Government program turning out a new breed of broker

Real Estate Weekly, Sept 7, 2005 by Linda Barr

When his firm re-located and Edger Wilson found himself out of a job at the age of 50, he says it gave him the first real opportunity of his life to think about what he truly wanted to do.

He felt his dream of returning to the career in real estate that he'd tried to pursue as a young man was somewhat lofty, considering his lack of funds for schooling.

Now, though, thanks to the Real Estate Education Center, Edger is not only employed as a real estate agent at one of the city's top firms, he's found himself in a position to excel in a crowded and sometimes cutthroat field.

"My goals are now very achievable," said Wilson, 53, who completed 180-hours of real estate brokerage, appraisal and banking training at REEC, funded through a government voucher program that pays for employment training.

"When I lost my job at 50, I started thinking about what I really wanted to do," explained Wilson. "I couldn't find a job making the same amount I had been making and then I saw an opportunity through the voucher programs at REEC. The programs were extensive and the voucher scheme paid for it. It all fell together at a time of my life when I needed it."

While the state requires a minimum 45-hour sales agent course, Wilson supplemented that with a 90 hour appraisers' course, a 24-hour mortgage brokers' course and a mortgage math course.

He's now at the epicenter of the hottest residential market in history as a broker for Citi Habitats on Manhattan's 57th Street and, while he's not making as much money as he'd hoped, he's confident he's on the right track.

"I have a big advantage over a lot of other agents who haven't taken the courses," explained Wilson. "Quite frankly, the state mandated exam requirement is not enough. A lot of agents out there are like lambs to the wolves--half of them don't know the difference between a common charge and a maintenance fee."

Indeed, there has been growing concern about the influx of brokers to the market nationwide as real estate prices soar to record heights.

However, with a 90% drop out rate among agents, Alexander Frame, president of REEC, believes his cutting edge programs will enable his students to be among the 10% who make it in the business.

"While the drop out rate may not hold when times are good, it will shake out on average time," he noted.

"Something else to keep in mind: the population of New York is close to Florida; however Florida has twice as many real estate agents as New York. Between 1955 and 1985 the population in New York City decreased by over a million, perhaps more, with the suburbs growing. The vast majority of real estate was rental housing.

"Now, with gas prices going through the roof and coop conversion, plus the quality of life improving, our city is the place to be."

Frame launched REEC in 2000 after a long career in real estate, first as a broker himself, then as an urban renewal director for the city and, latterly, as the owner of his own property management firm.

He co-founded the New York Real Estate Institute in the late 80s before launching the Real Estate Education Center, offering state approved licensing courses and continuing education course credits for professionals to renew their licenses biannually.

Having become established as the largest school for the training of real estate professionals in New York City, last year he determined to make it his mission to help the less affluent become educated in the profession and, ultimately, enter into a lucrative career.

He entered into a partnership with the Consortium For Worker Education, a city workforce development program that allows qualifying welfare recipients, as well as low and middle-income workers looking to improve skills or change careers, the opportunity to pursue a career in various real estate professions.

Through the program, qualifying candidates can, at no cost to themselves, avail themselves of any of the REEC's programs and pursue careers in facilities maintenance, property management, commercial and residential brokerage, home inspection, appraisal training and mortgage lending. The center also provides career counseling, exam preparation and job search and placement assistance.

By all accounts, the program has been an overwhelming success.

"The Real Estate Education Center seems to be one of our star providers," said Ben Branham, spokesman for the Department of Small Business Services, which administers the program with the New York Labor Department and City University of New York. He explained how the program was initially launched in 2001, but reorganized by Mayor Bloomberg in 2003 and is now driven by demand, responding to the needs of job seekers and industry growth.

The $2,500 grants are paid directly to approved schools, of which there are 277 in the city providing training in various marketable professions.

With the emphasis being on training leading to employment, each school is evaluated twice a year. The school must prove that at least 50% of its voucher students have found jobs.