Our broker relentlessly looked for new innovations. Since the begin of his real estate career when he started in at Keller Williams in 1999 in North Bergen. And simultaneously in New York City on his own company. He is a veteran of the industry who has been through most companies in the past 20 years. His journey was extensive from Weichert Realtors, Exit Realty, Century 21, to Sotheby’ International Realty.
The system is broken and designed to enrich both the corporations and owners of the brokerages. The dated idea that an agent is only “as good as their last sale”needs to stop.”
Are you seeking something different? An opportunity? We invite you to meet and have a no obligation conversation with our broker.
We are entrepreneurs who actively invest in real estate. We buy properties, make repairs and improvements, and sell it later for a profit.
Money!…Most real estate salespeople make no money at the beginning of their careers once they do, they can finally live the way they always dreamed. This dream comes with the high cost associated with upgrading to a better lifestyle, there’s also the business overhead, and personal promotion overhead to keep the money coming in a competitive market. The current business models greatly benefit the brokerages, not the agent.
Before receiving checks, most agents pay a 6%-8% franchise fee. Afterward, the brokerage deducts 20%-50% depending on the split. Under these terms, a $60,000 check at closing turns into $28,000 for the agent! Lastly, taxes are due on that money when you’re self-employed. Then what money is left over to invest?
They say a “broker is either broke or breaking people.” Who benefits?
This model is the standard of corporations who answer to stockholders. They start agents at 50% based on experience, as they grow their business the percentage increases to retain the successful agents. They also deduct 6-8% franchise fee off every transaction. With this model, the agent never sees 100% commission because the franchise fee is non-negotiable.
This model is heavily reliant on fees and number of agents. For example at 300 agents with a minimum $100 monthly fee the office then generates $30,000 a month, $360,000 a year. Without closing one deal, this is excluding the extra fees; desk fees, technology fees, office resources. This fee model is what makes the 100% commission brokerage succeed.
Others use a variation starting agents at 70% and temporarily upgrading them to 100% thus gaining an additional 30% from every transaction.
Profit sharing? At less than $4,000 a year? Consider this a monthly fee reimbursement! Shareholding? You have to sell them to enjoy! If they hold up their value by that time.
The commercial loan financial terms are more complex and costly than those of a residential loan. Do the banks deem a self-employed individual a high risk for a $5 Million multifamily property? How long will it take an individual agent to come up with the required 20%-30% down payment? A $1.5 Million down payment, plus emergency reserves, payroll, and capital improvements.
Most banks will finance a residential property to a self-employed individual after 3 years filing taxes. The smart agent will start with a 2-family home. Gradually the agent picks up a couple more homes growing a small portfolio. But eventually, the individual will hit the ceiling on the debt to income ratio. And the growth stops until the agent picks up a partner(s).
Then there are the ever time-consuming tasks of being an individual landlord, tenant litigations, expenses, and repairs will take their toll, and share of valuable time.
Rubirosa International Realty is an international investment firm. We serve as a brokerage company to our clients. Our strength is the experience of our leaders and the number of investor agents. Our concept is simple, the company’s share of commissions used as down payments. Instead of capitalizing on the profits we chose to benefit the investor agents. The increased advantage of the brokerage is creating in-house investors. While simultaneously creating a stream of income not dependent on the warehouse model. The overhead of the company will be covered by passive income not by bleeding the agents.
Our technology platform offers full transparency to our investor agents. The specifics only discussed upon our meeting.
The growth of our investor agents is in the company’s ethos.