With this in mind, here are 4 tips to make April 15th, a little easier to bear, and make Uncle Sam and his boys at the IRS a bit less irritable.  You will need to know what tax percentage you paid last year, so you may need to look that up!

1. Open a savings account, make deposits to the account everytime you receive a commission check in the amount of your tax percentage.  If you are starting this now, you may want to start rolling in the percentages for your commissions from Jan 1st. through now.  At the end of the tax year, you’ll have the money to pay your taxes, and maybe even a little extra mad money to play with.  This works well, but remember this isn’t money that you can withdrawl for expenses etc.  You must be diligent, in putting the money aside.  This will work for annual, semi-annual and quarterly tax payments.
2. Set up an account with EFTPS Electronic Federal Tax Payment System.  After you set up the account you can make electronic payments from your checking account to EFTPS.  Works much the same way as the savings account, except if you have a hard time saving money – or get itchy fingers when there is money in an account, and you think that you really need spend some or all of it or expire from shear frustration, this effectively takes the money out of your reach.  You can set up the account for filing annually, semi-annually or quarterly.  There are no fees associated with filing, but at the same time you aren’t making any interest on your money.  Check out their website for more information.
3. Hire a financial planner/accounting firm.  Easy yes, but more costly by far, at least as far as initial investment.  A financial planner/tax accountant can help you set aside money for your tax payments, filing your returns.  They know what deductions you are entitled to and can help you plan for retirement, build your business, increase your portfolio, and improve your bottom line.  It may be worth your investment for their services and also for the time you free up by using them.  Ask around, there are bound to be a few Real Estate Agents that you know who could refer you to their financial planner/tax accountant.

Don’t get caught short in April.  Plan ahead and take some of the pain and hassle out of Tax Time, its easy.  Remember to organize your receipts, and make notes such as the client name you took to dinner.  If a reciept is both for business and personal, be sure to circle the business charge.  Keep all your tax documents together, and avoid the last minute rush to find everything.

Niche marketing is specializing in only one type of property, such as condominium sales.  Marketing yourself as a specialist in one type of sale, thus bringing in clients who are looking for your particular type of property, or who are selling your type of property.  It allows you to focus your knowledge, on only that particular property and the contracts, addendum’s and any other aspects in the sale of the property.

As an authority in a particular type of property, you can still sell any properties, but it may be an advantage to network within your brokerage with other niche marketers to refer clients between each other, an additional source of income for you, and allows you to maintain your focus on your specialty.  Having a niche marketing network can be very beneficial to all parties included, but be sure to speak with your broker, and put together a contract signed by all parties agreeing to the amount of compensation you expect from referral for each transaction including whether the client is listing or purchasing the property.  Working in a network is a good way to build your own business as well and assisting your colleagues with their business.

Here are a few niche markets, associated with the real estate industry;

• Buyers Agent
• Listing Agent
• First Time Home Buyer Specialist
• Condominium Sales
• New Construction Sales
• Lake Properties
• Mountain Properties
• Resort Properties
• Fix-er-upper Properties
• Executive Properties
• Commercial Properties
• Farms
• Horse Properties
• Investment Properties
• Turn of the Century Homes
• Estates

As you can see the list is only limited by your imagination.  You can further divide it by price range, area of town, etc.  Specializing in a niche market will add focus to your marketing, and advertising.  What is your Niche?

Having a Mentor, is hands down the quickest way to get started in the real estate business.  Using someone else’s knowledge, to fine tune your own.  Eliminating mistakes because you are shown how to avoid them.  Walking through a transaction or three with a true expert on your side, available to answer questions, make suggestions and give honest feedback on your performance.  In truth this program, is OJT (on the job training) for new real estate license holders.

Unfortunately, not every company offers it to their new licensee’s.  But that doesn’t mean that it isn’t available to you.  Speak with your broker, you may be able to come to an agreement with one of the experienced agents in the office to Mentor you.  Be aware, that they will expect some compensation for this, usually a portion of your first 3 to 5 closed transactions.

With the right mentor, you can kick start your career, make sure that the experienced agent you are working with has a similar work ethic, and that you communicate well together, this will make your working together and your learning experience all the better.  If you find that you are having difficulties working with your mentor or that your styles are at odds, speak to your mentor first, then go together and speak with your broker.  After all, you will still be colleagues with this person, and an amicable split will be easier on everyone concerned.

What to expect from your Mentoring Program experience;

• Training in filling out and understanding contracts
• Role playing or scripting
• Advertising advice
• Communication training
• Closing the deal
• Handling an appointment
• Previewing homes – spotting potential problems, and highlighting the good qualities of a house
• Niche marketing, becoming an expert in one type of property
• Asking open-ended questions to narrow your search
• Record/file keeping procedures
• and most of all a realistic look into what it takes to be a successful real estate agent

A mentor isn’t necessarily right for everyone, and only you can determine if a mentor is right for you, if it would be beneficial for you and your career.   Having a mentor, is the quickest way to success in your real estate career.

1. Does the real estate company have business principles that are aligned with yours?
2. Will you feel confident linking your name with the real estate brokerage’s name?
3. Does the company offer additional education, a mentor program, role playing or other business building basics to speed you on your way to success?

Money is always a major concern, when beginning a new venture.  Few companies offer a salary, most however are commission based.  The two main types of commission based companies are 100% companies and Commission Split companies.  100% companies charge a desk fee – a flat fee that covers your franchise fee, and the costs associated with doing business.  This fee may be charged in one lump sum or split into semiannual or quarterly payments.  When you make a sale you then receive 100% of the commission.  This is an excellent option if you have enough funds to cover your desk fee, and still have money to live on for 6 months to 1 year.

The second option Commission Split companies, give you a split of your commission based on your number of sales or the dollar amount of your commissions.  There is no initial cash output, but you will see a drastic cut in the amount of commission you receive, as much as 50% plus franchise and transaction fees taken out of your commission. This is definitely an option if you have limited cash, but building up your bank account may take a bit longer.  A few companies offer both options.  You may or may not be able to switch between the two options, so make sure you have all the facts before you make your decision.

Are you interested in the power of a company name to boost your business then one of the major real estate companies like Coldwell Banker, ReMax, Prudential or John L. Scott are your best bets.  If you are interested in a smaller company, or a company with an exclusive type of clientele or listings a boutique company may suit your needs better, these companies often look for experienced agents, but if it isn’t unheard of for them to bring on new agents.

Another option is working with a building contractor, selling new construction homes.  This can be an excellent business, clients come directly to you because of builder advertising.  Many builders offer both a salary and a commission split.  Your office is usually a model home, so you don’t have to drive all over town to show clients perspective homes, a tour of the models, and drive through the development is just about the extent.

The last option is not actually in real estate sales, but in several states you do need to have a real estate license to work as a Property Manager, in this field you would work leasing homes, apartments or business space.  This may be salaried or commission based, but as with selling new construction, the clients/business generally comes to you.

What questions should you ask when interviewing real estate companies?

1. Ask to see the companies mission statement.
2. Ask about commissions, desk fees, franchise fees, and transaction fees.
3. Ask about the cost of insurance.
4. Ask about any additional fees, phone, long distance, copier charges.
5. Ask about additional education and continuing education.
6. Ask about a mentor program.
7. Ask if they have offer floor time (answering phone calls into the office as a way to build your clientele).
8. Ask if they advertise to bring clients into the office, or if the bulk of advertising is up to individual agents.
9. Ask if they have a high volume of walk in clientele.
10. Ask if the do any annual or seasonal community related activities to bring in clients.
11. Ask if they have a strong active presence in the community, do they contribute back to the community that gives them business?
12. Ask if they are a member of the Better Business Bureau, and the Chamber of Commerce.
13. Ask to meet and speak with a few of the agents in the company.
14. Negotiate for your commission split or desk fee, you just might get a better deal.

When you feel comfortable and confident in a company and with your colleagues you will be happy in your work.

Always remember it is your good name and your real estate license, making a well informed choice before affiliating with a real estate company, is just good business.