": [{"id": "fjflknc", "text": "It was actually a horrible Experiance and was crushed when I found out. I didn\u2019t even care about the deal anymore. When these failures/downfalls happen you have to find a way to get motivated to do better otherwise your done before you even get started. I had so many failures in the beginning but I refused to quit. I\u2019m still here 6 years later!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fje0sf0", "text": "Invest in real estate with each commission check.", "replies": [], "depth": 1}, {"id": "fjedj13", "text": "Sounds like your killing it! Any advice you can give to a young guy looking to break in himself?Currently trying to decide if I want to do Investment sales or more leasing/tenant rep stuff.", "replies": [{"id": "fjffr4h", "text": "I would recommend investment sales and then you can do leases when you come across them. It\u2019s all about who you are and what you like to do. That\u2019s why you should try everything. It will be the best way to figure out what you like. I love sales specifically because it is more interesting to me and in my opinion more lucrative.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjejio9", "text": "How do you pay your expenses when broke?", "replies": [{"id": "fjf167y", "text": "Hope Sanders wins 2020.", "replies": [], "depth": 2}, {"id": "fjffl3j", "text": "That\u2019s why I\u2019m broke. I work side jobs lyft, delivery, etc. tried serving but I sucked. My bills are $1800 a month without spending. After spending I\u2019m just about broke. I got shafted on my first deal. I have a much better split now. It\u2019s all up from here on out.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fjett6o", "text": "I think you are doing great. Just hang in there. I didn't get licensed until I was over 50 and didn't do my first million dollar commercial deal until I was closer to 60. As a woman and an older woman at that commercial real estate was a real challenge. For a new broker you are doing fine; all the hours and stress are part of the job. When you get a little more established take some of the commission and buy for your own account or take equity instead of commission. You're young and you've made a good start. I wish all the brokers I dealt with had such a positive attitude.", "replies": [], "depth": 1}, {"id": "fjf14kn", "text": "Keep chugging. Keep drinking from a fire hydrant. It will slow down eventually for you.\n\nI started in Residential but you're doing a good thing with 750 dials. Thats a big key. \n\nIt takes me 736 dials to close a deal. I triple down'd and got a triple dialer. I hit about 1200 dials a week. \n\nFirst year was great due to lead generating. Sounds like you're building a business that way also. Year 5 is where I am at now. First year I hired a part time assistant. I say get your finances in order, read profit first and the MREA and slowly build your business up.", "replies": [], "depth": 1}, {"id": "fjh7gwv", "text": "I\u2019m not in real estate but as someone looking to break in, hope you don\u2019t mind answering a couple of questions. \n\n1. Did you have a backup plan of brokerage didn\u2019t work out/do you have a \u201cpotential\u201d longer term exit strategy if you ever get tired of brokerage?\n\n2. What do you enjoy the most about brokerage/what do you think you\u2019ll enjoy the most (x years down the road)\n\n3. What hard skills have you learned/learning? I\u2019m hoping to understand if you get to learn lease language, Argus, OM content, real estate financial analysis, etc. or if brokerage is just a numbers game and getting deals done by calling and getting appointments (which, hey, it is sales right?)\n\n4. Understanding this is largely in pet the role of the junior broker on the team, what else do you do besides call and set appointments?", "replies": [{"id": "ihcyzzl", "text": "Good questions, too bad no experienced person has responded ded yet. \ud83d\ude14", "replies": [], "depth": 2}], "depth": 1}, {"id": "fl7hgk6", "text": "Similar to me. I closed two deals my 1st year ($3.3MM Apartment deal and a $3.1 buy side deal for the upleg). \n\nI had my first listing in my 3rd month, another $7MM listing in my 7th month, and a $6MM deal fall out of contract in my 5th month in. I saw almost 200K in commission vanish in my 1st year because deals fall out of contract, seller having to cancel a listing because of a divorce, etc. I made just over $50K my 1st year. \n\n&amp;#x200B;\n\nI'm at 600-700 calls a week, usually getting 3-5 meetings a week. I database / use Reonomy to look up phone numbers on the weekends. Now I'm spending more time getting more \"granular\" on the comps.", "replies": [], "depth": 1}]