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Have you ever been to a retirement party for a Realtor?

By
Services for Real Estate Pros

Seriously. I'm in the business 20 years and I have never even heard of one. I am a fun guy, so that can only mean one thing - no one ever retires from real estate. Is it because we love it so much, or that we can't?

There is a major flaw in our business model, in that each real estate agent is an independent entrepreneur, but even after 25 years, there is no value built that can be sold. Entrepreneurs retire when they sell their businesses. Without shareholder value, a business isn't really a business - it's a job.

Then there's the treadmill effect. Two things happen at every closing; you get a commission check and you lose a customer for 10 years. You have to get right back on the treadmill.

The good news is that you won an award for a fantastic performance in 2011. The bad news is that it's 2012 now! Get back on that treadmill.

I know hundreds of real estate agents who have created enormous wealth over their careers, but most of it went to their clients. We don't get wealthy in this business if we just generate commissions for selling real estate.

In other words, if you are a 20 year veteran in this business, you have sold a financial product that has performed exceptionally well and made people rich. The questions is, have you acquired enough yourself?

Buying one cash-flowing single family home at market price in the next year is a life changing event. You just have to wait 15 years to realize the benefit. (An extra $200,000 in cash is a life changer for most people, and that's what you would likely end up with for each investment property you buy.)

You need to do this. It is a crime to be in this business and allow artificially depressed values, artificially depressed mortgage rates and skyrocketing rental rates pass you by. Stop making everyone else rich and build shareholder value in your business by acquiring assets along the way.

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Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Valid points.  Something to definately think about.  Realtors don't retire.  I think it's because in most cases we're A type personalities.  Quite frankly, why retire.  By now, the referral base should be well established.

Jul 01, 2012 11:18 PM
Judith Abbott
Coldwell Banker Residential - Dallas, TX

I entered real estate from the perspective of a real estate investor.  When I first came into the business, I learned several surprising things about real estate agents.  Very few of them own real estate beyond their personal residence.  Many of them don't even own a home.  Real estate nvestment and management is a very different skill set from real estate sales.

Jul 02, 2012 12:29 AM
Jeffrey Funk
eXp Realty - Windermere, FL
Broker Associate | Team Leader

Greg, I agree with Chris & Dick 100%. Why retire? In the future, I will gradually slow down the pace, but I don't see myself actually "retiring". I see this as a benefit - not a downside, of our profession.

Jeff

Jul 02, 2012 02:50 AM
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

I think Judith's response really hit it on the nose!

Jul 02, 2012 02:51 AM
Amy Boehm
Keller Williams Realty - Boerne Hill Country - Boerne, TX
Your Realtors For Life, The Boehm Team

Old Realtors Never Die - They just list away. 

Read that on Activerain once :)

Jul 02, 2012 07:12 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Seems that even those who are thinking of retiring keep their license and refer out the business they might get.

Jul 02, 2012 02:13 PM
Mary Bowen
Coldwell Banker United, Realtor - The Woodlands, TX
Real Estate At Its Finest!!!

Its not common, but I have seen Realtors sell their business.  They usually have created a brokerage or a team with quite a following.

Jul 07, 2012 10:31 PM
Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

I too have seen Realtors sell their business.  This business is a great second career for folks who have retired from another profession.

Jul 07, 2012 10:58 PM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

It seems that every time someone wants to sell something to realtors, the price is just $39.00 a month.  You get 10 different marketing or investment programs, and it is just $390 a month.  Easy schmeasy.  And, that would likely be just a dinner out, right? 

Jul 08, 2012 03:10 AM
Denis Greatens
Keller Williams Lake Country - Watertown, WI

I have only been in the business for 11 years, but I can remember one agent in the area, actually retiring and passing his business on to another agent.  Of course, he also had real estate investments - rental properties to use as suplemmental income.

Jul 08, 2012 03:45 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Agree that investors as RE clients is the way to go.

Jul 08, 2012 11:55 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Greg, yes, investor clients are for life, they buy more frequently and yes, refer much more 'convincingly' to others. That's the business model I am looking forward to - so....

Jul 08, 2012 02:59 PM
Barbara Tattersall
Keller Williams Realty Metropolitan (Keene,NH) - Keene, NH
GRI

I got in to this business so I wouldn't have to retire.  I figured I could always push my walker through the house while the clients looked around. :-)  Now, agents don't even show houses!  I can give them the lockbox code from my nursing home room. Yeehaw!  Seriously, though...I wouldn't have the investments and rental properties I have if it wasn't for this terrific business.  After 34+ years, it's still as exciting to me as when I started.  Never a dull moment, never two days the same and the added benefit of meeting wonderful people along the way.

Jul 29, 2012 08:54 PM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Some of us do not plan to retire.

Jul 29, 2012 10:49 PM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

You had many good points until you ended with a commercial.

Sep 04, 2012 02:11 AM
Dana Basiliere
Rossi & Riina Real Estate - Williston, VT
Making deals "Happen"

Realtors don’t retire unless they don’t do enough business to pay all the $39.00 bills.

 

Sep 04, 2012 04:07 AM