How to make substantial profit in real estate brokerage business?
People ask me a lot this question. I would say it really depends how you do business. I know a lot of brokers who are in the business 10-25 years and don’t really make a lot of money. They work hard, but they don’t work smart.
On the other hand I am in real estate just couple of years. Got my real estate license in December 2001 and broker license in 2004 (I think in March). But all my years were very profitable.
Why? I followed few simple rules:
1. Keep expenses low. I choose not to get beautiful and expensive office. I have started in small office with $400 per month rent. Once company grew I got more space and year ago bought my own 3,200 sq. feet office building. It is already paid off from the cash flow I have received. So starting small got me advantage and now I have free and clear office!
2. Do smart marketing. There are tons of products for agents and brokers. Most of them are too expensive and provide little value. I didn’t spend any money without seeing that REAL return will be high enough to justify the expense. So we are back to number one here:-)
3. INTERNET! INTERNET! INTERNET! It all goes to Internet. More and more users will use internet to search for homes. Using internet is very efficient way how to advertise or manage business. Therefore I developed Internet based Contact Management system for capturing leads, managing leads and managing agents. Therefore I have developed IDX system for showing and searching homes. I had a vision how to market real estate and manage agents better using tools and software. And therefore such tools are available as part of MillionSaver Real Estate Franchise.
