I get this question a lot. Usually people tell me, “I don’t know what to do, commercial or residential? Which one is better?” There is no right answer. It really depends on the person. I usually respond with “Depends on what you’re looking for.” You can make a lot of money in either one, but what really matters is whether you will be fulfilled.

(Full disclosure: I have only practiced Commercial Real Estate and never done Residential.)

Most people use money as a compass to decide which career to choose. Instead, to help with your decision, look at the lifestyle you want. If you can find a career with a lifestyle that you’re excited and passionate about—the money will come. Ask yourself these questions:

1. Lifestyle

What kind of lifestyle do you see yourself having? CRE can be a boiler room sometimes. It can have days with never-ending cold-calls, number-crunching, and data analysis. That might make some people shy away. While others might say “Where do I sign up?” On the other end residential can have long days filled with door knocking, weekends at open-houses, and preparing marketing and mailers.

2. Types of Clients

What kind of clients do you want to work with? In CRE you’ll mostly be working with astute high net worth investors. (remember, you’re selling investments) In residential, you’ll find yourself working mostly with families and couples looking to make their first purchase.

Think about the type of conversations you enjoy having. If you get excited by finance, market trends, and economics, then you’ll surely have a better time talking to investors. But if you’re more of a personable, outgoing, can talk about anything with anybody personality, you might want to take a look at residential.

3. What You're Selling

Do you want to sell investments or lifestyles? When you’re selling investments, it all comes down to the numbers. You’re negotiating with investors on the ability for the asset to perform and realize high returns. There’s no emotions, there no attachment, it’s just business.

The other end of the spectrum is the opposite. The buyer has a unique dream and vision that you’re there to help them achieve. It’s an emotional transaction that requires finesse and creativity.

Can you see yourself driving buyers around to show different homes? Or do you see yourself sending deals on the market to investors? Do you enjoy dealing with spreadsheets, finance, and capital stacks? Or would you rather work with lifestyles, dreams, and eccentric personalities?

Do You Like What You Do?

People always ask me. “Do you like what you do?” and I tell them. “I love what I do.” and then they always say “Man I wish I could find my perfect job.” And you know what I realized? A job isn’t perfect because everything goes right all the time, every job at one point is going to suck. What makes a job perfect, is if you still want to be there when it sucks! It’s not a matter of if, it’s a matter of when. So when trying to decide what career to choose (whether it’s Real Estate or anything else). Look at the hardest part about the job, and if you can put up with that, everything else will be easy.