You.
Real Estate is about
And the brokerage that meets your needs Use this workbook to think through your real estate business, your clients, suppliers, revenues, expenses, marketing and your operations.
W E L C O M E This is a mini-version of the workbooks we use at Intero during orientation. We hope it will empower you to do a quick assessment of your real estate business. The actual book is over 500 pages long and our orientation is very intensive and pratical. We hope it will help you launch your career into action! We are going to make the assumption that you want to run a Real Estate BUSINESS, therefore this workbook will help you think through the basics of your real estate business as it pertains to your executive summary, target clients, suppliers, marketing, operations, resources, revenues and expenses. Best of luck! Daniel, Katie and Randall
C L I E N T S To thrive in this business you need to make a conscious decision about which segments to serve and which segments to ignore. Once you make this decision, you can tailor your efforts around a strong understanding of that specific segment. Let’s begin by assembling your primary BUYER customer profile. Circle ONE CHOICE for each of the following answers:
What type of buyer is your ideal client?
Land (to build)
First-time home buyers Repeat buyers
What price range are those properties?
Either first-time or repeat buyers
$50k - $199k $200k - $500k
How old are your ideal clients?
$501k - $999k
Less than 30
$1MM - $1.5MM
30-40
$1.5MM and above
40-50 50-60
What geographical segmentation would you
60+
consider your primary marketing area? A specific neighborhood
What is their social status?
Several specific neighborhoods
Single
A city or township (Katy, Pearland, Cypress, etc).
Roommates
A Houston area (Inner Loop, north, south, etc).
Married (no kids) Married (with kids)
What is the name area you have chosen?
What is their education level?
_________________________________________
High school degree College degree Masters degree Any degree What type of properties do they want? Single family homes Town-homes Condos & high-rises
M A R K E T I N G When it comes to drumming up new business, your biggest challenge will be to prospect with the right individuals to convert them into leads and then into clients. To do so, you need to simultaneously deploy an array of marketing techniques, which include the following:
SPHERE
OF
INFLUENCE
FARMING
OPEN
COLD
HOUSES
CALLING
DIGITAL
MARKETING
TRADITIONAL
MARKETING
PROSPECTING “B” LEADS (0-60 days out)
“C” LEADS (61-120 days out)
“A” LEADS (Appointment)
How likely are you going to use the following sphere of influence techniques?
Very Likely
Somewhat Likely
Neutral
Somewhat Unlikely
Not Likely
Build a contact database of at least 100 people
O
O
O
O
O
Establish a system to contact database
O
O
O
O
O
Delete contacts that are not working out
O
O
O
O
O
Connect in Facebook/Twitter/LinkedIn
O
O
O
O
O
Engage in random conversations with people I don’t know
O
O
O
O
O
Use a binder to manage database
O
O
O
O
O
Use a spreadsheet to manage database
O
O
O
O
O
Use a CRM system to manage database
O
O
O
O
O
Master the art of script talk (Intero has hundreds of scripts and role play sessions)
O
O
O
O
O
How likely are you going to use the following farming techniques?
Very Likely
Somewhat Likely
Neutral
Somewhat Unlikely
Not Likely
Pick and farm area with high sales turnover
O
O
O
O
O
Measure every campaign result
O
O
O
O
O
Participate in the community and become a trusted resource
O
O
O
O
O
Study the farm’s MLS activity for the last year
O
O
O
O
O
Setup email alerts from the MLS to get the scoop of everything that touches my farm
O
O
O
O
O
Drive around the farm area at least weekly
O
O
O
O
O
Drive around with magnetics in my car at 8:00 AM so people leaving for work/school see and relate to my brand
O
O
O
O
O
Very Likely
Somewhat Likely
Neutral
Somewhat Unlikely
Not Likely
Host an annual, semi-annual or quarterly neighborhood cookout where I can introduce myself and my services to people in a relaxed atmosphere.
O
O
O
O
O
Sponsor a community event organized by community leaders
O
O
O
O
O
Find an event I can sponsor and gives me maximum visibility (trick-or-treating, food drive, grassroots marketing, etc).
O
O
O
O
O
Make myself available to community newspaper/gazette reporters or writers when they need a quote or an interview.
O
O
O
O
O
Setup up a community page on Facebook
O
O
O
O
O
Deploy a local website with local news, food, culture, sports, and a real estate section where I can promote myself
O
O
O
O
O
Setup Up Neighborhood Yard Sales
O
O
O
O
O
Mail invitations to an online survey about the neighborhood in exchange for a “chance to win a gift.” Intero can help me create an online survey that will “creatively” elevate awareness of my services, gauge the likelihood of neighbors buying or selling in the near future, or knowing people who may want to move into the neighborhood.
O
O
O
O
O
Talk to other businesses about a “swag bag” prior to a community event, where I can put a marketing piece or a postcard offering 1% rebate on purchase or sale of homes
O
O
O
O
O
How likely are you going to use the following Open House techniques?
Very Likely
Somewhat Likely
Neutral
Somewhat Unlikely
Not Likely
Ask concierge desk to match me with Open Houses so I can generate more leads (if your company offers that)
O
O
O
O
O
Advertise Open House in the MLS
O
O
O
O
O
O P E R A T I O N S When it comes to handling your operations, ask yourself these questions: Does the brokerage have a paper-based workflow? or a cloud environment? Or a transaction management system? And if it uses a transaction management system, does the brokerage have the remote processes that allow me to work from everywhere and get paid without stepping a foot into the office? We at Intero feel that our remote processes empower people to run efficient operations, here are some examples of how we do things at Intero:
Working with Buyers: Step by Step Deliverable
What to do
How we do it at Intero
Perform needs
Sit down with prospective buyers,
Use scripts and templates to answer
analysis
learn more about their real estate
questions and objections. Tip: Check out
needs, and show them how you
hundreds of scripts and attend role play
can help them meet those needs.
sessions at Intero.
Sign buyer’s
Try to get the buyer to sign a
Expect push-back because not everyone
representation
buyer’s representation agreement
in our industry signs them, so you need to
agreement
signed.
establish enough trust and credibility to get them to sign. Tip: Use an Intero buyer package and scripts.
Help buyers
Advise buyers about the
Have a package with recommended
get pre-
mortgage process and the
mortgage brokers and lenders (3 names
approved
benefits of getting pre-approved.
to reduce liability). Tip: Watch out for
Recommend lenders and
buyers who must sell in order to buy, they
mortgage brokers.
may not meet debt to income ratio requirements, many mortgage brokers pre-approve without thinking. You don’t want a problem later.
Deliverable
What to do
How we do it at Intero
Show homes
Show homes that are likely to
Use Intero qualification checklists, scripts
match the buyers’ needs, analyze
and materials. Setup MLS email alerts
price and amenities, make
early in the morning and do whatever it
recommendations.
takes to stay ahead of them (they feel empowered by the Internet and think they’re ahead of you).
Review Seller’s Always review the seller’s
Get the seller’s disclosure from the seller’s
Disclosure
disclosure and give your buyers
agent. Tip: Good agents put the seller’s
more information about the
disclosure in the MLS, so you can get it
properties they are considering.
from there without having to contact the seller’s agent. Go there first.
Prepare offers
Prepare contracts/addenda timely
Retrieve and populate the right set of
and accurately. Set expectations,
documents using ZipForms and use
explain the contracts, talk about
DocuSign, HelloSign or DigitalLink to sign
common scenarios.
whenever possible. Tip: Take Intero contract training and use NuOffer: An iPad app that brings ZipForms and electronic signatures and a super cool, interviewstyle workflow guaranteed to make you look smart as you quickly write accurate offers from anywhere (Included with Intero membership).
Negotiate
Establish firm communication with
Acquire skills in the art of negotiations.
offers
the seller’s agent and keep your
Use canned checklists, negotiating scripts
buyers appraised of how the
and written templates for the other agent
negotiation is going, make them
and for your buyers. Tip: Buyers love to
feel comfortable knowing that you
think that you possess an evil side aimed
are taking the hassle out of their
at the seller’s agent, so give that
hands.
perception!
Deliverable
What to do
How we do it at Intero
Open Escrow
Help your buyers open escrow,
Call the title company immediately to
establish contact with the title
position yourself as the point of contact.
company, and expedite the
Make sure the checks get to where they’re
escrow check, the option check,
supposed to get to in time. Obtain the
and the escrow receipt.
escrow receipt. Confirm to your buyer that all is set and tell them what the next actions will be (we have scripts and templates).
Make changes
Prepare amended contracts/
Retrieve and populate the right set of
to offers
addenda timely and accurately as
documents using ZipForms and sign with
offer or closing dates, terms, price DocuSign, HelloSign or DigitalLink and/or conditions change.
whenever possible, or use NuOffer. Stay on top of changes. Watch the dates! Be proactive. Never fall into a situation where clients have to remind you, it’s a deadly blow to your chances of getting referral business after the transaction.
Clear contract
Coordinate inspections on behalf
Recommend inspectors (3 to reduce
covenants
of buyers, go through inspection
liability), schedule appointments, retrieve
reports with your buyers,
and go through inspection reports, explain
negotiate changes with seller’s
what is critical and what is not. Tip: If your
agent, make sure repairs are
buyer wants to be present during the
done by the sellers.
inspection, go too! This is a great business moment that they will greatly appreciate it and will certainly tell their friends about it.
Closing
Retrieve and review the settlement Learn the ins and outs of the settlement statement from the title company
statement, tax calculations, etc. Be able to
prior to closing and point out
explain everything in plain English.
discrepancies if necessary. Do a
Educate your buyers about what to expect
final walk-through of the property
at closing. Tip: Take the HUD-1 class and
with your buyer, reassure them
stay tuned for changes coming in August
about their good choice, attend
2015 (we will have another class for that).
closing.
Deliverable
What to do
How we do it at Intero
Get reviews
Get reviews from your buyers on
HAR will automatically send your buyers a
HAR’s client experience rating
request to provide feedback shortly after
after closing.
the seller’s agent marks the property as “sold” in the MLS. Tip: Tell them about it and remind them if they don’t do it.
Initiate post-
Check on them immediately after
Always congratulate with something:
closing follow-
closing and become the resource
Email, closing present, paid re-keying.
up
that’s “always there” to help.
Initiate a drip campaign that will last for the next 7 years (Use Intero canned templates).
Activities When Working with Sellers Deliverable
What to do
How we do it at Intero
Perform needs
Sit down with prospective sellers,
Use canned scripts and templates for just
analysis
learn more about their real estate
about every question or objection they may
needs, and show them how you
have, and learn the art of “script talking.”
can help them meet those needs.
Tip: Attend Intero role play sessions.
Evaluate the
Prepare a professional evaluation
Generate a Comparable Sales Analysis
price of their
of the price of their home, explain
(CMA) using HAR’s Instant CMA tool or
home
pricing strategies and the risks of
NAR’s Realtor Property Resource (a.k.a.
overpricing.
RPR). Use canned templates and scripts to explain pricing strategies and the risks of overpricing.
R E S O U R C E S To be successful in your business, you need resources. Most of the things you need to run your business should be available through our association and through a resource package put together by your brokerage. Some brokerages charge $150 per month for a website and an email. Other brokerages promise “advanced systems” that are already provided by our association. Finally, some brokerages try to outsmart you by promising “no monthly fees” but take you to the cleaners with commissions or hidden fees. What we have done at Intero is build a resource package that costs no more than $100 per agent per month, and not make it a profit center. Beside,s it is not like we will become billionaires by nickeling and diming our people. This is what we believe a good resource structure should be like:
Item
Intero $100/mo
HAR $1,500/yr
COMMUNICATIONS Personal email, calendar and cloud-based drive with apps.
Included
Personal office extension.
Included
Optional virtual office with your own phone number).
Included
24/7 answering service with call transfers to your cell phone.
Included
Personal eFax with unlimited fax capabilities.
Included
Office eFax with unlimited faxes forwarded to your email.
Included
Mail management for your Intero business.
Included
Mail management for any side business you may have.
Included
Access to the Multiple Listing Service (MLS)
Included
Access to Commercial Gateway
Included
TECHNOLOGY
Other (Varies)
Item
Intero $100/mo
HAR $1,500/yr
RPR (Provided by NAR): Realtor Property Resource provides powerful data, analytics and reports that will help you research properties, create dynamic CMAs and more.
Other (Varies)
Free
BRANDING & LEAD GENERATION Personal website with Full MLS search and pre-filled content. You can bring your own domain. (Example: vsellshouston.com).
Included
Personal “BoomTown” website that rocks! (Example: adam.interosellshouston.com).
Included
Optional: Build your own website. We recommend using the Wordpress platform and AgentEvolution’s “Equity” theme. Note: HAR charges $500+/year for MLS feeds.
$500+
Personal app. Intero is discontinuing its branded agent app in exchange for the new HAR agent app coming in 2015.
Included
Personal blog: HAR has one but we recommend Wordpress or Tumblr for maximum SEO “juice.”
Included
Participate in Intero’s Blog: Want to generate content in a fun way and reach thousands of people? Join us for “content events” where you blog with colleagues in a fun way. And if you don’t mind we will upload your post to our blog and push it to thousands of readers, friends and followers.
Included
Business cards (first batch free, low pricing after. Extra-thick luxury card options available at discount prices).
Included
Ready-to-print door knockers, flyers, brochures, and more.
Included
Professional just listed/just sold postcards, introductory postcards, seasonal and market update postcards, stationery, folders, name badges, business cards, magnetics, holders, gear, gifts and more from Intero preferred discount vendors.
Varies, Low cost
Hundreds of scripts and ideas for your sales conversations.
Included
Email/Letter templates for prospecting and follow up.
Included
Unlimited greeting cards/thank you notes.
Included
Professional photo (we bring pros monthly, $50/ session).
$50
Free
Item
Intero $100/mo
Professional video (green screen, choose background)
HAR $1,500/yr
Other (Varies)
$99
HAR.com profile.
Included
Realtor.com, Zillow.com Trulia.com profiles.
Free
Facebook Business Page.
Free
Twitter, Yelp and LinkedIn profiles.
Free
Zillow Premier Agent subscription (Optional, cost varies).
Varies, Low Cost
HAR.com Client Experience Rating.
Included
Email marketing system (we recommend MailChimp).
Free
Buy leads from BoomTown, the premier online lead supplier. Participate in Intero’s BoomTown lead generation program: Intero has a company-wide agreement to purchase leads from BoomTown for participating agents. (Limited availability, must reach certain goals to stay in the program, online lead generation training is given).
Varies, Expensive
Included
LISTING SUPPORT Listing presentations (Print, web, mobile).
Included
Low-priced professional listing presentation packages.
Included
Unlimited yard signs and open house signs.
Included
Option to buy an Intero vanity yard sign.
Varies, Low cost
24/7 scheduling service by Centralized Showing Service, Houston’s leading appointment schedule service provider.
Included
Showing feedback request service with reporting for you and your clients. Give them objective feedback!
Included
Listing syndication to HAR.com, Realtor.com, Zillow.com, Trulia.com, Chronicle.com, Homes.com, the Galveston News, and competing brokerage websites in Houston. Listing syndication to InteroRealEstate.com, InteroHouston.com, your personal website and your BoomTown website.
Included
Included
Item
Intero $100/mo
Listing syndication to relevant overseas real estate engines.
Included
Listing syndication to luxuryrealestate.com, the world’s biggest luxury real estate search engine.
Included
Realtor.com enhanced listings: Prominently display your listings above and beyond your competitors and get direct leads from the #1 real estate search engine.
Included
Intero Open House “Match Maker”: Host (or have someone host) more and more frequent open houses.
Included
713-REALTOR Property Hotline: A service that allows you to add a sign rider clip to your yard signs which reads “To Hear Listing Info, Call: 713-REALTOR…” with a blank to write in the MLS number for that listing.
Varies, Low Cost
LUXURY LISTING SUPPORT
Elegant, personalized Intero Prestigio Luxury Marketing Plans. Assistance through our Marketing department. Dedicated property phone number going to you or the office.
Other (Varies)
Included
Professional photography and video for your listings (Intero has access to several vendors)
Eligibility: Properties $1.5MM and above in River Oaks, Southampton and West University. Funding available.
HAR $1,500/yr
Included
$5/ea Included $50/mo
Dedicated property website and URL.
Included
Exclusive Intero Prestigio yard sign with your name and dedicated property phone and URL.
Low Cost
Submission to Intero’s referral networks in Mexico, where 80% of wealthy overseas buyers are coming from.
Included
Special connections to lenders specializing in jumbo loans, special financing, and cross-border loan originations.
Included
Museum-style audio tours for historical/modern/ design homes.
Included
Exclusive Prestigio Marketing Collateral: Professional brochures, professional photos and video.
Low Cost
R E V E N U E S Your primary source of income is the commissions you make from selling real estate. In this section you will learn how to calculate your commission, get a tangible idea of how much you would make in a year depending on the amount of volume you close, and Intero’s payment methods and requirements. Commission Example: $500,000 Transaction You close on a $500,000 transaction. The seller pays 6% commission to the seller’s agent (That’s $30,000). From the $30,000, the seller’s agent brokerage firm gets 3% ($15,000) and the buyer’s agent’s brokerage firm gets the other 3% ($15,000). Let’s assume that you are on a 70% commission split with Intero and so is the other agent with his/her firm. Here’s what happens:
O T H E R F R A N C H I S E S
Takes the commission: !
$15,000
Subtracts 5% Royalties !
($750)
Takes the commission: !
$15,000
Subtracts 8.2% Royalties
($1,230)
Then breaks the remaining
Then breaks the remaining
commission as follows:
commission as follows: $14,250
Remaining Commission!
$13,770
Intero’s Share (30%)!
$4,275
Company’s Share (30%)
$4,131
Your Share (70%)
$9,975
Agent’s Share (70%)
$9,639
Remaining Commission
Minus E&O Insurance You receive
($35) $9,940
Minus Transaction Fee
($150)
Agent receives
$9,489
Calculate Your Commission Here:
1 Enter the Sales Price
2
3
$
Enter the percentage commission (Tip: Usually 6%, sometimes 5%)
Multiply lines 1 and 2. This is the total commission for the transaction for both the buyer’s agent and the seller’s agent.
$
Enter the percentage commission for your side of the transaction. 4
(Tip: In most cases, the seller pays 6% and each side gets half of that (e.g. 3%). However, there are many cases where the seller pays 5%, the buyer’s side gets the full 3%, and the seller’s side gets 2%. Multiply lines 1 and 2.
5
Tip: This is the money that belongs to your brokerage firm before they cut your check for your share. The Title
$
Company pays that amount at closing. Enter the royalty percentage. 6 (Tip: Intero charges 5% for royalties, other franchises charge 8.2%) 7
Multiply lines 5 and 6. This is the “Gross Commission Income”
$
8 Enter your percentage split (e.g. 70%)
9
Multiply lines 8 and 9. This is your share of the Gross Commission Income.
CALCULATE COMMISSION ON YOUR MOBILE DEVICE SCAN QR CODE FOR MORE
$
What your Revenue would look like at Another Franchise The following table illustrates what your annual revenue would be if you were on a 70/30 split and closed different amounts of transactions totaling volumes between $100,000 and $10,000,000 at a brokerage that charged 8.2% franchise fees (as compared to Intero’s 5%), and no cap (no 90% upgrade). The calculations are based on the above example without taking into account the $150 transaction fee:
Volume
Revenue
Volume
Revenue
Volume
Revenue
Volume
Revenue
Volume
Revenue
$100,000
$1,928
$2,100,000
$40,484
$4,100,000
$79,040
$6,100,000
$117,596
$8,100,000
$156,152
$200,000
$3,856
$2,200,000
$42,412
$4,200,000
$80,968
$6,200,000
$119,524
$8,200,000
$158,080
$300,000
$5,783
$2,300,000
$44,339
$4,300,000
$82,895
$6,300,000
$121,451
$8,300,000
$160,007
$400,000
$7,711
$2,400,000
$46,267
$4,400,000
$84,823
$6,400,000
$123,379
$8,400,000
$161,935
$500,000
$9,639
$2,500,000
$48,195
$4,500,000
$86,751
$6,500,000
$125,307
$8,500,000
$163,863
$600,000
$11,567
$2,600,000
$50,123
$4,600,000
$88,679
$6,600,000
$127,235
$8,600,000
$165,791
$700,000
$13,495
$2,700,000
$52,051
$4,700,000
$90,607
$6,700,000
$129,163
$8,700,000
$167,719
$800,000
$15,422
$2,800,000
$53,978
$4,800,000
$92,534
$6,800,000
$131,090
$8,800,000
$169,646
$900,000
$17,350
$2,900,000
$55,906
$4,900,000
$94,462
$6,900,000
$133,018
$8,900,000
$171,574
$1,000,000
$19,278
$3,000,000
$57,834
$5,000,000
$96,390
$7,000,000
$134,946
$9,000,000
$173,502
$1,100,000
$21,206
$3,100,000
$59,762
$5,100,000
$98,318
$7,100,000
$136,874
$9,100,000
$175,430
$1,200,000
$23,134
$3,200,000
$61,690
$5,200,000
$100,246
$7,200,000
$138,802
$9,200,000
$177,358
$1,300,000
$25,061
$3,300,000
$63,617
$5,300,000
$102,173
$7,300,000
$140,729
$9,300,000
$179,285
$1,400,000
$26,989
$3,400,000
$65,545
$5,400,000
$104,101
$7,400,000
$142,657
$9,400,000
$181,213
$1,500,000
$28,917
$3,500,000
$67,473
$5,500,000
$106,029
$7,500,000
$144,585
$9,500,000
$183,141
$1,600,000
$30,845
$3,600,000
$69,401
$5,600,000
$107,957
$7,600,000
$146,513
$9,600,000
$185,069
$1,700,000
$32,773
$3,700,000
$71,329
$5,700,000
$109,885
$7,700,000
$148,441
$9,700,000
$186,997
$1,800,000
$34,700
$3,800,000
$73,256
$5,800,000
$111,812
$7,800,000
$150,368
$9,800,000
$188,924
$1,900,000
$36,628
$3,900,000
$75,184
$5,900,000
$113,740
$7,900,000
$152,296
$9,900,000
$190,852
$2,000,000
$38,556
$4,000,000
$77,112
$6,000,000
$115,668
$8,000,000
$154,224
$10,000,000 $192,780
See the $9,639? This is the amount indicated in the above example.
What your Revenue would look like a Luxury Brokerage The following table illustrates what your annual revenue would be if you closed different amounts of transactions totaling volumes between $100,000 and $10,000,000 at one of Houston’s luxury brokerages that charges no franchise fee but charges a split of 50/50 with no cap:
Volume
Revenue
Volume
Revenue
Volume
Revenue
Volume
Revenue
Volume
Revenue
$100,000
$1,500
$2,100,000
$31,500
$4,100,000
$61,500
$6,100,000
$91,500
$8,100,000
$121,500
$200,000
$3,000
$2,200,000
$33,000
$4,200,000
$63,000
$6,200,000
$93,000
$8,200,000
$123,000
$300,000
$4,500
$2,300,000
$34,500
$4,300,000
$64,500
$6,300,000
$94,500
$8,300,000
$124,500
$400,000
$6,000
$2,400,000
$36,000
$4,400,000
$66,000
$6,400,000
$96,000
$8,400,000
$126,000
$500,000
$7,500
$2,500,000
$37,500
$4,500,000
$67,500
$6,500,000
$97,500
$8,500,000
$127,500
$600,000
$9,000
$2,600,000
$39,000
$4,600,000
$69,000
$6,600,000
$99,000
$8,600,000
$129,000
$700,000
$10,500
$2,700,000
$40,500
$4,700,000
$70,500
$6,700,000
$100,500
$8,700,000
$130,500
$800,000
$12,000
$2,800,000
$42,000
$4,800,000
$72,000
$6,800,000
$102,000
$8,800,000
$132,000
$900,000
$13,500
$2,900,000
$43,500
$4,900,000
$73,500
$6,900,000
$103,500
$8,900,000
$133,500
$1,000,000
$15,000
$3,000,000
$45,000
$5,000,000
$75,000
$7,000,000
$105,000
$9,000,000
$135,000
$1,100,000
$16,500
$3,100,000
$46,500
$5,100,000
$76,500
$7,100,000
$106,500
$9,100,000
$136,500
$1,200,000
$18,000
$3,200,000
$48,000
$5,200,000
$78,000
$7,200,000
$108,000
$9,200,000
$138,000
$1,300,000
$19,500
$3,300,000
$49,500
$5,300,000
$79,500
$7,300,000
$109,500
$9,300,000
$139,500
$1,400,000
$21,000
$3,400,000
$51,000
$5,400,000
$81,000
$7,400,000
$111,000
$9,400,000
$141,000
$1,500,000
$22,500
$3,500,000
$52,500
$5,500,000
$82,500
$7,500,000
$112,500
$9,500,000
$142,500
$1,600,000
$24,000
$3,600,000
$54,000
$5,600,000
$84,000
$7,600,000
$114,000
$9,600,000
$144,000
$1,700,000
$25,500
$3,700,000
$55,500
$5,700,000
$85,500
$7,700,000
$115,500
$9,700,000
$145,500
$1,800,000
$27,000
$3,800,000
$57,000
$5,800,000
$87,000
$7,800,000
$117,000
$9,800,000
$147,000
$1,900,000
$28,500
$3,900,000
$58,500
$5,900,000
$88,500
$7,900,000
$118,500
$9,900,000
$148,500
$2,000,000
$30,000
$4,000,000
$60,000
$6,000,000
$90,000
$8,000,000
$120,000
$10,000,000 $150,000
E X P E N S E S Real estate it’s not about NOT spending, its about spending WISELY and PROPORTIONATELY to the amount of sales your business achieves. If you think you can make money without spending money, then you should rethink your strategy. No business thrives without a good amount of expenses. Expense Statistics According to the 2014 Member Profile study by the National Association of REALTORSŽ, the median of real estate business expenses for Texas realtors is $6,070 per year. The breakdown is as follows:
Total Real Estate Business Expenses
Percentage of Texas Realtors
None per year
6%
Less than $500 per year
3%
$500 to $999 per year
6%
$1,000 to $2,499 per year
13%
$2,500 to $4,999 per year
19%
$5,000 to $9,999
15%
$10,000 to $19,999
11%
$20,000 to $29,999
7%
$30,000 to $49,999
8%
$50,000 to $99,999
2%
$100,000 or more
3%
Median
$6,070
Exercise Write down your estimated expenses for the next 12 months below:
Item BUSINESS EXPENSES HAR, TREC, TAR, NAR, MLS Dues, MCE Classes Intero membership (includes most business expenses) Business Entertainment (Meals, Coffee, Events) Additional Coaching Communications (cell phone) Education (Seminars, books, CD’s, etc.) Equipment & Supplies (Laptop, office supplies, etc.) Accounting/CPA (Taxes) MARKETING EXPENSES Print Advertising Digital Marketing Direct Mail (Print and mail) Flyers, Brochures, Presentation Materials Promotional (Gifts, Event Tickets, Sponsorships, etc.) Marketing Consulting Outside Services (Consulting, Bookkeeping, etc.) Transaction Coordination Travel Expenses to real estate summits IRA Contribution Wages (Assistant, Employees) PERSONAL EXPENSES Auto Gas Auto Insurance Auto Maintenance Auto Payments (Lease/Loan) Auto Purchase
Monthly
Annually
L E A D G E N E R AT I O N
TAKING A BUYER’S CALL. This sounds a lot easier than it actually is. Do you feel c o n fi d e n t t h a t y o u c a n c o n v e r t a prospective buyer into a real client? Do you know the right questions to ask? It’s time to learn. Role Play, 1hr LEAD GENERATION ROADMAP. The list is endless when it comes to lead generation but there are definitely a few basics you need under your belt to succeed. Learn how to build a foundation that will help generate leads over the entire span of your career. Class, 1hr INTERNET LEADS. You can buy them or you can try to do it for free. Learn the best practices and places to go for the most effective online real estate internet lead generation. Class, 1hr INTERO APP LEADS. Create your own Intero mobile app and then reap the benefits of the leads you will find rolling in. Learn how to promote your app so consumers see you as their go to real estate professional from the convenience of their phone or tablet. Class, 1hr OPEN HOUSE LEADS. Believe it or not there is a right way and a wrong way to hold an open house. Learn the best way to secure leads and hold a successful open house in this must take session. Class, 1hr INTERO FLOOR TIME. This class is mandatory before a new member can sign up for floor time. Learn scripts, sales techniques and more to assist in making the most of your next floor time shift. Role Play, 1hr INTERO RELOCATION. Have a client in NYC and you have no idea who to pair them with for their next real estate transaction? Fear not! Take this class to learn how the Intero Relocation program works. Send your leads to trusted professionals across the globe and relax knowing your referral fee is guaranteed. Class, 45min
TALKING TO FSBOs. Does the thought of knocking on a FSBO door make you sick to your stomach? Confidence is key! Learn what they want to hear and the truth behind what you can provide to take their home from available to sold! Role Play, 1hr
WORKING WITH BUYERS
INTERO STORE LEADS. Welcome to the Intero Store! A new idea for a fast moving real estate market! Enjoy the benefit of unlimited foot traffic as you sit in this open concept space. Learn the right way to engage the consumer as they look for your expertise in everything real estate related. Class, 1hr
THE HOME BUYING PROCESS. We will start with the initial conversation between a potential buyer and agent and continue though the entire process to the closing table. All of the details in between will be covered so you can feel confident in your ability to represent a buyer the way they deserve. Class, 1hr PROFILE OF TODAY’S BUYERS. Depending on the area you wish to concentrate on, the profile of buyers in the area is something you need to keep an eye on. Understanding the demographics of the consumers in your target market will assist you in your lead generation endeavors. Class, 1hr
TALKING TO EXPIRED LISTINGS. They obviously want to sell their home but it never happened. This is why expired listings are a terrific place to start for new agents. Learn the right way to approach this specific type of seller and how to close the deal. Role Play, 1hr DOOR KNOCKING. You’re not selling vacuums, you’re selling homes so it’s fairly logical to think knocking on the doors of your farm area is a good idea. Learn what you need to make this a effective form of lead generation. Role Play, 1hr
P R O F I L E O F I N T E R N AT I O N A L BUYERS. Understanding the profile of international buyers is incredibly important if you plan on working with them. Learn the details on what they expect from you as an agent and how you can prospect effectively to this specific market. Class, 1hr
B U Y E R R E P R E S E N TAT I O N AGREEMENT. If you value your time this may be a class you would enjoy. The benefits of a Buyer’s Representation Agreement is incredibly important when working with buyers regardless of your relationship with them. You would never work on selling a home without a listing agreement so why would you work with a buyer without a signed buyers rep? Learn more about the legality of this form and its importance as a buyer’s agent. Class, 1hr
SHOWING HOMES. If you’ve never done it you don’t know how until you try it! Travel with us as we visit three local home for sale and give pointers on how to effectively show a home to an interested buyer. Learn the appropriate terminology and a few tricks of the trade. Field Trip, 1.5hrs DO’S AND DONT’S: CONFIDENTIALITY AND THE FAIR HOUSING ACT. How you react in certain real estate related conversations can greatly impact your career and even more so your real estate license. Be smar t and understand the consequences of your actions all the while continuing to represent your client to the best of your ability. Class, 45min MAKING OFFERS. They’ve finally found the perfect house. Great! Now what’s next? You need to prepare an offer and submit it to the listing agent all in a timely manner. Learn more about this process and the systems Intero agents use to create a seamless transaction absent of any rookie mistakes. Class, 1hr MORTGAGE. Mortgage is a big word. There are always new programs and specifics that even the most experienced of agent would have a hard time remembering. Learn the basics of what a mortgage is so you can better educate your clients. Class, 1hr HOME WARRANTY. What is a home warranty anyway? Is it the same thing as home owners insurance? No, no it is not. This is a commonly asked question so we are here to provide some clarification. We will explain why buyers need them and why sellers should expect to pay for them. Class, 45min INSPECTIONS. Your contract has been expected and now it’s time for inspections. Who do you call? What do they do? What happens when you get the report? Learn all about home inspections and how they protect your buyer from any unexpected surprises after closing. Class, 45min
WORKING WITH SELLERS
HOW TO QUALIFY BUYERS. How do you go about pre-qualifying a buyer before they even speak to a lender?Simple steps to learn the best practices for prequalification. Class, 1hr
THE HOME SELLING PROCESS. This class provides a guide to selling homes f r o m s t a r t t o fi n i s h . L e a r n y o u r responsibilities as a listing agent from the initial meeting with your seller to effective communication with the title company. You will leave this class with the confidence you need to begin working with sellers. Class, 1hr INTERO MARKETING RESOURCES. Intero has several resources for your marketing needs. From in-house design options to online ordering, learn more about the companies we have paired with to assist you in your marketing endeavors. Class, 45min PREPARING A CMA. This may be the single most important workshop Intero offers. Without the ability to create a comparative market analysis you are incapable of providing the one thing a seller truly needs to know... The value of their home. Learn ways to create a standard CMA along with a dynamic CMA meant to wow your clients during listing presentations. Creating an accurate CMA and understanding how to communicate the information to the seller is one of the most important skills you need in this business. Workshop, 1hr INTERO LISTING PRESENTATIONS. The art of the presenting your materials to a potential seller is one not to be taken lightly. What you say can make or break a deal within seconds. Learn what you need to take with you and the right way to handle the conversation to ensure the meeting concludes with the seller confident in your abilities to sell their home. Class, 1hr
40 SELLER OBJECTIONS HANDLED. Know within seconds how to respond to over 40 seller objections. We cover everything from “My friend is a Realtor”, to “I am going to try to sell it myself for the first month”. Don’t lose your next listing from being inexperienced when it comes to sales skills. You must practice scripts like these just like a performer rehearses their act before going on stage in front of a live audience. It’s more important than you may think. Workshop, 1.5hrs NEGOTIATING YOUR COMMISSION. The questions always comes up. The seller wants you to list their home for a reduced commission. How do you respond? Keep in mind you are about to lose out on thousands of dollars. Learn the skills you need to handle this conversation without skipping a beat. Walk out of your listing appointment with the commission you deserve and your head held high because you know the services you provide are worth every penny. Class, 45min LISTING AGREEMENT. Learn how to prepare a listing agreement along with the other required addenda the correct way. Class, 45min PIMP MY HOUSE: STAGING TIPS. You walk into a potential new listing and stare in awe at the clutter that’s packed into every corner of the home like an old dusty storage unit. What do you say? Better yet, what do you to make the home appealing to a buyer? Learn the right way to bring up the subject with your seller along with tips on how to stage the home with things the sellers already has. A simple and effective way to make your listing standout from the competition. Class, 1hr
HOUSTON INVESTMENT MARKET OVERVIEW. Jump in as we explore available inventory and discuss possible scenarios that could work for each type of investor. Field Trip, 1.5hrs INTRODUCTION TO HARD MONEY LOANS. There’s more to hard money loans than what you learn from late night infomercials. Believe it or not this is a very lucrative form of real estate investing. Learn the fundamentals of this tricky type of loan program. Class, 1hr
GIVING OBJECTIVE FEEDBACK. Sellers want feedback when their home is shown or an open house is held. How do you provide feedback that will help them sell their home faster? Learn the right methods for collecting objective feedback. Class, 45min HOW TO TELL THEM: REDUCING THE LIST PRICE. The house isn’t selling. You know you priced it too high and now it’s time to take action. Learn the right way to bring the conversation up with your seller in order to get the price reduction you need to get the home sold sooner than later. Class, 45min
I N R E A L E S TAT E
OPEN HOUSES FOR SELLERS. Impromptu open houses don’t work. Open houses need to be scheduled and promoted the right way for maximum results. Learn the steps needed for a successful open house. Class, 45min
COURT STEPS FIELD TRIP. Every first Tuesday of the month thousands of homes are auctioned off on the courthouse steps from all over the country. The reality is, that most times it could have been avoided. Most banks as well as Fannie Mae and Freddie Mac have implemented many programs to assist distressed homeowners, yet for some reason statistically 75% of all homeowners that are facing foreclosure do nothing. Learn more about how this process works firsthand as we visit the auction in person. Field Trip, 2hrs C A L C U L AT I N G C A S H F L O W O F RENTAL PROPERTIES
INVESTING
If you can’t assist your clients with calculating cash flow on potential purchases you shouldn’t be working with them in the first place. Don’t look like a deer in the headlights, educate yourself now so you can have the right answers. Class, 1hr
R E A L E S TAT E I N V E S T M E N T FUNDAMENTALS. You need to have a clear understanding of real estate investments before you dive in. Explore the basics so you can start working with investors right away. Class, 1hr FLIP THIS HOUSE! Interested in flipping? Not pancakes... Houses. Learn the basics of home flipping from industry experts. Find out how to judge a fabulous deal from a potential money pit disaster. Field Trip, 1.5hrs
ROPERTY MANAGEMENT. Learn the basics of property management from our in house property manager. Next time your investor asks you a question on how to deal with their non-paying tenants smile, you know the answer! Class, 1hr
RENTAL PROPERTY APP. Did you know there was even an app for that?! Look like an investor genius with the help of this handy app equipped with the knowledge you need to impress your clients and close the deal. Class, 1hr
TRANSACTION MANAGEMENT
PUTTING LISTINGS IN THE MLS. Sounds simple enough but if you’ve never done it before it may be more complicated than you think. When you get your first listing you will have a one on one class session to explain the process. 1on1
B A C K A G E N T. L e a r n h o w t o u s e BackAgent for your real estate transactions... you have to anyway - it’s our system of record... trust us, it will make your life a lot easier. Class, 1hr ELECTRONIC SIGNATURES. A quick exercise where you pull a contract using ZipForms and have someone sign it using DocuSign. Stop driving around town with a pen! Workshop, 30min
CENTRALIZED SHOWING SERVICE. You got a listing! YAY! Now it’s time to get it ready for showings. Learn more about the Centralized Showing Service website and how you input your listings for easy and convenient showings. Class, 45min ZIPFORMS. You’re a member of TAR which means you have access to Zipforms. Thank goodness since this is the system you will be using everyday for the rest of your career. Learn the basics now so you don’t have issues later! Workshop, 1hr TEMPO/FUSION Tempo and Fusion are the two systems available through HAR for members. Once you become a member of HAR you will have access. The better you are at using these websites the better Realtor you will become. Class, 1.5hrs RPR. Realtor Property Resource provides powerful data, analytics and reports for all members of NAR. Created by NAR for the sole purpose of providing REALTORS® with the data they need to meet the demands of their clients. This robust new system will help yoru research properties, create dynamic CMA’s and so much more! Class, 2 hr (MCE Credit)
CONTRACT WORKSHOPS. Fill in a sample of the following contracts and documents and get some street-smart insights on how to dominate your next deal. • Unimproved Property Contract • 1 TO 4 Family Residential Contract • New Home Contract • Commercial Contract • Contract Addenda Workshops, 1hr each HUD STATEMENT. Learn how to read the document everyone loves to sign at the closing table. We show the lines, the numbers, and how to spot mistakes. Class, 1hr NET SHEETS. Learn how to read the document everyone loves to sign at the closing table. We show the lines, the numbers, and how to spot mistakes. Workshop, 1hr TITLE PROCESS. A tour with the owner/ manager of a title company who will tell you all there is to know about title and how they can help you and your clients. Field Trip, 1hr DEAL NEGOTIATIONS. Think negotiating skills are something that come naturally? Think again. The fine art of negotiation is something people work on their entire lives. Strive to be the best and represent your clients to the best of your ability. Class, 1hr
WORK-LIFE BALANCE
TREC CONTRACTS OVERVIEW. An overview of the most commonly used contracts/addenda and how to apply them to your every day life. Class, 1hr
B U I L D A N E L E VAT O R S P E E C H . Assemble your very own quick speech with the help of creative collaborators and some pre-made scripts. Workshop, 30min NETWORKING EFFECTIVELY. Learn about what to do at events, identifying verbal and non-verbal behavior, engaging people, listening, following up, and knowing how to go for the kill. A totally energetic, motivating experience. Class, 1hr
PHOTO SHOOT. Need to have your picture taken? Do it Intero style! We bring a professional photographer and put some some cool music. All you have to do is show up and look amazing! Mornings, monthly MAD - MASSIVE ACTION DAY!. Put your business into high gear! Begin the day with some exercise, juice, motivational speeches, and some heavy-duty lead generation efforts. Think of it as the “insanity workout” of real estate sales, it’s MAD! Workshop, 8hrs HE REAL ESTATE BUSINESS MODEL CANVAS. Visualize your real estate business in a unique, holistic way: See your customer segments, marketing channels, key activities, key resources, revenues and expenses. We help you set the stage to align your efforts with sales strategies that work for you. If it’s time you get organized this is the class for you. Class, 1hr
HOUSTON FIELD TRIPS. Join us as we head out for an exciting adventure at one of Houston’s most popular spots. Learn more about the city you know and love! 1.5hrs COOL APPS! Discover new tech tools and tips for how to put it to work in your business. This is an ever-changing class you can take over and over again, we encourage you to ask for updates. Class, 1hr NEIGHBORHOOD TOURS. Let’s go for a drive! Jump in as we head out to tour the areas you want to sell. Learn the history of the neighborhoods you know and love. The more you know the better Realtor you become! Field Trip, 1.5hrs
PERSONAL FINANCE 101. Personal finance is the cornerstone to living a happy, healthy and successful life. The first step in your personal finance education should be knowing what options are there, and this is exactly what this class is meant to do. Class, 1hr
REALTOR ETIQUETTE. Intero has standard which you need to abide by. Be the best in the business by knowing what to do and when to do it. Your reputation is all you’ve got. Make sure you build a strong one. Class, 1hr
LIFE & HEALTH INSURANCE. Check out your options with an expert in the field. Class, 1hr
DYNAMIC MARKETING. Love the idea of creating amazing marketing pieces to send out to your farm area but have absolutely no idea where to start? Join us as we engage your creative sprit and hopefully get you some business while doing so. Class, 1hr
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