This week I was contacted by a REALTOR® and asked to Broker her company. It's a husband and wife team who have been in Real Estate, in Florida, for about six months but own their own company. They need a "rent a broker" to qualify their corporation. The offer made to me was a percentage of gross commissions.
I have to say, I am actively searching for additional income streams for 2008, so the thought of brokering this company does appeal to me.
In Florida, I can have multiple licenses and Broker as many companies as I want. In fact, as some of you may know, I am the Broker for my younger brother's company, Garden Views Realty, Inc, that specializes in Disney Vacation Club re-sales. This is a good fit since his business is completely different from mine and of course, he's my bro!
The company I was asked to Broker is about 75 miles from my market so, even though their focus is residential re-sales, they would not be in competition with me.
However, TLW and I have decided to take a pass this time. After doing our research and doing the math we decided the risk was greater than the reward. They seemed like nice folks but their particular business plan doesn't make sense to me if we are getting paid a percentage of gross commission. For one, even though they have quite a few listings, they haven't had ANY closings!
Their business model is to take listings for a flat fee of $500 plus ½ percent commission at time of closing. Not much money there. And they rebate 50% of the selling side commission! Not much money there either.
Now folks, if you read my blog, you know I have NO problem with alternative business models(ABMs). I truly believe everyone should be free to run their business the way they choose and I also firmly believe the consumer should have choices.
BUT…..in this more difficult market I just don't see how a "start up" using this commission model is going to survive. I understand how the "flat fee" listing model works but to team it with a 50% Buyer rebate just sounds like a recipe for failure.
Anyway, I am looking for business opportunities. If you have anything I may be interested in please feel free to pop me an e-mail. Broker Bryant is fishing for dollars!
*** The picture was taken yesterday by me. It's a hay bale snowman!!!
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