{"id":11484,"date":"2010-03-10T19:52:13","date_gmt":"2010-03-11T02:52:13","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=11484"},"modified":"2010-03-10T19:52:13","modified_gmt":"2010-03-11T02:52:13","slug":"you-dont-need-todays-idea-of-a-team-to-succeed-in-a-big-way","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/11484\/you-dont-need-todays-idea-of-a-team-to-succeed-in-a-big-way\/","title":{"rendered":"You Don’t Need Today’s Idea of a Team To Succeed In a Big Way"},"content":{"rendered":"

Teams have proven themselves a potentially profitable strategy in real estate brokerage, as almost every mid-large company has at least one pretty successful team under its roof. I’ve never had buyer agents or specialized listing agents on my team. I use the same philosophy Dad and his buds. <\/p>\n

Though they all agreed about the possible income teams offered, many eschewed that approach for a modified MO, still more or less using a team. They preferred the OldSchool<\/em> blueprint which had the go-to guy at the top, with support staff doing all non-revenue producing labor. <\/p>\n

I’m convinced that approach is more conducive to a real estate investment broker than the army of buyer agents approach used in houses. Here’s why.<\/p>\n

Caveat:<\/strong> The investment niche about which I’m speaking is residential income, mostly smaller stuff, say 1-4 units, though it would be just as effective with larger properties, as I’ve done before myself. It assumes knowledge of pertinent tax codes, complete understanding of before\/after tax cash flow analysis, and the judgment to apply those skill sets in the implementation of the proper strategies dictated by proper analysis. Furthermore, I assume lead generation isn’t an issue. That is, there are enough prospects for a pro to get sufficient at-bats. <\/p>\n

Let’s say your market’s median duplex price is $250,000 or so. A 3% side is $7,500. Let’s also assume the average net equity of your ‘low hanging fruit’<\/em> is $115,000 give or take. If your analysis shows a tax deferred exchange would markedly improve your client’s position, here’s what might happen. You effect the sale of his duplex, then ID about twice that much in ‘upleg’ property — property into which he trades. (This example uses 20% down payments.) You make 3% per side on those too — another $15,000 or so. One client, essentially one transaction, $22,500. <\/p>\n

Compare that to the house team template. Using the same price point, and assuming the buyer agents are generating the sales, (and paid 50% of the commission) the team must do six separate transactions with six different clients to net the team leader the same gross income. <\/p>\n

If Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Teams have proven themselves a potentially profitable strategy in real estate brokerage, as almost every mid-large company has at least one pretty successful team under its roof. I’ve never had buyer agents or specialized listing agents on my team. I use the same philosophy Dad and his buds. Though they all agreed about the possible […]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[212,5],"tags":[],"class_list":["post-11484","post","type-post","status-publish","format-standard","hentry","category-flourishing","category-real-estate","no-featured-image"],"jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":463,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/463\/blogoff-post-86-ask-the-broker-what-does-pre-qualification-mean\/","url_meta":{"origin":11484,"position":0},"title":"Blogoff Post #86: Ask the Broker: What does pre-qualification mean…?","author":"Greg Swann","date":"September 26, 2006","format":false,"excerpt":"This is a question I'm hearing every day right now:What does pre-qualification mean?Why am I hearing that question? Because I'm representing the seller in a house that is not closing, day after day. So what does pre-qualification mean? Nothing. What does loan qualification mean? It means the buyer has paid\u2026","rel":"","context":"In "Ask the Broker"","block_context":{"text":"Ask the Broker","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/ask-the-broker\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":519,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/519\/the-seller-really-pays-for-the-buyers-agent-definitely-not-when-the-buyer-pays-out-of-pocket-but-what-if-the-buyer-really-did-pay-for-the-buyers-agent-from-the-buyers-side-of-the-hud-1\/","url_meta":{"origin":11484,"position":1},"title":"The seller really pays for the buyer’s agent? Definitely not when the buyer pays out of pocket. But what if the buyer really did pay for the buyer’s agent from the buyer’s side of the HUD-1?","author":"Greg Swann","date":"October 7, 2006","format":false,"excerpt":"There's a lot of discussion of Buyer Broker compensation going on around the RE.net, and I want to draw attention to it while I can. I have some further thoughts of my own, but I'm not sure I'll be able to get to them today. It's Saturday, after all. One\u2026","rel":"","context":"In "Blogging"","block_context":{"text":"Blogging","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/blogging\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3075,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3075\/thinking-myself-out-of-business-a-lone-real-estate-agent-faces-the-future\/","url_meta":{"origin":11484,"position":2},"title":"Thinking myself out of business: a lone real estate agent faces the future","author":"Mike Farmer","date":"May 9, 2008","format":false,"excerpt":"\u00a0Agents get leads from different marketing strategies, both offline and online, but where will most of the leads come from in\u00a0five years? Looking ahead I'd have to say leads will come mainly from one source -- Google. Unless something changes, Google has the lion's share of searchers. As more and\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":18324,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18324\/buyer-agency-project-buyer-agents-offer-no-value-today\/","url_meta":{"origin":11484,"position":3},"title":"Buyer Agency Project: Buyer agents offer no value today.","author":"Brian Brady","date":"July 17, 2021","format":false,"excerpt":"\"I just showed three houses this week, out in L******, and all of them had 2% co-brokerage fees.\u00a0 Learn to sell, listing agents\" I read this post (paraphrased), from a former car salesman with a Florida real estate license, in a Facebook group the other day.\u00a0 The irony of it\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":492,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/492\/the-things-most-worth-talking-about-are-the-ones-no-one-ever-wants-to-talk-about-confronting-the-buyers-agents-commission-amidst-a-glacial-glut-of-real-estate-licensees\/","url_meta":{"origin":11484,"position":4},"title":"The things most worth talking about are the ones no one ever wants to talk about: Confronting the buyer’s agent’s commission amidst a glacial glut of real estate licensees . . .","author":"Greg Swann","date":"October 1, 2006","format":false,"excerpt":"I wrote this as a comment at Rain City Guide (which thread is very worth visiting), but I'm echoing it here:> Who pays the commission is all semantics, really. I would disagree with that. Buyers have been persistently misled about who pays the commissions, which skews their behavior. > The\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3027,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/3027\/gen-x-gen-y-and-the-end-of-the-traditional-real-estate-business-model\/","url_meta":{"origin":11484,"position":5},"title":"Gen X, Gen Y, And the End Of The Traditional Real Estate Business Model","author":"Barry Cunningham","date":"April 27, 2008","format":false,"excerpt":"\u00a0 With the median age of real estate agents being 52 years of age (source NAR), new Realtors hoping to make their mark in the real estate business are casting aside conventional wisdom. New Real Estate Agents Seeking Gen X And Gen Y Buyers Break From The Mold New real\u2026","rel":"","context":"In "Disintermediation"","block_context":{"text":"Disintermediation","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/disintermediation\/"},"img":{"alt_text":"Real Estate Radio USA | Gen Y Homebuyers","src":"https:\/\/i0.wp.com\/www.realestateradiousa.com\/blog\/wp-content\/uploads\/2008\/04\/geny.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11484","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=11484"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11484\/revisions"}],"predecessor-version":[{"id":11536,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/11484\/revisions\/11536"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=11484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=11484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=11484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}