Real Estate Investments 101: The Top Four Reasons Real Estate Agents Fail

“In the real estate business, you learn more about community issues. You learn more about life.

You learn about the impact of the government—probably more than any other profession that I

know of.”-Johnny Isakson

No doubt, an investment in real estate is seen as one of the most lucrative ventures in the

world. However, just because it is considered lucrative and profitable, it does not always mean

that it is right for you. Furthermore, there is no guarantee that you would succeed and flourish in

this particular field. Indeed, taking up a profession in real estate can be incredibly rewarding, 

and it is easy to see why so many individuals would consider in trying their hand at real estate. 

Apart from the persuasive pecuniary enticement entailed in this profession, individuals are also 

given the liberty to work their own hours, have better leverage over their timetables and schedules

plus the income potential is unparalleled. Moreover, working in real estate is an avenue to meet

several people from all walks of life who might be interested in buying or selling properties

which would resultantly expand your social sphere. In just one profession alone, you can reap a

myriad of benefits that would somehow redound to a gainful future if you know just how well to

exploit it. The lure of a money-spinning venture coupled with the promise of prospective clients

would be enough to convince an ordinary individual to dabble in real estate in the form of

hooking up buyers and sellers of their condo in QC or elsewhere.

Unfortunately, their endeavors are not always so successful. But that begs the question: What

makes a real estate agent fail? While most professions have their drawbacks, what is it precisely

that causes one to flop in their endeavors? Well, this list will enumerate just some of the

reasons why.

1.) They do not work hard enough

Success in real estate takes a real commitment to do hard work. To ensure that your prospects

take off from the ground, you need to exercise diligence in your dealings which means you need

to do the hard work. In fact, it has been widely believed that success in real estate can be

achieved through ninety-nine percent hard work and just one percent of sheer luck. From that

assessment alone, you should know that making through it would require your sweat and

tears—occasionally your blood. If you are not ready to commit, perhaps the profession might

not be for you.

2.) They got involved in real estate for the wrong reasons

It might be that the promise of easy money was too tempting to resist and because of this,

individuals have committed their lives to a myriad of real estate endeavors. However, as stated

above, real estate takes hard work, and you certainly cannot expect all of your dealings to 

succeed—much less, succeed immediately. It takes patience and a great deal of time before you

are going to see any significant results. If you are involved in real estate precisely because you

just want easy money, then you are guaranteed to fail. Another reason why some individuals

would try their hand at real estate is because of their unique flair for selling properties coupled

with their proclivity for looking at houses. However, know that being a successful real estate

agent would take so much more than just identifying which houses are pretty and which ones

are not. Examine your reasons for wanting to hop into the industry before committing yourself

to it.

3.) They do not save enough money

Real estate agents who are successful in their endeavors know that money is needed to develop

and build their businesses. Regardless of whether it is in the promotion of their careers or in

developing real estate marketing strategies, their endeavors would inevitably cost them. In this

regard, it is imperative that real estate agents who wish to build on their businesses would be

wise as regards their finances insomuch that they would have enough of it to finance their

budding prospects. Some real estate agents would fail because they do not know the projected

expenses entailed in their businesses. Once they realize just how much it would be, they would

find out that they do not have enough money to live on. Apart from building your investments,

now that you would also need money to buy groceries, pay the mortgage, make car payments,

pay bills in a timely manner—all of which you cannot neglect. For this reason, individuals who

are hoping to try their hand at real estate should know the financial obligations it would

connote.

4.) They do not set goals

Knowing what you want to achieve helps you create a daily, monthly and yearly plan. These

plans would then culminate into a realization of your goal which is why it is paramount to have

them. Your plans would help you map out your objectives for the day, month and year and it

enables you to keep track of where you are and steers you towards the direction you need to be

going to accomplish your goals. Operating sans a plan is akin to navigating rough waters without

a map—you are bound to get nowhere. Having a set of goals and a corresponding set of plans

are critical aspects of a successful business. Real estate agents fail either because they operate

without goals or simply because they do not know how to appropriately set goals or create

realistic plans that can be carried out.

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Are You Ready to Buy a Condo?

You might be so interested in buying one of Manila properties, or if not, you are considering that condo for rent Bonifacio Global City. You are probably thinking of living on your own, settling down with your better half or contemplating on the thought of investing. We have different reasons and stories why we are tempted to buy or rent a condo unit. Whatever your rationale is, you should ask yourself: “Am I ready to buy a condo?”

Just like any other big things you do, buying a condo unit needs to be thoroughly reviewed. In this article, let us focus on your financial readiness. Time to review your bank accounts and assets, and see if you can afford to buy a condominium unit.

How much can I afford?

We can't give you a definite answer on that big question as different factors or variables affect individual capacity on buying a condo unit.

According to real estate experts, you can use the “2.5 rule” to estimate how much you can afford. How does it work? Note your net monthly income, and multiply it by 12. After getting the product, multiply it by 2.5, and the answer will be the maximum amount of condo unit you may afford to pay or buy.

Example:

Your net monthly income is ₱ 30, 000.

₱ 30, 000 x 12 = ₱ 360, 000

₱ 360, 000 x 2.5 = ₱ 900, 000

Maximum amount of condo you may afford: ₱ 900, 000

This is just a rough estimation on the amount of condo unit you may purchase.

Not all people can buy a condo unit with one-time-big-time payment (you must be really lucky!), so most of us go to our banks and see how can they finance our condominium. But don't forget how banks love to know the exact figures and calculations. They will carefully compute your income against your expenses. More than the computations and numbers, the banks also love rules. One of which is that only 25% of your net monthly income should be devoted to housing.

Using our previous example, given that your net monthly income is ₱ 30, 000, you can save ₱ 7, 500 for your condo unit. Unfortunately, if you are earning ₱ 30, 000, you might want to think of other ways of earning to afford your dream condo unit since the computed ₱ 7, 500 should cover not only the amortization but also the other costs of living and owning in a condominium.

You should also remember that we can quickly know your net income but not your expenses. Our spending practices vary from time to time. There are a lot of factors that may affect your budgeting – emergency needs, needs and wants, and other priorities.

Along the way of getting your dream condo unit, sacrifices are inevitable. If buying a condo unit is your top priority, you might postpone your expensive vacation or delay your plan of purchasing a new car, or other pricey liabilities.

Another thing for you to note is what will happen if you suddenly lose your primary source of income? Even though this may be out of your control, you should be able to keep your commitment to pay no matter what happens. That is why you should also have a generous amount of savings allocated for your condo unit expenses. You should have saved at least six months worth of your monthly amortization just in case you will be losing your job or have a drastic change in your monthly spending.

For example, your monthly allocation for your condo is ₱ 20, 000, you should have at least ₱ 120, 000 in your savings account.

After knowing all these things and thinking about your current situation, can you confidently say “yes” if you're asked, “are you ready to buy a condo?” No worries if you can't answer that yet. You got enough time to start looking for more cost-effective condo units or have other sources of income to finance your goal of owning a condominium.

Comprehensive Checklist When Looking for a Quality Real Estate Broker

Buying a new is not just as simple as picking the unit you wish to buy and paying for it. The process involved in formally enrolling the home under your name requires lots of documents and negotiations a lot of potential homeowners may not have to time to deal with.

This is where real estate brokers come in. They’re experts in helping private individuals make their home purchase successfully.

There are lots of various housing options including leading names like Amaia homes. When looking for a reliable agent, this sample checklist could help.

Portfolio

All reliable brokers understand that many homeowners are hesitant to trust professionals to work on their house purchase. This is why they show portfolios highlighting the successful sales and negotiations they made in the past.

Before hiring someone, it’s best to first have a look at their background. Their solid experience on the actual brokerage can say a lot about their skills in helping you land the best purchase.

Range of network

Aside from their experience, contacts matter. These are the people whom they get in touch with to ask for deals, negotiate on prices and process documents.

The more connected they are with relevant professionals, the faster it is to process all the necessities for home-buying.

Local knowledge

Ideally, you must hire a professional who is highly knowledgeable about the area where you wish to settle for residence. Their familiarity of the place is a plus factor in helping you compare the pros and cons of prospect options.

Choose someone who has in-depth knowledge of the place.

Expertise in real estate purchase

Legwork such as processing of contract, money transfer and the like takes time and effort. Skilled brokers can do this on your behalf.  When choosing for a professional, make sure you have checked the person’s background in handling businesses.

Just like any fields, real estate is an independent business in itself and requires certain degree of knowledge in order to meticulously conduct every aspect without any errors. The more knowledgeable the broker is, the better.

Work ethics

Whether you like it or not, attitude matters. It’s crucial that you feel comfortable with the person you choose to work with.  

Someone who has excellent work ethics respects your timeline and is willing to adjust their own schedule to accommodate important meetings revolving around your planned purchase. More importantly, it’s also easier to trust professionals who have strong work ethics and who are committed to spending time addressing your needs as their clients.

Negotiation Skills

Brokers are known to be skilled in negotiating, working on helping you get the best value price for a property. However, not all have totally the same negotiation skills. Some are more skilled than the rest. When hiring for someone, make sure to go for those who have proven their abilities in business and have some proof to validate it.

Politeness and honesty

Lastly, consider assessing the politeness and honesty of the broker. They may be more knowledgeable about real estate, but at the end of the day, you are still the boss. You deserve the respect worthy of a client.

Besides, it’s naturally easier to deal with polite professionals compared to those who like to brag.

Hiring a professional real estate broker saves you a lot of time from having to manage all the legwork yourself. Delegate tasks and let the experts bring you the best homes in the table. With their wide knowledge about various home types, they are capable of answering your questions pertaining to the property you want to purchase.

Skim through this checklist and choose wisely!