Is your head getting too big for your business?

Home : Blogs : Neal Bloom-Realtor ®CRS-Weston FL Real Estate : Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom

Is your head getting too big for your business?

I've been a full time Realtor® for almost 14 yrs now. It's the only job I have and it's the only job I can truly say I love...even during times when the economy stinks and people are losing their jobs left and right.

But it doesn't mean that I'm not human too. There are certianly some days when I just say to myself..."Why are you still doing this?" "Why are you constantly wasting your time with all the little stuff?" All the hours of hard work and what do you have to show for it?....$100 bucks here...$100 bucks there...$1000 here and $50 bucks there."

You know why? Because I'm making money...maybe not on the same level as it once was but it's still money. For example....If I take a listing and its a rental property for a minimal fee...I might end up with $300-$400 dollars if its a small condo in a retirement community. But I look at it this way...I have a website that I use and maintain myself...for the first two years I used it...the cost was free for their standard service. This year I was told they were starting to charge a fee. It was either a total of $120 for the entire year paid monthly or I could pay it in full for $100. One I decided on the $100...within 2 weeks I received 2 email prospects looking to rent out their condo. That was a few months ago...since then I've closed 6 of them with a new one just listed last week. If you do the math then you'll see that I probably made about $1800 dollars and since these "little leads" came from the website......I've already paid for my website for the next 18ys!

Think of it this way....if you like to have a steak dinner once and while and you want to have that nice thick steak...it could cost you about $20-$50 dollars for a enjoyable cut...and then you add in the beverages and maybe even an appetiser or two...well you could probably do all that for even under $100.....so next time you think about only making $100 on a deal...think about the steak dinner!

Remember that although we are looking for more than that to survive on...you still have expenses to pay out and I've just alleviated some with this scenario. In the mean time I can concentrate on selling my higher priced listings for sale and a few buyers and or renters that might pop up in between.

It's true that I'm not doing the numbers I was doing a few years ago and in no way am I ashamed to say so...but I've had at least 1 or more of these transactions each and every month. I've even managed to become a top Lister in my office two consecutive months and I didn't even know it until they told me....but this isn't about that...it's about taking in whatever you can.

I keep hearing from some agents that laugh at me and say..."I don't waste my time with that.....I'd rather wait for the big $20,000 commission to come in." Well its' not like I'm not waiting for that either....I just feel that instead of sitting around and sulking...why not bring in some income and also maybe help some people out a long the way...no business is too big or too small for me...don't get me wrong..there are some exceptions but 90% won't be turned down by me because it might be small now but it could turn into a bigger opportunity later.

I'm sorry but I don't have a rich spouse to support me until the ship comes in ...nor do I have a Bentley parked on my driveway that needs gas every day. That's the problem with some agents these days...they are too ashamed to take the "little deals" or it might ruin their reputation....Sorry but my head isn't that big.

I know what you're going to say.....you work twice as hard and get twice as less...that might be true but in the end I'm going home with a check and possible future business. Can you honestly tell me that you think every single deal you'll do in your career will be easy? Some are hard for no money and some are easy for lots of money and vice versa. Every deal is different and we can't predict everything that's going to happen. Heck...I've got a short sale listing that's about to finally close but it's been a year and a half of many sagas and bitching and moaning and how much time and money I've lost...but you know what? When it closes...I'm going to congratulate everyone and maybe even celebrate just having the opportunity and getting to learn more about my business and dealing with different people.

One time I had a client who had me seller them a little condo for about 100K.....not a very big pay day for me but after a few years we ended up doing 8 other transactions as well as I was referred to their relative who I did three other transactions with.

All I can say is my reputation isn't that large that I would turn down most opportunities...many people forget where they came from and that's sad.

For more information please contact Neal The Real Deal Bloom-Realtor® /Keller Williams Properties

1625 N. Commerce Parkway,Suite 105

Weston FL 33326

(954)608-5556

Neal Bloom

Posted by Neal Bloom-Realtor ®CRS-Weston FL Real Estate on 09/23/2009 05:38 PM

Comments (107)

Business Plans in the ActiveRain Channel

busines, business plans, deals real estate deals

Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : Is your head getting too big for your business?

Generate short URL

Post is included in group: Out Of The Box!
Post is included in group: POSITIVE ATTITUDE for the Weary Soul
Post is included in group: Real Estate Rookie
Post is included in group: RE/MAX Active Rain Bloggers

107 Comments on Is your head getting too big for your business?

SEP

2009

I have lowered the price range that we accept too.

As one referral agent said to me, Selling a $150K home puts money in my pocket when I could otherwise be selling nothing.

Smart fellow.

One thing for sure, when and if the market turns, you'll be in a position to benefit from all of your hard work. Look at the future move-up buyers you're helping now.

Neal, I like the way you think. Each small check pays a bill that would otherwise pile up. The BS about waiting for the $20,000 commission?? Let them wait. Meantime, your bills are paid.

Neal - I hear you, and I am with you 100%. Those of "us" that work hard to survive a slow market will be "rooted strong" when the market turns to hot and hopping. For me, it's great to have plenty of 1st time buyers and making them happy and having closings; rather than cry about the luxury home buyers being a rare species this year. Yep, I complain too....but only whine at my spouse :)

Hi Neal ~ I'm totally with you on this. There's no such thing as a small transaction for me. It doesn't really matter how big or small the house is, for the client it is always a big deal, so that makes it a big deal for me.

Like you I also have confirmation that this a good business strategy. My smallest sale last year was a very small zero lot home for $84K. This year that client referred me to a family member who closed on a home under $150K this month. I'm sure I'm not done there either, I'm pretty confident I'll be hearing from both of them in the future.

Denise

Work is work, bring on the little deals!

Nice Blog, Neal Bloom. I think that we should all be past our ego's by a year or so now, but what do I know? <grin> There were alot of big ones out there.

I'm with you work is work--big deal or small deal.

More Volume!!! Gotta get some more leads and that means that we have to work harder!! This season will pass.... All the best!!!

Well said Neal. I try to assess each deal to see if the end result will attainable i.e. a home sold or bought and if it goes well I get paid.

I agree with you! Everything counts and each client is a potential referral source. Good attitude.

I'm just finishing up my third transaction off of a $125K condo listing that will end with over $1.2M in business. I've also completed 9 rental transactions in my own neighborhood without getting in the car. A couple of them rented within hours of getting the signed listing agreement. I rarely say I don't do X unless I know it is outside my area of expertise, then I find someone to refer it to.

We do what we need to do to stay in the game. The market will turn those who did not give up will be positioned to win.

Neal - The day I put my ego ahead of providing good service to a client who contacted me via the internet or through a referral is the day I quit this business. With the smaller sales and rentals the reward comes back two-fold and more with happy customers and future referrals because I took the time to help them when someone else might not.

Neal - I'm feeling your pain. I too am not making the numbers I used to. However, 2008 was my worst production year ever and so far, I've already done more in 2009 than I did in all of 2008 so I figure I'm on my way up.

Yeah, yeah, I'm working twice as hard and making less money but hey, I'm still working and I'm still making money. I still have clients to serve, I still have escrows to close and I'm still getting referrals so I'm not going to complain to hard or long. It's all good. :)

Neal- In many communities, its the low end that's driving the market. If that's where the deals are, then that's where you'll find the "working" agents.

ha... i am definitely a working agent then... even am doing BPOs for the cash flow. Unfortunately I just had an agent steal a happy buyer, because she came to the party late and knew them when they were little. She gave them a sob story about how slow business was, and since mine was going good they 'thought i wouldnt mind'!!! haha

Neal, I don't do rentals anymore because I'm not set up for them but I'll do any deal thats in my market area regardless of the price. I have always been a blue collar broker. A deal's a deal. If we do enough of them we get paid well.

Good attitude my friend.

Well I go out for dinner and come back to some great comments.....I'm glad to see everyone going out and getting the steak dinner...thanks...I'll be back.

Neal, I don't turn business away for the size of it either. The only business I will ever turn away is a rude client, but not because of the price range or type of transaction. I believe that any transaction is great - it brings in money, and gives me an opportunity to learn something new - a market area, a new financing arrangement, a tricky inspection, etc. I learn something new on every deal!

Neal well said indeed. I work an area with muliti million dollar homes, but i still take the leases because I look at them like base hits and you know what base hits do, they win the game!

Hi Neal,

It does not matter the size of the transaction to me. More important is if it's priced right and I think I can sell it. I don't do rentals.. not enough of them here to factor it in to every thing else that I do.

You are sowing good seeds... you will reap a good harvest... it may not be right away but you will.

Readjusting our niches and branching out makes us a lot more versatile in the long run too! I base my business on whether or not I can help the customer not so much the property unless they want to be priced ridiculously - then yes I will walk. I work for a living it doesn't matter to me if it is 100k property or a million as long as it is an achievable goal. I also started doing rental properties to give an added value service to our current customers that have been unable to sell homes. It helps them out, keeps me in their line of sight and gives me a few extra pennies in the pocket. Great post!

Evening Neal, My average sale is way down from what it was. I'm proud of what I do and proud of the way I treat people. I'm not too proud to work hard on a small deal though.

I am having a year thats very different too. Although I work in an upper end market my business has been split this year with about 1/2 above 575K and the rest around 250K and to tell the truth I would love about a dozen listings at 300K. Like you I love my work and these days am very happy to be working and making money! It's all good!

Here here!

Oddly enough my average sales price has gone up this year. I love my small deals! We dont' handle rentals here through agents, so I don't get to endure that piece of the pie. But I've paid my website and cell phone bill every month with BPO money, so I like that!

Neal, $100 is better than no $$$$$. The big deals are nice, but I would never turn my back on a deal just because there isn't much money in it.

Welcome to my world too. We are selling houses here in the metro Detroit area under 50K sometimes under 20K. we do what we have to do

I'm actually working deals that are under $1m... ok, I've always worked deals that were under $1m, but I am doing it now, too...

Concentrate on the people not prices !!! Both will grow over time !

Hi Neal -- You are very practical and your business is benefitting from it as a result. I totally agree.

Good call Neal - I have friends who think that they should save themselves for those big deals - they think that since you have to work just as hard on a small deal as on a big deal - why bother. Well, of course, they aren't doing any business at all while I am plugging along - working twice as hard as three years ago, but at least I am working, and VERY appreciative of the opportunity to do so. Keep plugging!

I love the juicy steak analogy !!!

I appreciate the small deals. I have had a lot of smaller sales this year but they all count.

Deals are deals - I'll take the small deals!

"I don't waste my time with that.....I'd rather wait for the big $20,000 commission to come in."

Lol, there are so many people in all businesses that swing for the fences every pitch only to strike out again and again only to get discouraged and then talk negative about the experience. I prefer the constant bang of the base hit. It's not a home run, but it's consistent and very reliable.

Neal well said. Working is much better than just sitting backing hoping for the good old days. The key is to learn to adopt and work with the market of the moment.

Neal, I absolutely agree with you...how can someone feel good about what they do when they put a price tag on it as to someones worth....you either help people or none at all.

Neal, I have had that philosophy since 1994! I have always been "streamlined", I have always sold whatever - my first deal was a mobile in a park and this year after how many years of selling I sold a mobile for under $60,000 and I will do in on Thursday if someone asked. I missed the big real estate boom because of the Iraq War - yep, had to leave my business as my husband was stationed out of state and for the short period I knew I couldn't get licensed, build a niche and succeed so I worked in title/escrow to keep me in the game. Maybe that is why I am ok today - I didn't earn big and spend big. I still drive the same car I bought for cash in 1997! I will drive it again this year probably too. Oh, and with that all being said I am opening my own shop - just recieved my new business cards today. Should open sometime in November or December and I am so excited!

I have always said I would rather sell 5 100,000 properties than 1 500,000 one!

I hear many agents complain about working harder and making less money, but to think you are too good to do so is beyond my comprehension. A previous client emailed me today and wants to invest in $20,000 properties and said, "I understand if you don't want to work for such a small amount". I immediately replied, "I'd love to help them find some investment properties".

Our market is full of great investment properties; I personally like the feeling of helping others increase their wealth.

I'm with you 100% on this one. It is important to service different price ranges... sometimes if I am extremely busy I can't do some of the lower end, or the complex FHA with New Hampshire housing.. but as things slow, I try to do some each year.

Neal, Every little bit counts and eventually leads up to something big. I don't turn down any business.

Hi Neal,

I'm one of those who's personal production is down too, but I have nothing to complain about. I'm still in business and work with great people. After two serious down-turns in biz in the early 80's & 90's I've learned to live within my means and still love what I do.

As far as the size of the pay check, every single transaction is important to me and I'd like to think I provide the save value in service regardless of how many zeros show up on payday. Btw, some of my smalles closings have be an invaluable referral source for future biz.

Neal- I have a totally different outlook on this. I first will preface my comment with; whatever works for you do it. I am not the judge of you but I am the judge of my own business model. I believe that every one needs a business plan and in that plan you have to have what you are going to work on, where you are going to get your income from and how much money you are projecting to make this year and from action steps. We don't work rentals and we don't work buyers. We are listing agents. That is our focus. That is our biz plan. Knowing that if we consistently have 38 to 50 listings at least 4 of those will close each month and from those we have to figure out how much in commissions that is going to bring in to pay for our overhead, our staff and our marketing and our personal bills. We would be out of business if we spent our time and effort on $100 deals. But that is our business model and that is what works for us. NO, we don't sit around waiting for those 20,000 commissions, we make them happen, we go and get them and we close them. Our market is a higher end product and thus this is our niche and focus. We don't take listings under 100K anymore. We have some that started at 150 and now are down to 99K but that is an exception rather than the rule. The reason we don't take listings under 100K is because they are short sales and by the time we pay out the time, put our time value on that time, take care of it all we would be working with a negative cash flow on that project. In our biz plan we know how much we value our time. I charge $250 an hour for coaching real estate agents one on one on the phone all over the country. That to me is a far better use of my time than doing a rental. But that is me. We each have to calculate what our worth is in dollars too. What are you worth per hour? Are you worth $10, $20 per hour? $50 per hour? $100 per hour? Whatever you figure that to be, then you need to multiply that by how many hours you need to work in order to make your goal at the end of the year. If your goal is to make $100,000 this year but your worth in your practise is only $10 per hour- you are never going to meet your goal because you would have to work 32 hours per day 6 days a week; numbers don't work. So you have to either lower your income goal or raise your hourly worth.

And that is not about it going to your head- it is about using your head. Where you come from, never forget, but I don't assume everyone started where I started. I started in California in the early 80's and even then the prices were very high.

I would not make fun of agents (like some comments illude to) who wait for the 20,000$ commissions because while if all they need to pay their bills for a whole year is two sales that net them 20K each- they have the rest of that time to develop their business, spend time with their kids and spouses and travel and all that. That is a great life. Most people work all year 40 hours a week for 20K annual salary. I certainly did not get into real estate to make that- my goals are way higher than that. We are having one of our best years ever, we are raking in the listings and closing them. This is a great year. Not as good as 2005 and 2006 but we may get close. Sometimes it is not about how many deals but what the end net is going to be, how much profit are you making at the end of the day since this is a small biz not a job. What you focus on expands. Katerina

Hi Neal~ I am willing to help anyone that needs my services! The only business I turn away are clients that are rude or overly demanding, or if it is something I have no experience with or feel like some one else could better serve their needs.

A great book to read to emphasis my points is Keller's Millionaire Real Estate Agent, the handbook that every entrepreneur real estate agent who treats their biz like a biz needs to read and re read over and over again. Ours is our real estate bible.

Neal: "Give me your tired, your poor,
Your huddled renters yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tossed to me.
I lift my lamp beside the golden door."

Hi Neal. I like your attitude. I don't turn away quality customers though demanding and/or disrespectful ones I do. Rentals are nice too. ~ Lana

That's why I took on short sales. And now they are the bulk of my business.

SEP

2009

I work part time as an employee....for our office....I work hard at sales...I work hard with side jobs taking care of files. I do anything that keeps me going. I used to work for love... I remember where I came from .... and know where I'm at.

We all have to work to do what is possible in this market -- and for all of us pretty much it means lesser priced homes ---- heck we sold a $44k home recently -- and made enough for some groceries --- money we would not have had otherwise. Gotta do what one has to do.

Neal - I like your soul, but I think you already know that. Good for you... better for any of your potential clients.

I loved the title to this. =) While I was reading your article I was also thinking, "Work is work." If you were super busy you might have the luxury to pick and choose but in this market, taking every opportunity that comes your way is the smart choice.

Neal, maybe you should come back to Long Island! I've been reading many Florida posts, and it's got to be stunning to be in a market that has halved the income of real estate agents based on sales prices- it would seem that the only thing to do is twice the work, or halve the expenses. Most of us haven't seen this kind of drop in pricing- yet...our bank account has no idea what type of property plopped in a few bucks, and I'm sure doesn't care! Good for you for doing what has to be done, rather than letting ego interrupt a job that you appear to be wonderful with.

Hi Neal, this is certainly a good way to look at things. How do you eat an elephant? ..... one bite at a time. It's a good reminder for us that if you love what you do, then the money will follow. Keep it up!!

Great post! We never know where the $20,000 client will be coming from. I have an investor client who backed out of a 125K deal recently after inspections. We had worked really hard to put it under contract writing 8 offers, no less!. My coach asked me if I really wanted to be working with this client. I told her that he was also a good friend of mine and yes, I still wanted to work with him. Next thing you know, I showed him another property and he had a friend with him who is thinking about investing in an apartment complex over here. We just never know, do we?

I hear ya and I agree! You have to adjust to the market and if the property price range that is selling is not the one you are working, you might want to make an adjustment. I have had to do that. My mainstay was second homes and investments in a resort community. That is just not selling today. I am now changing my focus, because I like to eat! :o)))

Neal.... this is a good blog and we have talked about this amongst a small group of loan officers. I myself love what I do and love helping people. Just the other day, I spent an hour on the phone with a women in a state that I could not help, but she is greatly appreciative on the advice I gave her and the time I gave her. Maybe something will come out of it. I know on the mortgage side of things, for most loan officers, if we go below a $80,000 loan amount, we will actually make a few hundred and that part is just not worth it. Especially if the deal is going to be tough. But I do agree with how you look at this, your business, and what needs to be done... and that every penny adds up. I do agree with that philosophy and that I do use it in most cases. So don't hold my example against me. But I also need a cushion in the deal to start with, just in case something comes up that I need to help the buyer or that it takes more time. When I say cushion, I am talking about something as $1,000. That might seem like a lot to some people, but on the mortgage side of things, that is nothing in my opinion. Meaning, I need that as my bottom line... and if I need to help out the client, sure, I would throw in a few hundred, etc, etc.

Overall, I didn't read all of the comments... but I see that you have about 3 standard comments from 3 different sides. One commentor said they are willing to help any customer. As much as I did that my first 6 years, with not much coming from it, saying all or everyone, I think is not the best business decision in our industry and current market. I read one to say that they have goals to where they will help those in a certain market, and that they are doing very well with it. That's great and it's easier since they have established themselves in that market and or area,... espeically with the help of the internet. The third type... just all over the board.

In any case, I do agree with your message, about servicing different price ranges... it should come down to what works for you. Also, some people in these comments need to realize that many of us are in different market areas. Some have the luxury of being in the high end, which does help, even if you do 3 to 5 a year... and that's it. If you are in an average price range of $175,000 to $300,000, it doesn't always help. One thing to keep in mind, realtors make their money off the sales price why we make our commissions off of the loan amount. And are fee structures are never as consistent as a realtor also. meaning, it's safe to assume that it's generally 3%... not always, but in many cases. Overall, good post with some good comments.

jeff belonger

Well Good morning to all,

First I'd like to say that whatever your goals are or your future plans are...it's all good..everyone is different but as you can see the majority believes in the philosophy of some money is better than no money. It doesn't matter whether your doing BPO's,coaching...working part time as an assistant,doing rentals....working at a gas station or even flipping hamburgers for that matter. I just think that most who wait for the big deal and only rely on that is in for a big surprise. Its true that one deal can pay the whole year but if you don't occupy your time with trying to cultivate business or something with some sort of income you'll be sure to disintegrate from this business. I'm not ashamed that my numbers are down from what I'm used to but consistently being able to keep your business running is key because when this all ends and things get better you'll still be here unlike some. I can't have someone bankroll me so I have to do whatever I need to to keep it going...all it is is a positive outlook. I would like nothing more than to take listings in higher price ranges especially in my area where the average sale is probably 300K. but I can't just sit back and rely on just those so while I occupy my time with other things...I can surely take the little deals.

Honestly...I just did a seasonal rental for literally no money...the tenant actually is a Realtor in another country and she asked me if I was new to the business...and I said no why? She figured I was just a hungry new agent looking for any deal and why I waste my time...to me I felt like that was a bit of an insult...believe it or not...I'm also interested in helping people because they might come back later with something big...they never forget! I HAVE BEEN DOING THIS FOR ALMOST 14 YS...so I want to work for peanuts? If I really need to brag... should I tell you all I own 600K home...have owner 15 properites at one time with a net worth o 4-5 mil. Have a Mercedes and a Volvo. A large pool in my back yard....thats bragging...does it really matter to anyone esle but me? No..I have these things from working hard and I care to enjoy them so never let someone tell you to stop wasting your time with those things. Even if I made $85...at least it pays for the chlorine for my pool for the next two years! I just hate snobby people sometimes.

Does it really matter to anyone else but me? My old manager once told me about how she went to move someones elderly parents with her own moving truck...it turned out later that she was given a years with of food.....those elderly parents owned a very large food franchise business...she didn't need food for a year and the children were so grateful that they even let her sell their three other high priced properties...so what does that tell you?

Good for you, Neal.

We deal with a lot of rentals here now. It is money in the pocket for the agents willing to take the time. Some agents don't want to "waste" their time with them, but those that do have made thousands this last year.

We have to change with the times and right now rentals in Mi are a big part of our business.

Hi Neal - I'm with you and many of the comments in that I work with whomever, regardless of price range. Sure, I'd love those huge commissions on million dollar properties, but the first time buyers I'm working with this year will someday be second time buyers. Besides there's a whole lot more activity in the 100K to 200K price point here than other prices. It's about helping people!

You list, market, sell real estate so much differently now than you did 14 years ago and the trick is be creative, read, learn, think about new ways to reinvent your old job. If the time comes when work feels like work and you love it, but are not "in love" head over heels with it, you can always be a motivation real estate coach finding ways to supercharge the other agents/brokers in the real estate trenches sharing what you've learned, showing them their real estate scars.

Neal - thanks for the reminder!

What a cool post Neil. Just yesterday I made a reservation at a campsite. In order to keep the reservation I had to pay for it. I had two options. I could either, A) Pay five dollars to pay immediately on line or B) make out a check and put it in the mailbox. I was about to choose option A when I realized how guilty I am when I buy a Carmel Frappe at Mc'ds for a ridiculous amount of money . . .but . . . well I love them! So instead of choosing option A, I wrote out a check and walked my little butt out to the mailbox and put it in! Next Frappe I am NOT going to feel guilty!! LOL

I've definitely done more rentals this year than in previous years. It's not business that I seek out, but if it comes to me and the circumstances are right, I'm happy to take it. It's an opportunity to build a relationship which (if treated properly) will lead to referrals. It also puts a little "now" money in my pocket, but that's really secondary.

We had one person who called earlier this summer looking to rent out her condo. If I just said "we don't do rentals" that would've been the end of our business relationship. But I listened to her and the circumstances were right, so I took the rental listing and had the condo rented in about 1 month. This client has since decided to purchase another home in our area. So we sold her a ~$350k home that closes at the end of the month. I didn't really expect that this rental client would result in bigger business so soon, but she did and I believe she'll come back to us again and refer her friends and family as well.

As always, the different perspectives shared on AR are very interesting and informative.

-Scott

Good post, Neal! I've experienced a $200 rental transaction turn into a $200,000 sale, so keep in mind that those good and faithful acts that you conduct for others ALWAYS come back to you. Most of the time, people looking for rentals have contacted several other agents before coming to you because no one else would give them the time of day.

Income is income. That's why I will do BPO's at $55 a pop. May take me an hour and a half each but they fill me quiet times, and I earn an extra $2000 a month.

We take all comers, as long as they are motivated. Pride cometh before a fall.

Neal-Great post. I once listed a condo for $100K, got both sides, then listed it again, and got a refferal to list another condo in another town. Only because the broker who had uptime when the $100K condo seller called to list her condo just gave it to me.

I have a realtor partner that has been an agent for a while and he started doing bpo's for peanuts. He said it helped him learn a few new markets and he has been rewarded with a few good contracts.

Turning away a potential client based on a spreadsheet calculation of how much money their current deal is going to bring you, also means turning away all of their friends and family (who you will never meet) in the future. And unless your spreadsheet has a built-in "Nostradamus function" that tells you that this potential client will never be of mathematical value to you, I do not really see the great thinking behind that approach.

This industry is so fascinating in part because it is big enough to reward different styles and approaches.

I enjoy databases and spreadsheets, but there is a reason the "build strong personal relationships at every turn" model is so popular among Realtors and rewarding over the long haul. On more than just a financial level.

Business is business. You never know who is going to have a rich uncle to refer to you : )

It's getting to be a longer wait for that $20,000 commission. And in the meantime, I'm heading into the city (Chicago) to show condos in areas I've never been before and all for a potential sale of about $165,000. But I don't mind . . . it'll buy me a nice tofu dinner (I'm a vegetarian!)

I'm not desperate - just practical.

Neal-

In hard times, successful people hustle and make changes to stay on top. This is to be commended, not derided.

I like your post. I'm a first time poster, but I got my start in rentals and made alot more money than most agents I knew. Plus the market knowledge that you learn on a micro level is invaluable. Now when an investor client calls I know the exact rents I can obtain for them, and they are blown away by my knowledge. I don't know about anyone else, but if I concentrate on my clients and what their needs are, I've found that the income is there.

Neal, there is never anything wrong with making money, the nickels and dimes add up, and the referrals later or future business could be greater.

Neal,,,Great stuff here.....good luck to you......it will get you straight in the long run.....

Hi all,

Think the steak dinner scenario or any type of food or item....even if you made $5 today...it will still pay for a carton of milk in most states. You still have to spend that money and it has to come from somewhere. Or even getting new tires on your car...i know mine cost $120-150 per tire...that's at least $600 plus tax so if you do one little deal and make $600-$700...that just paid for the tires that will last you for possibly a year or more. So if you make lets say...$5000..you can pay off a lot of things...almost like doing a spreadsheet in your head....you've already itemized things that need to be paid.

And the referrals are just icing on the cake..if you can a few of those...well then you've made some extra profit while making a few people happy too.

I don't have time to read all the comments so it may have been beat to death already but the fact is that "today's renter may be tomorrow's buyer."

Fill up the pipeline and keep it full!

It all pays the bills. I closed a $650,000 deal one day then a $150,000 the next. Who cares take it all.

Neal - Little deals can become big later. But you are right, it does not matter as long as you are making a living, especially in this economy. Kudos, well done.

Hi Neal,

You are a smart man. The little deals definitely lead to bigger deals. People appreciate the time you give them and remember the little things. Many rentals have turned in to sales for me throughout the 16 years I've been selling real estate.

Good luck! Jeana Cowie, Broker Associate, Re/Max Real Estate Ltd, Bergen County, NJ

You're exactly right on this. We have tripled our serviceable territory and take listings - depending on proximity to our office - as low as $69,000. Every little deal helps. We find that by creating systems we can make visits to the REO's we service very effective and save trips. We take the lockboxes we need, signs and everything else on the first trip. Then we don't have to make second, third, fourth, and even fifth trips to the property. This saves us time and makes us more profitable on the little deals.

And those little deals are adding up, too.

Neal-First let me make it clear to readers here that Neal and Nestor and I are friends. We can agree to disagree.

I don't think that agents who work in luxury markets are snobs. I don't think that my agent friends who don't work with any clients under 1 million are snobs. I think that is their choice and it is not up to anyone else to judge whether they are a good agent or not just because they choose their niche. It is a mindset too. That is what most people fail to realize. There is nothing in any real estate code of ethics or sales book that tells you that you have to work with any client, no matter the dollar amount. If agents want to treat this as a public service, that is their choice. If agents want to treat it like a bonefide business, that is their choice.

I was taught a philosophy from my father many years ago that has always served me well. He said in order to make a profit in your life, in order to know your value and be able to have freedom to do what you want to do and increase your earning potential you must know what your hourly wage is that you work for in your business and then anything that needs to get done around your house and biz, you delegate out. In other words, if you get paid $100 an hour to do your work, don't do your own yardwork, unless of course that is your stress release or hobby. Don't DIY if the price is less than what you make because then that is one less hour that you can make that money. So if your are getting paid $100 an hour and a housecleaner charges $15 an hour, it is a no brainer to not clean your own house. Unless you love to clean and that is your hobby. I don't see anything snobby in this common sense approach.

Time is more valuable than money. I am not a snob if I choose to spend time teaching my 7 year old son homeschool and refer out the rentals that would take me away from my son. I can never get my time back. I am not being a snob when I don't want to work for less than a certain amount of money because I am 51 years old and every minute I spend doing that is a minute I can never ever get back so it better be well worth the time to spend.

I now use the highest and best use of my time to analyze whether i will work with a client or not. I refer everything else out. Someone else gets the benefit of making that money. That is a win win but most certainly not a snob.

Our buyers agent just called us to tell us about a week ago that she is so busy that she is no longer going to work with buyers under 100k. Does that make her a snob? We are now looking for a buyers agent who will take the buyers that are under 100K. To our buyers agent her family comes first, her daughter just went through heart surgery and she has to make decisions, like the amount of commission each sale is going to net her and make tough choices. That is not snobby. That is putting your family first.

It is not that I am the only person who is presenting a dissenting opinion. It is proven on AR that our posts will garner over 80% supportive comments. If I write a post about my view on this it would get mostly the other people who feel the same as me. So don't think that just because everyone on one post agrees that means that the one with a different view is the only one with a different view. Katerina

One of the first things I learned in real estate: the $ size of the deal does not in any way equal the value of the deal. The real "value" is measured not only by the commission, but by the experience you get, the exposure, the subsequent referrals, trade-ups, etc. So every deal, no matter how small, makes you a better realtor, the value of which ultimately IS measured in dollars and cents. Aloha ~ Yvonne

I agree Neal. We never turn away business, no matter how small. A. we like to help people and B. these little deals are going to turn into bigger deals down the road when these buyers turn around to sell these homes/condos in a better market. One must always think long term in this business. The market will turn around. Maybe sooner than we think. Good post and best of luck to you.

Okay - first of all I LOVE your shirt! Where did you get it???

Secondly, EVERY transaction is a worthy transaction. I gain a little more experience, a little more knowledge and hopefully a return client with each closing.

I appreciate this post, Neal. Keep it up!

It's time like these that seperates the men from the boys. Let them wait for he big ones while we build our businesses! Thanks for your post.

Neal - Awesome post and comments too. Like Katerina, I dont think deciding where the "line" is means "getting your head too big for your business". I know those little $100 bill adds up and I think like you do. $1800 pays for 18 years of the website support.

On the "little" deals, and rentals, I am highly selective. If I know it would not result in a future sale, I would not work them. If it is not in my backyard, I would not work them. I'm also selective on the sales transactions I serve - buying or selling because I honestly dont want to go too far. If I served them, it could take me 2-hour driving time, roundtrip on top of whatever time I work. I really just start putting numbers together, it doesnt make sense.

And I have a 2-year that is the reason for me going out there daily. When I'm not working, I want to be with him.

I would bend over backwards for some people and some clients - even if it meant not getting paid. But when I do that, I dont use my numbers to judge whether I should work them or not.

I used to not like business models that arent quite in line with mine. But I'm a changed person now. Those that says No to Rebates - then isn't something is better than nothing? Couldnt you ask Is your head getting too big for your business? It's not an easy explanation.

Each to his own.

Closing Monday with a buyer referred to me by renters I spent a tremendous amount of time with last year and never received a dime! It is about helping people....and it will come back to you... :-)

SEP

2009

NEIL I have long been of the same opinion. If you are waiting for the big fish, your spear will be empty while others will have many more smaller fish to feast on. Catching them one at a time.

A deal is a deal. Plain and simple. Money is money. Better to make some than none.

NEIL I have long been of the same opinion. If you are waiting for the big fish, your spear will be empty while others will have many more smaller fish to feast on. Catching them one at a time.

A deal is a deal. Plain and simple. Money is money. Better to make some than none.

NEIL I have long been of the same opinion. If you are waiting for the big fish, your spear will be empty while others will have many more smaller fish to feast on. Catching them one at a time.

A deal is a deal. Plain and simple. Money is money. Better to make some than none.

Neal,

I know what you mean. A small check is better than no check.

Something of something is always more than something of nothing....

Neal,

Like you, I welcome all comers and strive to treat the "small fry" just as well as the big fish. And I apologize to no one for the deals I am getting closed....

Neal: Thank you. I don't believe any of us can think that way. Frankly, it's selfish and doesn't really reflect a service attitude. I know some people have niches but we should be excited about helping everyone no matter how large or small the transaction. Just my .02. Take care.

I agree with Pul, we're here to be of service to home buyers and sellers, from small mobiles to mansions. I'll take them all

Well hi everyone..I'm back and I was reading each comment that was coming in on my blackberry while I was out...without being able to answer each and every comment...i'd just like to touch on a few...the ones that might be considered contreversial and since the rest are all in agreement.

Let me reiterate here...first I'd like to say that I'm not here to say how anyone should operate their business or their model. What I do say is when someone says that they can't see why "I" do is another story. Thats my opnion.

Now it's true that Katerina and Nestor are friends of mine here and we've met as well so we all know that disagreeing is a part of engagement as long as you don't slander or insult. My comment about the 20K was a general comment that someone I know was told. I just felt that to make a comment like that was really none of their business. It's not like we all don't want the big pay day so its nothing more than my opnion. I just beleive that something is better than nothing. As a matter of fact...my client who is an agent out of the country just spoke to me and she admitted to me that maybe she shouldn't have asked me why I do it for barely nothing and also happen to say that I'm a good agent just for following up with her so much and that she wasn't very good at that.

Also Loreena...its totally understandable about wanting to use your time wisely because of family obligations or however she chooses to operate her business. I too can be a bit selective but I kind of pick and choose them on a case by case basis. Obviously I wouldn't drive 2 hours to make $50 bucks but all scenarios are different.

My title of Is your head getting too big for your business? was a question and not an acusation with anyone in particular in mind. Even if I really thought that about a person...I would never mention any names. I might engage directly with them in private.

As far as comments that agree or disagree...I certainly like to see agreeable ones but I don't expect everyone to be in agreement...we are all different so if there were any misconceptions then I apologize for that. I'm glad there was some good ole fashion discussion here...if you don't agree with me then please say it....

That's the way I was brought up. All clients should expect to be treated the same whether or not they have expensive properties or very inexpensive properties and as Allison said...money is money.

I'm only trying to look at it as more of an investment...when you invest ...you expect a return...maybe not a great return ...but a return. If I made $10K on a deal...of course I'd be trying to piece together exactly where and when and what I'd put that money towards...that's all I'm saying.

Now Emily asked me a question totally of the subject regarding the shirt...your answer is that my wife and daughter got it for me a few years ago at some store..I actually should have started to sell them....

It makes sense to me to be willing to take different kinds of business as long as the time spent is sensible. If it makes very little money for a large time investment, my time may be better spent elsewhere.

SEP

2009

I think if you do change you approach during the bad times as well as the good your business will die. I love this business as well and any money I make doing it is a blessing!

Neal - it's not always about the money some of us do actually like helping people achieve their goals ... and yes we sometimes do work twice as hard for less than half the money but the satisfaction level is just as high.

OCT

2009

Neal -

After a 100 comments I know you've heard it all but your post so resonated with me that I just had to respond. My second year in business was really tough and I though it had been a real disaster until I started adding up all those "small checks" - what a pleasat surprise and a dozen+ good reasons to keep putting one foot in front of the other.

Michael

NOV

2009

Hi Neal! I thought you needed a November entry for this post! LOL I don't know how I missed this awesome post but, I have to say that I agree wholeheartedly with you! I've said that I'd rather take the first-timers out and make SOMETHING as opposed to making nothing in the luxury home market! And, I too, am working twice as hard for half the money but, at least it's SOMETHING! Hubby and I both work in this market--he does my internet marketing & finance management full time for us, so we KNOW what you mean about the hard work. But, I can tell you that it WILL pay off when this market turns around!

Have a great week...

Hey Little Bro, this year turned out to be okay. Not the best year, but much better than last year. I did 3 rentals, not something I normally do. I did some lower priced stuff. I was happy to get any work I could find and I think the attitude shift from "I'm not even going to get out of bed for that" to "I'm happy to be working", made all the difference. xxoo

Wow...thanks for stopping by so late on this one...haven't had time to write anything sexy lately but I will.

DEC

2009

Neal: I enjoyed this piece. Looking forward to reading about your philosophy in future works. Hope all is well.

DEC

2009

Neal, this makes so much sense. Money is money, no matter how much it is. It's good to remember the non-buyer side of things, because when they are ready to buy, you'll be the first person they think of.

This blog does not allow anonymous comments

Neal Bloom-Realtor ®CRS-Weston FL Real Estate

Weston, FL

More about me…

Keller Williams Properties, Weston FL

Address: 1625 N. Commerce Parkway ,Suite 105, Weston, FL, 33326

Office Phone: (954) 608-5556

Cell Phone: (954) 608-5556

Email Me

Feedjit Live Blog Stats

Enter your email address:

Delivered by FeedBurner

Real Estate Blogs - Blog Catalog Blog Directory

Subscribe Weston Realtor,Weston Real Estate,Weston Florida homes, Condos,homes Weston Luxury Real Estate,Pembroke Pines Condos,Pembroke Pines Homes, Weston Florida Real Estate,Weston Home, canadians,canada , Realtor,Weston FL Real Estate, Relocating to Weston FL,Weston Florida Real Estate,Weston Life Style,Pembroke Pines Lifestlyes,Weston FL Realtor, Weston FL Real Estate Agent,Weston Florida Real Estate Agent,Realtors in Weston FL,Realtors in Pembroke Pines FL,Florida Realtors,Broward County Realtors,Broward County Real Estate agents Blogging Fusion Get great free widgets at Widgetbox!

Listings

Links

Archives

Find FL real estate agents and Weston real estate on ActiveRain.

Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.