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Are you thinking about starting a career in commercial real estate? If so, you're not alone. Commercial real estate is a booming industry, and there are plenty of opportunities for those willing to do the work.
In this blog post, Commercial Broker Scott Hollis will look at the ins and outs of a career in commercial real estate — including the benefits, challenges, and requirements. We'll also discuss some tips for starting your own commercial real estate business. So, if you're ready to learn more about this exciting industry, read on!
Benefits of a Career in CRE
There are many benefits to starting a career in commercial real estate. For one, it can be a very lucrative field. According to the Bureau of Labor Statistics, the median annual salary for real estate brokers was $62,010 in May 2021 — and that's just for starters. With experience and success, you can easily make much more than that.
In addition, CRE is a very adaptable field. If you're interested in working with a particular type of property or clientele, chances are you can find a niche that fits your interests. And finally, CRE is a great industry for those who enjoy working independently. Self-motivated and driven professionals can find plenty of opportunities to succeed on their own terms.
Challenges of a Career in CRE
Of course, no career is perfect, and there are some challenges associated with working in commercial real estate. First, it can be difficult to get started without any experience. Because CRE transactions tend to be complex and involve large sums of money, most clients want to hire someone with an established track record of success, making it tough for newcomers to break into the industry.
Another challenge is that the field can be quite competitive. To succeed, you must market yourself effectively and stand out from the crowd. And finally, because commercial real estate transactions often take months or even years to complete, it's essential to be patient and comfortable with ambiguity.
Requirements for Starting Your Own CRE Business
If you're thinking about starting your own commercial real estate business, there are a few things you'll need to keep in mind. First of all, you'll need to get your broker's license, which usually requires completing some coursework and passing an exam. You may also want to pursue a business degree to get some foundational knowledge of running your own company. Even if you work with a team of real estate professionals, understanding business fundamentals and marketing could be a key to success. There are great online degree programs that allow you to take classes on your own schedule.
You'll also need to research the various legal structures to determine which will best serve your needs. Many first-time CRE professionals establish an LLC because of liability protection, tax flexibility, and other perks. You can set up an LLC that complies with state regulations by working with a formation service for a nominal fee.
Once you have your license, you'll also need to develop a strong network of contacts within the industry, including lenders, title companies, appraisers, etc. And since CRE transactions are typically large and complex, you must have access to capital to fund deals and weather any bumps along the way.
Building Your Brand
Whether you're launching a business or seeking a career working for someone else, it's essential to make a name for yourself in your area and in the industry. Here are a few tips for creating an attractive, unique brand and establishing a solid reputation:
Develop a stellar branding package (e.g., logo, typography, color palette, etc.) for your marketing materials.
Keep your website and social media presence up-to-date and professional.
Use attractive visuals, including photos, infographics, and videos, to tell your story and capture attention.
Write informative blog posts, articles, or white papers that showcase your knowledge and expertise.
Speak at industry events or host your own webinars or podcasts to build a following.
Get involved with industry associations and local chambers of commerce to make valuable connections.
Treat everyone with respect.
Starting a career in commercial real estate can be very rewarding, but it's not without its challenges. If you're thinking about entering this exciting field, remember to do your research and learn what it takes to succeed. With hard work and dedication, you can achieve your goals and build a successful and fulfilling career!