Rick Guerrero discusses the transition from a stable full-time job to managing your own real estate business with coach Katherine Loucaidou.
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Moving from a secure full-time job to establishing your own real estate business is a significant leap. If you’re unsure of where to begin, you’re not alone. I had a conversation with coach Katherine Loucaidou, who provided valuable advice for new agents.
1. Setting the stage
The first step is to have a solid plan. Loucaidou stresses the importance of having a business plan with clear objectives. Understand your market, outline your marketing strategy, and establish realistic income expectations.
2. Structuring your business
Consider forming an LLC for protection and potential tax advantages. Loucaidou emphasizes, “It’s essential to seek legal guidance to ensure everything is set up correctly from the beginning.”
3. Building a winning team
To succeed, you need to surround yourself with the right individuals. Here’s who you should have in your corner:
- Mentor or coach: A mentor can provide valuable guidance to steer you away from costly mistakes.
- Tax advisor: Tax obligations become more complex as an independent contractor. An accountant can help you navigate quarterly payments and maximize deductions.
- Marketing expert: Your brand is important. Invest in someone who can assist you in expanding your online presence and generating leads.
4. Handling taxes like a pro
A new tax approach is necessary. Loucaidou recommends setting aside 30% of every commission check. Keep diligent track of your expenses – including meals, marketing, and mileage. Utilize tools like accounting software to simplify the process.
5. Networking for success
As a business owner, networking is crucial. Foster strong relationships with key individuals like lenders and inspectors. Loucaidou advises, “The stronger your network, the more opportunities will arise for you.”
Wrapping it up
Transitioning into independent real estate work is challenging, but with the right plan and support, it is rewarding. Loucaidou’s experience demonstrates that preparation and sound advice can make a significant difference. Watch our full video for additional tips from our conversation.
Rick Guerrero is the Director of Branch Sales and Strategic Partnerships at US Mortgage Corp. Follow him on Instagram or connect with him on LinkedIn.
