Most likely, you chose to get into real estate or are thinking about a career change into real estate because you are an independent person wanting to enjoy the benefits of running your own business. Real estate allows you to be your own boss, set your own schedule, and generate levels of income reflected by your efforts and not a corporate hierarchy. These benefits—coupled with a relatively low barrier of entry and a financial investment without the headache of employees—make real estate a very attractive career path.
The challenge for many is not “if” I should do real estate, but “how” I should do real estate. If you don’t make the right decision, you may find yourself disappointed and frustrated with your results. In fact, the median gross income for Realtors was $39,200 in 2015, as stated in the National Association of Realtors’ 2016 Members Profile. At the same time, agents at this income level spend, on average, $8,400 in expenses. Then once Uncle Sam gets his cut, the take home pay for the average Realtor is less than satisfactory.
Here are the biggest problems that often lead to this result:
Out of necessity, many agents look to webinars, real estate conferences, Facebook groups, or the latest lead generation programs to help them discover the “secrets to success.” Education and knowledge are extremely powerful and helpful, but if you don’t resolve the underlying issues, the problem remains.
The structural issues that will prevent you from making serious money over the long term are:
My name is Frank Free, and in addition to being the broker in charge and the owner of Lake Realty for 26 years, I have taught as a North Carolina licensed real estate instructor. I have advised many agents on how to grow their business and thrive at real estate. In fact, several of my agents have gone on to run their own successful brokerages.
Through the years, I have seen hundreds of models and firms and watched agents struggle to find the right fit. Like most things in life, real estate is about tradeoffs. Often these tradeoffs feel like choosing the lesser of two evils.
On one end of the spectrum, you can choose a transaction-based model that simply charges a fixed transaction fee for each deal. While the 100% commission is alluring, there are two areas in this model where I see agents run into trouble.
On the other end of the spectrum, you can join a team whose team leader will act as your mentor. For many independent-minded people, the low commission splits and lack of freedom is a major negative. On top of that, you’re spending your time and effort to build someone else’s brand instead of your own.
As an owner and as a Realtor, I felt like there had to be a better, balanced alternative. My goal was to take all of the benefits of a full-service brokerage and match it with one of the most attractive compensation plans around.
I’m thrilled to share what we have developed. Here are the benefits of our full-service brokerage, at no extra cost to you:
Office & Print Materials:
Perks Available to You & Your Clients:
Cutting Edge Compensation Plan:
Your only require expenses are a $20-per-month errors and omission insurance fee (which starts when you have first contract), MLS dues, a supra key fee and the requirements for a NC Licensee, and a one-time 25% referral fee for internet leads from the lead program. *Lake Realty-generated sales are excluded from cap total and cap program (i.e. internet leads, walk-ins, and company phone leads).
How do we get results?
To answer that, I want to share the story of two current agents of ours—Sue Nichols and Ana Sturt.
Sue Nichols started her real estate career with Lake Realty three year ago. Before real estate, she was a successful business analyst for an insurance brokerage firm. She made the career change because she was tired of all the traveling and living out of her suitcase.
In addition to the deals from the Lake Realty leads program, she had two deals from office call-ins and seven deals from clients calling her directly from the Lake Realty website. She’s also had four sales over $1,000,000. She accomplished all of this while spending a minimal amount on marketing.
Sue’s success has not only had a positive impact on her life, but on others as well. It has given her husband, who is the pastor of small church, the financial freedom to pursue his calling while also allowing them to help friends and families in need.
Ana Sturt joined Lake Realty in 2015, making the switch from a transaction-based firm due to the lack of support and the high out-of-pocket expenses.
I shared these stories for two reasons.
First, both Sue and Ana realized an increase in income in part due to a rise in the average price per sale. Because we’re Lake Realty, we receive a lot inquiries from buyers and sellers whose interests lie in properties on or near the lake. In general, these properties are more expensive, resulting in higher commissions.
Second, both Sue and Ana are relatively new to Lake Realty. On average, our agents have been with Lake Realty for seven years—well above the industry average of three years, as noted in the NAR’s 2016 Members Profile. Your income and growth are determined by your effort—not your tenure.
I would like to extend the opportunity for you to join Lake Realty.
We have a limited number of positions available in our leads program for well-qualified individuals. If you want the benefits of joining a local, full-service brokerage with a cutting-edge compensation plan, then apply today.
Frank & Chip Free