Categories
Real Estate

Real Estate Myths 50/50 Split

Today’s article is especially for those Realtors® who have some misunderstandings about 50/50 split model in Real Estate industry. In reality it’s not a 50/50 split, it’s an expense sharing system which is a win-win situation for Realtors® who work in a team model.

First let’s talk about why we should join a team model rather than being an independent Realtor. The simple logic, which is proven by stats as well, is that as an Independent Realtor the success rate in the Real Estate industry is only 10% where as the success rate of Realtors® is 90% in team models.

Now comes the question of justification of 50/50 split. To understand this better we have to analyze the expenses of independent Realtors®.

Let’s take an example of a Realtor who is making approx $200,000 GCI and doing 20 transactions (10 Listings and 10 Buying’s) in a year. The same formula will apply for more or less income.

Brokerage Split (Based on average 10%) = $20,000

Fixed Yearly Fees & other expenses of Brokerage (@ Monthly Fees $300 + Room/Desk & Misc Expenses) = $5,000

Sign Installations, VT, Lock Box and Misc Listing Expenses (10 Listings) = $3,000

Staging Expenses (10 Listings, Avg. staging cost $2,000) = $20,000

Ad Expenses for Listing and Buying (Flyers, Newspapers, Radio, Magazines, etc. Industry Standard 20% of sales) = $40,000

Mentorship Expenses (Based on your work with a senior agent in your office who will charge 25% for his/her services) = $50,000

Misc Expenses (Client Reimbursements etc) = $5,000

Total Expenses for $200,000 GCI = $143,000

Net in Hand = $57,000

Effective Net % Split: 28.5% / 71.5%

Now Realtors® will come with their own logic and will say that they don’t pay 10% split to their Brokerage. That’s fine but that’s what you get there. At the name of support there is nothing. Just think how many times you have visited your Brokerage or sat down with your Broker of Record, Team Leader or Mentor to plan your career. I am sure your answer is none. You get what you choose.

Another logic, “I don’t go to office and don’t have a room expense and monthly fees”. Just imagine how productive you can be if you are in a working atmosphere on a daily basis. Don’t you think your production can be manifold if you just have a right working atmosphere?

Another logic, “I don’t work with sellers or even if I do Listings, no staging is required”. It means you don’t understand the value of services to your clients and avoid enhancement of services to save expenses. You will be out of the market soon as someone else will provide better service and take over your business. You have to list to last. Most of the buying Realtors® start declining in their performance within 5 yrs.

Another logic, “I don’t spend money on ads to generate my business and work only on referrals”. I am sure you might not even realize that even for referrals you have to spend money and also for how long you will run your business on referrals. Ads are must to sustain long term in business. I have seen many Realtors® vanishing from market because of their wrong concept of business. If you have a theory of saving money to make money, you can just save 10% of your total income where spending money on business is an investment and you have unlimited potential of making money.

Another logic, “I never used a mentor so why should I consider 25% expense for mentorship”. I wish, whoever thinks like this, should have tried working with a right mentor and your GCI would not be on a level of $200,000. You would have crossed $400,000 mark by today or would have been a Team Leader or Mentor. You might have been progressing on a career path of growth to become an entrepreneur rather than just being a Realtor® for your whole life and out of the vicious cycle of yourself dependent business. Did you ever realize that your business as a Realtor® is totally dependent upon you? If you are out, your business is done. That’s the beauty of working in a system that is not dependent upon one individual. Once you build the system, it will keep working for you irrespective of your presence in the system, and that’s what we do at Save Max. We don’t just hire the Realtors®, we build system for them to become entrepreneurs.

Just imagine if you do additional 5 deals in a year with your mentor support or the leads which you will be getting in a Team system, you are automatically beneficial and will generate more than an additional $50,000 GCI.

Above all there is always a working atmosphere and motivation because of the team environment. It’s very important to pick the right team and a good mentor who has his own vision of growth and success. Just think, if you chose a mentor who couldn’t achieve anything more than becoming a team leader in a decade, he/she will only make you a good Realtor®. Choose a mentor who has crossed that barrier and made his team members either Mentors or Entrepreneurs. You will find unlimited potential there.

In a Team structure, which is suitable for all kind of Realtors® whether they are new, been working as a successful Realtors®, or making above $500,000 GCI, there is always a potential to grow. Above all your are not worried about your expenses and initial investment of ads, staging’s, signage’s and so on. Also, there is always economies of scale in the expenses as you are playing in volumes and always negotiate the deals with your vendors to best utilize your dollars and use the extra money to further enhance your business.

Now choice is yours – you can either keep consoling yourself by giving logic’s to yourself and keep working on a traditional system of Brokerage to wait to go out of the market in few years, or come out of your comfort zone to explore something which is unique, novel and be up to date to build a system for you to stay long in the market.

*** Don’t just be a Realtor®, Be an Entrepreneur ***

I will talk more about the benefits of Incorporating your business as a Realtor®, which is one of the best ways to utilize your tax dollars to enhance your business.

Want to become a Realtor®, Join any Brokerage

Want to become an Entrepreneur, JOIN SAVE MAX

Today’s article is especially for those Realtors® who have some misunderstandings about 50/50 split model in Real Estate industry. In reality it’s not a 50/50 split, it’s an expense sharing system which is a win-win situation for Realtors® who work in a team model.

First let’s talk about why we should join a team model rather than being an independent Realtor. The simple logic, which is proven by stats as well, is that as an Independent Realtor the success rate in the Real Estate industry is only 10% where as the success rate of Realtors® is 90% in team models.

Now comes the question of justification of 50/50 split. To understand this better we have to analyze the expenses of independent Realtors®.

Let’s take an example of a Realtor who is making approx $200,000 GCI and doing 20 transactions (10 Listings and 10 Buying’s) in a year. The same formula will apply for more or less income.

Brokerage Split (Based on average 10%) = $20,000

Fixed Yearly Fees & other expenses of Brokerage (@ Monthly Fees $300 + Room/Desk & Misc Expenses) = $5,000

Sign Installations, VT, Lock Box and Misc Listing Expenses (10 Listings) = $3,000

Staging Expenses (10 Listings, Avg. staging cost $2,000) = $20,000

Ad Expenses for Listing and Buying (Flyers, Newspapers, Radio, Magazines, etc. Industry Standard 20% of sales) = $40,000

Mentorship Expenses (Based on your work with a senior agent in your office who will charge 25% for his/her services) = $50,000

Misc Expenses (Client Reimbursements etc) = $5,000

Total Expenses for $200,000 GCI = $143,000

Net in Hand = $57,000

Effective Net % Split: 28.5% / 71.5%

Now Realtors® will come with their own logic and will say that they don’t pay 10% split to their Brokerage. That’s fine but that’s what you get there. At the name of support there is nothing. Just think how many times you have visited your Brokerage or sat down with your Broker of Record, Team Leader or Mentor to plan your career. I am sure your answer is none. You get what you choose.

Another logic, “I don’t go to office and don’t have a room expense and monthly fees”. Just imagine how productive you can be if you are in a working atmosphere on a daily basis. Don’t you think your production can be manifold if you just have a right working atmosphere?

Another logic, “I don’t work with sellers or even if I do Listings, no staging is required”. It means you don’t understand the value of services to your clients and avoid enhancement of services to save expenses. You will be out of the market soon as someone else will provide better service and take over your business. You have to list to last. Most of the buying Realtors® start declining in their performance within 5 yrs.

Another logic, “I don’t spend money on ads to generate my business and work only on referrals”. I am sure you might not even realize that even for referrals you have to spend money and also for how long you will run your business on referrals. Ads are must to sustain long term in business. I have seen many Realtors® vanishing from market because of their wrong concept of business. If you have a theory of saving money to make money, you can just save 10% of your total income where spending money on business is an investment and you have unlimited potential of making money.

Another logic, “I never used a mentor so why should I consider 25% expense for mentorship”. I wish, whoever thinks like this, should have tried working with a right mentor and your GCI would not be on a level of $200,000. You would have crossed $400,000 mark by today or would have been a Team Leader or Mentor. You might have been progressing on a career path of growth to become an entrepreneur rather than just being a Realtor® for your whole life and out of the vicious cycle of yourself dependent business. Did you ever realize that your business as a Realtor® is totally dependent upon you? If you are out, your business is done. That’s the beauty of working in a system that is not dependent upon one individual. Once you build the system, it will keep working for you irrespective of your presence in the system, and that’s what we do at Save Max. We don’t just hire the Realtors®, we build system for them to become entrepreneurs.

Just imagine if you do additional 5 deals in a year with your mentor support or the leads which you will be getting in a Team system, you are automatically beneficial and will generate more than an additional $50,000 GCI.

Above all there is always a working atmosphere and motivation because of the team environment. It’s very important to pick the right team and a good mentor who has his own vision of growth and success. Just think, if you chose a mentor who couldn’t achieve anything more than becoming a team leader in a decade, he/she will only make you a good Realtor®. Choose a mentor who has crossed that barrier and made his team members either Mentors or Entrepreneurs. You will find unlimited potential there.

In a Team structure, which is suitable for all kind of Realtors® whether they are new, been working as a successful Realtors®, or making above $500,000 GCI, there is always a potential to grow. Above all your are not worried about your expenses and initial investment of ads, staging’s, signage’s and so on. Also, there is always economies of scale in the expenses as you are playing in volumes and always negotiate the deals with your vendors to best utilize your dollars and use the extra money to further enhance your business.

Now choice is yours – you can either keep consoling yourself by giving logic’s to yourself and keep working on a traditional system of Brokerage to wait to go out of the market in few years, or come out of your comfort zone to explore something which is unique, novel and be up to date to build a system for you to stay long in the market.

*** Don’t just be a Realtor®, Be an Entrepreneur ***

I will talk more about the benefits of Incorporating your business as a Realtor®, which is one of the best ways to utilize your tax dollars to enhance your business.

Want to become a Realtor®, Join any Brokerage

Want to become an Entrepreneur, JOIN SAVE MAX

Categories
Real Estate

“Jack of All; Master of None, Realtors®”

I am sure we all are familiar with this quality which majority of people possess especially here in Canada. Many times you come across those individuals who come and tell you, I DO REAL ESTATE, MORTGAGES, INSURANCE, RRSP, RESP, HOME INSPECTION and everything. By the time that person tells you what he does, you actually forget about his actual profession.

Imagine you have a heart problem and your doctor is General Practitioner. Will you ever take a chance to get your heart operated from him? When someone tries to do everything, you become average of everything; you can’t have a mastery of one. This is one of the harsh truth especially in Real Estate, people don’t realize that if you try to do everything, you will not achieve mastery in none. That is very important at the start of your career. Once you achieve success and establish it a big business, you can think of diversification but that too in related field. This will help you to get better success in life. It’s always good to become master of one trade rather than becoming average of 10.

If you know the card game then you know what the value of Jack which fits everywhere is but Ace is always the most favorite. Jack can make you a game win but Ace will make you a champion. Similar applies in the life, if you are trying to do everything then you can make a decent living but you can’t excel in one field. Especially Real Estate is such a vast field that you have to be fully dedicated on your profession rather than dividing your time into 10 things and not achieving success in any of them .

It looks very odd to the clients as well if you are doing everything as it will make them confuse and make them think about what is your real profession. Above all you will get only those people as clients who don’t understand the value of expertise and they will never pay you top dollars for your skills. Have you ever seen an average player, actor or doctor to earn top dollars for their service? Success is all about strengthen yourself in the field which you are best to do rather than becoming an average of everything what you are supposed to do. Once you identify your strength of something, keep building up yourself on that will expedite your journey of success.

If you will try to achieve success by becoming an average of many trades than your success will be average only. Let me talk about Real Estate which majority of people adopt as a profession as a last choice or come with an intent to make little extra money as part timers. I have seen many people taking license just for the sake of saving money for their own deal. In my words you are actually abusing a wonderful profession. Have you ever experienced in your life that you are abusing something and it will be fruitful for you. Just do a small experiment in your house with a fruit tree or any flower plant. Every day morning go and stand in front of the plant and start abusing him, even if you are watering and fertilizing it but it still won’t give you the fruits or flower which you are expecting as you are abusing the plant. This is the simple rule of nature.

I would love to see people adopting Real Estate as first option, not the last resource of making some Extra money. Not everyone who passed the license has all the knowledge of the profession. Look for a learner who wants to learn everyday and make him better constantly by learning.

I am sure from today on wards you will try to have a laser focus on your street rather than making your hands dirty in everything. Even my humble requests to clients to understand it as you are not doing good to yourself. Look for someone without has adopted Real Estate as a profession rather than someone who is abusing it as a part time impression. Neither he/she will be able to justify to himself/herself, nor will that person be able to protect your interest.

Become a master not a Jack…….

Categories
Real Estate

“First Six Months of a Realtor Life”

In my career I have mentored more than 200 successful Realtors® , and majority of them either started or restarted their career with me. The one who started was the One’s who were looking for right direction and the ones who restarted was taking their last chance before deciding to leave Real Estate career as they had tried at every place but couldn’t be successful. We have successful designed a career path and almost 100% are making a six minimum six figure earning and few reached at 7 figure as well .I am sharing the first six months journey of a Realtor’s® life based on my experience and we will use John as a fictitious character in our story.

John was fascinated to see his Realtors® friends who were driving luxury cars and living a good life. He knew a lot of people around and bought and sold house few times. Every time he paid some handsome commissions to his Realtor® friends. He was thinking of saving that money and also wanted to make some extra money. He was doing a decent job simultaneously which was helping to run his family and house. He decided to take Real Estate license and wanted to make some extra money with his job and later join the profession full time. John started working to get his Real Estate license. During the period, he kept planning his Real Estate career but always has a fear in his mind that he can’t talk to too many people otherwise his boss at job or any other colleague will come to know about his Real Estate profession and he might have a trouble at job. But he was making a list of potential buyers and sellers in his friends circle and acquaintances about whom he was sure to get the business.

Finally the day had come when John got his license. Very excited he started taking interview of the brokerages (as he was taught in the class to interview the brokerages …. I will write a separate article on this) and decided to join the one which had 100’s and 1000’s of agents as he was getting a good split there as well. He was assured of a so called high class training to make him a top Realtors®. John never thought that same Brokerage had more than 95% Realtors® who are not doing even decent no of transactions under the same training.

Now John was waiting for his friends and family to call him to buy or sell the house. Finally the day come when one of his very close friends called him to give him the good news and invited him for his house warming ceremony. John was shocked as he was expecting this friend to buy the house through him. John asked him, Why you didn’t buy the house through me. The friend simply said, John you never told me you are a Realtor® as well and as far as I know you are doing a job. Suddenly John realized that he was a secret agent as he really never told his friend. John started sharing with his other friends and got the second surprise of his life when his cousin brother bought a house from other Realtor® and gave John the excuse of fear of not losing the relationship and that’s why he avoided the Real Estate transaction with John. Though it was an excuse as the cousin brother was not confident that John can justify the job. John was very disappointed and was losing his motivation to make Real Estate as his career. He spoke to his Broker of Record and senior colleagues at his office who also discouraged him either by not showing the right path or by making fun of the profession. John was trifling with a biggest problem that every morning he didn’t know what to do sitting at home as his brokerage told him that he doesn’t need to come to office. He was wasting his time by doing house hold chores and was totally directionless. John tried his best but as he doesn’t have proper guidance and so called training in his office was not enough to train him to fight with the fierce competition; John decided to go back in his job.

My question to you is why you think John was not successful. Was he not talented? Was he not hard working?

No that was not the case, John missed one the most important thing and that was a right platform to perform. A right brokerage who can guide him in the right direction and can equip him with all the right tools and mentor-ship support. Initial first 6 months are very crucial and it either makes or break your career.

Please ask yourself following questions….

1. Do you have no clue in the morning as what to do?

2. Your brokerage doesn’t encourage you to come to office?

3. Is there any full time mentor available for you at the office who accompanies you for listing and buying for first six months at least?

4. You meet your broker of Record occasionally say once in a month or even more.

5. You Broker of Record never spoke to you to elevate to next level.

6. You don’t feel like going to office or so called training session.

7. Your friend who is working in Save Max is busy doing Real Estate and progressing.

I am sure these answers will help you to think twice and will at least make an attempt to come and see what is happening in your surroundings.

Choose the right platform to perform and it can change your life and definition of success.

We at Save Max build career not just the Realtors® . Want to know more about Save Max unique business model; don’t hesitate to get in touch with us. You might be smart but every smart person needs a mentor to be on the top.

Categories
Real Estate

Why we need more Entrepreneurs in Real Estate?

Real Estate is one of the most attractive fields in the world and especially in Canada. If we compare Real Estate industry with other industries, we will find that we are not working on the pace as of others. The world is changing a lot and one of the most encouraging and emerging concept is entrepreneurship. Pick up any industry Transportation, Short term rental, food delivery, online marketing, office rental and list goes on, you will find the entrepreneurs are giving a new direction.

Real Estate is a unique field and it needs totally a different entrepreneurship which can find creative ways to serve the customer but not so much with machine power. As there is a lot of personal touch and emotion involved, it needs a mentor-ship model where the intellect can be transferred to next generation through mentor-ship. Most of the big companies will be a part of the history as they are not creative enough to understand the changing face of field and also those who work on their old school thought process. They will not even realize what happened to their business.

We are going through an era where the old school thinking will not bring new generation result, we need to have creative approach to shake the industry. Off course every change has its own first step which is the hardest. That first step is to make a decision to change, once the decision is made then you will find the door keeps opening and the success can be much faster if you have the direction and keys to open the door which is possible through right mentor-ship.

Just imagine if you are more than a decade in the industry and you don’t see any change of your business model except for the no’s, then you can imagine what will happen to you in this fast changing environment.

Real Estate industry need a different dimension to fight and eradicate the old fashioned model, this need some entrepreneurial transformation understanding the requirement of today’s era .

We have created a model which suits the need of every category either it’s a new Realtor who wants to learn the basics of Real Estate or someone who has more than a decade experience and deserve to be an entrepreneur but not able to do it because of lack of right platform.

Let me share how Save Max has designed the model of success for various levels.

For New Realtors®

1. Save Max Learning Academy (SLA) provides 20 hrs Training each week. 8 hrs classroom and 12 hrs field training.

2. Full time trainer available in office to assess your skill set and design individual need based training program. Monthly and quarterly appraisals are done.

3. One-on-one mentor-ship.

4. New Realtor will be accompanied by team leaders for first 6 months for all the business activity.

5. Hands on training with latest technology tools to learn to generate business

Realtors® with 2 yrs Experience and successful track Record

1. Prepare them to build the team.

2. Special leadership training through SLA and mentor-ship to become entrepreneur.

3. Official structure to save taxes by incorporating the business

4. Proven business model to ensure success to reach to next level

5. In house opportunity to open franchise and grow business in future

Realtors® with 2-5 yrs experience with high production (More than 500K)

1. Special entrepreneurship mentoring

2. Franchise opportunity to save taxes and grow business as an entrepreneur

3. Full admin, accounting, marketing, training support for your business so that you can just focus on your growth

4. Team building training

Realtors®®® with more than 5 yrs experience and high production

1. Specially designed higher level management training

2. Unique franchise model with an option to sub franchise the business to grow in future.

3. Custom made support plan to provide admin, accounting, marketing And training support to your business

4. Partnership opportunity with Save Max (Unique business model)

Entrepreneur with no Real Estate License and no Real Estate Experience

1. Unique business model to open your brokerage as investor

***Business model for Realtors® with negative attitude and No zeal to grow

1. Join the competition

I am sure this article will help you to open your eyes and you will become part of the most progressive and out of the box thinking model of Real Estate industry. If we don’t plan to change with time, time will change us.

Want to become a Realtor, Join any Brokerage

Want to become an entrepreneur JOIN SAVE MAX

Categories
Motivation Real Estate

Next Level in Save Max Hierarchy Model

Save Max Real Estate Inc., a leading Real Estate Corporate House, moving at great pace towards growth of its own people today announced its next level of Team Leaders who are chosen to lead the aspiring REALTORS® trying to be successful in the real estate industry. As the company is rapidly growing its reach in & around GTA, lots of aspiring REALTORS® are keen to take the benefit of the Unique Save Max Hierarchy Model. For this, it is really important that we have the next generation of Team Leaders who can support the growing team.

This announcement came as an extension of Save Max’s successful Real Estate Hierarchy Model where in every Team Member is provided shoulder to shoulder support and training to help the new REALTORS® be successful in Real Estate Business. Existing Save Max Leadership comprises of Sachin Gupta, Lalit Bhatla, Balraj Puri, and Gurmeet Gill. To ensure that the new REALTOR® joining Save Max enjoys same level of support, it’s important to create the next level of Leadership too. This will not only help the New Team Members but will also help the new leadership to work towards achieving their goal to become an Entrepreneur. 

Raman Dua, CEO, Save Max Real Estate Inc., Said, “We have the experience needed to deploy our unique model and provide the elevated level of support to all those aspiring REALTOR® or REALTORS® who are in the industry for long time but not able to perform because of lack of support. I and my existing Team Leaders have enjoyed working with new leadership team, we’re excited and sure that new leadership will be providing the same or more advanced support to New Team Members and will take the company to the next level.”

“At Save Max we are equipped to make effective decisions, based on what individual REALTOR® requirements are and our REALTORS® have always outperformed the competition” Said, Raman Dua.