Should I Quit My Job For Real Estate? | #AskErikHammond 34

Should I Quit My Job For Real Estate? | #AskErikHammond 34

You can’t just say I’m going to
go get my real estate license. I’m gonna start selling homes and you can. But the success rate and being able to make
this work full time or being able to supplement your incomes that you can replace that
normal full time job that you have is tricky. 80 percent of your income is made on 20 percent of your result. To try to increase that 20, 20 percent
results to maybe 30 percent this next quarter. And maybe 40 percent the next quarter because it’s
going to allow you to do more and more things. So understanding your past business and what
you’ve done this year and maybe this market’s different than it was last year. Hey, guys. Welcome back. Thanks
again for being here. Getting your top four questions
answered every single week. We usually try to have a theme each week
and make sure that we get the questions answered. So if you got any questions submitted
and we haven’t talked about it yet, we’ll get to it. But if you are one asking question,
be sure to submit it to our Facebook page. The Air Command, which is where this show
is broadcast live every Monday morning at 10:00 AM. Guys, I’ve got
some awesome questions today. The first one is kind of a weird one, but
I thought we threw it in here and answer it anyway. So let’s just jump right into it. The question is, aside from money and marketing
tricks, do you have any regarding love? So I don’t think this is
gonna be the love connection. I remember when I was a kid, we had this
babysitter that would come over and it was like daytime television. Right. My parents would go out and do things. And she always wanted to
watch the so-called love connection. Now, if you remember that from the 90s, but
it was such a weird show and I’m like Kindersley date and be normal. But anyway, let’s talk about love for a bit. So I always say I love my family. I love my wife. They’re awesome. I just toyed. Treat me well and support me
so much in my business. And I think that that’s the big part of love. You know, when you’re chasing something that
you love, your spouse, your significant other, you’ve got to find somebody
that supports you in your business. I know we talk about
marketing around here a lot. Money in business strategies. But let’s talk about that relationship
for a while in your business. You’re going to need a lot of support, right? You’re going to need to spend a
lot of your time running your business. You’re going to have to be there
probably 16, 18 hours a day. You’re going to have to have your head
down committed to these things full time. And to have somebody on the other side of
that table who can support you, who encourages you, who motivates you and respects you can lift
you up and help you get through these challenging times. It’s super important. So as you’re chasing your significant other
and trying to build this relationship and, you know, if you’re not married or if you’re
married or trying to figure that thing out, still find somebody who can support you in this
and you don’t know who you love yet. That’s OK. You know, be patient. I had a lot of friends when I was in
school who got married at 21, 22 years old. Right out the gate I held
out for a few years. I think I was 26 when I finally got married. And I know that’s young for a lot of using me
as a lot of you will wait till you’re in your 30s. That’s OK, too. You just got to know who you’re looking for
and you got to set those priorities and really understand again. You know, the goals of your relationships
and what you’re wanting out of it. I think, you know, marriage is a massive thing
for a lot of people and it’s going to affect the rest of your life because you’re
your partner and the business partner you have in life. Right. You’re at your family
members, people that you love and connect with are going to make or break your business. Honestly, my wife is super supportive and
she’s there through the thick of things. She helps through a lot of our business. We’ve been partners on a lot of things and
has had had have had some massive awesome experiences together. So who you who you date
matters, who you marry matters. The relationships that you
build together matter. So take the time, find the one that’s going to
be right for you and it will support your business. So for last year, at ease. Sorry about that. We’re getting into the rest
of real estate and marketing and growing your business, guys. Thanks for being here and
encouraging us to do this show and showing up. This is the thirty fourth episode
of the show, which I’m super excited. I feel like I just started that
yesterday, but I’ve answered you guys. It’s top four questions for
the last thirty four weeks. So let’s get to some more business topics. Enough about the mushy love stuff, but find
your supporting partner, somebody who can you up and make you feel awesome by your life. OK. The next one’s kind
of a different one too. But I think that it can relate to
a lot of you guys in real estate. This one actually comes from
a private music teacher. So, yes, we do get questions outside
of real estate from time to time. We try to answer them as much
as they relate to the show. Right. So this one says I’m a private I’m
a private music teacher and with limited hours to teach. What are your thoughts on
how to increase my income, my brand? I’m guessing that this person
works full time somewhere else. Maybe they’re both an agent. They
teach music on the side. I don’t know. I think
that detailed in the question. But they want to teach more. They want to inc- increase their income and they
want to build their brand as a music teacher. So I am not musically challenged that I
can play the MP 3 player pretty well. I can play the Sydney player pretty well. I can turn that radio on, but I can’t. Strumming guitar I can play the piano. Hitchen knew that when I was younger, my
mom tried to get us into piano lessons. My sister and I. And we’d go to
this lady’s house near where we lived. Did you drop us off for an hour? My sister had 30 minutes
and I had 30 minutes. And it was like the roughest hour of my life. Just torture. And I think we did that for
like 18 months, maybe two years. And my teacher ended up
asking asking us to quit. Like she just like it’d be
better if you didn’t come back. I think he got that bad. And so
she was a full time employee somewhere else. She had a job somewhere else. And
she taught music on the side. Right. It was out of her house. She had a
piano there as kids would come by and play and she’d charge, you know, a decent amount. If he goes like 60 bucks for a 30 minute
lesson back then, like it was quite a bit. And she was pretty good from what I remember. I think it was like ten or eleven years old. But, you know, if you’re a part time music
teacher and you’re trying to get more exposure and trying to reach more people, I don’t
think your students are necessarily going to be like, oh, my gosh, my teachers, amazingly, usually hire
her if you want to play the piano like I was avoiding the subject at all cause. Right. And obviously, the parents will
talk about it and communicate. And if you’ve got another parent comes to you
and say, hey, I heard your kids playing music. Word of mouth can be huge. Right. But how do you spread that message
and how do you get your brand works? And how do you get more
students if you’re just starting out? My wife has a couple of cousins who teach
piano on the side as a full time mom. You know, she’ll come to our house and
teach them and have a music room. And it’s been a great side business for her. Obviously, it’s not paying all the bills and
her husband still works, but it’s something for her to do, keeps her interested in life
and passion about something and bring in some extra income on the side. Right. So how do you build that brand? What I would suggest is that you build a funnel
and that’s we talk about a lot a lot around here. Right. As building a funnel and
getting your message out there and showing the world how you do what you
do to attract who you’re looking for. So the problem with one on one coaching, which
is what I’m involved in a lot in our business, the one on one,
it’s me talking to you. It’s helping you in your business. And we spend, you know, 30 minutes on the
phone and we’ve cut your marketing and where you’re trying to go and what you’re trying
to do and which works really well. And I’m super helpful on the phone. And I can explore your business and take
it apart and really analyze the things that you’re doing so that we can get you to
the level that you’re trying to accomplish, which is great. But as you know, we
all have five hours a day. I can only do so much. Right. I have a lot
of video content to create. I’m working with a lot of students. I’m teaching a lot of classes in real person
and live like lunches and things like that. And so I can only help
so many people one to one. I’ve found that the maximum amount of students
that I can comfortably take on or not students, but coaching clients on a one to
one basis is about twenty to twenty five. After that, I’m just spread to fan. There’s not enough time in the week. I can’t give you guys my full attention. So that’s really it. And I’ve got to limit who
I work with all the time. And every once in a while a spot will open. We’ll have a new opportunity for you guys to see
if you want to apply to work with us. And if it makes sense and then we’ll have
a couple exploratory calls and we’ll take it from there. But what happens is, because
I’m limited, I can’t help everybody. I can’t split myself up and multiply this. And so same with the piano teacher. If you’ve only got two hours of we are, let’s
just say charge night or maybe 10 hours a week total. You can only
work with so many students. So how do you scale that opportunity? Well, the best thing that you can do and what
we’re starting to do is create more of like a group coaching environment. So some of the things that we do around
here is we’ve created courses that help teach you the things that I teach one on one. So after a few years now, I’ve coached these
guys and saying, look, this is the struggle that I see you’re going through. Let me help you progress and get
to where you’re trying to go. I’ve actually recorded ourselves in a similar
environment with the greenscreen the table at the computer, talking to us one on one and
showing you how to go from step A to steps all the way through, how to build out your
Facebook pages, how to run Facebook ads, how to build your website, how to build a funnel,
how to create the offers that talk and speak to your clients so that you can
attract the business that you’re looking for in just like on a one to one call. I can show you step by step by
step the directions all the way through. I can share my screen, everything, right. It’s kind of like a a udemy course and that
you can follow that you can consume at your pace. If you’re stuck with something,
go back and rewind it. The cool thing about it, too, is
that we offer a group coaching. And so as you consume these courses, which
the courses are anywhere from 10 to our longest one right now, we’re working
on it like 30 something hours. A lot of stuff in there is your stock
or there might be some element that we didn’t explain perfectly for you and there
might be something you’re stuck with. Come to the group, ask your questions,
we’ll get you on a call. We’ll share your screen, go resume and
answer your questions right there live. And so that you can progress
that everybody else can learn. And we can go forward step by step by step. And the awesome opportunity that this has is
that I can now teach one to many. I can work with 50, 100 or more people at
the same time because you can all progress at the same time. We can all show up
to a group on a weekly call. We can answer your questions. We can get you the things that we’re struggling in,
and then you can go home and you can do your homework. You can practice
the piano, if you will. Right. And you can learn and progress to the
next level and then come back the next week with more and more questions. So it’s cool that
I can help one too many people at the same time. The same thing goes
with the music teacher, right? What if you were to create a music course and
maybe you had a camera looking down at your keys and you’re like, this is
where you hold your keys. And this is, you know, which finger I
need to press down on which keys. I have an idea on the piano. But you can show them you
can show them the theory. You can show them how you read music. You can have multiple cameras set up
to capture different elements of it. You can talk about posture and
how you’re going to sit up. You can talk about learning the song. You can give them even sheet music to play. Right. You can have this whole course like a
utomi type of class if you’re not familiar with it is. It’s basically the letter you. And then dhimmi D-N.Y. icon udemy, I think. And most these courses are like ten
to three hundred dollars for a course. They teach you how to play the piano, how
to publicly speak, how to learn a new language, things like that. So if you’re a great teacher
and you have that patience that can work with students one on one,
create different levels, right. Maybe you create an introductory class about how
to learn the piano and maybe teach, you know, the basics of a level 2 and 3. And maybe you decide that, look, I only
want to work with people after they’ve been playing the piano for five years. And I really want those elite students who’ve
who’ve taken time with practice, who learns that I can get them to
where they’re trying to go. You want to weed out the
people who aren’t taking it serious. And the same goes for me, too. You know,
when we first started out, our rates were much, much lower. I was willing to work with anybody
just to get the experience and to help you guys and grow. And now as we’ve
gone, our rates have gone up. I’m more selective with who
I want to work with. If you’re not committed to the process and
showing up every single week and doing the things that I ask. I’m not willing
to work with you one on one. I’ll throw you into the
group and say, Hey, you. Group and learn and grow, and when you’re ready
to go and take this to the next level, we’ll make that work. But that’s
how you do it, right? That’s how you progressed, how
you offer your services. One too many. So think about that. You know, even if you’re a real estate
agent and you’re following along, you’re in the thinking behind the world. Does
this relate to me? It can. Right. You can teach your
clients how to buy and sell homes. You can have that type of a course that
you can provide them, whether they’re an investor and they’re buying something every single week
or one couple times a month. Or maybe they’re just buying a house, you know,
once every five to 10 years, you can still teach them. And the beauty of this is
it shows you shows them how much you know about real estate and how much of an advocate you
are for them and how you can help them through this process. I found that the best way to
show how much you know is to show how much you care to teach them, to
bring them to that next level. And then they’re going to understand how amazing
you are and what a professional you are. So if you’re trying to teach somebody and you’re
trying to get that one on one kind of coaching environment and you just can’t school
anymore, consider a course that you can create and then sell. And obviously, the price is going
to be a little bit different. For example, let’s say you teach piano
lessons and your $60 per lesson. And let’s just say the whole
year, 60 times 50 to. That’s like $3000. Let’s just say we charge $3000
a year for piano lessons. You’re gonna have a much,
much cheaper offer, discount offer. Been on a recorded call and
like a group type of call. Right. Maybe you charge two hundred dollars for
this private group lesson so they can download your content. They can be part of
the group, maybe even do weekly or monthly, you know, Facebook lives and saying, hey, let me
set up the camera and show you guys how we’re gonna play the song today. And this is how I’m gonna learn. And this is how the fingering works
and this is how it goes. So there’s just all sorts of cool things that
you could do as a piano teacher, and that’s just piano. I mean, there’s so many different
things that you can teach, like if you’re in golf or if you’re in another instrument or
there’s some other sport that you want to play. Have those type of recorded lessons that you
can sell and then it allows you to scale to a whole new level. OK. So that’s question number two. Private music teacher. Let’s go to question number three. Quick to you guys, if you haven’t. I mean, just put this plug in there
if you haven’t subscribed to our channel. I feel like we’re providing some awesome
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questions and bring you the value that you’re looking for. Showing you guys how to scale and
how to hit the levels that you’re trying to achieve your goals, their business. Now we’re getting the rules that questions. I mean, we just got these
in here because they’re big questions. I would say only privately to you as well. But let’s get into it. Thanks for subscribe. Question number three, how do I tell my wife that
I want to quit my job and get into real estate? So that’s basically coming from maybe
the music teacher wants to quit teaching music and wants to sell
real estate full time. Maybe you’re an accountant and you’re
like, I’m bored with this. I want to sell real estate full time. Maybe you’re a contractor or a
dentist or something else, right? You’re coming from another industry and you’re trying
to sell real estate, full time real estate. How’s that law? It’s just kind of it’s exciting, sexy
thing that people want to get into. That’s why every single year, thousands of people go
to take the real estate exam and a pass. But the massive thing that’s so incredible
for me to see is that eighty seven percent of people who are in the real
estate are out within 24 months out. They have to renew their license,
usually three or four years later. They still have the option. It’s a real estate,
but they quit doing it full time and they’re out and it’s because
they can’t make it work. And so there is a trick. You can’t just say
I’m going to go get my real estate license. Analysts are selling homes and you can. But the success rate and being able to make
this work full time or being able to supplement your income so that you can replace that
normal full time job that you have is tricky. And that’s why you see
so many part time agents. I wish I remembered the stuff from that, but
there’s a massive amount of people who do this part time versus full time. I want to say it’s like 80/20, 80 percent of
real estate agents are doing this on a part time basis. It might even be more than that
versus the 20 percent or less who are doing this full time for me. And many of you guys hear
this story over and over. I went to do it full time. There was no looking back.
There was no part time. There was no let me figure
this out on the side. I literally lost my job in construction. The economy said we don’t need you anymore. And that was fine. I got into real estate full
time for the last decade. Now, over a decade, I’ve been in real
estate full time and I’ve loved it. I’ve loved every moment of it. It’s been super challenging and super scary. There’s definitely been some massive dry spells
where no money has been made. But for the most part, looking back over the
last decade, it’s been one of the best decisions I’ve ever made about business. And so there is some incredible opportunity and
there are some great moments where you can make some massive money. And the cool thing about it
is it’s your own level. Just like any MLM thing, the harder you work,
the more money that you can make, which is great. The last job that I had, even if I showed
up for 20 hours a day or if I was there for the normal eight hours a day, I
still made the same amount of money. The bonuses were set. There was no commission. I just did what I did right. And I had no opportunity to grow. And that’s one of the
things I struggled with. Showing up there day after day was the fact
that I could work harder, but I couldn’t make any more money. And that’s thing I love
about real estate is my first year. I think we made like forty five
thousand dollars in real estate selling homes. And then shortly after that year, two or
three, we passed the three hundred thousand mark. And that never, ever happened to me
with any type of full time job. So just the opportunities are endless. And that’s what I love about it.
But how do you go from that? Look, I’m working somewhere else. You know, whether you’re 30 or 40 or
50 years old and you think you. Real estate sounds fun. It looks interesting. I see all these people making money, whether they’re
on TV or or local or wherever they are. How do I get into that full time? Let me just tell you that you should
probably explore this a little bit further rather than the fact that I like real estate. It seems like a lot of fun and there’s
a lot of money because if you’re chasing money, the dream will quickly end and you realize
you can’t be in it for the money. You’ve got to find some other passions besides
just the money because it wears off quickly and you get
burned out really quickly. It’s one of the reasons that I got into real
estate and it made it kind of a struggle through the first little bit. But I found some
other things that kind of help me through that curve that I got me through there and
really helped me understand what I like about real estate. The other side of it is
that people make it look easy, right? You go you find somebody who’s
willing to sell their house. You stick a sign in the front yard. You showed the whole bunch people and eventually
the ourselves and you make 3 percent of the sales price, which is awesome. And don’t get me wrong, when you’re selling
seven eight hundred thousand our houses in Southern California, four percent is awesome. But it’s not all like that all the time. And maybe you live in a neighborhood where
houses are one hundred thousand or one hundred and fifty thousand, and you’ve got to sell a
lot of those houses to supplement your full time job. So I don’t know where you
are financially, but just consider, you know, what what your economy needs to look like. Let’s reverse engineer this and say,
what do I need to do? OK. So I love to start at the end and say,
what are my goals and what do I need to do? Let me just say that the average U.S. salary right now is somewhere between like
forty and forty five thousand dollars. And I know that doesn’t work for everybody
because being here in Southern California, you need to make well over a hundred
thousand dollars to have a decent life. Homes are more expensive. Gas is almost five dollars
a gallon right now. It’s expensive to live here. Property taxes are insane. OK. So how do you reverse in the June in
engineer this if I’m just leaving my jobs to go make the same amount of money. Realize you’re gonna be working more hours. You’re not taking a normal 40 hour week and
saying, OK, I’ll take that 40 hour a week making $40000 a year and I’m going to go work
40 hours a week and try to replace that real estate. Realistically, you’re probably going to
work 60, 80, maybe even 90 hours your first year per week in real estate. And there’s a chance that you will
not be making $40000 your first year. Yes, it can happen, but most likely not. You’ll probably sell one or two houses
your first year and again, depending on commissions in your area. That might be ten thousand or less dollars. So let me figure out for you how to
reverse engineer so that you can financially benefit. Right. If you’re going from forty thousand dollars
per year, you want to be making like eighty or ninety thousand dollars a year. And let’s set a goal that’s massive so that
if you do fail and you probably will. I’m just being realistic. Let’s fail at a high level. I don’t need to set a goal of forty
thousand and fail and make twenty thousand, because now you’ve got massive financial. What if we set a goal at one hundred
thousand and you fail and only need seventy five? That would still be awesome compared to
the 40 that you were making before. OK, so let’s do
some real estate expectations. Let’s just say your goal
is one hundred thousand dollars. So what does a hundred thousand dollars mean? That means that you’ve got to sell
about $3 million with real estate. 3 percent of 3 million is a hundred thousand. So I’ll find him. And that’s right. If it goes, let’s just say
that’s the amount of money you need to make me pull my calculators to make sure that
I’m not leaving on the wrong path here. I want to make sure
that we’re communicating things accurately. So trust the calculator. Three million dollars in real estate divided
by times point three thousand dollars. So lovable. So let’s just say it’s three million
dollars just to have some close math. How many homes is that in your neighborhood? The average price of a home in the US
right now, from what I’ve lost, remember, is like two twenty five to 250. And I know that it’s going to change because
down here, the average price of a home is like six hundred fifty thousand dollars. You go to some of these states. It might be around one hundred
and ten hundred and twenty. But you’ve got to do the math for you. So basically divide three point three
million or three million into 250. So that’s about four. Twelve homes you’ve got to sell twelve. Average U.S. homes to sell three million dollars worth of
real estate, which will again you about hundred dollars. So what’s it going
to take to sell twelve homes? How many months is that?
Twelve months in the year. Twelve homes home a month. So I think it’s probably pretty reasonable to
say that you can go sell a home. Finding a home to sell
per month is a challenge. So the thing that you’re not going to
know now is going into the unknown. How many people do I need to go
meet to sell one home per month? The other side of this is how many listings do
I need to actually have to sell one home per month? Because you might
take two or three listings. And one of them is overpriced because you
don’t know what you’re doing because you’re brand new. And it sits on the
market forever and it doesn’t sell. And then eventually, after six months, listing
expires and the homeowners like, you know what? You try it. I’m going to go to
somebody else because you couldn’t make it work. So that happens. Sometimes you’ll put it on
the market and there’s other things going on that maybe the seller is not as motivated,
that maybe they didn’t want the price. They were once saying maybe it’s just in a weird
part of town or it’s on a busy street or something’s going on. Right. And
you didn’t see those things. And it’s it’s on the market for a while, too. There’s all sorts of things that can happen. But the point is, is understand. You probably will have to take two or three
listings to get one closed for the first time. And obviously stuff happens, but it
might not happen in a month. You might take the listing now and it might
sell in three or six months from now. So you’ve got to start stacking these things
up and having multiple listings at the same time as well. But the theory is basically you need
a home per month to sell, to hit your 12. To hit your. Hundred
thousand dollar mark again. What’s involved to sell a home? Well, you’ve got to start finding motivated sellers,
people that are saying, hey, look, I want to sell my house, I’m thinking about
selling, you got door-knocking as an option, like go and doorknock a bunch of neighborhoods,
you’ve got phone call in which you can call whole bunch neighborhoods and say,
hey, I’m in real estate. You know, I don’t know if you had any
thoughts of selling your house, but I’d love to come talk to you about what your home’s worth and
see if that makes sense for you to get it on the market. Where would you go? Right. Like you’re going to
get to know these scripts. Just Google real estate scripts and you’ll find tons
of stuff that you can say on the phone. Trust me, I’ve been there. There’s a lot of scripts and a lot of
things you can say be prepared for rejection. There’s a lot of people that will say no and
they won’t want to talk to you, but that’s OK. You can get through it. The
other thing is, is networking, right? Telling everyone that, you know, that
you’re now in real estate. This is the biggest opportunity to say, look, I
was an engineering or I was a piano teacher or I was a full time football coach
or high school or whatever I did before. This is what I’m doing now. It’s called like the grand opening. Right. I open my real estate
shop and here’s what I’m doing. Look at me. Come talk to me. If you thought about selling your home, you’re
gonna let everybody you know, know that you’re in this business and
that you’re here to win. You’re here to work hard. You’re going to
do whatever it takes to get their business. So what I do is I would recommend taking
all the people that, you know, in your email address and all the people now that you know
in your cell phone, putting them all into a list and sending a message to them. Maybe you just have their cell
phone message or someone number. Maybe you just have their e-mail. Either way, craft something that basically says, you
know, hey, blank, fill in the blank. It’s Eric. I just got into real estate,
got my license a couple of weeks ago. I just want to let you know
that I’m doing this full time now. If you’ve been having any thoughts about selling a
house or buying a new property in the next six to twelve months, I would love to talk
to you and see if I can help you make that move. Let’s talk. Let’s have coffee. Let’s grab
lunch, whatever it is. Right. Let’s just keep the ball
rolling and communicate with them. That’s going be your first e-mail. For a lot of people, this might be
the first time you’ve ever e-mailed them. Like maybe you have their e-mail just
from work or from some other environment. This might be the first one. You’ve got to figure out how to craft
that message in a way that introduces yourself. Remind them who you are and say,
look, I’m doing this new thing. I’m going into a full time and
this is what I want to do. And now you start that connection and you
start the ball rolling and you remind people that this is what you’re doing. That can’t
be the only e-mail that you send out. You’ve got a follow up week after
week and just give them more content. If you’ve been watching the TV shows, you’ll
realize that we are massive on content, that we share everything about how to teach
the homeowner how to be more successful homeowners, about how to be a better seller,
about how to buy the house, better just teach your clients what it is that you do and
how you can help them and show them how to be better homeowners week after week after week
because they’re going to forget who you are. That’s the big thing. So many people forget who the real
estate agent was just twelve months later. So remind them who they are.
Singles are the text message, right? Center attacks. You can get a group text kind of
thing going if you want to do that or just one on one. It’s gonna take a
wild pound how many contacts you have. But same thing, right? Hey, it’s me. I just got my real estate license. I’m working super hard over here and I’m looking
for people that are willing to buy or sell a home food, you know, that’s been thinking
about selling their home in the next six to eight months. I’d love to reach out to
them and see if I can help them. Simple as that. So get that ball rolling. Figure that out and just
start the process again. Circuit in front of more people. You’re going to realize how many people you need
to talk to every single day to get an appointment. And I can’t tell
you that number for sure. For me, we would end up
calling a thousand people today. Sorry. Thousand people per day to go
on about four or five lists. And that was cold calls. It wasn’t like
best friends and people that we knew. It was just calling a thousand
phone numbers in the phone book. And that would give us about four
or five listing appointments per day. And those numbers work for us. They could work for you. You’ve got to get
to know your scripturally well and handle your objections and be able to call call
people that you’ve never talk to. Obviously, if it’s people that you’ve known and
worked with in the past and how those relationships with the conversion is going
to be much, much better. But the other side of this, too, is, you
know, if you’re wanting to get in real estate, you haven’t explored this again. Can I sell a home per month? You know, do I know enough
people right off the bat? Do I need to start cold calling
people because I don’t know anybody. When I moved here to Southern California, I’ve been
in real estate for a few years, but I didn’t know anybody. And so I didn’t
have a network to start connecting with. I didn’t have this database. And I could be like, hey, Jim,
you know, I’ve known you for years. I just got my real estate license here. I’d like to connect. It was
just completely I don’t know anybody. We’ve got to start calling cold
and reaching out to new people. So if you’re OK with that and you’re good
on the phone and you’re comfortable talking to people, that might be your best. Ralph. Right. Maybe you can
go to networking meetings. Maybe you can join a BNA and
maybe join the Chamber of Commerce. Maybe you can go to events
where people are hanging out. Right. I tell people, chase your hobbies because
they been at hobbies and those kind of events. You’re gonna get to know people
who have similar interests as you. And you can just introduce yourself
and say, you know what? Hey, man, it’s Eric. I’m in real estate. Yes, I love old cars. And yes, I love yoga. Yes, I like biking on
the weekends, but I’m also a full time mental state agent. I want to help you, too. So use your hobbies to get in front of
new people and figure out how many conversations you’re having. Just start bringing that up. And if you don’t have your real estate license
yet and you’re just thinking about it and you’re kind of getting the ball rolling, you’re like,
is this the way I want to go? Maybe you just introduce yourself like that. You know what, John? It’s been a
while since I’ve talked to you. I’m just about to get my
real estate license, you know? Have you had any thoughts of
selling as you pass my test? I’d love to come reach out to you and maybe
give you some ideas of what your home is worth. Explore some options of where you might go,
but hate to lose you in the area. So if you want to buy a home in this area. I can, you know, stay your friend. I’d be great right now. I can have a move
away. So build that relationship. Get to know them and really see
what it’s going to take for you. Conversation wise and if you have the ability to
do this, other thing that I did, which depends on each state. When you’re in that area. Some states have a huge requirement on who you
can call and what you can talk to them about real estate. But while I was studying for
my exam before I had my real estate license, I would get on the phone and I
would come in and I would call people. I would go to the broker and
I’d say, hey, who can I call? I just want to start building on my
pipeline and start building on my leads. But when I pass my test, I’m ready to
go and I can have this thing figured out. So he would give me a whole bunch of
names and a whole bunch of phone numbers and basically just put me on the phone and I would
go and I would call for like four or five hours a day and I’d pick up the phone. I just thought, hey, you know
what? My name is Eric. I’m working in real estate. Do not say
I’m a full time real estate license agent. Again, you got to figure out if you can do
that in your state and just say, you know what? I’m here. Have you had any thoughts of selling? And if I would get a lead and somebody
is like, I’m ready to go today and. Yeah. You know, come on over
and let’s sell my house. I would pass that onto an agent who was able
to close the deal and able to work with them. Right. And what happened is I was able
to fill their pipeline and I would be able to get a referral fee. So typically in real
estate, if you give a referral to another agent who can sell that house in triplicate,
gonna get paid anywhere from 20 to 50 percent of that commission. So if the commission is $5000, you might
get twenty five hundred dollars just for passing that name on Pan, the relationship
that you built with that agent. So the cool thing was, is that by the
time these agents started closing these deals, I had passed my test and now
I could start receiving my commission. Right. You have to be a
licensed agent to receive that commission. But because real estate is typically a 30 to
90 day process, all the referrals that I was giving these agents were able to now pay
me that now that I had my license. So I’d just show up, get on the phone,
call, call, call, do my thing and find some. Open houses are now open houses, some real
estate agents to kind of follow along, mentor with and see what they were doing day to day. Just saying, look, if there’s anything that I can
do in your business to help pass out flyers, knock doors, help you open
houses, organize things, whatever it was. I just wanted to be in real estate full time. So figure out your thing. Figure out what you’re great at. If you’re great
on the phone, be great at the phone. If you’re better door-knocking, get on, get on
the doorstep and start talking to people that way. If you’re better at the business
side of thing and organizing and run it through Sierra EMS and helping people just
get things done, work on that. The point is, is just getting
involved as much as you can. If you’re coming from a full time job and
you’re like I only have, you know, from five till nine o’clock at night. Figure out
how to make those four hours work. Read as much as you can, figure out
as much as you can about real estate. Start studying the test. Understand what you need to do to sell
one home per month to hit your goal. So that’s that’s really my suggestion is just
get into it full time, really understand your numbers, understand the amount of homes that you’ve
got to sell, and then go talk to real estate agents in your office and say, what do
I need to do so that I can sell one home per month or maybe
it’s three homes per month. And whatever that number is, to hit your
goal, reverse engineer and work backwards and say, how many people a day do I need to call? How many appointments per week do
I need to be going on? What should be my close ratio? If I go on 10 appointments,
should I be taking 5 listings? 8 listings like worse? Should I be on that list? I have no
idea anything that Eric’s talking about right now. Go find another agent. Say, look, I want to partner with you. I’m happy to work with you. We can split the commission, whatever it is. I just need someone to kind of mentor me through
this that I can get to the level that I want to be and hit the numbers and they need
to be at most people fail at real estate because they get into it.
They think it’s easy. They don’t realize how much time is involved. Only Generation SHIEFFER, an
hour here and there. And then they get in front of a few people
and nobody that they know is selling a house. They don’t make any money go
through about two or three months. They’re saved finances and they realize,
I can’t keep this up. I got to go do something else and I go back
to that full time job or they go do something else. So they try something else. They just keep bounce around. Real estate takes a commitment. You’ve got to know your numbers. You’ve got to know who
you’re getting from those. You’ve got to know how
many conversations you have. Your conversion ratios are massive. If you’re brand new in real estate and you’re
like, look, Eric, I have no idea what you’re talking about. I just love to get on the
phone and see what this looks like for me and my business. Let’s do that. Let’s explore some things and see if getting
real estate makes sense for you and I’ll give you a few more pointers. We haven’t even talked about digital marketing
and we haven’t talked about running social media as we haven’t talked about creating
a website because those things don’t matter when you’re branding. You’ve got to get yourself
out there and talk and be comfortable. People really understand what the business is made
up of, how you can help people. Now, that listing, presentation, nail the
buyer’s presentation, know the market, know what things are doing,
know how mortgages work. Not a described title. Right. People are gonna ask questions that you
may not know the answers to, and that’s OK. You’re gonna have
resources at your office. People that you can talk to,
partners that you can partner with. It’s gonna be fantastic if you make it work. But don’t just jump into it blindly
and hope that things work themselves out. Go out at somebody. Go follow them around. Go see if this is the
lifestyle that you want to create. Realize that YOUR Saturdays and Sundays are
probably already spent at open houses. You’re going to your new weekend is
gonna be maybe Monday and Tuesday. And if that works for
you, it could be awesome. So that’s question number three. While we’re getting deep into this, let’s go
to question number four and we’ll wrap this up here. It says, if you were a teenager
today, what would you focus on to be successful? Oh, I like. We don’t have a lot
of teenagers and teenagers that follow us. I don’t think I’m speaking directly to a 13 to 19
year old, but I think that a lot of our clients do and they have kids at home. You know, right now we’re
going to the fall schools. Back in summers away is out and I’ve got
three little girls myself and I think about them and what they’re gonna be interested in when
they get older and what’s going to excite them and what kind of businesses they want to
explore and know just how that works out. So if you are a parent of a
teenager and you’re wondering how do I. How do I get my teenager off the couch
and stop playing video games and stop doing their thing or go deeper on the things they have? Right. Like you can make a bunch
of money playing e-sports like video games. It’s crazy. And you can
make money making YouTube videos. And there’s all sorts of ways that
you can make money in this life. But the question is asking is what
would you focus on to be successful? Do you focus on as
a teenager to find success? The big things is for me that I would
have our kids focus on if they’re teenagers. You’re not there yet. They’re all under eight,
but is to explore what they’re interested in. Find out those passions that they have. Because when I was in school, I realized that
I hated school because I was forced to learn things that I didn’t care about. Right. We had to talk about history and wars
that happened a long time ago and dynasties that happened over in China and all these things
that happened years and years ago that I just could care less about back then. We learned about proper grammar and English. And again, maybe I should’ve paid more attention
to that because I don’t have the best grammar, but I could care less about that. We were talking about science and that was
something a little bit more interested in. But I didn’t care as much about these things
because they were just kind of like here. Eric, you need to learn these
things just to pass the class. And I did poorly in school. I barely made it out of middle school. I barely made it out of high school. Finally in college, when I could take the classes
that I wanted to go to and study things that I was interested in and pick
the topics I did really well. I got on the honor roll and my college
and I almost ended up with a straight 4.0 because I really pushed myself and I
found what I was excited about. So that’s what I’ve realized is that you’re only
gonna chase the things that you want to do. Right. If someone says, hey, learn this new
language that has nothing to do with your life or learn quantum physics, it has
nothing to do with your job. Like you’re just not going to care
unless you’re a student of education. Love learning things which most people don’t. You’ve got to find things that excite you
and push you and make you passionate. So find what your kids are interested in. You know, are they interested
in a certain sport? Is there a computer technology
that they can go down? You know, whether it’s writing code or
a bot or something like that. Maybe they’re interested in social media and
helping businesses tell their story and get their content out there. I know a ton of
teenagers who work with their parents to run a business online because they understand
how social media works. They help their parents get
their business on there. Maybe they are interested in cars. Maybe they’re interested in camping. Maybe they’re interested in travel or
or language or something else. Maybe meet making music right. Or writing books. Who knows what it is. Let them explore that. Put them in as many
things as you possibly can. I think that’s one of the
things that I’m most grateful for. From my parents is that they pushed me in
so many different directions and I was younger to try new things. Right. They forced me to play the piano because
my mom want me to play the piano. I realized I hated it. That was OK. We quit. She wanted me to learn how to
play tennis because she thought that would be a good social sport. Played of her fears. Didn’t love it. My dad ran track and he
won me to be on the track team. I ran that for a few years.
I was really good at it. I became the best high jumper in
our region and set some amazing records. I was really good at the hurdles. I ran that right. So I
tried things and I tried. A lot of different things just to
see what I was good at. And I think if you’re a parent, pushing
your kids to try things that they’re interested in can be helpful. Also push them in the direction of
things that they may not know about. Right. They may not know about
sports that they’ve never seen before. They may not know about hobbies in technology
that they’ve never heard before, but push them in those directions. Another thing that I
would suggest is have them go mentor somebody for a little bit. If you know somebody from
work or or a friend who’s in maybe a industry that might be interesting to your child,
have them bring them to work one day and then just say, look, can they follow
you around and see what you do? Can they maybe go talk to when I wanted to
get into house flipping my dad, I’d been in construction for a long time, 40 years. And while he was in commercial construction
and knew very little about the residential real estate model, he had
friends who were there. And so he invited them
over for dinner one night. He said, you know what, Eric,
you’ve got this open book. There’s these guys who are making millions
of dollars doing what you’re doing. If you’re interested in this, I would talk to
them and see what their business is like and see how they got into it. All of them
honestly try to talk me out of it because it was hard. You know, these guys had spent
decades getting to the point where they were making seven figure incomes. They had lost a lot of money and earned
a lot of money and went through massive financial challenges and hurdles. And the things that
they built were incredible. What are these guys give you? An example had sold over 20 homes that
the average list price on these properties was like seven to eight million dollars. I mean, just amazing homes
up in the Bay Area. You know, these in these areas of
Menlo Park and Atherton that are incredible. So what I’m getting at, though, is that he my
dad was putting me in front of the people that I was wanting to become like. And this wasn’t in my teenage years. This was like in my early 30s. Anyway, he got me into the
people that I wanted to get. A thing I would suggest
is reading more books. Right. Most teenagers don’t love to read. They like to watch. TV is easy and they can
consume food and just sit there and veg out, have them read books about
things that they’re interested in. Get them an audible account because you can
just listen and consume books while you’re doing other things. I guess they like to run
or ride a bike or or go places. Have them listen. Podcast. Podcasts are short bits of information
that they can consume easily. So get them new information. Get them to explore their passions or hobbies,
the things that they’re interested in, and then go find people that
are successful in those industries. If you’ve got a kid who’s doing something
where you’re like, look, I don’t know how you’re gonna make any money with this. It’s just kind of this weird
thing that I don’t understand. Go Google that industry and see if there’s
people making money and show them how that’s possible. Right. And obviously, this
world isn’t just about money. But if someone’s going to explore something and go
down a route and make it a career, they need to be able to support themselves. They need to make money at it. So find
ways that they can explore these things and make money and try it for a little while. Tell them to go try it for a month or
three months and see if this is something that they want to do. Maybe they do it for two weeks. And like, this isn’t what I thought. This is not me at all. Again, when I was in school and I was
starting to explore different things and try new things and take different classes, I used to
be really into computers and I loved computers and building
computers and programming. I mean, I built my first one of my
first couple cars, had navigation and it way before navigation even existed in most cars. I built the whole computer that went under the
seat, had music on it and games and all that kind of stuff. And it’s just
things that I was excited about. Right. But when I got into school, I
started taking computer classes and thinking that I wanted to go in and to
computer science and that whole route. And after about two weeks of being in the
course, I realized this isn’t what I thought it was at all. It’s nothing
that I’m passionate about. It’s more of a hobby and it’s kind of fun. But I don’t want to get paid
to do this every single day. I wouldn’t have known that right and I
wouldn’t have known that if I didn’t try. And so give them Apache’s try. Help them explore again. Help them read, consume knowledge. Go mentor somebody. Just try working in that industry. Explore things that they’re into. Don’t force them into the route
that you want them to. I think that was one of the things that my
dad was hoping that I would go follow his plan, that I would run a
construction company someday like his. I could go maybe even work for him or
do something like that, because then we’d have more things to talk about. But
I wasn’t interested in that. It just wasn’t what I was passionate about. And he slowly gave up that dream. And we have a great
relationship and we moved on. But you’ve got to realize that
your kids are gonna be different. They’re gonna have their own excitement, their own
life, their own passions, and let them explore those kind of things. So this is this has been all over the place. But I think this has been
a great Ask Eric Show. Guys, thanks for being here. Thanks for checking out the show.
Thanks for getting your questions answered. If you’ve got teenagers who need advice. If you want to get into real estate, if you
want to be a music teacher and create courses and expand your reach and teach thousands of people
what it is that you do and what you’re passion about. Awesome. And if you’re looking to fall in love, Gari,
win this and watch the first part of the show. I don’t know that has
anything to do with this. But anyway, guys, thanks for being here. Really appreciate it. We are gonna wrap the show
up and we will see you Friday on our Facebook Friday show. We talk about business strategies and scaling and
growth and how to make your real estate business. Unbelievable. So, guys, have a great week. See you Friday. I guess.


One thought on “Should I Quit My Job For Real Estate? | #AskErikHammond 34”

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