In the education background string the other day, I spoke about how being in the accounting business helps my real estate activity. The main reason is my network. I have a pre-existing network of people I know (lenders, RE agents, RE investors and etc) that facilitate my real estate activity. I deal with them on the accounting side, often as clients, so it helps the real estate business. The real estate side helps the accounting side as well as I'll occasionally pick up tax clients from the RE side once someone realizes I'm a CPA. I don't push or advertise per se, the business just comes about as a matter of course.

A thought came in my head today about broadening this network and using my existing office to drive both businesses. The thought is why not become a commercial real estate agent? I already have an office that I can easily integrate this activity in. I already have commercial properties and I'm always looking at the MLS and have become pretty knowledgeable at this point. It would be a great way to expand my network, drive both businesses and maybe get the inside track on deals. It would also add another leg of income but one that I don't "need", but would be nice to have. Often when you don't "need" the income, you tend to be better at earning it. Also the appeal is dealing with other business people. Residential real estate is about fickle buyer emotions. Commercial is about the numbers and I'm an numbers guy and a business person. Seems like it would be a good fit.

Thoughts?

I would need to find out about ethical rules and disclosures and the economic structure of commissions. Folks seem to get paid more for getting properties listed. I have securities licenses and I'm sure they have similar rules about client interaction and self dealing.

Amy, my initial thing would be to start off as an agent but moving into brokerage wouldn't be a bad deal. I have a friend who's a broker and I think that I'm going to pick their brain. The problem with starting a brokerage is that you have to go up against the big names like Keller Williams, Coldwell Banker and etc. and that puts one at a distinct disadvantage if you have a small unknown brokerage. To my way of thinking, the better approach for me to is start off as an agent, build out my network, and then evaluate from there. I think one can do well as commercial real estate agent. I know of someone who made a bit over a half million dollars in commissions over the past couple of years. The issue is no inventory on the commercial side right now and the key for success in the business is the contacts and knowledge. I could see this driving my accounting business easily even if I got no sales. Right now, I don't market or push for accounting work. My business comes in strictly by referral. I would likely pick up clients thus building out my network. Expansion of my networks and knowledge would be the real value here. The commissions would be gravy.

Deanna:

The ethics issue would come to play if he were both the buyer and the seller's agent. Assuming he's representing himself, he'd be buyer's agent, buyer, and seller's agent. Good luck proving non-biased in that situation in court.

However, if the client comes to him to represent them to sell, and instead he offers to buy, and is not contracted as his listing agent, then there would be no issue. He might also want to better insure himself by recommending the seller get another agent at a discount since it's only a paper pushing event at that point. That extra paid in commission would be valuable insurance against a lawsuit.

GKarl:

Going up against an established broker isn't as bad as it sounds. Keep in mind that it's a people business. While not having a popular broker behind you may cost you some business, ultimately it comes down to the quality of the agent. After all, not every Keller agent is a great agent. Same with any brokerage. Just using Keller as an example since they were mentioned earlier.

LLotF, cool beans.

There was this one place that was for sale in our town through a local realtor. It sat and sat and sat unsold. We put in a lowball offer for $x. The commission on our lowball offer wouldn't have been worth the realtor's time-- but they used that information to tell their cousin to put in a bid for $y, which was still lowball, but not quite as lowball as ours was. So of course, the cousin ended up getting it.

I think that inherently you already know the answer to your question

life is way too short to hesitate on opportunities