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How to Make $100K in Real Estate Sales

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man near grand canyonOne of the first things that everyone thinks about when getting into the Real Estate Business as a career, is how much money they will need to make to make it worthwhile.  I would argue that you should have as a target at least 100K per year to make the stress of this career worth your while.

If you want to really make a go of this business, you need to have a solid plan.

The first step to business planning is to know where you are coming from, and have an idea of where you want to get to. Understanding where you are right now needs a quick SWOT analysis.  SWOT stands for Strengths, Weaknesses, Opportunities and Threats.  Strengths and Weaknesses are internal to you – things that you do either well or poorly right now.  Opportunities and Threats are external things that will affect you and your business in the near future.  Take a few moments to do a quick SWOT analysis on yourself with this tool.

Once you have done a quick SWOT analysis on yourself, you need to have an idea what your numbers look like.  To figure out what level of activity you need to do, you need to do some quick calculations.   If your target is to make $100,000, you need to do some research into one key statistic – “What is the average commission in my area”.  Let’s say that the average home sells for $300,000 in your area, and the average commission percentage is 2.5%.  That means the average commission will be $7500.  It then becomes easy to figure out how many transactions you need to do to get to your goal.  Simply divide $100,000 by $7500, and you will have your target.  (In this example you would need to do about 13 deals – or just over 1 per month).

There are a number of other elements that will go into your business plan, but this is the foundation – understanding where you are starting from and where you are going is the first step in creating any business plan

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