I just wrote an article on how a real estate agent can make one million dollars a year. One of the best ways a real estate agent can make a lot of money is to create a team. I have ten people on my team; they help me complete tasks I don’t like doing, sell more houses and make my life easier by saving me time.
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One of the hardest parts of being a real estate agent or business owner is hiring people, but it has to be done. Without help you will always be on call, get stressed out with too much work, go crazy with busy work and be unhappy. The sooner you hire help, the better and easier your life will be and you will make more money! Here is a more detailed article on hiring help and delegating tasks.
How does a real estate agent know when they are ready to hire help?
I think a real estate agent should hire help as soon as they can afford it. The sooner you hire help, the more time you will have to train them and the more time you will free up to pursue money-making activities. If you wait to hire help until you are so busy that you must have help, how are you going to find time to train them? You need time to look for help, go through the screening process and train them.
Who is the first person a real estate agent should hire?
When I started to get busy with BPOs and REOs I was working long hours and going crazy with all the busy work. Most of my time was spent taking care of paperwork, filling out reports and I was ignoring prospecting for new business. I hired a general assistant to help with the busy work and any tasks that weren’t vitally important. My assistant was not licensed and had no experience in real estate sales, but had experience with property management. Hiring help made my life so much easier, and I immediately saw a huge jump in my production and sales.
Does a real estate agent need to hire someone with real estate experience?
My first assistant had some real estate experience, but knew nothing about what I was doing in my real estate business. The drawback to someone with no experience is you have to teach them everything, but this is also a positive. If you have to teach someone everything they know, you can teach them the right way to do things. If someone already has experience, they may have learned to do things the wrong way or different than how you want it done.
I think it is much easier to teach someone who is brand new how to complete new tasks, than to have to teach someone how to do things that they have done differently for years. We are creatures of habit and it is very hard to break habits. It may take more time and effort to train a brand new person in the beginning, but you will most likely have less headaches in the future.
What should the person a real estate agent hires do?
The great thing about hiring someone to work for you is you are the boss. You can teach your assistant to do whatever you need help with. I needed help with BPOs, expense submissions and paperwork more than anything else. Those also happen to be the tasks I dislike doing the most as well so it made my life better when I hired help.
Most real estate agents are not doing REO and BPO work so the tasks you assign your assistant may be much different. A traditional real estate agent can use an assistant to help with contracts, marketing, web development, advertising, database maintenance, picture-taking, contacting clients, contacting title companies and much more. Whatever you don’t like doing, you can have your assistant do as long as it does not require a license and they are unlicensed.
How will hiring help make a real estate agent more money?
There are many tasks a real estate agent must complete to be successful. If an agent is doing everything without help, they probably aren’t doing a good job with everything that needs to be done. There is not enough time in the day to market, contact your database, show houses, write contracts, create leads and set goals. When a real estate agent hires help, they can teach the new person how to do the tasks that are not being done or not being down well. That leaves more time for the agent to concentrate on the tasks they like to do. It also leaves more time for the agent to make sure everything is done well and it leaves time for the agent to set goals and plan their business. The more planning and goal setting a real estate agent does, the more successful they will be. When an agent gets busy, they usually ignore goal setting and planning, because it does not seem important. However goal setting is one of the most important things any business owner can do!
You will have to pay someone to work for you and it is tough for real estate agents to give up their hard-earned money. The person you hire will allow you to make much more money than you will ever pay them, because you will have more time to focus on what makes you money. When I hired help I was able to focus on getting new REO clients and spend more time on my fix and flip business.
How can a real estate agent continue to grow their team?
When a real estate agent hires their first assistant, they usually see a big jump in production and wonder why they waited so long to hire someone! With more time and more help they can do more deals and make more money. With that growth, comes more listings and more listings create more leads. When you start generating enough leads, you can hire another real estate agent to join your team.
How to add a real estate agent to your real estate team
Hiring another agent to join your team is a little trickier than hiring an assistant. First you have to see how your broker handles teams and what the commission split will be. Then you have to decide how to pay your real estate agent. Many books and coaches suggest a 50/50 split for newer agents with the team leader paying expenses for the agent. More experienced agents may not join your team for a 50/50 split and you may have to pay them a 70/30 split or come up with another arrangement. Some teams will give different splits to agents depending on if the agent received the lead from the team or it was their own lead.
Should you hire an experienced real estate agent?
I have hired new agents and experienced agents with varying degrees of success. New agents can be very motivated, work for a smaller commission split and can be trained easily. New agents need more training and guidance, and may not sell as many houses as an experienced agent.
More experienced agents will want a higher commission split and less training, but will sell more houses. If you are training your agents to use a system to be a great agent, the more experienced agents may be harder to train. I prefer newer agents because I can train them to use systems that will make them successful and they will listen to me! It may take more time to get a new agent to sell many houses and make you money, but when they do start selling houses they will make you much more money than an experienced agent.
Why would a real estate agent join your team?
Real estate agents have no boss to tell them what to do. They have to make themselves work hard and do the things they need to do to make money. Some agents are self driven and do great in real estate, while others do not. A team can provide guidance for agents that provide structure to allow an agent to succeed. Your assistant can help agents as well as yourself with paperwork and other tasks. You can also pay some costs for your agents like MLS fees, board dues or office fees. If your agents are selling houses, the money you make from their sales will more than make up for these costs.
What does my team look like?
I have ten plus people on my team. I say plus because I have part-time help and people who help out on occasion, but do put in many hours. There are four real estate agents who work on leads we provided and their own clients. I have one full-time assistant that is licensed and one full-time assistant that is not licensed. I also have a team manager that is licensed who sells houses as well. I have a part-time book-keeper that also helps with paperwork and random tasks. I have three people who take pictures and do inspections for me in various parts of the area, but they only work a couple of hours a week. We are hiring a new agent as well who will be starting very soon. I help run the team with my manager, I sell my own listings, work with occasional buyers, run the fix and flip business, and write this blog. Various people on the team also help with the fix and flips and property management for my rental properties.
I have a lot going on, and there is no way I could handle it all without a great team. People may think having a big team makes things more complicated, but it makes everything easier. I can go on vacation without working, I can focus on money-making activities or the things I like doing and let my team handle the other tasks. I don’t mess with payroll, because I hired my manager to figure all of that out. The great part about a team is you can have the team take care of the things you don’t want to do. They help you do everything better and provide better service to your clients.
For more information on how to become a great real estate agent, check out my E book: How to Make it Big in Real Estate, From a Millionaire Agent available at Amazon as a 125 page E book or in PDF for only $6.9