Home Guru: Parents, Quick, Talk to Your Kids About Real Estate
Chad Perkins knew he wanted to be a realtor from the time he was 13, even without a family connection to the industry.
He would ask his parents to take him to public open houses on weekends. By the time he could legally get a real estate license at 18, he jumped into the business while still a high school senior and made $80,000 in commissions his first year. In 2009, when Perkins turned 23, he sold 225 homes and took home $1.3 million in commissions that year.
While most of us parents never thought about suggesting to our kids that they consider becoming a real estate agent, do you think it would be a good idea to tell them about Chad?
“I knew that college was not for me, but I wanted to make money,” said Perkins, a Saratoga Springs native, when asked about his exceptionally early attraction to the industry. “I knew it was something I could do because I had a passion for houses.”
In a field where the median age of agents is 51, Perkins is a rarity who went directly from high school to his own money-making business that required no investment, other than the fee for his licensing course and annual association dues.
There’s just no model or precedent. If you were to interview most agents, you’re likely to find that it’s a second career, as is the case with me.
Perkins said his motivation came from growing up in a single-parent household. His mother lost her home when his father stopped making child support payments.
“When my mom, my brother and I had to move from a nice home into a single-wide trailer, I realized that I had to make money to get ahead in life and that I could depend only on myself to make it,” he said.
He attributes his early success to telephone prospecting–three to four hours a day, which he still does–and coaching. Perkins attended a coaching seminar his first year in business and listened to the panel of realtors who became a success and thought “I can do that!”
“When I started, I didn’t know anybody who would list or buy a house, and I didn’t have any money for advertising, so I had to rely on prospecting,” Perkins said, referring to the practice of calling expired listings, for-sale-by-owner prospects and withdrawn listings. “I was willing to do whatever it takes, and I operated on blind faith because I believed in myself.”
His climb to success has not been a direct trajectory. There was a major fallout just after his peak year in 2009 when he discovered that his real estate company franchise owner had been withholding a large portion of his commission fees–as much as $700,000–and spending much of the money.
When Perkins sued to recover his commissions, the franchise owner retaliated, cancelling his license from the firm and keeping all of his listings and pending sales. The lawsuit was draining and exhausted Perkins’ funds to the point where his own house went into foreclosure.
With his listings gone, Perkins had to start over. He joined another agency and has since re-built his business from 46 sales in 2010 to 82 in 2011. This year he is on target to sell 125 homes at a time when most agents consider themselves lucky if they get one or two a month and six to 10 sales, on average, per year.
Perkins uses a coach to maximize success. He also works at least 15 hours per day.
When asked if he has a family, Perkins said unabashedly, “No, just two dogs. I’m single and I like it that way. I enjoy working and being married would strap me down. Being single allows me to be selfish right now and, because I’m only about to turn 28, I have plenty of time to get serious.”
To me, it seems that Chad is already serious. Very serious. So parents, especially if you are worried about your high school or college graduates finding a job in this economy, consider talking to your children about entering real estate while the invincibility of youth is on their side.
If anyone would like tips about how to get started, call me at the number below.
Bill Primavera is a licensed Realtor® associated with Coldwell Banker and a lifestyles columnist who writes regularly as The Home Guru. For those seeking advice on home maintenance or who want to buy or sell a home, visit his website, www.PrimaveraHomes.com, or call him directly at 914-522-2076.
