How To make Money with REAL Broker *8 ways to make money with REAL Brokerage

Steve D Valentine (Real Brokerage) explains why joining REAL can be viewed as an investment and retirement strategy for real estate agents. He outlines agent economics (85/15 split, $12,000 annual cap, transaction and brokerage fees), stock purchase programs (pre- and post-cap contributions with company matching and vesting), Elite and Cultural awards (large stock grants), and agent attraction incentives. The talk frames these programs as ways to build passive wealth over time compared with traditional brokerages where agent fees produce little long-term return.
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What is the return on investment in your brokerage or team split? What's up, everybody? I'm Steve Valentine. I am with Real Brokerage, and I want to show you something that is not what you might think it is, which is most of these companies, you know, you talk about Real and some of the other competitors out there about the recruiting thing, and that seems to be the thing that everybody's hung up on. So we're not even going to talk about that today. It's a small piece of this. What I really want you to think about is the investment that you're paying into your current brokerage. What are you getting in return for that? So a lot of people would say, well, I'm getting training, I'm getting coaching, I'm getting teaching and getting platforms. Only you can determine if it's the greatest rate of return. So when I was given the. When I was given the opportunity to join Real by my good friend Kim Ryan, I looked at it simply from the investment standpoint. I loved the brokerage that I was at, but this was an opportunity for retirement, for future, and it was a chance to go, well, I don't need as much money right now and I can start putting away, which is one of the things kind of interesting is that about 50% of our industry retires with very, very little money, like almost broke. Because we, we run in a 1099 industry where we're not putting money away, we're not saving things, we're not managing things well. Trust me, I've seen it, I've done it, I've watched my parents do it. So it's just rampant in this industry unless you're very, very financially diligent. So I want you to look at this as being presented a business opportunity. I'm not recruiting you. I want you to see the power of what I'm experiencing and what I'm seeing and how it's going to potentially impact your future by making this move to Real Broker. And I would love to have you in my network. So where we're growing, we're building wealth, and Real Broker is just one of those buckets that I found that I could start building wealth. And it's a dripping faucet that fills a bucket. You're going to, you're going to hear that from me over and over again. Because what happens is when we talk about retirement, we want to talk about passive income, want to talk about all these exciting things. Well, we, they all start small. Nobody ever said, I did one email and I got a Thousand sales out of it. No, you did a thousand emails to get one sale. Right. So it's the little things that we do day in, day out that add up, which is where the dripping faucet fills a bucket comes into place. So when I saw the opportunity to join REAL with the stock purchase program, some of the matching stuff that was going on, some of the cultural awards, some of the things that I could invest in and see an actual physical return on what I was paying in, and I already had an office. And for those of you that work from home or whatnot, there's plenty of other agents that have offices you can pop into. Mine's one of those offices. So it is a place of camaraderie. It's a brokerage. It's a national brokerage of camaraderie and coming together and working hard, being kind and bringing us together as a company and a culture. And that's what I've absolutely loved about this piece is it's seeing everybody succeed and win. And so because we don't have a lot of brick and mortar, we have a little bit of a different investment style where what we invest in, in our caps, we're getting a return on our investment. And I think that that's critical. And it goes way beyond the teaching, the training. We have real academy, which is just insanely productive, and classes going on all the time. So. And what's cool about it is it's classes from people all over the country. So if you're with more of a local brokerage, you're not getting exposure to all over the country when it comes down to other people and the network it's created for referrals and things. So there's a lot of things here. But let's get into the retirement piece and the eight ways we can generate income as real estate agents. And there's more than eight ways, too. Like, there are so many more things that are here that everybody should look at when they're doing these things, because it's an investment. It's time, right? So if I was in. So let me give you. And start with this. My cap at real is an 8515 split, which means the first 15% of my commissions up to $12,000, that's paid out at the very beginning, right? So I'm investing $12,000 into my brokerage, into real estate. Now, if I had invested that same $12,000 and got the things that I was getting now, today, 20 years ago, oh, my gosh, my retirement would look really, really Sweet right now because of what's transpired in just two years. So this is, this is what it looks like is you're like, well, can I do this? And what is the purpose of it? My purpose was just another form of investing without me having to do any additional work. The only work was the upfront work of making the move to real. Changing my marketing, my advertising for what's happening now. So let's, let's jump into this. Obviously we've got all these different ways. There is commission income, there's annual bonuses, there's stock award for capping, there's annual bonus elite agent production, Elite Agent culture awards. So there's a number of things here that I want to go through and dive into. And I just want you to think about that as I go back to what I just said. 20 years, $12,000 a year, right? So that's well over $200,000 that I invested in other brokerages. And what was the return on my investment? What do I have to show for that? Well, obviously, you know, you take some of that, there was a return on life because there was brokers and people involved in those types of things. So I understand, but there was nothing in return for me in that timeframe. Now I'm going to caution you on this as I said that when I said there was no return, there was returns in relationships in those brokerages. So some of you, you may be in a place where you have this really kick ass relationship and it's not a good time for you to make this move because of that relationship if that relationship won't move with you. So I would never put that beforehand. If there's something generating a massive amount of income, I would be really cautious. But for those of you that are like, well, does this make sense? So I want you to break it down from dollars and cents and tell me, well, it does or doesn't make sense to stay here and I don't care either way. I just want you to know what's possible and this is what's possible. I don't want you 20 years down the road going, I probably should have thought about that because I guarantee you there's several of us that look at some of the other companies and said, well, maybe I should have jumped on that bandwagon five or seven years ago. So it's something that's there. So here's how it breaks down. We have an 8515 split, there's no monthly fees, and it's a $12,000 annual cap. So on your anniversary date. So it's 100% after that except for a 285 transaction fee. And then there's a 249 sign up fee and $750 annual brokerage fee. So you're investing about $13,000 annually into the bro. You do get some freebies with some three, three personal transactions that are free other than the transaction fee where you don't have that cap piece tied to it. So that's on the agent side. Now team commission plans, you can do splits where a team member can be a half cap, which means they're going to get half of any awards that they're given as versus a full cap. So that's how you can do your team if they decide they can either be awarded by staying on a full cap or they can go down to a half cap half cap of $6,000. So same 85, 15 up to their $6,000. Here was one of the coolest parts that I found. We all hear about company matching plans, different things. And when we hear clients are like, oh yeah, our company, if we contribute to our 401k, they're matching 5% or something of that nature up to X amount. Real brokerage does that. So when you're working in your year and you're working towards your cap, you can take 15% of the split which goes to the company. That's what you're paying in your split to get to your 12 grand. But you can take another 5% and opt to buy company stock. So as you're buying that company stock, they are also going to give you a 10% match with a cap of what you contributed. So that's free money. Now what's the best part about free money is they're giving you. So not only are you investing in something that has the potential to appreciate in a stock and go higher in value, you're also given free money, which is a bonus. That 10% match or that 10% contribution is now free money. So what is your return on investment when that starts to grow? Let's say it's valued at $2 a share. When they give you that and it goes to $4 a share, your free money just doubled for doing what you do every day. So in the background, that faucet is dripping and some days it all of a sudden turns up. When you see the stock market do this or that stock price go up, you all of a sudden feel that faucet turn up a little bit. You're like, sweet. That thing that I got going on the background it's running, right? And so you're like, that's cool. This is building over on the side just for doing what I'm doing. So that is, that's one of the most awesome things right there is that match piece because they are matching towards your, your 401k or your retirement, not your 401k. It's a stock. Now, that stock you do own after a year, the one that you buy with a 5% contribution, the stock that the company awards you is, has to be vested for three years. So you have to be in good standing with the company for three years to get that vested stock stock award for capping. So when you reach your $12,000 cap, you are issued 150,000 shares. Now, currently, that's up to 14,000 agents in the company. So, you know, 150 shares again, whatever that market value is that day, you just received that. So I want to make it clear on this. Yes, you paid your cap. And it doesn't seem like a big deal. 150 shares. Well, if 150 shares is issued, issued to you at a dollar that day, it's worth $150. Now let's just go a little, little bit on the craziness and go, well, what if in two years, that stock is worth now $5 a share, the 150 that they gave you has now returned five times. Now, what if it goes up from there? What if it splits? Now, some of you, you, you people that are like, on the negative side, you're like, yeah, what if it doesn't do anything? What if the whole company blows up and it goes to shit? It goes to zero. Guess what? I thought about that. Here's what I know. I have more of a chance of a big payout in this investment by doing this than I do by being over here at this brokerage where there's nothing in return. You see, all this could go to zero. And yes, that would upset me. But here's what I do know. If it never goes to zero, it breaks even. Whatever the case may be. It's more than anything I would have gotten over here. And if it goes to zero, I was already at zero over here. So it doesn't make any difference. So I would rather take the shot and the risk that this is going to pay out for the long term, that I believe in the leadership and I believe in the culture, and I believe this is where I can grow, then that's where I want to be. And that's what you should consider when it comes down to that. So that's $150 right now. Let's just say it's worth 150 bucks. You just got $150 or $150 shares. Who knows what those could be worth down the road if you just let them sit and let that bucket fill up as it drips. Post cap stock purchase, this is another great one. So if you're hitting your cap of 12,000 bucks and you're heading towards Elite status, which we'll get there in a second, you can now purchase 10% in stock purchase after you've met your $12,000 cap up to Elite, and there's a cap on that. So now you can purchase 10% and they're going to give you a 20% bonus, right? So now you're like, oh great, another 20% of free money. Because I bought something that's value, that's going up in value. They're also matching it and giving me a 20% matching contribution of what I put in. So I want to keep doing that because that's free. So you got the pre cap and the post cap on these contributions from the company in stock, which is insane. I could show you my stock account right now and it's pretty bananas what's happened in the first two years. All right, a lead agent, this is where it goes, bananas. So to get to that 12,000 cap, right, whatever your market is and whatever your commissions are, those types of things, you got to figure out how many transactions does it take you to get to the cap after you reach your cap. Now we want to head towards Elite, which elite is $6,000 in post cap fees. So your transaction fee, that 285, which is about 21 transactions. So those are leases, those are sides. 21 sides, right? Buyer, seller, whatever. So you're going to pay that $6,000 in. And now you've met your cap and now you're Elite. What happens at Elite, this is where it's going to blow your mind. This is where you've gotten all your money back. Now they're going to give you $16,000 in stock the day you hit Elite, goes into your brokerage account, $16,000 in stock. Now guess what? That's what you got that day, whatever those shares are. Now, if it goes up, which we've seen it go up, we've seen it go down, but all of a sudden they issue that 16,000 and let's say it goes up by a dollar or increases, let's just say 50%. Now, that cap award, that Elite Performance award just turned into $24,000. Is your brokerage giving you that now? Probably not. So it's pretty amazing what I'm seeing in the background from the things that I just normally would pay and do. It's not changing anything. The other way you can get to Elite is 500,000 in gross commission income plus 10 completed transactions with a $1 million plus sales price on it. So some of your areas that can be easier to hit and you get that Performance Award, which is insane when it comes down to that. And I have hit that every year I've been here. It makes that investment well worth it when it comes down to it. Now then, once you become an Elite agent, you now are qualified to be part of the Cultural Award. So, for instance, I teach once a month Inside Real, the Investor Mastermind. And at the end of the year, I receive another $8,000 in stock in the company for that Cultural Award for Teaching. So if you look at what's happened in my year to year, I'm paying my cap, I'm paying into Elite. I'm getting stock for both of those things. I'm getting the Performance Award, I'm getting paid to. I'm receiving stock for teaching in this, for the Culture Award. I'm not getting paid to do it. I'm receiving stock for it for my contribution in the Culture. So now when you look at all those and you look at, okay, I was given $16,000 for hitting Elite in stock. I was giving another 8,000 in stock. So it's $24,000 that I received, which is $6,000 more than I put in, plus the stock from the other things. So I got all the money back that I invested in my cap back in stock for hitting these different things. Now, some of you might not be there yet, but it's something you can push towards and you know that it's something that you can drive. You're like, hey, I want to drive to get here. Because there's these other things that I receive from my company that are financial benefits and bonuses to me. So that's why I want to hit these milestones every time. And then attracting. So if you attract an agent and they come on and like I'm talking to you and you're thinking about moving over to Real, and I attract you, I'm going to receive 75 shares for attracting you to the company. And if you're a half capper, you would receive 35 shares. That is just one benefit and income stream of attracting other agents. This is where we saw a huge issue with people, like, running around recruiting for companies, because all of a sudden, there was compensation. It felt like an mlm and it was just. It was weird, right? Because you were almost afraid to be approached. And so this, for me, has always been about organic attraction. And if you got this video, it's not because I sent it to you through a blast email. It's because we had a conversation. I invited you to watch this so that you could understand what it looks like to be a real estate agent at real in a company that's growing, that's publicly traded, and the benefits that it has that real estate agents and companies haven't experienced in decades. You know, in the Latter Part of 2010 is really where we saw the first company of this style kind of happen. And I think that there's going to be a lot more of this as we move on. So now there's the revenue share part where you start getting into attracting people, right? We're not recruiting, we're attracting. I want to attract you because you want to be around me. You want to be in the culture that I'm surrounded in. You want to see and do and feel what I have, and I want to make that available to you, and I want to help you succeed in that area of your life. You know, my goal is to help real estate agents succeed and become wealthy and not end up where my dad did, which was sudden death at age 63 and having nothing and no retirement. And he was heading for no retirement as well. He worked like a dog. You know, he kept crazy hours. And this is one of those pieces that I saw. I'm like, hey, I got a good 20 years left in this business. If I do this now, what's it going to look like in 20 years? Just as an added bonus to my wealth, my retirement, my legacy. So in here, you start attracting agents now. Your agents. If you go down this road and you want to attract, the attraction is finding people that are, like, kind to you. I want to attract people like me or they're trainable, that have the right mindset because we're building a culture. This is not going out and going. I want anybody that breathes to come to real. That's not the point. We want to create and continue to create that collaboration and that peace where we come together and we make it better. And the more better people we have, the more better people we have, the.
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