https://www.listennotes.com/e/e04520a44eb24b3b82c130dc2e41e7db

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, we 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, I'm getting platforms. Only you can determine if it's the greatest rate of return. So 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 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 the bucket. You're gonna hear that from me over and over again because what happens is when we talk about retirement, we wanna talk about passive income. we want to talk about all these exciting things. Well, 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 rewards, 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 and 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 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 85-15 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. 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 what it looks like. It's 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 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 all that, 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 85/15 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 brokerage. you do get some freebies with some 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 is $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, they're 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 in 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 one of the most awesome things right there is that match piece because they are matching towards 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 owns, awards you 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 were issued 150,000 shares. Now currently that's up to 14,000 agents in the company. So 150 shares, again, whatever that market value is that day, you just received that. So I wanna 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 to you at a dollar that day, it's worth $150. Now, let's just go a 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 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've 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 at 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 gonna 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 give me a 20% matching contribution of what I put in. So I wanna keep doing that 'cause 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, 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 gonna 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 gonna blow your mind. This is where you've gotten all your money back. Now, they're gonna 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 ten completed transactions with a $1,000,000 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 are 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 gonna 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 that are trainable, that have the right mindset, 'cause 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 better the people we have, the better off we are as a community, as a culture. So as you start to attract people, if somebody caps and they meet $12,000 in cap, you would receive $4,000 in annual residual money as they do their commissions. You are getting a piece of that. so you can dream as big as you want and go, oh, if I had X amount of agents, this is such an awesome thing if it's part of your day to day. Like, Hey, I'm doing some house stuff and I'm talking to some agents. So I just want you to really feel that out that this may not be something you want to do right now, but it may something down the road when you get comfortable inside real. Hey, this is something I want to do. I want to talk to more people about it because I am excited about it. I'm sharing this with you because I'm excited about it. It's something that I did. It's something I'm excited about. And I think you should consider it. So you can read through the rest of the tier stuff. It's this, that, right? We've all seen the MLM deals where it's like, if you unlock this and you do this, I don't want this to be the main focus. This is a bonus piece. If you decide to do it, I want you to focus on the other avenues that we just discussed, because those are the main things. those are the things that work in the background. This right here on the attraction piece is an awesome way to create residual non-working passive income down the road. And it can happen overnight and you can create small targets and small wins with this. But again, you have to really want to be at the company for the other reasons. And this can be a bonus reason if that's something you want to think about. the other benefits, really cool. Say you are not the person that you're like, Hey, I don't want to do the attraction, but this person's talking to me about it. I don't want to say you don't have to do all that work. Right? So it's really cool because we have the ability to co-sponsor. So if you and I, you join Real and we're having a conversation, you're like, Hey, you know, John Smith over ABC Realty, he's really thinking about he's not happy with his brokerage. I really want to set up a conversation. with him, would you do that with me? So then we're co-sponsoring bringing that person to real and we share in that revenue. So we can build that line together so that you can be confident and like, well, at least I have Steve to lean on in this conversation. So now I have somebody to co-sponsor with until I'm comfortable with having these conversations. Maybe you are, maybe you're not, and you're just really good at getting the phone warm for somebody else to come in and close it. It's a great way to partner with people. The willable revenue. This is insane. So your stock and your residual income that you build from agent revenue is all willable to your next of kin. So your family, your trust, whatever that looks like. So that's all there. And then the stock purchase program, there's a couple, there's so many things that real, there's just There's a great new app that we're working on with for a client facing app for their experience, real signature is a DocuSign type platform. There's also health insurance items, benefits, discounts, the other awards that we talked about. And at the end of the day, we want to build together. The whole work hard, be kind is really important. It's what I believe in in the business and I want to continue to build my network of agents inside Real because I think that passionately I can say I want to bring agents along to make sure that they're doing a different path. They're learning things that I didn't know early on and I learned things my dad didn't know early on so that your success rate is much higher and much faster than even mine is as you're building wealth inside and this opportunity in this business. and this is just one way that you can start earning income as a real estate agent based on your sales and your transactions. And then you start taking the other things that I'm known for, which is flipping, investing in real estate, finding deals, putting things together, being creative with your clients, building your own rental portfolio. So what I loved about this is like, okay, so I have this going on over here. This is really cool. I'm investing. I'm paying a little bit of money into my company. I'm getting something in return. I'm also doing the thing that I love, which is real estate, and I'm buying some houses and some investments. So I'm creating income and I'm building wealth and legacy. And then I'm also creating a really good income in my brokerage with my traditional space and helping my clients buy or sell and represent and do those things. And so all of a sudden we're like, oh, there's all these dripping faucets that are filling these buckets. so that when you get to be 50, 55, 60, you can go, hey, you know what? I'm going to turn that faucet off. I'm good. The bucket's full. And then I'm going to turn this one off. The bucket's full. And you're not running around going, I don't know where I'm going to do an open house, where I'm going to create income, how I'm going to pay my bills. Right? This is part of it. These are the things that people didn't share with me when I was growing up and getting into the financial side of investing and. and what to think about it. And the reality is, is somebody would have just really, really dove into me and said, Hey, it's the small things that you do day in, day out that'll make the biggest impact a decade or two decades down the road. So sit with this and if you're interested and intrigued about what this looks like and how it can be life changing for you going forward in your team, let's chat, click on the link, let's set up a Calendly appointment, let's have a conversation, let you ask your questions, let me answer those the best I can. and see what we can do to help you make this life-changing move to real brokerage. And I'm looking forward to seeing you soon.