Agent Blogs How Do You Become a Commercial Real Estate Agent? by Nasser Mansur September 18, 2017February 5, 2019 by Nasser Mansur September 18, 2017February 5, 2019 Commercial real estate agents are driven, social, persistent, trustworthy, confident, and PATIENT. So be patient, and read this blog to determine if you have what it takes to become a commercial real estate agent. When it comes to the requirements of becoming a commercial real estate agent, there are certain qualities and characteristics that you have to keep in mind. By the time this blog is over, you will have hopefully made up your mind and come to a decision. Education and Experience As an aspiring commercial real estate agent, there are certain levels of education and experience that you will need in order to join the ranks of successful agents out there. Education When it comes to education, becoming a commercial real estate agent does not necessarily require a bachelor’s degree in real estate, but a bachelor’s degree will help nonetheless. All states in the US require a license in order to allow you to sell commercial real estate. This means that you as a commercial real estate agent will have to get licensed by your state. Acquiring a license for becoming a commercial real estate agent means that you need to pass a written exam. Additionally, most states will also ask prospective agents to complete 30-90 hours of various real estate courses (some may give you an exception if you have a bachelor’s degree in real estate) which can be done online or through actual classroom courses (these could be taken at community colleges). Additionally, most states also expect commercial real estate agents to renew their license every 2-4 years, and some might require you to re-take the exam before renewing your license. Becoming a commercial real estate agent, however, does indeed require a high level of education, but this education doesn’t necessarily have to be official. The successful execution of the tasks and responsibilities of a commercial real estate agent will need and rely on sufficient knowledge in the field. This is why real estate agents, in general, need to always keep themselves up-to-date when it comes to the local, national, and global real estate market, in addition to all the other legal and financial aspects and changes that may arise. Experience When it comes to experience, as a commercial real estate agent, you will need a set amount of prior work experience if you’re looking for an opportunity to work for a big firm. Since big real estate companies are where prospective agents can find the greatest opportunity for success, you should consider working in fields that will build up your experience with the goal of a big firm in mind. If you’re interested in becoming a commercial real estate agent, then it would be optimal to gain some experience in commercial real estate in order to work at that specific section in your target firm. But of course, residential real estate is most probably where your journey will begin, as residential real estate is more suitable for entry-level investors and agents alike. But you should always maintain a clear view of your objective, and seize every opportunity to move up to commercial real estate after gaining some experience in residential real estate. Related: How to Become a Successful Real Estate Agent Personal Qualities When it comes to becoming a commercial real estate agent, there are some personal characteristics and traits that, if you don’t possess, can shut down your career before it even begins. Becoming a real estate agent simply isn’t for everyone. Some people lack the necessary traits to be a real estate agent, leading them to career failures, in addition to risking their clients’ investments due to not being proficient enough to handle all tasks and responsibilities. A career as a commercial real estate agent can be EXTREMELY stressful. As a commercial real estate agent, you always have to be proactive in seeking clients and leads. Whether it is through social and networking events, or through cold calls, a real estate agent needs to think as a salesperson. Most real estate agents are driven by money, and the amount of money a real estate agent makes is related directly to the success he/she achieves. This means that as a commercial real estate agent, the amount of money you make depends entirely on your personal skills and the time and effort, both from your working hours as well as your personal time, that you allocate towards succeeding in your real estate business. The main skill that you will need to sharpen as a commercial real estate agent is communication. You need to build and maintain a real estate network of connections, which includes other real estate agents as well as current and past clients. This can solidify your reputation and can lead to your clients referring other possible clients to you. You should keep in mind that being a commercial real estate agent means that you will have to compete with all the other agents out there, including colleagues working for the same firm as you. You should always consider this from the early stages of your career, as you do not want to be losing your clients to other more aggressive agents. Related: 3 Ways This Real Estate Agent Tool Conquers Competition Money Money talks…and a commercial real estate agent listens. As a commercial real estate agent, you won’t be earning any monthly salary unless your company offers you a small supplement salary. But even then, this salary won’t be what gets you going. Commercial real estate agents’ salaries are based on commission. This commission will usually be around 3% of all sales and leasing transactions. If you’re working for a brokerage firm, it will likely receive between 35-40% of this fee. For example, if the deal sums up to $1,500,000, your fee will be $45,000. If you’re working for a firm, and that firm receives 35% of your fee ($15,750), you will end up with $29,250. This isn’t bad. Not at all. Related: How Much Do Real Estate Agents Make? There is a downside, however. When it comes to getting paid as a commercial real estate agent, the downside lies in the duration of the deal. Commercial real estate deals can more often than not be very time-consuming and complex. An average commercial real estate deal can take from six months up to a year to close – sometimes even longer, and sometimes the deal doesn’t even close. This is why you, as a commercial real estate agent, will need to plan your finances accordingly. A backup fund that can last you 6-12 months will be essential for you, especially at the start of your career, as you could spend your entire first year without earning ANY income from your job as an agent. Conclusion If, after reading this, you believe that you have what it takes to become a commercial real estate agent, then you should definitely go for it. Commercial real estate agents who love what they do and are good at it will always find good deals, and will always reap the fruit of their labor with large amounts of money. Check out our website at Mashvisor for the latest news and trends in the real estate market, as well as for the tools that it provides for real estate investors and agents alike in order to help them make the best investment decisions. Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL 0 FacebookTwitterGoogle +PinterestLinkedin Nasser Mansur Nasser is an experienced content writer with a degree in English Language and Literature. He loves writing about all aspects of the real estate investing business with focus on market and property analysis and the best sources which every real estate investor needs in order to succeed. Previous Post Follow These Steps to Learn How to Buy a Condo Next Post What’s the Legal Way to Deal With Rent Arrears? Related Posts How to Generate Real Estate Leads: 6 Ways That Really Work Why Real Estate Agents Make the Best Investors 5 Steps to Building a Simple Real Estate Sales Funnel How to Be a Rich Real Estate Agent – 4 Tips Do You Need to Find a Real Estate Agent to Buy Investment Rental Properties? 7 Tips to Become an Amazing Real Estate Negotiator How to Create a Real Estate Website to Attract More Buyers Is It Necessary to Find a Real Estate Agent When Buying Investment Properties? 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