But what is rental arbitrage to begin with?

Is it worth getting into in 2023? 

Those are the questions we’re going to be answering in this post. 

As Airbnb rises, so does the number of people curious to make money. 

One common myth is that you need to be a property owner to make money with Airbnb. 

One approach to mitigate the dangers of investing in properties is through rental arbitrage. 

As you’ll see in the article below, this method has potential benefits and drawbacks. 

Are you ready to learn more?

Then, let’s get to it!

What is Rental Arbitrage? 

Let’s address the glaring question here: what does ‘rental arbitrage’ mean? 

Let me paint you a picture. 

Let’s say you’re renting a condo from a landlord.

Now, you sublet that condo and use Airbnb to rent that space for shorter periods. 

You, as the renter, act as a property manager of sorts.

You’re the one who arranges the rental of the condo to others. 

That’s what Airbnb rental arbitrage refers to.

The popularity of rental websites like Airbnb over the past decade has increased interest in the short-term rental industry.

Naturally, new challenges and opportunities have arisen due to tenants asking landlords to rent out their spaces. 

Profits from short-term subletting can sometimes exceed those from a longer-term lease!

Since the prices for short-term rentals are usually much higher, the renter can make significant gains by adopting this strategy. 

So, is there a difference between rental arbitrage and subletting?

Not really. 

Rental arbitrage is essentially a specific type of subletting. 

When a lease is sublet, it is typically given to a single tenant for the remainder of the lease term. 

Conversely, the term “rental arbitrage” is commonly used to describe a situation involving multiple short-term tenants.

Is Airbnb Rental Arbitrage Legal? 

Let’s move over to the fine print.

This hustle feels like hacking the system. 

Listing a space you’re renting on a platform like Airbnb is technically legal. 

BUT it is only legal if the landlord permits you to rent the property for SHORT periods. 

In some cases, the landlord will state under the lease that this is not authorized or will only be allowed in exceptional circumstances. 

Subletting policies, conditions, and obligations should be laid out in detail in any relevant contracts. 

Make sure your lease agreements clearly state your rules about this matter. 

By doing so, you can be assured that your rental property is safe from the carelessness of short-term renters. 

Because you’re going to be liable if something should happen. 

How To Set Up an Airbnb Rental Arbitrage Business

If you want to jump into this business opportunity, let’s get you ready, shall we? 

Here are the steps to ensure your new venture goes smoothly. 

1. Do Market Research 

I can’t stress enough how important it is to do thorough market research before becoming an Airbnb host. 

The first step is to consider which cities and regions would be most interesting to you. 

The secret to a great rental arbitrage business is to find a property in a profitable area, preferably one that will attract tourists. 

If you go for some random property without any research, maintaining a steady income from it can be challenging. 

The ROI on the rental is another crucial aspect to think about. 

Try to rent properties within walking distance of the city’s major sights and conveniences. 

Although renting a property on the city’s outskirts may seem more cost-effective, it won’t do well in the short-term rental market. 

2. Leverage Multiple Rental Listing Sites 

Airbnb is a big one, but you should also check out other rental listing sites. 

This way, you can quickly compare rental properties in your area of choice.

You’ll also get a clearer picture with details like square footage and amenities. 

Here are some other platforms to look into: 

• Zillow
• Avail 
• Apartments.com
• Rentometer 
• Zumper 

3. Familiarize Yourself with Local Regulations 

Before you can start making money with rental arbitrage, it’s essential to consider local restrictions and laws. 

In recent years, many municipalities have tightened their control on short-term rentals. 

To add to the complications, short-term rentals may be outright banned in some cities.

Others may limit the number of nights guests can stay each year. 

What if the rental arbitrage property you’re eyeing can only be rented 90 days a year?

Is it appealing enough to charge higher rates? 

If not, this is something to consider if you want to stay in the green. 

4. Look For a Willing Landlord

At this point, you’ve probably chosen the best spot for your Airbnb and know the ins and outs of the local regulations. 

The next step is to find a landlord who will allow you to rent their property and sublet it to short-term tenants.  

You might run into a speed bump here. 

There are probably two reasons you would hesitate to approach a landlord. 

The first is they might say NO. 

Second, they might take your idea and list their property on Airbnb instead. 

If you’re going to convince a skeptical landlord to let you do your thing, you need to address the following concerns and make this deal mutually beneficial. 

Keep The Place in Pristine Condition 

If you want consistent five-star reviews, keeping the property looking tidy and maybe even Instagram-worthy is crucial. 

The landlord will be on board with this idea because it will save them the hassle of repairs and renovations. 

A well-maintained rental benefits both the tenant and the landlord! 

Timely Payments 

You can guarantee prompt payments to your landlord because you plan to use the property as a profitable business. 

Given how challenging it can be to collect rent from a long-term tenant sometimes, this may mean a lot to them. 

Take on Most of The Work 

What if the landlord thinks they can make more money by listing their property on Airbnb? 

How can you convince them that it’s okay to have a middleman? 

First, you can explain the effort required to manage even one Airbnb listing.

It’s no piece of cake. 

The best-case scenario is that they will agree to the arbitrage rather than deal with all this hassle. 

If you get them to agree, the least must be written out in a way that incorporates the following arbitration clauses: 

• Who will pay for liability insurance 
• If you should notify your landlord about every new renter
• Who will cover fines and penalties 
• How much of your profit you will share with your landlord 
• If you should cover an additional security deposit 
• And so on…

PRO TIP: 

Having trouble renting properties with a willing landlord? 

Many expats aren’t good at finding renters.

Some of them rely on Facebook groups to fill their rental units. 

They usually aren’t even in the city, so they want someone to take over their properties in exchange for good maintenance. 

You could stalk these Facebook group pages and scout someone who needs your help! 

The trick is to NETWORK. 

Getting in touch with the right folks and making a compelling pitch to see if they have any leads on your desired property is a breeze when you have a strong network behind you. 

You can also attend local actual estate-related events and be friendly!

5. Gather Your Starting Costs

Since this is a business, you’re going to need capital. 

Rental fees are just one expense to think about.

The following are some of the items you should consider: 

• Application fees 
• Deposit 
• Insurance 
• Legal fees (licenses, permits, etc.) 
• Furnishings 
• Appliances 
• Repairs 
• WiFi 
• Entertainment subscriptions 
• Professional cleaning service 
• Utilities 
• Toiletries and kitchenware

You might have to shell out quite a bit for this, but these expenses will lessen significantly over time. 

In addition to figuring out these expenses, you should put some money aside if bookings are slower than expected for the first few months.

However, this will only work if you choose your property well and run a tight business. 

6. Put Up Your Listing 

Once everything is in order at your rental property, you can start advertising it. 

While Airbnb arbitrage has become the common term for short-term rentals, that’s not the only booking site available. 

You can list your property on Vrbo, HomeToGo, Booking.com, TripAdvisor, and more. 

Multi-channel distribution strategies can boost your marketing efforts and prevent multiple bookings.

You’ll have to find the right automation solution. 

And if you reach 90% occupancy, you can consider a price hike! 

7. Optimize Your Listing 

Now that you’ve put up your listing, most of your efforts should be around boosting its visibility. 

If you don’t boost your listing’s standing on vacation rental platforms, rental arbitrage won’t be lucrative.

The goal is to attract more potential guests to your listing and your short-term rental. 

Airbnb management involves more than just putting up a listing and forgetting everything about it. 

You have to take stunning photos that highlight the property’s best features.

You must also write accurate and thorough property descriptions so potential guests know what to expect. 

Try putting one variable in your listing to the test every week to see whether it makes a difference.

8. Start Automating

Managing a property can be a pretty demanding job.

It will take a lot of your time, especially when you’re first starting. 

And since Airbnb hosts juggle many responsibilities, they seldom find the time to expand their operations. 

What’s the solution? 

Using business automation tools. 

Start with rental software to help you track bookings, communicate with guests, and schedule maintenance.

These are other aspects that you may want to automate: 

• Check-in and checkout 
• Innovative amenities (digital welcome book, smart thermostat, etc.) 
• Bookkeeping 

You can improve the quality of service you provide guests and increase your revenue through rental arbitrage if you streamline your operations.

Rental Arbitrage: The Pros and Cons 

I’m sure you want to weigh the pros and cons of this business endeavor regardless of your strategy. 

You must arm yourself with as much knowledge as possible to ensure long-term financial security. 

PROS 

• Lower startup costs 
• Pretty easy to set up online 
• Can be expanded 
• Can use the property for personal use 
• Landlord gains you as a long-term renter
• Lower overall vacancies 
• Potential to increase rent or offer premium bookings 

CONS 

• More responsibilities 
• Seasonality can affect your profits 
• Shouldering startup costs 
• Covering utilities 
• Dealing with damages and natural wear and tear

Rental Artibitrage FAQs

Final Thoughts On Airbnb Rental Arbitrage

You now have a rough blueprint for running a rental arbitrage business.

If you do well, you might be able to acquire more properties and turn this into a full-blown enterprise.

The good news is that you don’t have to break your back to accomplish this. 

Eventually, you can automate most of your operations and turn your rental arbitrage business into a well-oiled machine!

The post What Is Airbnb Rental Arbitrage and Should You Get Into It? appeared first on BrooksConkle.com.

There’s no denying that obtaining a license to work in the real estate industry has certain benefits.

These benefits offset the costs in terms of both time and money. 

As a real estate agent, you’ll need a license to operate your own real estate business.

As an investor, a real estate license could open some doors. 

Having this advantage over the competition isn’t necessary, but it certainly helps.

The process of acquiring a license is time-consuming and costly. 

Still, it’s a good investment if you can use your license to expand your professional network or ultimately make more money. 

You can always hire folks who already have licenses, but having your own can save time and energy.

We’ll talk about that in detail later. 

Read on to discover if getting a real estate license is the next move for you. 

Is Getting A Real Estate License Worth The Effort?

Is being a licensed real estate investor worthwhile these days?

It can be. No harm will come to your real estate investing career from getting your agent’s license. 

The problem that most people encounter, however, is that getting a real estate license can be tedious.

Could those resources be better invested in hiring licensed real estate agents for your future projects?

Investors must first consider their goals before considering whether or not getting licensed is worth the time and effort involved. 

After all, it’s entirely possible to make money without a license while investing in real estate. 

Nevertheless, you should know that having a license comes with a number of advantages that could make the process worthwhile.

To some, a real estate license is a prerequisite for any significant participation in the real estate market. 

Accredited investors have instant access to property listings, market data, and key property information. 

If you have the resources to begin working immediately but are waiting for an agent to get back to you, you are wasting time and perhaps missing out on opportunities. 

With a license, you obtain access to the information you need to make decisions rather than waiting until it is made available. 

Earning your license will allow you to use the MLS, one of the most useful resources for investors in today’s market.  

Therefore, if you want access to a wide variety of deals, getting licensed may be a good option.

Here are a few more arguments for why you might want to pursue licensing.

Related Reading: How to Make Money in Real Estate – Find Out Here.

Why You Should Pursue Licensing In Real Estate? 

1. You can earn more. 

For serious property investors, getting a real estate license is like being given a chance to “print money.”  

The ability to legitimately receive a commission on the sale of real estate can lead to substantial gains. 

Believe it or not, some real estate agents in your region are making millions annually despite the widespread dislike with which they are viewed by investors. 

Just about 5% of currently available properties are good options for an entrepreneurial investor.

Is there any plan for the other 95%?

Virtually everyone ultimately works with a real estate agent.

True, most investors don’t have time to serve as a typical listing agent or buyer’s agent. 

However, they can still recommend the lead to another agent and split the commission with them. 

It’s possible to haggle for a 25% cut of their 3% finder’s fee if you bring them the client. 

If you generate a high volume of seller leads, the money you make from your referral commission could quickly add up.

Sometimes, it’s preferable to take the role of either the listing or buying agent.

In the grand scheme of things, 3% of a 1M is not petty cash.

That’s a pretty nice profit on the sale. 

Commission income has the advantages of a wholesale deal, which is why it is so attractive. 

You can be paid a commission without using any of your own money or credit.

Therefore, real estate brokers may be considered the progenitors of the no-down payment model.

What happens when a pal of yours decides to become a homeowner?

If you help a friend find their perfect home, you might expect a 3% commission.

It could be the simplest way you’ve ever made money in real estate. 

Due to recent major changes, it is now much harder for resourceful real estate investors to achieve substantial gains through short sales. 

Even while there are still chances to make a profit, the vast majority of short-sale approvals in the market today do not allow for a back-to-back flip. 

In the vast majority of short sale transactions, the only actual money left on the table is the commissions. 

Let’s say there are a few thousand dollars in “short sale negotiating” fees remaining on the HUD after the banks stopped approving them.

It is very tricky to retrieve those funds without a license. 

However, licensed short-sale professionals are already reaping the benefits of this trend, as there are more short-sale offers available than ever before. 

A lot of money can be made in the short sale industry, but not if you enter without the proper credentials.

Clearly, you get more options for making money in real estate if you earn your license. 

There are many investors who focus on real estate transactions while still engaging in the occasional creative investment.

They’re doing pretty well financially.

2. You get access to real estate investment deals. 

A real estate license could put you ahead of the competition in the investment market.

Access to the MLS is one of the perks of being a certified real estate agent.

Without a license, you’d have to rely on a real estate agent to find and convey this information. 

With a license, you may focus on the finest neighborhoods and spot new houses on the market more quickly on your own.

You could also learn a lot about a property’s past by digging into its records.

The Multiple Listing Service (MLS) is a great resource because it provides data on:

• recent and previous sales prices
• comparable properties for use in making price comparisons
• and more. 

Real estate search engines like Redfin, Trulia, and Zillow may provide some of this data, but it is not as full-scale as the MLS. 

Using MLS information, you may find out which areas have a higher turnover rate, which property types are in high demand, and which types of buyers should be targeted.

3. It’s a networking opportunity. 

Maintaining a stable income as both a real estate investor and a successful real estate agent can be challenging.

Some people are reluctant to partner with this type.

Still, the folks you’ll meet as an agent outnumber these skeptics. 

One perk of working in real estate is the possibility of making connections within banks, which could lead to preferential access to bank-owned properties.

You also have a higher chance to collaborate with other aspiring real estate agents.

By doing so, you can benefit from their knowledge and pick up tricks for completing specific tasks more quickly. 

Brokers can give you guidance on how to deal with potential legal problems and provide information about contracts.

You can find trustworthy surveyors, appraisers, and lenders, among others, by asking other agents for referrals.

One of the best reasons to get your real estate license is the chance to broaden your professional network significantly. 

The wider your network, the better your odds of making sales with each person you meet. 

Any successful investor knows that a chance encounter with the right real estate agent or a visit to the right office can transform the trajectory of their career.

4. Educational Opportunities 

Real estate education is invaluable and cannot be quantified in monetary terms.

More knowledge about the industry increases one’s odds of success. 

You will likely work with a real estate agent in some capacity on every single deal you pursue. 

Understanding the real estate market can help with contract drafting and even property selection.

By doing this, you’ll have a better understanding of what’s required to seal the deal. 

Even if you’ve closed a few deals, you might not be familiar with the components of an addendum or what makes a contract lawful. 

You’ll gain a new viewpoint as a real estate agent, one that could end up saving you a lot of time and money.

5. It minimizes risk. 

Once you’ve obtained your real estate license, you’ll start working as an agent under the supervision of a broker. 

There will be more eyes on your real estate company, which can be a good thing in terms of risk protection. 

6. It makes you more credible. 

Potential clients and customers may have more faith in investors who hold official real estate agent licenses. 

Getting a license is an expensive and time-consuming process that requires dedication.

Anyone who has taken the time and effort to earn their license in the past can be safely assumed to be serious about their profession. 

The act of obtaining a license alone might create a sense of comfort for folks who want to do business with you.

Related Reading: Why Join eXp Realty – Learn Here.

Why Getting A Real Estate License Would Not Be The Right Move For You? 

There are many positive aspects of becoming a licensed real estate agent, but there are also some drawbacks you should think about.

1. You’re not willing to get a “real-world” education. 

Some newbies think they absolutely need a license solely for education.

They learn too late that the real estate licensing prep course teaches you next to nothing about actually generating money in the industry. 

According to the Bureau of Labor Statistics, while 1 in 10 real estate agents make more than $100,000, another 1 in 10 earn less than $23,000.

An item to keep in mind is that some real estate agents only work part-time.

When they were in school to earn their license, they weren’t taught how to make money; rather, they were taught how to pass the test.  

Memorizing the definitions of terminologies will not help you put any money in your pocket in the real world of real estate investing. 

Without a doubt, the process of obtaining your license will teach you something new.

But unfortunately, it’s not likely to help you achieve your goals.

The information will remain theoretical.

Some novices may be eager to enter into a 150-hour pre-licensing course because education is inside their comfort zone, but this could be hiding a more harmful motivation.

They avoid leaving the comfort of schooling because they are terrified of the outside world. 

If you want to make the most of your time and money spent on education, you shouldn’t expect to learn everything you need to know about real estate success simply by earning your license. 

Instead, consider it as the price you must pay to join the ranks of those who can make commissions.

You will still need to gain experience and learn out on the field.

2. You’re not that active in real estate. 

I can’t stress enough that obtaining a license requires a significant investment of both time and money. 

There may be several thousand dollars in total expenses (fees, Realtor dues, E&O insurance, and more).

The time commitment is estimated to be at least 150 hours.

You could spend well over six months preparing for your pre-licensing exam.

It’ll probably take another six months to pass the actual test and hang his license with a broker. 

With all this preparation, you’d probably be losing money in real estate and missing out on a great moment to invest. 

My recommendation (and experience) is to get out there and close some business.

Sell real estate and make some money. 

Then, if you are able to devote the substantial amount of time needed, spend the money you have made from your first few sales to pay for your license.

Then, it’s crucial that you maintain your real estate operations.

The expenses to maintain your agent’s license are high, and so are the classes you must take to keep it current. 

While the electives you pick may prove to be valuable, the required continuing education classes may feel like a chore.

Those that invest full-time are the best candidates for obtaining a license.

On the other hand, a license can help a successful part-time investor make the transition to full-time work.

It can generate steady income while they wait for larger projects to close.

3. Your only motivation is MLS access. 

Even though the Multiple Listing Service (MLS) is a significant resource, it shouldn’t be the sole motivation for you to earn your license. 

Getting a license to use the Multiple Listing Service (MLS) can cost a lot of time and money, and there are alternative ways to access the system. 

For example, you could contact a helpful representative for access.

You can become a non-licensed assistant of a Broker in several MLS systems by attending a full-day seminar.  

You could even get someone’s username and password to access their MLS account if you’re close to them. 

And after losing anti-trust litigation, the Realtor organization in several parts of the country opened up its MLS monopoly.

This made most of the most significant MLS data available to the general public.

Is there any value in being able to post your own deals? Listings with a flat cost are frequently so inexpensive that they are essentially the same as those without. 

Given the prevalence of flat-fee listing services, this is less of an advantage.

To compensate your broker for their time and effort, even if you list the deal yourself, you will have to pay them a commission at closing.

How To Get A Real Estate License? 

If you decide that a real estate license would benefit you, here are the hoops you’ll have to jump through to get one: 

1. Learn your state’s licensing requirements: 

Get your bearings first.

Each state has its own set of ordinances regarding prerequisite classes and the application process for obtaining a license. 

To find out the process you need to go through to get your real estate license, contact your local commission.

The vast majority of states require the following:

• College-level education in real estate basics
• Permanent residency in the state that you’re applying in 
• Criminal background check 
• Minimum age of 18 

You can take classes online or in person.

However, the school you choose and the courses you take must be approved by your state’s real estate licensing authority.

Make sure a real estate school is recognized and accredited in your state before enrolling.

What if you’re already licensed but want to move across state lines? 

Find out if your new state recognizes licenses from other states.

The new state must have a reciprocity agreement with the state where your license was issued. 

It’s possible that you don’t need to go through the preliminary licensing steps if the state has a reciprocity agreement with yours. 

Although you will still be required to obtain a license in your new state, you may be allowed to bypass some formalities.

Idaho, for instance, has agreements with neighboring states like Wyoming, Oregon, and Montana that allow for the free movement of professionals and goods.

Also, if you already hold a relevant degree or are a practicing attorney, you may be exempt from certain pre-licensing requirements.

2. Attend pre-licensing school.

There are pre-licensing programs that require you to attend a certain number of classes over a certain amount of time.

Others provide you the flexibility to complete the required real estate courses at your own speed. 

Discover your range of choices and pick the one that best suits your needs and availability.

Pre-licensing classes have a similar range in price, from $200-$1000, depending on the school and the state.

3. Apply for the real estate licensing exam and pass it. 

If you’ve finished your real estate classes and feel prepared to take the exam, you can apply to take it.  

Paying an application fee and signing up for the exam through a third party, such as PSI Exams, is typically required at this stage.

It is not necessary for many places to have finished all of your schooling before applying for the exam. 

You can earn credit hours toward your license while you wait for your exam application to be approved, cutting down on the total time it takes to acquire your license.

One thing to keep in mind is that this is not the same as applying for your license.

This will come later when you’ve passed this exam.

The test will consist of roughly 100 multiple-choice questions on topics like federal and state law. 

Different states have different passing score requirements.

In most places, you need to get at least 70% to pass and get your license. 

The time allotted to finish the license exam is 1.5–3.5 hours.

Fees for exams often range from $15 to $100.

In order to apply for a real estate license, you will need to provide a copy of your exam score.

This is in addition to an official transcript or certification of completion from an approved real estate school.

4. Apply for your license. 

Submit your exam results, license application, and payments once you’ve proven your proficiency. 

You should expect to pay between $50 and $250 for your license application and another $40 to $100 for a background check, depending on your state of residence.

See if having Errors and Omissions (E&O) insurance is a requirement in your state by contacting the real estate commission there. 

Having this insurance shields real estate agents from financial ruin in the event of a lawsuit or other adverse event related to the performance of their duties. 

E&O insurance is something that your brokerage may offer you.

If you don’t already have it, you might want to get it before applying.

The minimum age to apply for a real estate license is 18 in all 50 states, and you’ll need a high school certificate or General Equivalency Diploma (GED) to be approved.

The time it takes to receive your license after submitting an application is typically between one week and two months.

Related Reading: How to Sell My Real Estate Brokerage – Learn More Here.

Final Thoughts 

It takes more than a desire to earn a real estate license to reap the benefits of having one.

Obtaining a license to practice real estate is a difficult process. 

On top of this, there are application fees, costs, and yearly renewals to pay.

Even with all this red tape, a real estate license is typically worthwhile. 

[I’m biased, as I’ve had a real estate license for 12+ years, and I’m an advocate of getting one. I didn’t want to mention this until now!]

Not all investors will require a license, but having one could really benefit your business. 

The post Should I Get A Real Estate License? appeared first on BrooksConkle.com.

Maybe you’ve heard some good things about eXp Realty and are considering joining.

Perhaps you’ve read some not-so-favorable (bad) eXp Realty reviews and are on the fence.

Either way, I’ll list eXp Realty’s pros and cons to help you decide.

Before entering any venture selling real estate, figuring out what you’re in for is good practice.

So, you’re on the right track! 

Will it benefit you in the long run or ultimately be a waste of time?

Well, let’s weigh out the pros and cons, shall we? 

A Brief Background On eXp Realty 

eXp Realty is not your traditional real estate brokerage.

eXp is a cloud-based real estate brokerage.

Glenn Sanford, a man passionate about online businesses and real estate, founded eXp in 2009. 

Starting in the US, he established the first virtual real estate agency to attract agents and buyers. 

The real estate industry is grueling, and Glenn decided to build a company that would provide agents and brokers with better perks and lower costs.

Just five years later, in 2017, eXp had 10,000 agents worldwide and even made its way to Canada. 

The recent years have been phenomenal for eXp’s development.

eXp Realty currently boasts more than 80,000 agents worldwide.

This brokerage also has remote offices for agents in South Africa, France, Portugal, India, the UK, Australia, Hong Kong, and Mexico. 

Working At eXp Realty: The Pros and Cons

Now, let’s get to the gold of this article: the pros and cons of joining eXp Realty!

Every business decision will impact you somehow, so it’s best to anticipate what’s in store for a would-be eXp Realty agent. 

PROS

Nice Split and Cap 

At eXp Realty, the commission is shared 80/20 between the agent and the brokerage.

This split is capped at a total gross commission paid into the company of $16,000. 

Let’s assume a real estate agent has a year to earn $80,000 in gross commissions.

They will then be required to pay eXp Realty 20% of that amount.

After an eXp agent has reached their commission cap, they will get 100% of their commission for the remainder of the year. 

However, they still have to pay a capped real estate transaction charge, a risk management fee, and a broker review fee.

This is a pretty solid split.

[Splits are just one of approximately seven ways you can make $$$ at eXp — watch this video I recorded about them while my license was at eXp.]

The ways you can make money are pretty impressive like mentioned in the video, right??

After all, Glenn Sanford’s dream was to build a real estate company that would reward its agents fairly for their hard work.

But eXp has an ICON program, and you can get back the $16,000 you paid to the company.

The remaining $16,000 of your earnings will then be converted into the stock held exclusively for you.

The platform’s monthly cost of $85 is more than covered by the income generated here.

Tech and Resources 

Every agent at eXp Realty has access to the following resources: 

• eXp World – This lets you connect and collaborate with other agents. 
• kvCORE CRM – This helps you manage your customers and create single-property sites. You can build as many landing pages as you wish! 
• SkySlope – This helps you handle transactions and manage documents relevant to your real estate business. 

Additionally, eXp has partnered with Regus, a company that can locate and provide office spaces anywhere on the planet!  

eXp offers choices for those who need more than the standard work-from-home lifestyle.

Equity 

At eXp, you can earn equity in five ways: 

• When your sponsored agent makes their first transaction 
• When you become an ICON agent 
• When you make your first transaction 
• When you reach your cap

Agents may also buy discounted stocks with their commissions! 

Training 

Agents can access hundreds of hours of on-demand teaching from industry experts if they use eXp to sell real estate.

Whether you’re looking for marketing, sales, or negotiation instruction, you’ll have it all. 

Were they good ones?

Okay, let’s keep on…

[All of the above were reasons I moved my license a few years ago over to eXp. Watch the video below to learn the rest of them!]

What did you think about my reasons for wanting to join eXp Realty?

Sponsorship Revenue 

You are eligible for a revenue share from the 20% of an agent’s commission that eXp retains if the agent you recruit chooses to work under your sponsorship. 

This was one of my primary motivators!

I imagined having folks from around the world on my team.

A global real estate team!

However, this is optional.

You don’t have to do this if recruiting isn’t your thing. 

The recruitment aspect is one of the cons we’ll talk about shortly.

The iBuyer Program 

Your customer has the option of getting an instant cash offer online from one of the iBuyers who are competing for their property.

This way, you won’t need to manage offers that come your way. 

It’s a nice perk to offer your real estate clients.

Healthcare

Because of eXp’s scale, access to healthcare services is an option.

Okay, you’re probably wondering what the cons of eXp Realty are.

Here they come…

CONS 

Persistent Eager Beaver Agents 

The revenue share program has the potential to be profitable.

That’s why many agents put all their efforts into “agent attraction” to get more out of it. 

Sadly, not all agents grasp how to communicate naturally and openly.

They tend to come off as overly sales-oriented, which can be annoying. 

These agents get overly excited, inciting more negative perceptions of eXp. 

Worst of all, they joined eXp without having a solid strategy for creating sponsorship relationships. 

Associated Risks 

Some real estate agents get anxious about the unclear financial future presented by online brokerages.

This is especially true in light of the recent shift toward revenue-sharing arrangements. 

It is still a relatively new concept.

eXp Realty will have to navigate this as they continue to grow.

MLM Reputation 

People think that real estate brokers are only “recruiters” for a multi-level marketing scheme (MLM).

Some think eXp has very little to do with actually selling properties.  

Others have even labeled eXp Realty a pyramid scheme.

Ha, how dare they?!?

Fortunately, as eXp sales have surged in the past few years, this view is progressively fading. 

Another good read would be eXp Realty Vs. Keller Williams.

Learning Curve For A Cloud-based Platform 

Most eXp agents work virtually, which seems to work out for them (I love remote work).

For others, they’d much prefer to work at brick-and-mortar offices.

Maybe they need a workspace outside their homes to focus.

Perhaps an office helps them to stay accountable for their work life. 

There’s also a learning curve for the eXp Realty tech stack.

Stay flexible and be willing to learn.

Intimidating 

Working in a cloud-based brokerage can be intimidating.

There’s a lot of cutting-edge technology at this brokerage, but you’ll have to learn a lot.

This includes everything from:

• The CRM system 
• Training 
• Transaction management 
• Your website 
• Marketing 
• Lead generation tools
• eXp World

And you’re supposed to figure all this out without coworkers in nearby cubicles.

Of course, all the resources you need to make sense of this are available online. 

It doesn’t hurt to have a reliable sponsor who can assist you with all the tools of the business.

This help will be invaluable as you get your business off the ground. 

Tips For Succeeding At eXp Realty

As you weigh the pros and cons above, here are some pointers should you decide to join eXp Realty: 

Get Ready To Put The Work In 

Where you are brokered matters little if you don’t have the right work ethic.

Agents are in charge of their enterprises.

It will be difficult to succeed if you aren’t willing to work hard, hustle, and obtain the necessary skills and education.

You’ll also have to establish a social media presence and follow up on the leads that come your way.

Obtaining a license is only the start.

Your personal work ethic will determine whether you are successful after joining eXp Realty as a new agent. 

Anywhere they wind up, real estate agents with hustle are immensely successful.

And if you work hard, becoming a new agent at eXp Realty will be doable.

Arm Yourself With Knowledge

Excellent training is only helpful if you are eager to attend them and try to maximize every session.

Even the best class is useless if the student is uninterested in learning.

You are well on your way to being a prosperous real estate entrepreneur when you combine a passion for studying with first-rate instruction at eXp. 

Choose The Right Mentor 

As a rookie agent, it doesn’t matter how hard you work if you don’t have anybody to ask for guidance. 

A sponsor is available to help set you on the right path at eXp Realty.

You have complete control over who your sponsor is, which helps get you signed up and going with eXp.

You’ll be assigned a local certified mentor when you sign up with eXp Realty as a new agent.

Your mentor can provide the one-on-one attention you need to reach your goals.

The mentor will be your primary training source and support throughout your career. 

Final Thoughts 

There you go; I’ve outlined the pros and cons of working with eXp Realty.

eXp truly is a cutting-edge online brokerage that offers multiple revenue streams. 

But the new technology, the emphasis on the internet, and some extremely “sales-y” agents make it more challenging to acclimate to how things are run there. 

There’s no perfect solution to finding the right brokerage, but I hope you find this article helpful in forming an opinion about eXp.

The post eXp Realty Pros and Cons (I’ll Give You a Closer Look) appeared first on BrooksConkle.com.

Are you in real estate and looking to hang your license with a top brokerage?

After asking around and doing some light research, you’re probably eyeing two options. 

And most likely, those two options are eXp Realty and Keller Williams, as they are both leading brokerages in the country. 

Both are very successful brokerages that have endured the test of time thanks to their solid business models.

However, there are a lot of distinctions between the two, so it’s worthwhile to look at them.

That’s what we’re going to be exploring in this post!

Let’s look at these real estate companies’ revenue opportunities, team structures, communities, training options, and technologies. 

This might just be the post that will help you discover which brokerage will boost your real estate career. 

eXp Realty Vs Keller Williams – Brief Histories

eXp Realty’s Origins

In 2009, eXp Realty was established with the daring idea of revolutionizing the real estate sector. 

Glenn Sanford established it, and it is seen as the antithesis of how conventional brokerages work.

The company does away with physical offices and provides agents with substantial commission arrangements.

No agent pays more than 20%! 

Their setup allows people to work from home or wherever they choose.

It also gives them the freedom to collaborate with their agent partners on revenue and equity prospects.

Since its founding, eXp Realty has developed into a global organization with more than 59,000 agents in more than 16 different nations. 

It has also been acknowledged as one of the residential and commercial real estate firms with the quickest rate of growth in the industry’s history.

Pretty impressive.

Keller Williams’ Origins 

Gary Keller and Joe Williams founded Keller Williams in 1983.

With only a few agents at first, the agency quickly expanded to become Austin’s largest single office brokerage.

It also became the market’s tenth-largest firm in merely two years!

After battling the 1986 stock market collapse, Gary Keller and his group completely revamped the Keller Williams business strategy. 

They began by concentrating on the agents, offering them opportunities to evolve into business partners through the profit share program.

Their agents were then encouraged to participate in the expansion of the business.

They established the Agent Leadership Counsel within a few years to begin taking strides for the business.

They started opening franchises in various locations in 1991.

Then Gary Keller published two hot real estate books, which served as great publicity for the company.

That move increased Keller Williams’ influence within the industry. 

In 2012, the brokerage officially went global.

At the time of this writing, Keller Williams has an agent count of over 188,000 and is still expanding. 

Related Reading: Best eXp Realty Sponsors – Get To Know Here.

eXp Realty Vs Keller Williams: Their Key Differences 

The obvious competition between eXp Realty and Keller Williams has real estate industry insiders talking. 

It’s not surprising that there is a wealth of facts and false information circulating among real estate fans. 

But given all the false information, how can one come to an intelligent decision?

We’ll have to put these two brokerages under the microscope.

Business Model 

eXp Realty 

There are no franchises at eXp Realty.

So, regardless of where an agent is located, all fees are the same. 

The commission split is 80/20, meaning the eXp Realty agent receives 80% of the revenue, and the brokerage receives 20%.

The cap is set at $16,000. If exceeded, an agent is entitled to get the entire commission split.

What does this mean? 

The commission split does increase to 100%.

However, there is a $250 transaction charge that the agent must pay on each deal after they’ve reached their cap.

This transaction fee has a $5,000 maximum and drops to $75 for the remainder of the year.

Agents also spend an additional $25 for a broker review on each transaction and $40 for E&O insurance in addition to the split.

Please note that the E&O fee has a cap of $500 per year.

You must pay an additional $85 a month at eXp in addition to transaction costs to gain access to the network, technology, and training. 

Since eXp operates exclusively online, the company lacks any physical offices.

All of its agents, however, have free access to all Regus locations globally.

In A Nutshell: eXp Realty’s Revenue Share Model 

eXp Realty has chosen this particular model over others. Why? 

According to this strategy, the business splits each transaction’s revenue in half before deducting costs. 

This implies that if an agent accomplishes a sale and contributes to Company Dollars, they can make money by “sponsoring” new agents into eXp.

Keller Williams 

In contrast to eXp Realty, Keller Williams is a franchise brokerage.

This means that there are numerous franchises spread out globally.

So, each one may run a little bit differently depending on the leadership, resources, and local market. 

Because of these nuances, we’ll have to generalize a bit. The following is KW’s basic model: 

The typical commission split for Keller Williams’ agents is 70/30. KW uses a “cap model,” whereby the agent switches to a 100% compensation plan after a particular sum of money has been paid to the brokerage.

A typical cap is $18,000, though franchises may have different caps.

Additionally, Keller Williams agents pay a 6% royalty charge, with a yearly ceiling of $3,000, that goes straight to the brokerage. 

Depending on the franchise, each transaction’s E&O insurance price typically costs between $40 and $75.

Desk fees at Keller Williams are optional and vary significantly by franchise.

In order to make up for the lack of desk costs, the brokerage does charge a monthly fee. 

This amount fluctuates and often ranges between $37 and $125 each month.

Since franchise owners need the freedom to entice new agents to join, there is a wide range of setups available.

In A Nutshell: Keller Williams’ Profit Share Model 

When a brokerage works in profit sharing, it returns agent commissions to the sponsored agents.

It sounds like a good deal until you discover that they only split after all costs have been deducted from revenue.

I’m talking about rent, insurance, utilities, and so on.  

In this approach, an agent may perform well, but there is no real profit-sharing if the office or franchise is not successful.

In order for the agent and the brokerage to succeed, Keller Williams uses this approach, which they define as a critical element of their growth. 

Hit pause and bookmark ‘The Prime Franchises to Own’ for an engaging plunge into franchise excellence!

Training

eXp Realty 

Since eXp Realty is the more cutting-edge real estate company in the industry, its training program is continuously developing. 

The majority of eXp Realty’s training is conducted within its virtual workplace, eXp World. 

Today, agents can participate in approximately 50 hours of live training from the convenience of their own homes each week.

High-achieving agents, corporate trainers, and team leaders from all over the US conduct these weekly training sessions. 

Some training courses take place regularly every week, while others are one-time sessions that concentrate on a specific subject.

Every Sunday night, eXp provides a schedule containing the entire week’s worth of topics to be covered. 

Agents can schedule meetings in eXp World on their computers or listen in whenever they want to with the eXp World mobile app.

Keller Williams 

If you’ve been in the real estate world for a while, you’ll know Keller Williams as the premier training brokerage around. 

As I mentioned before, the brokerage’s influence skyrocketed because of their published books.

In fact, their Millionaire Real Estate Agent manual (published in 2004) is still considered an agent’s “bible.” 

Since then, Keller Williams has developed a number of training programs, including Ignite, Maps Coaching, and BOLD. 

Ignite is their official training program, which is designed as a 90-day launch window for new agents. 

This course is often offered at set periods throughout the year at local gathering centers.

Although it primarily consists of Keller Williams agents, other brokerage agents have been permitted to participate based on the market center’s team leader.

Maps Coaching is supplementary training that agents can enroll in to help them advance their businesses.

The agent usually has to pay extra for this tutelage.

Nowadays, On Demand, Breakthrough, Mastery, Group Coaching, and BOLD are the five coaching options offered by Maps.

The most popular of them would be BOLD (Business Objective, a Life by Design. 

The way BOLD is set up is meant to address perhaps the biggest obstacle that agents have to overcome: prospecting. 

Both fresh and experienced agents are welcome in this session.

It will offer tools, instructions, scripts, and group accountability to improve your overall performance in the field. 

Related Reading: Why I Left eXp Realty – What People Want To Know.

Team Structure 

eXp Realty 

An eXp Realty team is organized in a pretty straightforward way.

Agents collaborate closely and operate as one “team.” 

They split revenues from the agreements they close together as well as leads and client info.  

This can be a good fit for you if you prefer to coach others or support colleagues during trying times.

This setup can also be ideal if you’re going to need coaching yourself. 

Agents are free to create their own teams and decide how to divide profits their way. However, this is discouraged unless they absolutely know what they’re doing. 

What An eXp Team Leader Does 

Each team has a leader to make decisions and resolve conflicts.

So, it follows that the agent in charge of your team needs to be someone you can depend on.

Any agent in the team who has demonstrated success and reliability and has a variety of levels of experience in real estate brokerage business operations may assume this role.

Keller Williams 

With its comprehensive “team” concept, Keller Williams Realty stands out from other brokerages.

As a KW agent, you have the option to be a part of a Gold Team or a developing Blue Team. 

Blue Teams will eventually become Gold Teams with enough time and effort from its members. 

The drawback with having so many people working together is that there might be more competition.

But if everyone is efficient and committed, success is pretty much inevitable. 

What A Keller Williams Team Leader Does 

A Blue team’s leadership position is up for grabs to anyone who has what it takes.

Depending on the situation and the task at hand, they may be chosen or appointed. 

If you’re willing to work hard enough, there are several benefits to taking on this role.

Every business needs a leader who will oversee operations and guide its sales representatives as they become top earners. 

This can imply that they have had executive roles in different fields or even just have some life lessons to share from their own experiences.

Community and Culture 

eXp Realty 

The goal of eXp Realty is to improve the real estate agent experience.

Thanks to the online eXp World and eXp Workplace platforms, agents can connect with others from across the world.

eXp Realty is a brokerage on a global scale! 

ONE eXp is a diversity and inclusion project that offers agents help and education on issues related to diversity. 

Plus, to guarantee that every agent’s opinion is heard, the Agent Advisory Council provides leadership with agent perspective.

In order to promote participation, eXp also organizes events for the community throughout the year. 

There’s the three-day conference-style EXPCON and the training and business-growth Shareholder Summit.

Additionally, eXp agents are encouraged to work toward the ICON award by achieving particular cultural and transactional objectives inside the organization.

The ICON award enables agents to thrive financially and culturally in the business.

Keller Williams 

Keller Williams has consistently been ranked as one of the top businesses that advocate for work-life balance in the US.

The company encourages agents to put their families and community ties ahead of their careers. 

Every year in May (the second Thursday), Keller Williams agents take part in RED Day.

It’s a worldwide day of volunteerism and community service where agents give their time to “Renew, Energize, and Donate.” 

For several years running, Keller Williams has also been ranked as one of the best workplaces for women and diversity. 

Its Agent Leadership Council is committed to promoting agent participation in the selection of leaders and decision-making for the brokerage.

Last but not least, the brokerage organizes two sizable gatherings every year to bring agents together. 

There’s the Mega Camp, which invites agents in for training and networking.

There’s also the “Family Reunion,” which provides conference-style sessions from leading agents worldwide. 

Technology 

eXp Realty 

Since eXp Realty was formed and is run completely online, it’s no wonder that it’s one of the most cutting-edge real estate brokerages out there. 

Agents who join eXp are required to join and operate within:

eXp World 

This is the virtual office environment where agents interact with one another and receive training. 

eXp Enterprise

This is the virtual hub where agents can keep track of their analytics, like earnings, stock shares, transactions, etc. 

eXp Workplace 

This is a Facebook-powered app where agents can swap tips and tricks with others and engage socially. 

Skyslope 

This is eXp Realty’s online transaction management software that simplifies digital signing and related paperwork. 

Introlend 

This is an app that agents use to connect with clients and offer them excellent loan options.

kvCORE 

This is a comprehensive CRM that allows agents to make landing pages, squeeze pages, and entire websites, all while monitoring their leads.

eXp 360 Tours 

This feature allows agents to create memorable virtual tours for their properties. 

Utility Connect 

This is a partnership that gives agents the freedom to come up with a brand-personalized website to give their clients access to nearby utility services. 

There is no denying that eXp has a ton of technology.

And despite the fact that it may seem intimidating at first, it keeps up with the most recent developments in the real estate industry.

Keller Williams 

The Keller Cloud, a collection of tools aimed at assisting agents in maintaining business organization, is where agents work.

It consists of Command, a sophisticated CRM, and Consumer, a client-facing software that more effectively connects agents and clients through virtual tours and easy communication. 

Related Reading: Is eXp Realty A Pyramid Scheme – Click Here To Find Out.

Why Go With eXp Realty 

Consider joining eXp Realty if you want to advance to the position of real estate team leader quickly.

This is because they have an easy certification process for team leaders and care about your performance.

They assist agents in collaborating effectively with one another, which is unique among brokerages.

Leads are fed from six distribution hubs in the US into an online database of more than five million homes.

So, before personally visiting a home, real estate agents can view it online, and they immediately have leads.

Additionally, eXp Realty offers systems that let one agent engage with previous clients even in remote locations, which helps them develop more quickly.

It shouldn’t be a problem, even if your goal is to sell houses in several states across the US.

Why Go With Keller Williams 

The Keller Williams interdependent model is intended for the agent who genuinely wants to run their own real estate business. 

Their associates are consistently professional and equipped to learn how to adapt to the current market.

The company places a strong emphasis on agent training and continues to master it.

So essentially, this model is constantly changing to allow business owners to be successful during booms, crashes, and other economic fluctuations. 

Related Reading: The Dave Ramsey eXp Realty Feud – Check Out Here

Final Thoughts – eXp Realty Vs Keller Williams

Both eXp Realty and Keller Williams are successful, well-regarded brokerages in their own right.

If you’re still unsure about which one to go with, it can’t hurt to check out their company reviews.

Both offer fantastic possibilities for real estate agents to interact with one another, generate income, take part in high-quality training, get acquainted with new technology, and eventually retire in comfort.

The post eXp Realty Vs Keller Williams: The Two Real Estate Giants Compared appeared first on BrooksConkle.com.

I know why people often search “Why I Left eXp Realty.”

Agents want to get feedback from other eXp agents’ experiences and avoid the same mistakes. 

It’s normal for a real estate brokerage to have agents move in and out of the company.

Agents are contractors, not employees.

And it takes time to find a company that’s an excellent fit for a real estate agent’s business style.

So why are agents leaving?

Everyone who signs up to work with eXp Realty can’t possibly love how things are run there. 

Heck, some even ask if eXp is some giant pyramid scheme.

Disclaimer: I greatly respect eXp Realty and what they’re doing.

But yes, I also left (we’ll discuss it in the article).

Okay, let’s understand why agents are leaving eXp Realty…

Why Real Estate Agents Leave eXp Realty

Agents Aren’t Making Enough Money 

Money is the first and perhaps most apparent reason some agents leave eXp.

The lack of it, that is. 

Many folks working in the real estate industry don’t make enough money.

Every year, agents give up the profession (most new agents quit in the first five years).

All brokerages are affected to the same degree by this problem.

While most real estate companies train their agents, not all are successful. 

Each agent has to realize they are, in fact, a business owner.

So, every day should involve company planning, forecasting, budgeting, and effectively executing plans.  

At that point, quitting eXp might be their only choice.

Agents Got The Wrong Idea About eXp. 

Many agents at eXp Realty are actively recruiting other agents.

They sent them plenty of info on why they should join eXp Realty.

It’s possible that they made real estate sound easy.

The reality is that achieving success as a real estate agent requires a lot of hard work.

An eXp Realty agent might leave the brokerage because of discrepancies between their hopes and efforts. 

When joining a new organization, you must know exactly what to expect.

Don’t rush into the decision, or you might get overwhelmed (keep reading…)

Entering eXp Is Overwhelming For Many. 

The process of launching a new real estate business is challenging.

I’ve been there. I get it.

There will be an initial learning curve with eXp Realty because of its online-only nature.

Agents used to learning information in an office may find it challenging to learn the new system. 

eXp has infinite training.

Education is excellent, but it might be overwhelming (one of the pros and cons of the brokerage).

Many don’t understand how to document their work with Skyslope properly. 

Maybe they have trouble locating the daily educational training videos available on eXp. 

Maybe they have no idea what to do to join the conversation on eXp World. 

It is not very clear to choose the best tools from among all the options available. 

They will fail if they are unwilling to adapt to the virtual setting and lack direct interaction with other agents.

Let’s talk about eXp’s business model…

eXp’s Business Model Is Precarious 

The revenue share model at eXp Realty has contributed to the company’s expansion, that’s for sure.  

eXp revenue-sharing’s model relies on recruiting to unlock the different tiers.

[it’s just one of the seven ways folks can make money at eXp — watch the video below if you’re looking into those…]

But even though there are plenty of ways to make money (as discussed in the video above), some agents will leave the brokerage.

As agents leave eXp, the remaining agents’ revenue share will decrease.

But, if they keep the right attitude, they’ll be fine (keep reading…)

Some Agents Who Join Don’t Have The Proper Attitude or Personality 

The most apparent reason why realtors shouldn’t sign up with eXp Realty is their mindset. 

If someone lacking in initiative joins eXp Realty, they won’t have success.

I’m not discouraging folks here; I’m simply being frank. 

I’d say this is the primary cause of failure for eXp Realty agents.

Being your boss is demanding.

If you choose not to show up to work, no one will call asking where you are.

In business, you need to get 1% better every day and keep improving.

If you decide to sign up with eXp Realty, you’ll have access to various lead-generation resources.   

eXp Realty also offers a lead generation service called “Making it Rain,” which you can access if you sign up as a member.

They will manage your Google Ads for a small monthly charge. 

They will also direct people to your kvCore website, provided to all eXp Realty agents.

You’re going to learn all these resources.

There’s Money To Be Made Elsewhere 

Sales agents may leave their current company for another “better one.” 

It’s easy to blame the brokerage if an agent isn’t delivering the results they believe they should.

Agents need to realize that climbing the ranks is a slow but steady process.

Many top-performing agents at eXp Realty have been with the company for years but previously worked at other brokerages.

It’s the agent’s ability that matters more than the brokerage.

A real estate agent at eXp Realty may be tempted to leave the company if they look around and see better opportunities elsewhere. 

Like any other organization, they should know that eXp Realty isn’t perfect and is constantly working on getting better.

But ultimately, another brokerage model might make more sense for their real estate business.

The Real Estate Industry Isn’t Changing Fast Enough 

Warren Buffett is notorious for his negative views on the cryptocurrency and tech industries. 

In a famous quote, he said, “Take Wrigley’s chewing gum; I don’t think the internet is going to affect how people eat gum.”

Huh? He means that we may all acquire things in new ways, but it doesn’t change how we interact with them. 

The same goes for real estate.

The demise of Zillow’s iBuyer Program perfectly illustrates my point here. 

The company drastically underestimated the importance of real estate brokers in the community.

Changes are on the horizon for how folks search for homes.

Still, buyers will ultimately rely on local real estate agents and brokers.

Local brokerages will also play an essential role for real estate agents. 

Agents Chose The Wrong Sponsor 

Choosing the right sponsor is crucial!

If you’re an aspiring agent who doesn’t already have an eXp Realty sponsor in mind, the brokerage will pair you with an agent sponsor.

Since any agent at eXp Realty can act as a sponsor, you could be paired with someone you don’t jive with. 

While this isn’t automatically bad, some agents may be oblivious to the benefits they could reap.

You can’t expect much assistance in expanding your revenue-sharing network from your eXp sponsor if they have no plans to do so themselves!

It would be best to consider what you can gain from a sponsor you don’t currently have, as every sponsor has something different. 

Many eXp agents interested in investing provide their sponsored agents with investment training and coaching. 

Others who have mastered social media marketing provide them with the tools, templates, and resources they’ve found most helpful.

There is a higher chance of improving and expanding your business and meeting your goals more quickly if they align with your sponsor. 

Plus, changing your sponsor is a tedious endeavor. 

There are only two ways to switch your eXp Realty Sponsor.

If you have picked the wrong agent as your sponsor on your eXp onboarding application and realize your error, you can request a change of sponsors.

If this is the case, you can ask to switch sponsors inside eXp before officially joining the company, albeit doing so is not guaranteed.

A second option for agents who want to switch their eXp Realty Sponsor is to leave the firm for six months. 

After leaving eXp Realty for six months, if you decide to join another brokerage or let your license lapse, you can sign up with eXp again and choose a different sponsor.

Now you know that switching sponsors within eXp Realty is not a simple process for agents.

That’s why new agents must seriously consider who they want as their sponsor.

Agents Find It Hard To Find A Smaller Community 

Sometimes, a real estate agent will sign up with eXp Realty as a solo agent.

Then, later, they concluded that they would do better as part of a real estate team. 

Exp Realty indeed offers many excellent teams located all over the country.

However, not every agent can find a team that is a good fit for them.

This is another reason for choosing the right sponsor.

So, even if you can’t find a team to join, you’ll still have someone in your corner who can help you succeed whether or not you’re on a team. 

This is an excellent strategy in case you don’t find a smaller group of like-minded agents.

Some Folks Prefer Going To A Physical Office 

In some parts of the country, having a physical office is valuable.

Some real estate brokers cannot be productive while working from home. 

Even though eXp World is very user-friendly and efficient, some people still would rather drive to an actual office and meet with someone in person rather than use the online platform.

Some agents are under the impression that it is required to have an office to run a thriving real estate agency.

However, this is not the case. 

Many of these agents will eventually quit eXp Realty because the online platform is holding them back.

Agents are responsible for acting in a manner that benefits both themselves and their company. 

eXp Realty agents can rent or own their office space, but this can be expensive.

Many of the agents at eXp Realty formerly worked at brokerages like Keller Williams and Coldwell Banker. In those brokerages, working out of an office is standard practice. 

Therefore, when an agent switches to eXp Realty, they find out fast if working virtually is something they like. 

Some agents soon transfer back to their prior agency, while others look for an entirely new brokerage to work for.  

The Competition To Recruit Causes Rifts Between eXp Associates. 

In eXp, there is a lot of competition in recruiting agents.

Some agents try their best to avoid being involved in the recruiting process. 

They didn’t join eXp to recruit agents.

Recruiting is necessary for the expansion of eXp.

It’s how it’s grown to more than 80,000 agents worldwide.

It also can potentially drive a wedge between friends and other people involved in eXp. 

In addition to this, it may cause problems for the agent who is joining.

Some People Aren’t Crazy About The National Association of Realtors 

Some agents believe that the National Association of Realtors (NAR) is nothing more than a faceless bureaucracy.

Many agents think it violates the Constitution and ethical standards to be forced to join a group simply because a single member of their company is a member.

eXp Realty’s Reputation Could Be Better

When you look at eXp Realty Reviews, you will notice that many of them are negative.

Please note that these are primarily written by other real estate agents not associated with eXp.

Regardless of whether or not it is warranted, many people have a poor opinion of eXp within the Real Estate Community. 

But we’ve seen an increase in influencers and top producers joining the eXp ranks.

However, some agents still think that eXp is nothing more than a trend.

Many traditional brokerages think this way, and this is what they tell their agents.

Agents Are Not Up For Paying Fees 

Going with eXp requires a monthly fee of $85 for most brokers.

And this is in addition to any other potential expenses that may arise (i.e., transaction fees, errors, and omissions). 

If you’d rather have no brokerage fees, joining eXp Realty might not be for you.

Some People Are Suspicious of Technology Platforms 

There is a perception that real estate agent’s job security is in jeopardy due to the rise of tech platforms like eXp. 

This technology boosts agents’ productivity and allows them to manage more leads.

For some time now, we’ve been hearing that robots may soon be able to replace as many as 80% of human workers in the workforce. 

There are still some people who aren’t taking this issue seriously.

Many people aren’t investing in future-proofing their careers by re-skilling and learning new technologies. 

Okay, a friend of mine moved her 20-person brokerage over to eXp, and I had to find out why, so I interviewed her here.

But I told you I recently left eXp, so I’ll share my reasoning.

Why I Left eXp Realty

For starters, I think eXp Realty is an excellent real estate company.

I moved to eXp because I saw the opportunity to grow an international team of agents (that idea was incredible to me).

It was hard to leave my independent brokerage and move to eXp.

The 80/20 split didn’t bother me.

The monthly fees seemed reasonable.

But after a year or so, I had yet to grow my team as I envisioned.

I wasn’t going to recruit in any gimmicky way.

So, I returned to our rocking local independent brokerage (shoutout to IXL Real Estate).

It’s tough to beat, as the owner (a great friend) offers solid support for his real estate agents and only charges a flat fee when you make sales.

It’s reasonable.

I intend to grow a referral real estate business and possibly a real estate team, so it’s an excellent fit for me.

In the end, it’s just deciding whether eXp is the right fit for you or not.

Good Luck!

The post 13 Reasons Agents are Leaving eXp Realty (+ Why I Left) appeared first on BrooksConkle.com.

Are you interested in joining eXp Realty, but your feet are firmly planted on square one?

If so, who do you ask for help? Well, you’re going to need a sponsor. 

It’s hard to ignore that so many agents and brokers have migrated to eXp Realty in recent years.

That’s why eXp Realty stands as one of the fastest-growing brokerages in the world.

In this post, I’ll teach you how to choose the best eXp Realty sponsor so you can get in on the action. 

What Is an eXp Sponsor?  

When a potential real estate agent is interested in joining eXp Realty, they must first be sponsored by an existing agent. 

There isn’t a way to become an agent or associate broker at eXp Realty without a sponsor who is already working at the brokerage. 

This process is probably foreign to many agents in the business.

However, when it comes to climbing the ladder at eXp, having a sponsor who can advocate for you is invaluable. 

How come? Under the revenue share model used by eXp, all the agents are in charge of the brokerage’s expansion efforts. 

And since each sponsor offers something unique to their associates, picking the appropriate one is crucial to your career success.

If you join the brokerage and designate your sponsor as such, they will be eligible to receive a revenue share from the eXp.

This figure is based on the volume of business you generate.

Agents and associate brokers that they sponsor into eXp Realty are reimbursed for their efforts in helping eXp Realty expand. 

This also ensures a seamless transition into eXp Realty and its systems and a fruitful commercial relationship for both parties.

How Important Is It to Choose the Right Sponsor?

It’s important to note that eXp’s sponsorship procedure differs significantly from that of other brokerages.

To join eXp Realty, prospective agents must identify a current eXp Realty agent who will serve as their “sponsor.”

This bypasses the traditional real estate broker interview process.

Because your experience at eXp Realty will be shaped in large part by the person you choose to sponsor you, this is a crucial decision.

Your future sponsor should be one with a focus on how you and they will benefit each other’s real estate careers.

Can the real estate agent you’re thinking of asking to sponsor you actually assist you in starting the kind of business you want to launch? 

Do they have the successful business and personal lives that you envision for yourself?

Clearly, the choice of a sponsor has an impact on your future at eXp Realty and the outcomes you hope to attain.

You can find a sponsoring eXp agent anywhere, which is fantastic news for those who aren’t sure how they’ll go about identifying their sponsor. 

You can have a sponsor, and they don’t even have to live nearby.

Sponsors can be found in many places, including Facebook groups, real estate conferences, YouTube, and the blogs that you follow.

Related Reading: eXp Realty Pros & Cons – Read Our Deep Dive Here.

How To Choose The Right eXp Realty Sponsor For you 

Preferably, your sponsor should be the agent who initially persuaded you to sign on with eXp. 

An excellent eXp sponsor isn’t necessary, but they will enhance the benefits you receive from the brokerage.

A sponsor’s true worth and influence extend far beyond their role in persuading you to join eXp. 

Eventually, choosing the perfect eXp Realty sponsor can mean the difference of a million dollars or more!

Although it is not specified in the job description, it is generally understood among eXp agents that it is the sponsor’s responsibility to ensure a seamless transition from the agent’s previous company to eXp.

Many agents moving from traditional brokerages are unfamiliar with the work style of eXp’s cloud-based brokerage tools. 

Your sponsor’s job is to ease the transition by giving guidance, referring you to relevant resources, and automating as much of the process as possible.

Here are the top factors to consider when choosing your sponsor: 

Assess The Community They’re A Part Of 

I suggest checking out the community that a potential eXp Realty sponsor has established or is a part of before committing to working with them.

When you join eXp, you’ll have the opportunity to participate in a wide variety of teams and groups.

Each one has special perks that assist independent sales agents succeed in their careers.

They also provide the opportunity to socialize. 

Keep in mind that just because your sponsor has a “team” or “group” name doesn’t imply you have to adopt that brand yourself. 

The majority of these teams and groups have independent names that merely mean you are a part of that particular leader’s group.

Study Their Track Record For Sales

You should also remember that your sponsor has a vested interest in seeing you succeed financially. 

This is both in terms of sales commissions and revenue share growth.

You should look for a business partner that has already established themselves as a successful real estate marketer and revenue generator.

Revenue Share is a program whereby eXp Realty gives back to the agent that sponsored them a portion of the company’s overall commission earnings. 

To sum up, agents divide their first $80,000 in annual gross commission (after expenses) 80/20 with eXp Realty. 

eXp keeps 20% for themselves and gives 50% back to the sponsor and the rest of the upline.

All agents’ part of the revenue is taken directly from the commissions.

Familiarize Yourself With Their Tools and Systems 

It’s crucial to think about a sponsor’s available resources before making a decision about who to work with. 

Sometimes, how skilled a leader someone is matters less than how much potential their team has. 

Is your prospective sponsor stable enough to fulfill its current and future obligations?

When it comes to heading a team, do they have the proper infrastructure in place?

Are you able to expand into new areas using the same systems, or will they bottleneck your progress?

These are vital questions to ask yourself. 

Sponsors may vary wildly.

Some are fantastic at running the business, but can they inspire hundreds, if not thousands, of other agents to do the same?

And do they have a tried-and-true method for helping you expand your own ventures? 

Fact: At eXp Realty, less than 5% of all agents have sponsored more than five other agents.

Also, did you know that only 3% of eXp’s agents have reached the top sales level of ICON?

If any of these is something you’re considering, wouldn’t it be wise to collaborate with someone who has experience in both areas?

That person would act as your mentor.

It is crucial to identify someone who will be there for you when you need them.

I know eXp doesn’t mandate that you have a named sponsor after you’ve been onboarded.

Still, someone who can guide you along the way would be beneficial. 

The level of enthusiasm and commitment your sponsor has for the real estate industry, and eXp Realty will reveal a lot. 

When a person is enthusiastic about what they do, you can trust that they will be there for you when it matters the most, rather than just for the profit.

You should look at their work to determine if they have a history of assisting agents.

Some folks are just looking to sign you up to obtain the income share. 

Remember, many agents are excellent salespeople and will try to convince you to choose them as your sponsor! 

Related Reading: eXp Realty Vs. Keller Williams – Which One Is The Best.

More Tips For Choosing A Sponsor 

• Make your goals transparent to a potential sponsor and decide how much time you can commit to revenue sharing. 
• Jot down one thing that is the MOST essential to you when it comes to added value. This will help you narrow down your choices. Perhaps you want help in social media marketing, team building, investing, sales, and so on. 
• Inquire about their level of accomplishment in generating revenue sharing on an individual basis.
• Learn about the income-sharing results achieved by their sales agents.
• Find out how much time they spend assisting their sales reps. Determine whether they have a regular time slot set up each week to work on that task.
• Evaluate whether or if their process for attracting agents is straightforward and easy to follow. Don’t be afraid to ask questions.
• Keep in mind that your eXp sponsor will be your business partner and that you will have a hard time switching sponsors. Of course, you’ll have to like the person you’re working with!

Examples of Successful eXp Sponsors/Sponsor Groups 

Tim & Julie Harris 

Some teams use training for downline reps as the main selling point to attract sponsors. 

With more than twenty years of coaching under their belts, Tim and Julie Harris are true experts in their field. 

They head up the HARRIS Certified Coaches, the Harrises’ own real estate coaching organization that operates under copyright. 

The Harris partnership takes advantage of pooling expertise by establishing a support system of coaches.

Alongside their successful brokerage, Tim and Julie Harris also manage their own thriving real estate content publishing company. 

They have a podcast that covers topics including business strategy, lead generation, and market news. 

As a part of their services, they offer a variety of coaching programs and often publish articles on industry trends.

The Harrises are a perfect illustration of the types of coaching resources agents should want in a sponsor.

They provide several options for agents, each of which comes with a different level of personalized care and support. 

The topics covered range from established corporate protocols to “mindset systems” and other forms of psychology-based instructions for real estate professionals.

Brent Gove 

A career change to eXp Realty may appear more precarious to seasoned agents who are already established in their fields. 

Thanks to sponsors like Brent Gove, agents may learn from others who have already walked in their shoes.

Gove’s career spans several decades with two major national real estate firms.

He is most known for growing Keller Williams into a $100 million agency. 

He was hesitant at first to switch brokerages, but eXp rapidly won him and his business over.

After several years of enjoying the perks afforded to eXp Realty agents, he is now a vocal proponent of the company. 

His success with eXp in the highly competitive Sacramento, California, market has reassured him of the company’s ability to expand into other, more distant markets.

Gove is very good at “agent recruitment,” the process of attracting new real estate agents to work for eXp Realty. 

He’s been with the online brokerage for some time now and has earned a name for himself as a recruiter of new agents. 

As a result, he has amassed a sizable downline and the accompanying revenue-sharing advantages. 

Those interested in joining eXp for the purpose of recruiting rather than for the sake of selling real estate may find these experiences and insights to be quite beneficial.

Jay Kinder 

The real estate industry is dominated by several well-known figures.

Jay Kinder is a model of how outsiders may successfully penetrate and thrive in the field. 

By the time he was 30, Kinder had gone from being a kid in a rural Oklahoma town to a multimillionaire known for his innovative business practices. 

During his rapid ascent to prominence, he earned a reputation for employing unorthodox strategies for expanding his business. 

He even turned to more conventional forms of advertising like radio and television, an audacious move that looks to have paid off. 

His success demonstrates the feasibility of the “get rich quick” strategy used by some agents.

In his late twenties, Kinder had already begun to shift his focus from refining his personal success model to helping other agents achieve their goals. 

He started Kinder Reese Real Estate Coaching and Training along with Michael Reese as a partner. 

Before Kinder brought everyone over to eXp Realty, this association grew into what is now called the National Association of Expert Advisors (NAEA). 

Hundreds, if not thousands, of agents have benefited from his instruction throughout the years.

The benefits of having a sponsor like Jay Kinder may be broken down into two categories: the professional and the personal. 

He can teach you to embrace your unique personality and develop your own story for your own benefit as a new agent. 

Creating a successful persona is crucial in a field where success fosters (more) success.

Thrive Real Estate Network 

When it comes to expensive technology, some groups pool their resources and knowledge as a draw for new members. 

One of Thrive’s primary benefits for agents is allowing them to increase their output and expand their businesses. 

The members of Thrive work together to ensure everyone’s success rather than depending on any one person or thing to propel the group forward. 

If you’re looking for support and a community, the Thrive Real Estate Network is where you should be, even if you want to work solo. 

Several of the group’s members are well-known, successful figures in the real estate industry. 

For example, Thrive co-founder Sean Goerss learned the real estate business from the ground up at his family’s firm.  

He is now focusing on assisting the Thrive community in developing tools to help its members achieve similar levels of success.

Gene Frederick 

We covered how eXp Realty’s revenue sharing model sets it apart.

The more an agent invests in the business concept and helps the company grow, the more money they will make. 

Gene Frederick has dedicated himself entirely to the company.

He is now a Director at the brokerage and an example of rising through the ranks.

Frederick joined eXp Realty in 2015 after working in real estate for 30 years.

As a brokering leader and sponsor, he has built a sizable “downline” that probably brings in millions in passive income. 

Part of his success at eXp can be attributed to the brokerage network he established while working at Keller Williams. 

After making the switch to eXp, he immediately began capitalizing on his extensive personal network to expand his business swiftly.

Sponsorship with a well-known figure like Gene Frederick is most beneficial when it teaches important lessons about how to manage profits. 

He is a model of how an eXp agent may use their skills as a recruiter to build a strong downline of their own.

Final Thoughts 

You’re probably here because you’re either at a loss for who to register as your sponsor.

Maybe you aren’t sure if the person you’ve settled on is the right fit. 

Each agent will have different needs and preferences.

The fact that there isn’t a single best strategy means that you should learn from the agents in your brokerage who have worked with various sponsors before.

If you’ve worked solo thus far, it certainly won’t hurt to do your research and start networking. 

Only you can determine the perfect sponsor to work with.

The good news is there are so many sponsors to choose from because of eXp’s business model. 

With so many agents joining eXp Realty, it looks like the best eXp sponsors aren’t that hard to find.

The post How To Choose The Best eXp Realty Sponsors appeared first on BrooksConkle.com.

To value a real estate brokerage, you must consider different factors such as profit, benefits, depreciation, interests, and other expenses. 

As a licensed real estate broker, I have many friends that have sold their real estate companies.

Even though real estate brokerages are in the same business, they differ in valuation. 

Profit and cash flow determine the pricing for these firms depending on the market situation.

If brokerage owners decide to put up their firm for sale, they need to know their brokerage valuation to see if it is the right time. 

Let’s discuss some essential ideas and tips for valuing a real estate brokerage with the right approach.

Ok, I know you’re probably clear on what a real estate brokerage is, but I need to verify so that we’re on the same page (keep scrolling if you’d like).

What is a Real Estate Brokerage?

Brokerages are firms that help customers with their real estate business needs.

They usually assist in the buying and selling of real estate properties.

The brokerage will also have contacts for lending, inspections, and real estate attorneys.  

Before an individual becomes a broker, they must follow state requirements and the brokerage exam. 

So they got a real estate license and then later snagged their broker’s license.

They receive payment through a fixed rate or a commission as part of the transaction they do with the client. 

How to get the Business Value of a Brokerage

With all of the ways to make money in real estate, let’s look at the brokerage model.

There are three common ways to value your real estate brokerage.

These approaches are market, income, and asset.  

But here are a few reasons why valuations can be difficult.

When measuring your broker’s EBITDA (earnings before that interest, those taxes, depreciation or amortization) part of the issue can be with how the broker pays themselves.

Broker owners usually don’t pay themselves out the profit share split, they usually take draws at year’s end.

So this will affect value.

Also, real estate agents are independent contractors.

This completely affects how a buyer will look at the business and the potential risks when making a deal.

Aside from these approaches, you also have to note some critical factors affecting valuation.

Knowing the different ways to value a firm is vital because not all companies will work with one. 

Market

The market approach effectively identifies a brokerage value based on statistical evidence. 

Most appraisal professionals think that the market should decide the value of a business, so they use this approach.

Some aspects to consider in the market approach are the appraisal value, assets, interest, and security through market prices. 

Therefore, when using this method, the brokerage firm must compare its sales with other similar businesses. 

Income

The income approach is the most common in real estate and brokerage. 

Most investors also recognize this method as it values the business according to its current and terminal value. 

Generally, an income-based method utilizes the profit of a real estate property to determine its fair value before selling. 

Discounted Cash Flow 

Discounted Cash Flow is an income-based approach that allows you to generate value through cash flow stream, discount rate, and long-term business valuation. 

Experts and appraisers acknowledge it as the most accurate way to value any business.

One is that they base the estimation on the business earning power and risk, whether small or large. 

Gross Margin of Company Revenue

For brokerages that have less than $2 million in gross revenue, the Gross Margin or Company Revenue Approach might be ideal. 

It is specific in the real estate industry for smaller businesses and when owners use a part of the revenues for the firm. 

Gross margin is the sum of a firm’s revenue minus all sales fees and expenses.

Once you identify the gross margin, you will use a specific percentage to assess the business value.

[This video is just a quick fun detour for you. I tend to play devil’s advocate and like to point out where I disagree with real estate professionals (I’m also a licensed agent!). Have a watch…]

Assets

Another way to calculate a real estate brokerage value is through asset-based valuation. 

It highlights the company assets or their market value without the liabilities in the total.

Once you evaluate the company assets, you need to get the fair market value next.

This approach is not common in the real estate industry for selling a brokerage because assets are not significant to the company’s overall value.

For example, the company’s equipment, furniture, and software are not a big part of what drives revenue.

Factors That Affect Brokerage Value

You can’t just look at the brokerage only on paper to determine a potential value.

There are many other things to consider, such as…

Location and Size

Larger firms in a metropolitan location are usually worth more than small firms in a rural community. 

If the area is a strategic location, supposedly in a business district, it’ll have a higher value.

It is because they attract more potential if they have more potential clients nearby the office.

Affiliations

A brokerage may have a higher value when affiliating with trusted regional or national brands.

Results

When a firm has inconsistent results for a few consecutive years before selling it, it will lower the market value. 

It can be either because of the real estate market or a problem within the organization. 

How Can You Earn From a Real Estate Office?

The real estate industry pays differently than most jobs.

Most real estate professionals earn through commission.

And this is one of the reasons it can affect the value of the brokerage and makes it tougher to calculate the value.

As an independent broker, you’ll get a direct commission when a client has a successful buy or sell transaction. 

Your commission depends on a percentage of the property’s market price.

However, you can also set your fixed rate.

Earning through a commission-based job may mean you’ll have unstable profits, but your earning potential is endless. 

Meanwhile, if you are under a brokerage, you still earn a commission and share it with the firm. 

Related Reading: How To Find Great Real Estate Deals – Check Out Here.

Takeaways

Valuing a business can seem overwhelming with all the factors to calculate and consider. 

Figuring out where to sell that business can be even harder!

However, the above-mentioned methods greatly help business owners develop their business values. 

These approaches are just some of the most recommended valuation methods in the real estate industry.

If you can afford to, it is best to approach an expert appraiser, so you’ll get a fair calculation of your business value. 

By the way, once you sell, go ahead and bookmark these articles, as you’ll want to read next!

Turning $10k into $100k

Digital Investing Trends

6 Great Alternative Investments

How to turn $50k into $100k

Ideas for Cash-Flowing Assets

FAQ

The post How To Value A Real Estate Brokerage (Tips!) appeared first on BrooksConkle.com.

With all the good things you’ve been hearing about this brokerage, you might be asking yourself, “Should I join eXp realty?” 

Yes, there are plenty of reasons to do just that, and I’ll list them all in this post.

It is not surprising that so many agents are signing up with eXp Realty.

How come?

It’s pretty hard to ignore the phenomenal growth that the company has experienced in recent years.

eXp Realty’s many advantages attract agents who are eager for a chance to grow their business. 

So, what makes it so different from a traditional real estate brokerage?

What’s familiar to us is an agent and their employees working out of a brick-and-mortar office.

They arrange some sort of commission structure, and the agent is pretty much responsible for their own success. 

However, eXp Realty adopts a somewhat different strategy.

They’re entirely focused on agent success.

This indicates that the company is committed to assisting real estate agents and brokers in achieving success on the professional front. 

If you’re still on the fence about eXp Realty, here are some of the many reasons why others are making the switch to this unique brokerage: 

The Top Reasons To Join eXp Realty.

Training 

eXp Realty provides its agents access to a comprehensive training program about the ins and outs of the real estate industry. 

They want to prepare you for what’s out there by giving you the necessary tools to achieve success in your career. 

eXp Realty’s training program covers everything from real estate market expertise to social media.

With eXp Realty’s intensive weekly training, it doesn’t matter if you’re a new or experienced agent.

As opposed to the brief orientation provided by some traditional brokerages, eXp’s onboarding and education programs are extensive and never-ending. 

For the first few months, novice agents are expected to follow a prescribed course of study.

All agents get access to live, ongoing classes 50 hours a week that address topics like: 

• CRM software 
• Lead generation tools
• Industry tips on sales and listings 

Plus, there’s no need to stress about missing a class because they’re all recorded.

Related Reading: How eXp Realty Works – Learn That Here.

eXp World 

Every day, hundreds of eXp agents gather in eXp World, the company’s virtual campus. 

There, they can participate in live training sessions, receive help from the company’s different departments, and socialize with other agents from around the world.

eXp World is always open!

More experienced agents can assist you with any of your lead-generation or marketing-related issues.

You’ll learn everything you need to know to sell real estate successfully.

Virtual Office 

eXp agents, brokers, and staff don’t have to go to a physical office.

They have the freedom to work from home or wherever else they want.

There are no commutes to and from the workplace thanks to eXp’s reliable technology. 

As long as they have an Internet connection, agents can work from wherever they are!

The revenue share program is meant to help an eXp Realty agent expand their real estate business.

By participating in this program, agents will be eligible to receive a commission on the sales of any new agents they bring on board. 

The eXp Realty income share program has many advantages, including the following:

• No minimum quota or sales volume 
• Commissions on transactions 
• No annual fees 

Over the past two decades, many agents have compared revenue share to Keller Williams’ profit-sharing model. 

Profit sharing pays agents a commission after expenditures have been deducted.

On the other hand, revenue sharing pays agents a fee upfront. 

As a result, revenue shareholders can expect to receive significantly larger residual income checks in the future.

Stock

After meeting specific benchmarks, agents are eligible to acquire shares of stock in eXp World Holdings Inc.

That’s eXp Realty’s parent company. 

When an agent owns shares in the company, it doesn’t only give them financial security.

It also gives them a voice in the company and strengthens their dedication to its success. 

The ICON Agent Stock Awards Program is drawing so many new members at eXp Realty because of this reason. 

If you choose ICON as your broker, they will reward you with additional stock shares if you reach a predetermined level of productivity.

There is a production cap.

Once you reach the cap, there are transaction fees.

When you pay $5,000 in transaction fees, which equates to around 20 additional transactions on top of the cap, you’ll become an ICON Agent.

Better Commission Split and Fees 

eXp Realty’s commission split is better than any other company.

Aside from that, the costs are reasonable and straightforward. 

eXp does not collect any kind of desk or royalty fee for its software.

Agents should be able to concentrate on their company and not worry about unnecessary costs.

An $85 monthly fee and an 80/20 commission split are the only obligations for all of the agents.

There is a $16,000 cap on annual commissions.

Let’s say that you’ve paid $16,000 in commission split to eXp Realty.

That means you will be entitled to 100% of the commission split for the rest of the year. 

Minimal Overhead 

The initial setup costs for agents at traditional brokerages can be pretty pricey.

However, eXp is a virtual environment.

That means you don’t have to pay the expensive overhead expenses that are typically associated with brokerage operations. 

These expenses can include rent, desk fees, insurance, utilities, furnishings, employees, and more.

These “gains” are reinvested in the eXp business to fund training, agent support, and technology. 

Technology 

Skyslope and kvCORE are the two key technological platforms that are provided to eXp agents.

Agents can take advantage of the myriad services and perks that kvCORE provides, thanks to its comprehensive design.

The following are some of its features:

• Lead management
• Marketing automation 
• Customer relationship management (CRM) system 
• Transaction management 
• Individual agent websites 

Skyslope is a robust transaction management system that real estate agents can use to keep tabs on all of their transactions.

It provides a wide range of features, including the following:

• Timelines 
• Custom templated for automatic document generation 
• Transaction dashboard 
• Text and email notifications 

Healthcare 

eXp Realty offers agents new, affordable healthcare alternatives.

This started back in 2019.

Sure, some real estate brokerages do provide health insurance plans, too.

However, eXp values the performance and well-being of its agents a little bit more.

Agents can access affordable healthcare options through the eXp program named eXp Agent Healthcare, which includes:

Telemedicine services 

Supplemental Insurance 

Insurance and medical cost-sharing 

This initiative aims to assist eXp agents in reducing their out-of-pocket expenses, expanding their provider network, and reaping financial savings.

Marketplace Partnerships

eXp Realty agents and their clients have access to a marketplace for home-buying and -selling services through the eXp Preferred Partner program. 

These services include mortgages, title, escrow, moving services, and house warranties. 

Everything is ready for an eXp representative to step in and continue the transaction in a smooth and hassle-free manner.

How To Join eXp Realty 

Joining eXp Realty is worth considering if you’re interested in gaining the benefits mentioned above. 

If you’re leaning more towards joining the brokerage, here are a few key things to note. 

To participate, you must acquire a real estate agent license.

Next, you have to accept the terms and conditions of the company.

Following these easy steps will allow you to join eXp Realty once you satisfy those conditions: 

• Head over to eXp Realty’s website and click the “apply as an agent” button. You can also peruse the website to learn more about eXp Realty.
• Accomplish the form and tap the “submit” button. 
• Read the Independent Contractor Agreement thoroughly. 
• Name your sponsoring agent, then tap “submit.” 
• Stand by for an email from your state broker. It should contain further instructions on how to move your license over to eXp for your specific state. 
• Send a request to your state licensing board to transfer your license to eXp Realty. 

Once you sign up, eXp Realty will give you all the assistance and tools you require to be successful in the real estate sector.

Related Reading: How To Join eXp Realty – Read On Here.

Is It Okay To Join Exp As A Newly Licensed Agent? 

Much of it depends on who you ask.

Newly licensed agents can familiarize themselves with the core information necessary to develop a successful real estate career. 

eXp Realty’s learning platform should be all they would need.

A trained eXp mentor from the same local geographic area is matched with each mentee.

Nevertheless, a lot of the reviews note how difficult it is for rookie agents.

Related Reading: How To Find Great Real Estate Deals – Learn That Here.

Final Thoughts 

Real estate agents and brokers are the core focus of eXp Realty.

If you sign up, you’ll get access to top-producing agents who can support the growth of your real estate business.

A global family of agents and partners committed to revolutionizing the real estate experience would welcome you to eXp Realty.

The advantages mount up fast when you can work from home from any Wi-Fi-enabled location. 

eXp obviously exceeds traditional brokerages, and it’s the choice for agents who want to take their business to the next level. 

The post Why Join eXp Realty: What Sets This Brokerage Apart? appeared first on BrooksConkle.com.

We were using a HELOC as a first mortgage, and I loved it.

I love using a HELOC as a first mortgage because the costs are lower, and my loan balance can increase or decrease rather than be fixed.

In this article, I’ll share what we learned from it and why we’re about to do it again (I just applied for our next one).

I was able to borrow money as I needed it, the interest rate was fixed, and I paid $0 to get the loan in place —- Whhhhaaaaa?!?!?! 

Yep, you heard that right. 

Try that one with a traditional mortgage product!

But Wait, Can You Even Use a HELOC Instead of a Mortgage?

The short answer is yep!

In a traditional mortgage situation, a borrower gets a mortgage when they purchase their home.

Then they might later get a home equity line of credit (HELOC) in order to later make some home improvements.

They’re able to get the HELOC once they build up some equity in their home.

Your mortgage is in the first lien position, and your HELOC is in the second lien position.

So the HELOC is a second mortgage.

If you ever want to remove your mortgage, you have to first pay off the second mortgage and then the first mortgage.

What’s interesting is that the way that a HELOC is typically used, they have low to no closing costs.

That’s why using a HELOC as a first mortgage can be an interesting move.

Related Reading: How To Find Great Real Estate Deals – Click Here To Find Out.

We Paid $0 In Closing Costs For Our HELOC Loan.

Often, HELOCs (home equity lines of credit) will cover the closing costs for your loan.   

You may have to pay for an appraisal which is common.

But we discovered using a local credit union for our home loans.

Not only do they have lower interest rates than your average banks or mortgage broker, but often they will run specials that will allow you to take these loans with no cost to you.

Because credit unions are member-owned, their goal isn’t to make money from fees.

Their goal is to make safe loans for their members in the community.

Well, the Credit Union America’s First was running a special where even the appraisal was covered as long as we took out a $25,000 loan at closing.

Done.

We wrote a check for the appraisal, but they never even cashed it.

They just voided it at closing.

A HELOC is Flexible Like Other Revolving Lines of Credit

With a fixed interest rate loan (rather than using variable interest rates), you’re required to take out a set amount of cash and pay it back over time.

Let’s say I buy a house worth $200,000 — I might put 40k down and take out a loan for 160k.

But let’s say instead, I already have the home worth $200k.

Maybe I inherited it. 

Or maybe I’ve owned it for 15 years and no longer have a mortgage, or maybe that mortgage amount is a low amount, like $30k.

Maybe I want access to capital, but I don’t want to have to borrow 160k or more.

With a HELOC, I might be approved for the $160k, but I don’t have to use the cash.

I just got access to it.

Or if I had that $30k mortgage, I’d get approved for a HELOC at $160k and take out a loan of $30k to pay off my current mortgage.

But then I’d have access to an additional $130k to use as I please.

Maybe I want to build an addition to my home.

Or maybe I need to replace my HVAC system or the roof.

You could even (responsibly) use your HELOC for other items.

Your HELOC is secured using your home as collateral, so the lender is comfortable.

Home Equity Loans are Creative

I like anything that’s a bit different (if you’ve learned anything about me, it’s that I prefer to blaze my own trail).

Using a HELOC as the primary form of financing on a home is definitely ‘Destroy the Box’ behavior.

And I’m all about it!

Having the flexibility to pull from a line of credit but then pay it back as I please is comforting.

How to Pull off This Home Equity Line Magic Trick

Yes, this is an advanced borrower strategy. 

If you barely have 10% to put down on a home purchase or if you’re a first-time home buyer, this probably isn’t the right move for you.

But, if you have significantly paid down your home loan balance and you’re looking for a new strategy, this might be a great tool to add to your toolbox.

Folks talk about being debt free. 

I think that’s great.

But it’s also important to have instant availability to cash should you need it.

That’s why I think it’s a savvy financial move to take a home that you have major equity in and attach it to a giant credit card (HELOC).

And just like a credit card,  you can set it on auto-pay should you need to tap into the cash machine.

Now, my HELOC strategy might leave you with some questions, so let’s answer those here.

Related Reading: How To Sell My Real Estate Brokerage – Find Out Now.

Why I Prefer Using a HELOC as a First Mortgage – FAQs

Related Reading: The ABCs Of Real Estate Investing – Get The Book Now!

The post Why I Prefer Using a HELOC as a First Mortgage appeared first on BrooksConkle.com.

It made a boom when personal finance expert Dave Ramsey began booting eXp Realty agents out of his premium referral network.

So what were the grounds behind this controversial David Ramsey eXp Realty scrap?

We’ll get to the bottom of it in this post. 

Agents reported to Inman that they felt betrayed, and Ramsey’s company, Ramsey Solutions, remained silent about the incident.

This silence sparked a considerable industry debate about what really was going on.

However, this dispute has shone a light on the world of lead generation.

It turns out that it’s far more extensive and more intricate than it appears.

It also prompted a discussion about what obligations members of that sector have to both agents and consumers.

Dave Ramsey Going Head-to-head With eXp Realty 

Ramsey is opposed to eXp agents because he believes they are deceitful and are con artists.

They manipulate clients to make quick money rather than get them the best offers available (think “purchasing leads”).

Dave Ramsey ELP is one of the companies that Dave endorses.

It also accepts expensive eXp agent referrals.

Ramsey outlines why buying leads could be harmful to your business in one of his podcast episodes.

Even though his method looks to be sound at first glance, it may not work for everyone.

Some brokerages demand a commitment from sellers who need to sell their properties quickly before losing too much equity.

They might have to rent out their property while waiting for better times.

Ramsey also decided to become a business coach since he believed his firm wasn’t developing as quickly as it should.

It seemed like people were no longer paying attention (a typical issue for entrepreneurs).

In the end, he decided to support local agents and not eXp agents.

Ramsey decided to transfer brokerages and, in the end, adopted a hostile attitude against eXp Realty.

They can get better rates elsewhere, just like other firms that have shifted over after being charged hefty fees. 

Related Reading: How to Make Money in Real Estate – Find Out Here.

What is eXp Realty?

eXp Realty has been in business for over a decade and provides full-service brokerages, house construction, and financing services. 

They also have local agents with whom Ramsey has no affiliation or trust.

He expressed in a podcast show that depending on where the lead comes from, eXp’s referral fee might be up to $5,000.

Of course, this is especially true in higher-priced areas like Los Angeles. 

Due to the high eXp referral expenses, sellers may lose equity if their property does not sell within 30 days.

While you might be able to save money on commissions, the expense of referrals may end up costing you more.

Who Is Dave Ramsey?

Dave Ramsey is a famed personal finance expert recognized for his anti-debt and anti-credit views. 

He’s also famous for his Baby Steps program, which teaches followers how to reach “financial freedom.”

It encourages folks to pay off existing obligations and increase their savings.

Ramsey is the author of several books and a popular radio show host.

Ramsey Solutions, his company, offers a variety of additional products and services.

They offer budgeting software, a financial education program for schools and churches, and a variety of events.

Ramsey’s evangelical Christian religious beliefs are prominent in his shows, books, and company’s “righteous living” practices.

He has made the news for several contentious actions like: 

• Taking a loaded pistol out of a bag at a staff meeting 
• Hosting a 1000 attendance maskless Christmas bash during this pandemic 
• Firing some employees for engaging in premarital sex 
• Keeping his physical offices open during this pandemic 

Ramsey frequently incorporates his personal beliefs into his financial advice and business practices.

Take it or leave it, but I believe it’s vital to be aware of this before supporting his company. 

Related Reading: How To Get Most Out Of The Dave Ramsey Budget – Click Here To Learn.

What Is The Dave Ramsey ELP Program? 

Ramsey Solutions operates the Dave Ramsey Endorsed Local Provider (ELP) program.

It connects Ramsey’s audience with local service providers, such as tax consultants, insurance agents, and realtors.

Of course, these connections are familiar with “The Ramsey Way.”

Ramsey previously included investment advisors in Ramsey’s ELP program.

Because endorsing financial experts is unlawful, Ramsey Solutions renamed that part of the program “SmartVestor.”

In actuality, Ramsey does not personally vet and endorse the ELP program’s suppliers.

Instead, they’ve applied to be a part of Ramsey Solutions’ referral network, which was created to capitalize on Ramsey’s popularity.

The Dave Ramsey ELP and eXp Realty Connection 

Dave Ramsey, a business consultant, and eXp realty have a long history of collaboration, with both parties profiting from it. 

eXp Realty bought Ramsey Solutions in 2010 without outside participation or disclosing the terms to investors.

The acquisition aided the company’s revenue and client base growth.

Dave still owns Ramsey Solutions, but he has no operational authority over either company.

However, employee cross-pollination did not prevent both organizations from benefiting from each other’s services.

The Truth Behind The Dave Ramsey vs. eXp Realty Feud

The feud began in 2010 when eXp Realty purchased Ramsey Solutions, which Dave launched in 1992.

There were no outside parties involved in the acquisition, and the terms of the deal were not disclosed.

In an interview, David D’Alessandro and Tim Rosenzweig of Rich Dad Radio talked about how this acquisition will influence their businesses.

It became clear-cut that there was still some hostility on both sides.

A well-known financial advisor, Dave Ramsey, took a hard line against eXp Realty.

D’Alessandro stated that Ramsey flat-out said that he doesn’t like him or their brokerage. 

Dave gathers it would be more beneficial to take some commercial or personal stance against one another.

That’s so they could stand apart as competitors.

It’s clear that Dave believes this because of how close they are now with this latest acquisition. 

If you listen to Ramsey’s podcasts, you’ll hear him talking about things that aren’t in eXp Realty’s favor.

But the real question is why he opposes them in the first place.

One of the reasons he opposes eXp Realty is that he believes the company’s president, David D’Alessandro, dislikes him.

Also, after accepting expensive referrals from eXp Realty, Dave Ramsey ELP grew lukewarm towards them.

Related Reading: How exp Realty Works – Click Here To Find Out.

The Issue With Ramsey Solutions Accepting Expensive Referrals 

Ramsey revealed his stance on accepting pricey leads in an interview with Rich Dad Radio. 

He explained that he made the decision to only connect customers to real estate brokers who worked only for him.

He believes it is crucial since they are attempting to distinguish themselves from the competition. 

This is in stark contrast to the advice he gives listeners on today’s podcast.

He claims to provide names of local folks if you want somebody else to deal with them.

This suggests Ramsey Solutions accepts expensive real estate agent referrals.

He states, “We’re going to provide you some names of local folks if you want somebody else to deal with.” 

Dave Ramsy’s Endorsed Local Partner, according to eXp, is an expensive service to their clientele.

You may listen to the podcast to learn more about what occurs when someone transfers brokerage firms.

Even so, there are no specifics on whether they collect referral money from agents who support them.

Dave Ramsey has taken such a stance by refusing to hire eXp agents for his brokerage firm.

Ramsey claims that his agents may only work with them if his firm entirely employs them.

He gave them a deadline to leave unless they switched brokerages.

Is There Sense behind Dave Ramsey’s Stance Against eXp Realty? 

eXp agents should not be a member of the Dave Ramsey team, according to Dave Ramsey.

Ramsey refuses to recommend eXp agents as an agency with whom to work or sell leads.

One reason could be that they refuse to comply with his financial product criteria.

Yes, most real estate businesses have allowed eXp Realty agents into their brokerage.

However, Ramsey doesn’t want people who don’t follow these standards working for him.

Another factor is that people are beginning to switch to Exp Realty from other brokerages.

On the other hand, Ramsey has been providing real estate services for a long time. In addition, he takes part in coaching programs.

Sure, he claims that his agent would no longer work for his brokerage unless they move away from eXp.

However, it’s evident that he is still connected to them.

In a way, his antagonism makes sense, but I’m not sure it’s rooted in pure logic. 

Related Reading: How To Join Exp Realty – Click Here To Learn More.

Final Thoughts 

Dave Ramsey refuses to hire eXp Realty agents because he disagrees with their business practices.

By refusing to promote their brokerage or sell leads, he takes a strong stance against them.

Dave has nothing to do with these guys because they refuse to comply with his financial product criteria.

If you’re a Ramsey fanatic, it’s not hard to understand his reasoning.

If you look at the other side, eXp Realty agents succeed despite his attacks.

According to their agents, working with eXp Realty is a positive experience. 

They have a great deal of expertise and are on par with many other real estate firms.

The post The Dave Ramsey eXp Realty Feud: Understanding The Conflict appeared first on BrooksConkle.com.