As a student, you will have to attend classes but also engage in some independent study to commit vocabulary and concepts to memory.

Following is some advice to help you make the MOST of your study time.

Make your study time effective:

• Make a study schedule and stick to it. Enlist the help of family or friends, if necessary, to give yourself the time you need to study each day (daytime course) or week (evening course).
• Study small portions of information (example: vocabulary words or class notes from ONE chapter) for short periods of time (20- 30 minutes max). Take a 5 or 10-minute break and then resume studying.
• Have a designated study area where you don’t do anything else except study. Get rid of all distractions that take your attention away from studying.
• Find the right time of day for you to study. Are you most alert in the morning, afternoon or evening?

Make your study time active:

• Don’t just read and reread. Engage your senses. Read aloud. Write down definitions and key concepts.
• Notecards and flashcards can be very helpful. At the end of each chapter in your book there is a Key Terms Review with all the vocabulary words from that particular chapter.
• Drawing diagrams or visuals can help in committing key words, concepts and important dates to memory.
• Pause and reflect – relate the topic to personal experience or a story one of the instructors has shared. You may also reflect on how you will use the information you are learning as a real estate professional. Another good way to review information from class is to explain the material to someone else in your own words. Teaching is a great way to make sure you truly understand the material.
• Use the practice questions at the end of each chapter to test your knowledge of the material. Do not look up each answer as you go. Take the entire end of chapter test without looking at the answers in the back of the book, then grade yourself and calculate your score. When you get a question wrong, look it up in the chapter and make sure you understand WHY you got it wrong.
• Know the difference between facts and concepts. Facts must be memorized. Mnemonic devices can help – create acronyms or silly songs to help jog your memory.
• Concepts must be understood. Concepts are the glue that hold everything together. Attending class regularly and putting your cell phone away will ensure you understand the key concepts.

For when you are renting, you can learn:

1. Your legal rights and responsibilities as a tenant
2. What your landlord is legally responsible to do
3. What mortgage companies will look for when deciding if you qualify for a mortgage

The purchase of a home is one of the largest investments people make in their lifetime. A real estate course is a great way to ensure you are able to make an informed decision before you sign on for 15 or 30 years of mortgage payments.

For when you are ready to buy or a home, you can learn in detail about:

1. The transaction process
2. The contracts you’ll sign
3. Calculating the commission splits you will pay to the real estate salespeople involved
4. How a CMA is different than an Appraisal
5. How the CMA and the Appraisal will affect your offer price and financing terms
6. Real Estate Taxes and Assessments
7. How to fight your municipal assessment when it’s out of line

For many people, buying a property for investment purposes is one of the best ways to meet their financial goals without having a huge amount of money to work with.

Curious how real estate can help you meet financial goals? Learn:

1. How to tap the equity in your home to purchase an investment property
2. Your financing options
3. The benefits and drawbacks of different types of mortgages
4. The basics of property management
5. Various strategies real estate investors use to grow their portfolios

Once you’ve completed your 75 hour licensing course and passed your state exam, you are ready to begin your search to find the best brokerage company for your personal situation and career goals.

Keep in mind, you obtain ONE real estate license at a time (per state) and that license must “hang” at ONE real estate brokerage company. All real estate activity you do that requires a license must be done through that brokerage company.

For example, if you want to work in residential resale as well as property management, you need to make sure you can do both through the brokerage company you go to work for. Most brokerage companies specialize in certain areas, so communication is key when interviewing.

Before the interview… investigate the reputation of any brokerage company you are considering.

This is an important step for a brand-new licensee. While you may not yet have any real experience as an agent, you can gain instant credibility by working for a brokerage company with a sparkling reputation and great brand recognition!

How is the brokerage company perceived in the marketplace? Do some research as if you are a home buyer or seller! Look at yard signs and open houses in the towns or neighborhoods you want to work. Check out the free real estate guides in local stores. Do an online search to evaluate the brokerage company’s website and social media presence.

• How does the company market their listings and their brokerage services?
• Do the services offered include all the types of business you want to conduct?
• Peek at their directory of agents – is there anyone you know? Give them a call.

Talk to agents at other local brokerage companies as well. Does the brokerage have a good reputation in the community and with other real estate professionals?

Finally, go to the NJ Real Estate Commission website and look at the Enforcement page. If a real estate licensee has any infractions against his or her license, the violation is published online. You can use that information to determine if the brokerage or their licensees have repeated violations.

HINT: Do your research first. Then, interview with at least 3 different brokerage companies before choosing the one that is the best fit for you.

Before the interview… Understand how real estate agents get paid.

There are salaried positions available in real estate, as well as some positions that offer salary plus commission options. (This often depends upon the career path you have chosen.) However, most real estate agents are paid on commission basis. In fact, most of the top earners in the industry are straight commission salespeople.

Real estate brokerage commissions are split between the brokerage company and the salesperson:

• Historically the traditional rookie split was a 50%/50% commission split with no “desk fees” and very little out of pocket cost to the agent
• Other popular plans include things like 70%/30% split with the salesperson retaining 70% of the commission but perhaps paying $2,000 to $4,000 in annual desk fees
• More experienced agents may prefer a 95%/5% split so they retain 95% of the commission but perhaps pay $750 or more per month in desk fees
• Compensation plans are negotiable between the brokerage and the agent. These figures are simply examples to illustrate the basic concept.

Putting it in Perspective:

Brokerage companies that provide more services and support to agents may offer somewhat lower commission splits; brokers who offer very high commission splits may be providing a virtual office, online training and very little else. You need to do your research. Like all businesses, brokerage companies must make a profit to survive! When brokers are spending the money to provide agents the highest levels of support, there may be somewhat less money left to pay out in agent commissions. What do full-service brokers provide to their agents? Things like:

• Ample training and oversight
• Administrative and processing support
• Offices in prime locations
• National advertising programs
• Online lead generation

Keep in mind, a lower commission split doesn’t necessarily mean the agents make less money. As a new agent, you may find that you close more business when you work for a company with great brand recognition and agent support. You are going to come out ahead closing 30 deals at a 50% split as opposed to closing 15 deals at a 70% split. On the other hand, if you have a strong “sphere of influence” to market your services and are confident about your skill level, you may come out ahead on a higher split program.

HINT: Don’t over focus on commission splits! As a brand-new agent, you want to find the brokerage that provides the best possible training and support to get your new business endeavor up and running.

*See follow up post “Choosing the Right Broker – The Interview”

It’s important to be prepared and ask the broker all your questions upfront, before you sign an Independent Contractor’s Agreement and pay start-up fees that may not be transferrable to another brokerage.

Your Career Path(s) and Availability

• I’m interested in _______________ (Residential Resale, Property Management, Commercial… fill in the blank with your chosen career path). Does your brokerage allow agents to pursue this type of business? What are my opportunities in these areas with your company?
• I’m getting dual licensed in NJ and PA. Can your firm support me in both states?

Helpful Hint: Although you cannot work for more than one real estate brokerage in New Jersey at the same time, it IS legal to work for one brokerage company in NJ and a different brokerage company in PA. However, you would need the approval of the brokerage companies hiring you.

• What is your company policy on Agents investing in real estate? How are commissions handled?
• Do you hire only full-time agents, or agents starting part time but transitioning to full time? Do you accept part time agents? Do you have an option for Referral Agents?
• Are you a member of _____________MLS? (list all Multiple Listing Services you will need to serve your target markets) Bright MLS, Paragon MLS, Garden State MLS, NJ MLS, etc.

Company information

• Is your brokerage company independent, corporate-owned or a franchise?
• How many offices does your brokerage have and where are they located?
• How many agents does your brokerage have in total? How many in each office?
• What kind of agent turnover does your company experience?
• What is your company culture? (This is personal preference!) Are they a small or mid-sized firm with a family feel? Or a larger firm with a corporate atmosphere? You may ask to speak with other agents in the office or even attend a meeting or company function.
• What is your market share in _______________ ? (fill in the geographic area you are targeting)
• How is your brand recognition in ______________ ? (fill in the areas you are targeting)
• Do you have a niche in the market? Do you consider yourself a boutique firm specializing in certain areas or are you more generalized?
• Are there any new agents you’ve hired in the last year I could speak to about their experience?

Compensation and Costs to Agent

Would I be paid as an independent contractor or employee?

Helpful Hint: You will need to have a written Independent Contractor’s Agreement or Employment Contract signed by you and by the broker before you start working. You should read over that contract VERY carefully. It establishes your rights and obligations as an agent of the brokerage.

• Are there any salaried positions available that require a license?
• Are there open positions on any of your teams or any teams looking to add another agent? How is compensation handled within the team?
• Are there any top agents in the office looking for a Licensed Assistant?
• What commission splits are offered to new agents?
• Are there multiple compensation plans to choose from? If so, what are the commission splits and fees associated with each?
• Are there any franchise fees?
• Do you offer graduated compensation plans? (your commission split increases as you close more deals but typically resets to the original commission split at the beginning of every year)
• Can agents “cap” out after a certain sales volume? (after you hit a certain dollar amount in closings, the brokerage takes no further commissions on your deals; caps reset every year)
• When are agents paid their commission after a closing? (often within 10 days)
• What start-up costs will I need to pay? When do I have to pay these fees? Is there a fee for the upfront training? Are there any other fees I will need to pay in order to start working here?

Helpful Hint: At most brokerage companies the agent is responsible for paying certain costs, including your initial licensing fee, Errors & Omissions (E&O) insurance premium, Multiple Listing Service (MLS) access fees and Board of Realtors® dues. There may be additional fees that are charged by some brokerage companies and not others – that’s what you need to ask about! Be very clear about what you are expected to pay and what you are receiving in return.

• What do you charge for E&O insurance? What are the deductibles and policy limits? What activities are covered? (E&O generally ranges from $200 to $800 annually.)
• Are there upfront fees for my training &/or mentoring?
• Are there monthly or annual desk fees, technology fees, advertising fees or franchise fees? If so, do these fees vary based on which compensation plan I choose?
• Is your brokerage a member of the Board of Realtors®? If so, what are my annual dues?

Helpful Hint: If the brokerage company is a member of this industry association, then all of their licensees must be members as well. You will have to pay dues on an annual basis.

• What costs are covered by the brokerage, if any? What other expenses will I be responsible for? Expenses may include:
• Business cards
• Marketing materials
• Lockboxes/ electronic keys to lockboxes
• Yard signs & riders
• Fees for website, if provided by broker (Is it stand alone or a page on the broker’s website?)
• Costs related to marketing, advertising and lead generation activities

Training & Support

• What type of training and support do you offer new agents? Is there a standard training program in place? How is it structured? Is there a training calendar for new agents?
• Is there a follow up, career-launch type program to get me started? How long is that program? What types of activities are expected of me? (Cold calling, FSBOs, floor time, sitting open houses, etc.)
• Are the training classes taught in a classroom or online? Are they mandatory? Who teaches?
• What costs are associated with my training?
• What topics are covered: office policy & procedure, compliance, sales training?
• Does the brokerage have a Policy & Procedure Manual? Will I be thoroughly trained on that policy? (It’s a red flag if the brokerage does not have a Policy & Procedure manual.)
• Who would be personally responsible for my initial training and support? How many agents is that person responsible for training? Is that person in a dedicated management/ training role or do they actively sell real estate? (This can be a factor if their own business is taking all of their time.) Can I meet with him/her prior to getting hired?

Helpful Hint: Make sure you meet with the person who is responsible for your training. Get to know the person you may go to work for! It could be the broker, an office supervisor, team leader or mentor. Your success depends on their willingness and ability to support you. They should be experienced, competent and have the time and inclination to help you get started.

• Do you have a mentoring program? How does it work? How does the mentor get compensated? May I meet the person who will be my mentor?

Helpful Hint: In a mentoring program, you are often sharing your commissions with your mentor for a certain period of time, or for a certain number of transactions.

• What do you see as my income potential in the first year, five years, etc.? Will you help me create and execute a business plan?

Requirements & Expectations

• Are there any specific requirements? What are your expectations of me?
• Are there mandatory office meetings or training sessions? If so, when and how often?
• Do you offer floor time/ phone duty? Is it required? Who gets the leads that come in?
• Are you looking for a minimum number of transactions per month or per year?

Marketing, Advertising & Lead Generation

Does the brokerage have incoming leads for agents? If so, how are those leads distributed? Is there a fee or lower commission split on those leads? How many leads should I expect? What is the conversion rate on those leads? What is the lead source and quality?

• Are there referral or relocation leads available?
• If a call comes into the office on one of my listings, do I get the lead or does another agent get it?
• Does the company pay for any advertising for agents? Does the company provide “matching” on the advertising dollars I spend?
• Are there any restrictions on marketing and advertising that I pay for to generate leads?
• What is the company advertising policy? Must I have broker approval?
• What marketing resources are available and at what cost? Is there a marketing coordinator?
• Has the brokerage negotiated any discounts advertising rates for their agents?
• Can I “farm” my own neighborhood or neighborhoods of my choice? Are there restrictions?
• Can I have my own website? What restrictions if any would apply?

Brand advertising (promoting Brokerage)

• How do you promote your brokerage services and build brand recognition?
• Do you promote our listings and the agents in your office?
• Do you utilize print advertising (such as real estate publications or local papers), billboards, television or radio ads, community event sponsorship or online advertising?
• Do you have an online lead generation program in place? What is the cost to the agent?
• Does the brokerage have a social media presence? If so, what platforms are used?
• Do you have additional tools available to assist agents in marketing their listings?
• Do you have branded collateral materials available for agent use?

Technology Solutions

• What technology tools should I have to be competitive? (laptop, smart phone, software, etc.)
• What technology do you make available to your agents? What are the costs to the agent?
• Do you provide agents with a website, secure email, phone/voicemail, etc.?
• Do you offer tech support for agents?
• Do you offer electronic signature tools? A Customer Relationship Management (CRM) system?

Administrative Support

• How are you staffed administratively? Do you offer any clerical or administrative support?
• Is there a processor or closing coordinator to help me get my deals to closing?

Physical Location

When you visit the office to interview, consider the accessibility of the location, the parking situation, the appearance of the building… these are factors for you but also for your clients! Are you greeted by someone in the reception area? Does the interior look professional? Would you be happy to have your clients meet you in this setting?

• Do you offer desk space or shared workspace for new agents?
• Are there printers or scanners available in the office for agents to use?
• Are there private meeting or conference rooms I can use to meet with clients?
• What are your normal business hours?
• Is there always someone at the reception desk during those hours?
• Would I have after-hours access?

After you’ve completed your initial interviews, you’ll want to review your notes and follow up on any outstanding questions you have. Maybe you’ll be sitting in on a training session, attending a company function or even speaking with another new agent to help you decide. Take your time, do your research and follow your gut. Have you found your perfect match? If not, keep looking! The right company is out there, just waiting for you to connect.