If you’ve thought about leaving the industry, but you’re unsure if you should or not, expert Joseph Pingaro has some solid advice for you. Whether you’re not making enough to survive, you’re losing money at every turn, or you just have no idea what you’re doing, here’s how to know when it’s time to leave the real estate industry according to Joesph Pingaro.
You’re Simply Not Making Ends Meet
As with any career venture, if you’re not making ends meet, it’s probably time to find another path to take. Real estate can be a fickle market, whether you’re an agent, investor, or private buyer; and sometimes, you simply won’t make enough to meet your basic financial needs. If you can’t seem to make enough to survive, it’s time to leave the industry.
Not making any money in the industry can be due to many factors, and they’re not always because of a lack of ability on the part of the agent or investor. Sometimes the market just isn’t doing well, and something like one faulty sale (or scam) can set you so far behind that you simply can’t recover.
Don’t blame yourself too much if you don’t succeed in real estate. Recognize your shortcomings and the part they’ve played, but keep in mind that real estate can be quite unforgiving and one costly mistake can be all it takes to knock you out of the game.
You’re Hemorraghing Money
If you’re not only failing to make ends meet but you’re also putting more money out than you’re bringing in, this can be a good sign that you need to exit the industry. While it’s certainly true that many businesses don’t make a profit for the first few years they’re open, if you’re hemorrhaging money from run-down properties or sales that fell through, you’re only digging yourself into a bigger financial hole.
If you work for an agency, you’ll be costing the business money as well, making it incredibly difficult to develop a good reputation and consistent work. If you’ve done everything within your power to cap your losses and plug the financial holes in the ship but are still losing money, it might be a good time to find another line of work.
You Can’t Keep Up With the Work
Buying, selling, and managing real estate is no walk in the park. You’ll be putting in extra hours frequently, and may even end up working even once you get home. If you can’t manage the workload anymore, you may be putting extra stress on yourself, which only serves to further your predicament and even create health problems.
Some agencies have quotas you’ll have to meet, and if you’re not able to meet the burden of work that’s involved, you won’t experience much success at the agency or in the industry. Take a step back from your real estate responsibilities and ask yourself if you can truly meet the demands it presents.
It’s important to be realistic about your expectations as well. Don’t undersell yourself, but try to be equally as cautious about biting off more than you can chew. If you’re already struggling to manage your current workload, it’s not a good idea to add more for the sake of generating extra money.
You Really Have No Idea What You’re Doing
If you jumped into the real estate industry overnight with absolutely no idea what you’re doing, you’re really only setting yourself up for failure. Real estate is a complex industry, with tons of legal and tax considerations, regulations to adhere to, and more. If you don’t know the first thing about real estate, you should focus on getting an education before you enter the industry; or else leave it altogether.
That’s not to say you can’t experience some level of success with only a little bit of knowledge and learn along the way, but unless you’ve got thousands of dollars to burn on mistakes, this probably isn’t the best path to take. Take your time and do the necessary research before you jump head-first into the industry.
Another good approach to take is to find yourself a mentor, someone who’s been involved in the industry for a number of years and can help guide you away from those novice mistakes.
Real estate simply isn’t for everyone, and with all of the complexities involved in the industry, it can be easy to lose your way. Whether you’re new to the industry or a seasoned veteran, sometimes it’s just best to admit defeat and leave an industry once you start losing too much money or developing bad habits. If you need to cut your losses, try to learn from where you went wrong and use the information to better yourself as a professional, so the next industry you enter offers more success.