What You Should Know

Last night I received a really nice email from one of the readers on Miami City Diggs and he is interested in moving to Miami Beach to start a new career.   I decided to share his questions with you because they are questions that I receive often from this blog.   So here goes minus confidential details and some changes to protect his privacy.

I’m a big fan of your site and check it out frequently.  I also check out other sites and feel like your website has the most interesting information and detail compared to the competition.  I loved your most recent article explaining the Condo Rental situation in Miami Beach.

I’m currently planning on making the move from up north down to Miami Beach with aspirations of selling Real Estate.  The 9-5 pencil pushing job where I currently work is just not doing it for me!  I would be giving up a good salary for my age, full benefits and the cozy life of living at home.

To be honest I love Miami Beach and the idea of fighting to earn commission over a flat paycheck every period excites me.  I’m asking for your brutally honest opinion and advice on my idea of packing up and trying to make it selling real estate in the current climate.  I have 15,000 saved up, a car I would be driving down and a get rich or die trying attitude!

Joe from up North

Dear Joe from up North-

Many people move to Miami Beach for exactly the same reasons.  I have a very strong opinion about this city in terms of lifestyle and entrepreneurial opportunities.

Although generally speaking it’s a tough place to live, I think it’s the best place I have ever lived in terms of starting a small business.   I come from a long line of small business owners in fact I can look back over my last few generations of my family and they are all small business owners.  My Dad is a business man and my Mother is co-owner of a tree company in South Carolina.  Throughout my life I have seen their struggles in the small Southern towns that I grew up in and I can honestly say I have never seen better support of the small business “mind set”  than what I have experienced living and working in Miami/ Miami Beach.  There are many small business owners in Miami Beach and many “open minds/dreamers” who want to do the same.  The opportunity and support is there for you.

On the flip side.  The lifestyle of Miami Beach is tough.

• It’s not easy to keep up with the Jones in this town.  For instance every other car is a Bentley, Porsche or some other exotic car.  Some people can afford this lifestyle while others are merely “renting” it and they quickly run out of money trying to do so.  It’s not fun to live in this city broke.  So if you can not be tempted to do that until you actually have it, you will come out much better on the other side.
• It’s very expensive to live here compared to other American towns.  On average a decent one bedroom in Miami Beach (no parking, no amenities) but I mean decent building, clean and small upgrades you are looking to spend at least $1500 or so per month to rent.  If you want to live in one of the older high rises (parking and amenities) you need to be prepared to spend at least $1900 and up.  Plus you will need at three months of rent in advance, application fees, building elevator deposits and more.  Renting in the luxury high rises will start you out at around $2700 per month and up.
• It’s very tempting to do something here every night of the week.  So you have to be super disciplined, work and stay focused.

Now, for becoming a real estate agent in Miami Beach.  A few years ago when we had a big boom….  everyone was a real estate agent.  I had friend who would literally just sit in the sales office of their broker and take orders.  She is no longer in real estate.

I didn’t start practicing full time in Real Estate until 2007.  If you know anything about our market, it’s bad..  really bad.  More and more agents quit every day because they just cannot make it in the market.  It’s not easy and it’s not consistent unless you are super focused.  You also need to be sure to find a really good brokerage that offers training and other support.  Keller Williams has been that for me.

Now, my business is growing and my husband joined me full time last year.  I guess “ignorance is bliss”, not knowing what a great market is like, I have struggled and hustled since day one and we are doing okay.   It has by no means been easy but I truly love what I do for a living and I think that’s also another reason why we continue to grow.

It’s important to know that although you may work your butt off day in and day out, if you don’t have clients and if they don’t purchase, sell or rent property through you… you don’t get paid.  I have no salary, no draw, nothing.  You are literally on your own.  Plus you need to become an agent so you have to pay $400 or so to take a class and get licensed.  Then test fees.  After wards you will need to register with a local Real Estate board which is around $500- $600 a year.  At my office I have other monthly fees that I pay.  Then you have business expenses like:  paper, ink, marketing materials, stamps, web services, computer, printer, fax, database services……..  and more.  So what most people tend to forget is that although you “hang your license” with a broker for me it’s Keller Williams, at the end of the day you are an Independent Contractor and you work for yourself.  That in itself can be brutal.

Also one other important item that you mentioned in your email is “benefits”.  You are going to have to plan for your own benefits package.  You have to pay for health care out of your own pocket.  I think you mentioned a pre-existing condition, so be careful on that one.

In the end, my advice to you is  GO FOR IT!  I did and you can too!

Just don’t rush the move and plan way in advance.  I will tell you that I have had many friends move from Miami Beach because they ran out of money.  So you have time, just plan.  I think you should also go ahead and start thinking about taking your Real Estate classes.  You can do it online.  Just in terms of the RE business in a good market they tell new agents to have six months of living expenses saved up.  This is not a good market so I would save more.  Have someone assist you with a business plan and save up expenses for starting your business too.

Joe up North, I wish you the best of luck and live your dream!  Pencil pushing is bad for the soul, living your dream is good for the soul.  Also I highly recommend reading The Secret.  You will need lots of positive projects to become your dream.  I am here for you if you have any more questions.  Good luck!

Written and Posted by:
Jamey Prezzi – REALTOR®
Keller Williams Miami Beach Realty
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