Should I quit now? 10 pts?
I’ve been a commercial real estate agent for 5 years now and for the first 4 years it was going fine. However, as many of you know, commercial real estate loans are going bad, and along with it, many banks are not lending. My brokerage is a very specialized brokerage. It is a car wash brokerage. Many commercial real estate brokers specialize in hotels, office buildings, apartments, etc. My business partner and I specialize in car washes. Unfortunately for us, most banks will not lend money on a car wash. They are still much more lenient on apartments, hotels, offices, but car washes have been very very bad investments for banks coming out of the real estate boom. As a result, I do not see my brokerage doing ANY deals this year, or in the near future. In the meantime I’m running out of cash and fast.What should I do? Since I’m technically self employed I have plenty of time to search for a job, but the reality is that if I was truly serious about leaving this career now, I would simply quit and start a new career asap. I’m 29 years old and started doing this right out of college. I feel confident that I can take a pay cut and start a new career somewhere else. At this point it seems almost inevitable that I’m going to have quit soon. My question, therefore, is does it make a difference if I search for a job only part time, or should I quit now and put all my effort into finding a job now while I still can afford to pay 3 more months rent, and still have some money for food?
I appreciate the optimism guys but at this point a change in course is highly unlikely for me. My business partner just started our new marketing campaign and we are indeed headed in a new direction: apartments. However, I have about 4 months left before I’m broke, and since we are untested in the apartment market I think it would be prudent to either (a) jump ship now or (b) get a new career.
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4 comments
smartypants on July 29, 2009 at 12:06 pm
Ahh, right up my avenue. I’m also in commercial brokerage. Here’s an analogy for you (as much as I hate them), you have to know more than one dance to survive in this market. So you could very easily switch specialties. The language is a bit different but performing and calculating return is similar. Not the same but similar. If you’re losing cash fast, consider taking on a REIT or another large group and work with them exclusively for a while. I am still pretty busy and by some stroke of luck I am further along this year than I was last year collectively. We simply cannot keep doing the same thing and expecting results. Another avenue is to work with owner occupiers. Banks are more inclined to loan to them then even proven developers at this point. Just keep in mind that the ones that are standing at the end of all this will be the ones leading the pack when it goes back up. Also remember when it does come back to live well below your means and you will always be steady through the hard times. I do and did so I’m not getting the same spanking so to speak.
And finally, if you learn another area of CRE, you can always bounce between the two. I specialize in land and investments so I am always working between the two. Investments is a relatively broad term but take your CCIM with your free time and you will love it! Good luck.
Jumping ship and ending it now sound like the same option. Am I missing something? I think you should move toward multifamily, start with some short sales and forclosures (work with the banks) and get a part time job to stretch out the 4 months to 6-8 which should be plenty of time for you to take down and close 1-2 deals. You may also want to do some deals on your own to keep more of the commish.
towanda on July 29, 2009 at 12:06 pm
Give me a break. . .what homework assignment is this. . .
Rebecca on July 29, 2009 at 12:06 pm
Hmmm why stay if you are not making any money? But if you are making just a little then stay and look. You could also take on a partime job, quit and look.
Ken M on July 29, 2009 at 12:06 pm
If your the broker or own part of the brokerage , change your speciality. Sell something that pays. Try leasing/selling office space etc. How about small and mid size apartment buildings. How about other small business (SB not my cup of tea but maybe ok for you) To much work for little pay.
Lots of Real Estate to sell!